Q4 2020 Euroseas Ltd Earnings Call
And followed by a question and answer session on which time if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced almost advice and at this conference is being recorded today.
Please be reminded that the company announced their results for the press release has been publicly distributed.
And for crossing the flow to Mister <unk> I would like to remind everyone. The and today's presentation on conference cool your seats will be making forward looking statements. These statements oh within the meaning of the federal Securities laws.
Not just discussed maybe forward looking statements, which are based on current management expectations I info for risks and uncertainties that may result, and such expectations not being realized I currently draw your attention to slide number two if the webcast presentation, which has the full forward looking statement on the same state and it was also included and the.
For this please take a moment to go through the whole statements and read it and.
And I will get past the flow to Mister Pitt US. Please go ahead and stuff.
[noise], the not the moon, ladies and gentlemen, and ready for them to scheduled to go for those schools that day.
Together we've moved.
And so chief financial Officer.
The purpose of the basic on just to discuss over for you mentioned the results for the year and and Kosta and December.
December 31st 2020.
Let us go to slide for me to see our income statements highlights.
For the for you of 22 anything really both the total revenues of $53 for the million dollars net.
Net income was for a million dollars and.
I think I might be able to compensate for those after the point $7 million dividends on deceive is a bit concerted sales was $3.3 million or 58 cents.
Sales basic and diluted.
Adjusted EBITDA was $11.8 million and digested net loss attributable to come on sales for this for the year. After adjusting mainly for vessels that was so was for $1 million on.
For.
0.002.
Since it on.
<unk>, but said basic and diluted.
For the fourth quarter of 2020 with reported total net revenues of 12 million net income was point 6 million and.
I think I much and we supposed to come on shareholders. After the point 2 million dividends and saves Beep. You said says was point for the million dollars or seven cents earnings per share basic and diluted.
And dusted EBITDA was 2.1 million and there was and adjusted the net loss attributable to come on shareholders for the period of $1 million or 16 per se basic and diluted.
That's just a really review on financial highlights and more detail later on and the presentation.
Please turn to slide for to view and detailed a recent chartering operations on sale and purchase developments.
The source of of motor vessel significant with some declared the four to six months option as of February 2021 at $12000 per day.
Motor vessels in that zone and.
Was extended for the period from September to December of 2023 at $8000 per day starting January.
Actively from January 1st.
2021.
The and multiple vessel M a store or the year was extended for up to February 2022 at $18650 is from December of 2020.
And what over every BTG was fixed for up to December of 2021.
At $15500 a day as from December 2020.
The charter they've OEM spaces declared the five to seven months option at $8100 for the day as from December of 2020.
Additionally, via G and express was fixed up to April 2022 at $11500 for the day is from December of 2020 again.
By merely note that in early October.
And he's a that was fixed with a bit of COVID-19 for seven months at $7200 per day.
The day, the going rate would be close to $10000 for the day more.
This shows outlets the market because moved up and the last four to five months.
We should dimension here, that's the AMCOL flu shots for the damage on each stage soft and was items since early December of 2020 for two months.
For the beds and Drydock and resumed operations on February 10th.
All of the costs of the bed will be covered by insurance.
There were no no drydocking expenses for the fourth quarter.
And the SMP front as we said previously reported we sold motor vessel Leah Madison's, two seven and south to live and this saved was completed and November 2024.
For a total of approximately for $9 million on the net proceeds of reached $375 million was used to debate the outstanding loan of the vessel.
At least on slide five where you can see how current fleet for both sides.
Ulysses Fleet currently consists of 14 vessels, including nine and feed this and five intermediate contain the guys is we've ex approximately 540000 deadweight tons and 42080 you capacity.
The wasted average age of the fleet is $15 eight years and <unk>.
Like six shows are vessel employments.
As you can see as of February 22nd we have about 62% covered for the remainder of 2021 day.
Just on Maxine tufted durations.
And that's really with the continuing advise and the rates for those are expected to keep the vessels and to fix debates as much as possible.
As you can see we have three vessels opening up for being faster and Q2 and five vessels in Q3, which we hope to be able to fix at that age at least double that got them to AIDS. If the market stays strong and then.
Out of these hcp's only seen a geo plans, which is fixed and then at and index base level and.
Is.
I am having a low rates.
Oakland currently based on day index based level is opening around $24000 for the day.
So all in non we expect that half of our fleet will be valued higher and during the next.
326 months.
Please turn to slide day to Lucas how to market fed during the course of and beyond.
As shown and the slide and charter HIV and can be significantly. Despite further concerns about took over and advice from bending ex.
Seeding media and levels and reaching 12 year size for certain sizes.
And development that we expect to continuing the net.
Please turn to slide line, where we give a birds eye view of the general contain the market over the fourth quarter.
What day reversal of for teams and just three months and.
According to Clarksons 1700 for you did vessel the racing to each from an average of several thousand for the day and <unk>.
To 11400 per day and queue for and currently standard that around $15000 per day.
That through and the 5000 and you did vessel interest from an average of eight and the $5000 for the day and queue for the 214 $2000 and queue for and currently stand close to $20000 per day.
Similar type of changes have been seen on the larger sizes as well.
The for 250, you did and this vessel increase from an average of 12 6000 and queue for the 222 2002 for and currently standard around $51000 for the day.
The 5600, a day you did and this vessels increased from levels of $17000 for the day and <unk> to 26002 for and currently standard around $45000 per day.
Average second and prices for vessels between five to 20 years old the whole significantly by between 40% to 70% and even 100% for good south of three larger vessels.
During the fourth quarter, new building prices was stable, but since the beginning of the year is still prices have been on the rise and they contained and market has seen forbidden visas.
For his seem service for new buildings, because of the month, leading to slightly further and prices.
The inactive contained and received fleet currently Spencer about 1% totaling approximately 250000 du.
This contrasts strongly.
Less for nine months ago in the mid May 2020, which was two 7 million du.
Six capacity kept and active for the scarp ahead, so thick and.
And each lowest level since mid 2019, and these now close to zero.
The number of vessels scrapped decreased and queue for two only 666 or seven.
Or and for <unk>.
And you.
Discuss these spikes could appetizers happening to these two over $450 for the lightweight ton due to the high demand for Steve.
On the whole and 2020, the fleet group by two 9%.
Both of course accounting for items and to be activations or idling et cetera.
Please take slides and.
Given the recent global 40 support and vaccine Rollouts that have been that have rates hold for both on that island and the pandemic. Later this year. The idea myth has been gradually increasing its GBP estimates.
And more with the development developing economies, China is the only country that managed to both the positive growth of 2.3% and 2020, having to be Calvin fast and from COVID-19.
For 2021.
And this project that towards significant countries and post positive gold.
In fact, and the latest in Bolton generals and won't GDP growth and 2021 has been and advised further outputs from five 2% and the previous growth to 5.5%.
The use economies estimated to grow with 5.1%, whereas the yugoslavs gdp's set to be bound by for 2% and 2021.
Most important economies have expected to see a slight growth up when compared to the previous kosta, except for the and yet which according to the items mixed projection, we'll see a huge 3% further increase in the test and made the growth.
Reaching a very impressive 11, 8%.
Diana is expected to grow at the very strong base of eight for one person.
For 2022, and 2020 to be global growth. According to the Imf's economic outlook will continue to see above advocates increases at four and 2% and three 8% respectively.
With most individuals companies continued to grow above and except China, which however is also expect to be growing at a reasonable price 0.62, $5 and 70%.
In terms of demand for containerized straight, which closely correlates to global GDP growth and these massive and du per mile to go into Clarksons estimates, we expect to see a strong and rebound and demand and and $5 for percent. This year wise for 2022 and 2002.
<unk> the containment trades are expected to hold up at reasonably high levels of 32% and three 5% respectively.
Of course, all these forecasts should be taken with a pinch of solved as predicting the future is always difficult, but maybe even causes them due to the disruption scores by COVID-19, which is changing established life patterns as of yet unknown duration.
And and interacts with and uncertainty over the geopolitical situation and especially possible trade.
Between the us and site.
And these codes slight 11.
And the view the containers to page profile and order delivery schedule.
As we can see the container C page profile from the left side of the slide over on the Containerized fleet as a young fleet with the mirror, 6% of ships being over 20 years old.
However, the older vessels are mainly concentrated and the smaller sized classes, let out <unk> software.
Consequently, the growth of the fleet and these segments would remove and might even be negative and the next couple of years as the most significant other things have been placed date and some of the <unk> some more likely to be scrapped despite for stonework.
And the right side.
Those are delivered schedule of the carbon contain a simple do boot, which is expressed as a percentage of the fleet.
The circle figures for 2021 to 2023.
From just the all of the book before any scrapping and slippers.
Currently the total containership over the expense of $10, 90% of the fleet of.
<unk>, which is over the lowest observe and more than 20 years.
This low level of of the book provides a source of optimism for a continuation further stated strengthening of guidance market levels. If credit demand further recovers given that the supply side will be at minimum levels.
Listed for slight 12, where we discuss our outlook summary.
The unknown duration of the pandemic and it's financial consequences had made predictions about the future date very difficult.
However, if the distribution of vaccines for can help with the containment of COVID-19, and the developed markets by the first half of 2021 is widely anticipated and.
And then and the second half of 2021, and 2022 and without experience and dystrophic events, we can't expect significant global demand growth.
And many event guidance logistical bottlenecks.
I would expect it to remain at least and sometime in queue too.
And 2021 over on demand as expected, therefore to be significantly stronger than and 2020 and hire them to supply goals.
Vicious call supports optimism for even stronger dates.
However, and we have all of you seen significant debate appreciation over the last three months sort of passing the highest levels of the last decade. So we're more disconnection, if and when logistical bottleneck six cannot be ruled out.
Longer term fundamental to have to put a day and disorders will depend a lot on the vessel the going rate and the rate of growth of demand for campaign issues.
Deliveries from the existing over the scheduled for 2022 and we.
Made an extremely small even smaller than 2023, thus, creating a positive environment, which is likely to lead to continuation of the good markets and perhaps even the further strengthening doing 2022.
For 2023 on words, it's too early to try and make a call.
Your living has resumed and the last couple of months specially for bigger vessels, but Steve and the order book remains at historically low levels.
For vessels and the sub 5000, du segments and to remains very small at about 4% of the fleet.
Mr Slide 15.
The left side of the slight survey for loosen up for the one year times at that age for containers of 205000 for you since 2000.
Business financial crisis of 2000 day and.
At eight state that other depressed with three spikes within the five and a half to $15000 per day AIDS.
Currently we are witnessing stronger chart the rate that exceeds even that eight levels of 2010 and 2011 on the lower only on the levels and previously experienced in the mid two thousands.
They are items side of the slide so's vessels values and the relation to historical prices since 2011.
As we can see current contain the supervisors over the past two or three months of significantly increased above historical meet and and evidence lessons of the past and years.
That refer to room to grow if the current market persistence.
And is a current market conditions Ah strategy is to openly and acquire divestments and combination of securing medium to longer term charters that would break the vessels down to media and evaluations by the end of the channels.
At the same time, we have all the results and to go along with the company using our listed for that phone to potentially acquire vessels in exchange for sales as we said also done and 2019, when we acquired date vessels.
And many event the improved and markets will increase the companies for the cash flow and we will continue trying to optimize its use between further growth strengthening the balance sheet and the turban and capital.
Having always our sales for this best interest as our top priority.
And with that I will now pass the flow to our CFO tussle sisterly. These to go over our financial highlights and multi page.
Thank you very much on activities would morning from years, where and make some gentlemen.
I will now take for the next for slides to give you an overview of our financial and the results for the fourth quarter and full year of 2020 and compare them to the same the results of 2019.
For rock, let's turn to slide 15.
For the fourth quarter of 2020, and the company reported total net revenues of $12 million and and pretending and 9.6% of the total net revenues for sure.
Keen on during the fourth quarter of 2019, which was the result of it and.
Lower and number rational sharpei and your other court.
Partly offset by the higher time charter hates our vessels.
And the fourth quarter of 2020 as compared to the previous year.
The company reported net income for the period for quarter of 2020.
0.6 me here and net income attributable to come on shareholders for <unk> for me here.
As compared to and net loss of zero point $8 million, and then and a net loss attributable to come on sharp hold cash of 0.9.
And for the fourth quarter of 2019.
And other financing costs for the fourth quarter of 2020 amounted to 0.8 comedian compared to one point up.
$1 million for the chain and of 2019 and as soon as out of lower debt levels during that period.
It should be noted that into false.
And the soft and the fourth quarter of 2020, and we also recorded and loss on debt extinguishment of points price media.
For the compassion of alone for.
To come on stock cash perfect accounts from the law and academic and November 2020.
Depreciation expense for the fourth quarter of 2020.
One six medium as compared to 1.5 million and the fourth quarter of 2019.
Guidebook and expenditures amounted to 0.1 medium during the fourth quarter of 2020.
Pricing of the costs are formed version complete and intermediate survey and water.
For the same period of 2019, and I would like and expansion amounted to $1.5 million due to the cost of one vessel complete and care Special survey Drydock and two vessels completing the intermediate sure <unk> and water.
Attracted EBITDA for the fourth quarter of 2020.
2.1 million compared to $1.2 million.
For the corresponding period of 2019 and engaged on for about 76%.
Basic and diluted earnings per share attributable to come on shareholders for the fourth quarter of 2020.
0.0 $7.
And make it on six one medium basic and diluted weighted average number of cash outstanding.
To have basic and data that lost their share of point $18 for the fourth quarter of 2019 calculated on 5 million basic and diluted weighted average number of trash and our strength.
Excluding the effect on the income attributable to come on shareholders for the quarter and realized gain on derivatives.
More translation of the note.
Market time charters required and.
And the gain on the channel for version.
And it just it lost on capable for commercial homeless for the quarter.
And and December 31st 2020 could have been 16 cents per share basic.
And diluted.
And you play farther on this number for the for the and.
Last on that day extinguishment and it just has lost there sure is and introduced to eight per cent basically diluted for the fourth quarter of 2020 compared to and I've talked with loss of 32% basic one day and noted for the quarter for the fourth quarter of 2019.
And she was taking and the particular kind of and not include capitals items and get published estimates of earnings per se.
It's not and look and very high part of the slide for.
For our figures for the 12 months for the full year of 2020.
For that period, and a full year Encumbering and reported total net revenues of $53 from you here and.
Presenting and fantasy 2% increase over total fat fingers for 40 medium during the 12 months of 2019.
Part is due on.
To hire other numbers.
On a restaurant.
And it and the higher earnings when you are.
And a period.
The company reported net.
Income for the year or for media and net income attributable to come on shareholders for free free media as compared to a net loss or for 7 million and and and and net loss attributable to call on shareholders for.
$8.5 million for the 12 months of 2019.
Interest and other hi, Nancy and costs for the 12 months of 2020 amounted to three 6 million compared to $50 for a million dollars for the shame for.
2019.
Again to increase is due to increased amount of that.
And 2002 and cash compared to the previous year.
And also for 2002 and casual mentioned that as well.
And the fourth quarter and the results for the year include and <unk>.
5 million loss on debt extinguishment protected weird that was converted to common stock and November 2020.
Depreciation expense for the 12 months of 2020 466 medium as compared to for two media for her.
For 2019, due to van credit number of restaurants and on our feet during.
During the year.
Our traffic EBITDA and 2020 launched 11 eight medium compared to.
5.3 million during 2019 and.
And in case of 124 per strength.
Basic to Darren expense sure attributable to come on shareholders for 2020.
58 cents.
Later on 5.8 million shares basic diluted.
As compared to a loss of one point during you on dollars for sure for the 12 months of 2019 calculated on 2.9 million basic contain notate weighted average number of cash or strength.
Excluding the effect on the income attributable to come on shareholders for the year.
The unrealized loss and derivatives the amortization of the below market time charges required.
And the net gain on Saint Lo vessels, and the loss on right down or vest on catch firstly for shape.
Dot net loss attributable to come on shareholders for the year and December 31st 2020 was two cents for sure.
And if we further address this.
For the last on debt extinguishment.
Here's contribution becomes and <unk> gain for sure as compared to abducted loss or from $52 per cent basic and diluted and.
And 2019.
Again as previously mentioned securitized not include visual Josh mentioned Fathers' day, and that's for sure.
And just like 16.
Our fleet performance and a little bit more day for marked and meditated discussed earlier.
And as yours, and we will start on one of your price looking first at our feet utilization rates for the fourth quarter and full year of 2020 and compare them to 2019.
Ah for utilization rake is broken down into commercial and operation on.
During the fourth quarter of 2020 or commercial utilization rate was 98, 5% white.
Our operation on utilization rate divorced line to six 3%.
Compared to 100% commercial and 99.7 and the pressure on the passion for the fourth quarter of two of 2019.
Arbitral aviation rate calculation.
Does not include catastrophe and schedule and parachute Drydocks. These tenure for those events drink and.
And that should happen during the period.
On average $14 for vessels were known and operated during the fourth quarter of 2020.
Adding an average time charter equivalent rate of 10.
And $497 provision per day compared to 16 for 80.
And 84 vessels owned and operated and the same period of 2019 and.
And another expense or the equivalent rate of $90086 per vessel for a day.
Our total day professional operating expenses, including management fees and.
And administrate for expenses, but excluding title and cost average several thousand $164 provision per day during the fourth quarter of 2000 for and can.
Two $6182 and.
<unk> and per day.
During the same period of 2019.
If not and look at the bottom of the table to our daily cash flow breakeven levels presented here on the provision per day basis.
For the fourth quarter of 2020, our cash flow breakeven level was $8215 per vessel per day compared to $90207 provision per day, you and.
During the same period of 2019.
Neutral cloud day right part of a slide to review the same figures for the 12th month period, and the four year of 2020 and compare them again to 2019.
For the for years and 2020.
Reported and 97, 5% commercial victimization rate and for 98% operation on utilization rate compared to 99, two commercial and 99.9.
Person operational utilization rates for the for 2019.
During the.
For 12 months of 2020.
70 veterans were owned and operated.
And and an average time charter and Cleveland right.
Of 90000 for.
For Congdon.
To $5 for version per day, compared to 13 point and one vessels.
Operated during 2019 and and on average.
Thousands of accounts and $82 professionals per day.
Our total.
Date, and operating expenses again, including management fees and them.
And the minister for expenditures and bundle with all Darcie very dark and costs.
And it is for the year $6471 professional per day from there to 6002 currently $94 Professor for day during 2019.
Looking again at the bottom of the table, we can see and with our cash flow breakeven levels for the 12th for the 12 months of 2020 was 8000 and 607 $57.
Service and per day, compared to $90 and $71 and a veteran per day during 2019.
First of all moved to slide 17.
You are on that profile.
And you slide shows in the photograph or cash flow breakeven level expectation for the next 12 months and on the top part of a slight we can see our schedule that to the payments over the next several years.
As we can see.
All alone and it's payments.
During 2021.
Are scheduled to be eight seven media and we can see vision and that dark say that part of the slide and they are scheduled to decline over the next couple of years and 2022 and 2023.
In 2002, and you are we can't volume payments or for about $12 million.
Collateralized by for a farm and vessels.
Also we have two were scheduled to repay and.
And loan and affiliate line of 2.5 million at the end of the first quarter.
In 2022, there is a smaller volume payment of one.
And.
To be to be made.
And your conduct our line by you on the for our vessels and finally and 2000.
And we kept balloon payments for for about $33 million.
Connect and our lives by remaining for a farm and vessels.
We would seek to refinance all of their below on all of the above volume payments when they come and do you.
I would like to.
Make two two state here that and January 2021, we made a voluntary redemption of $2 million for prefer.
Equity.
And it's using the balance.
And more than $6 million and additional benefit for us of this for.
On the entire payment for the 12% stockholders are great to keep the dividend rate for our prefer to talk to eight percentage baking cash or 90% is fake and kind at the option of the company and.
David and dividend rate was set for.
Become 14% and January 2021 and will remain.
Offset levels of 8% or 90%.
For another two years.
And I'll make a quick note on the cost of our funding before we move to review ink or cash flow breakeven levels.
As we pay and average margin of profit.
Bank debt of about three 4% and assuming and LIBOR rate over 0.3%, our senior and a desk course average about 3.7%.
Neither would take into account at least at the end of last year of our affiliate long and.
And.
The the cost of our percent equity.
Our average cost profile and non equity funding cash on December 31st 2024 is about for 5%.
This and I'll look at the bottom of escape on where we can see our customer breakeven level expectation over the next 12 months and dollars per vessel per day.
And long and the payments and.
And that we discussed previously hard to make and and.
One 500, and $711 contribution to a bank given to our cash flow breakeven 11.
And we'll make similar assumptions for the main conformance referral cash flow breakeven that is operating expenses gona expenses interest very dark and costs and cash payments for our prefer spoke dividend we've come up with a customer breakeven level for the next 12 months.
9000, foreign from the $61 per vessel per day.
And if not move to slide 18.
And slide provides highlights from our balance sheet for.
On the basis of the book value for our vessels and.
Tested for the market value for the feet.
As of December 31st 2020, we hit costs and other assets of about 12 noon.
While the book value for our vessels was about 19 45 million.
Using cash breakdown book Awesome shuttle cockpits of around and and 10 78.
On the line decide we hit and understanding dot net.
Of 69.8 million preferred equity of eight $4 million and another liabilities of about five 2 million first and.
Leaving us with a net book value of two and you on 6 million.
And we have set that book value for our vessels with our chart there adjusted market values and showed me February.
Can calculate the net asset value for our fleet to be and the range of 80 million for.
For about $12 per share.
Recently, our sales Cape and painting and the age of eight to 10 11 medium $11 per cent.
Okay, we believe that training and Fisher price range and and it presents a significant discount to our net asset value for sure rush offering good appreciation potential and for our shareholders and good day various from opportunities for other investors.
And with that let me conclude my remarks, and turn the flow back to our theories from one of the remaining Coca Cola.
Thank you so let us know open the flow to any questions that we may have.
Thank you very much ladies and gentlemen, and as a reminder, if you wish to ask a question. Please press star one on your telephone keypad.
Our first question for today is from tight Sullivan from Maxim Great. Please go ahead.
Hello, Good day gentlemen, thank you on can you just provide more detail on the court for damage.
And what is the usual timing of the insurance receipt for the insurance proceeds and and does this kind of circumstance usually extend the time charter or is it still scheduled to expire and September.
Good question.
The time for the the proceeds you expect to get some.
In.
This score the most of it may be some movies next quoted.
And the South Dakota.
And be extended needs that option to extend and obviously, we expect them that they will extend it for the two months that the vessel was of higher.
So that would mean that we will probably around for two additional months and seats out the day that we had in discussion which was 10200 for the move the world.
Okay. Okay.
And then how early with.
Pop backdrop of the positive market and I'm looking at your fleet profile with multiple ships with the time charter come and do this year. How early can you start to discuss with with customers, either extending or securing and and time charter contract with the month before the current exploration or cannot change. Please.
The usual is about the month before.
The expire day assume that these are the usual and.
And we can and we are thinking of approach and signs of this year, but the few floats the modem.
Hopelessly you have to be for the bed to get EBITDA below with age so.
We might talk on several verses earlier than that but.
And we might go up to about the months before we believe that.
Thank you and and last one for me and you gave a lot of good macro backdrop for demand from urgency for customers for container ships, but and we've read a lot of examples of disruptions to the market, but from where your ships had been can you just provide a specific examples and.
Port that had some disruption of for no available ships or inventory building.
If you have an example ready.
Yeah, I can I can get to for the Mesa non that I don't have it on hand.
But there have been delays and zone, you seats because of Kansas and.
And if you want I can get you some information and I will.
Back to you on this.
Okay.
Well. Thank you for all the previous comments and have a good rest of the day.
Same state.
Thank you. Our next question is from.
From local market. Please go ahead.
Yeah, just a follow up on that first question about the insurance and what is the insurance amount that you are looking to recover Eric screening.
Oh.
About a million dollars.
Okay and that issues are and about a million dollars.
And then when you work comp.
Compensation and about the core fail and the downtime and potentially extending it does the card creed profile use C and assumption that there will be extended for two months or is that two months. In addition to time charter screw September of 2021.
Two months in addition to the period indicated and though cause and sized.
The type of this have not ex of size that yet, but I presume day with the schools.
Yeah, I mean, considering.
And to 10200, and the current rates well above that you would assume.
And I assume but I assume that way probably.
Let's see how the market develops and the third quarter before doing that yes.
Yes, I would think so.
Okay, and then when you look at.
The upcoming renewals.
Are you looking to extend out.
One to two years, even three years or can you just sort of talk about your chartering scratchy and the context of how many.
How much of the fleets already.
Extended out into 2022.
Yes.
And you see what we have the seven verses two weeks have extended.
They've all been between 2123 years and.
And the very intense and these to do something similar always keeping some how old were stabbed of the opening of other vessels. So that not on suits open up at the same time.
We're looking for minimum one year and going up to three use and.
We will see how that will go depending on that day.
Yes, and that's helpful. And then just to clarify on and the old climate is your only one that's.
On and index, great and.
Presentation, you indicate that it's.
Current rate is roughly 24918, and then you put minus 10%.
I'm just trying to clarify.
And.
Is the fixed rate through for 20, <unk> 24, 918, Orange said less than 10%.
Instead it for nearly.
Less percentage.
Okay and.
And this is a flow and Willow, we are getting the index <unk> minus 10% and as it is for the months.
And we look at what's the Dixie. So next time, we will look at these these on disability for for based on them and what.
What day of of that the rates will be we will be getting 10% less from that.
Yes, it was going to say, it's good rate, but then I noticed that the current rates here 31, and but that's that's.
And being a part of the market [laughter].
This will definitely have a knee and.
Once and bulletins for this particular <unk> look for this will be a b 50 for based on because that will set the day for the upcoming three months.
Great that's helpful and then Tassos.
Talked about.
Operating costs and a breakeven.
And the fourth quarter it looked like Opex, where it's at 6600, but you're forecasting for next 12 months about $6050 can you talk about.
What might've moved up the fourth quarter, Opex, and and and what you're seeing looking at the 2021 for him and our tech standpoint.
Yes. This force, partly due to one time costs or call to check on to be and the fourth quarter somewhere crew replacement and the majority of English and to do with the Crow replacement costs, because we're getting on user pandemic and.
Sure and additional costs for that and a couple of vest on we're trained and canaries that required more.
Question for more lubricant more consumption and more attention because of the difficult to for trade, which we expect not to be the case and.
And for coming here and if you look at the annual results the level of Opex was very comparable to last year 2019, I mean and.
Indicating that the fourth quarter was statistically.
Outlier.
More of an aberration and then when you look at your cash managed spent from.
From a standpoint of how you are going to decide.
Whether you pick the preferred dividend.
Can you just sort of walk us through how you're thinking on that.
Base quaint.
Dividend to pick it and then also and the context too Tassos talked about.
And net asset value and you think your stock is well under that.
Does that mean that the ATM will be inactive.
Over the course of.
And until the stock moves up higher or can you just sort of talk about your cash management and over the next couple of months and.
And the guys are the cash management and we have the intention to pay for dividend on our percentage talking cash.
Given that we have.
And the liquidity sufficient liquidity and.
We have the option to revert to.
Two pain kind.
And if there is for sure Constantius change.
But our and.
And for your needs to keep bank and cash I think.
Even changing day, 1%.
A significant.
And plus.
And shorter theaters mentioned and if things developed that way, we expected and we hope for them to develop and renew our best from should higher and age we will have the capacity to make significant reductions off and on our preferred.
Equity and bunk deck.
And you have a question on the walls.
Driving the.
Okay ma'am.
Alright and yearly.
ATM and storage activity it looked like January and February socket little under nine Bucks and.
And if my math is correct and I was just wondering.
How ya.
Look at that relative to your comments about you think dislikes undervalued.
Yesterday.
Those on.
What we believe and that passion value for our fleet is and.
And that's noted it shows condition of the show on consideration.
Pension and other needs.
And each forecasts, but generally we try not to dilute shareholders and we thought it was our started and.
Objective for.
On the past ish, and we'll try to use fund-raising and ways that could even the value of.
Sure and other vindicated.
And then and.
And the past couple of calls you've highlighted.
Certain vessels or less and comfort and other is and you had a certain amount of availability have you updated your car and complete for what potentially you habits for is borrowing capacity.
Okay, and if you look very soon and be if you look at slide 18, well, we sort of for next to each other the.
Market value of the vessels charter adjusted and of course, and just mentioned rash on my phone charges below market now and.
And the bunk deck and you can see we are I think even below 50 at or below 50 pairs and I think we're at 45% for.
And that that's now and again at the market value as well and might be even below.
For a technician so we have and.
And make sure that we have at least for $20 million, even more and.
And letting letting capacity.
Right, we choose to re lever.
And fleet.
Great. That's helpful. Thank you. Thank you ex Eric Speedy and thank you cards.
Thank you very much.
And I may for the question.
And speakers for closing comment and key.
Thank you all very much flow.
Of dissipating and this call and we'll talk again and three months time.
Thanks for attending.
Thank you everyone for joining you may now disconnect.
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