Q4 2020 Seanergy Maritime Holdings Corp Earnings Call
Off off off off off.
By your conference will begin shortly.
dong
Thank you for stopping by ladies and gentlemen and welcome to the maritime conference call on the fourth quarter and 12 months 2020 Financial results we have with us. Mr. Assad has chairman and chief executive officer and mr. Stavros gift Turkish Chief Financial Officer of the company.
All participants are in a listen-only mode. There'll be a presentation followed by a question-and-answer session at which time if you wish to ask a question, please press star one on your telephone keypad and wait for your life to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company publicly released its Financial results, which are available to download on the Synergy website. I seen a Jeep maritime.
If you do not have a copy of the press release you may contact Capital Link at 212-661-7566 and they will be happy to send it to you off before turning the call over to mister tsantanis. We would like to remind you that this conference call contains forward-looking statements as defined in section 27A of the Securities Act of 1933 amended and section 21e as the Securities Exchange Act of 1934 as amended concerning future events and the company's growth strategy and measures to implement such strategy. What's such as expects intends plans leaves anticipates hopes estimates and variations of such words and similar expressions are intended to identify forward-looking statements these statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties in contingency dead.
Many of which are beyond 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 competitive factors in the market in which the company operates risks associated with operations outside the United States change in rules and regulations applicable to the shipping industry and other risk factors included from time to time in the company's annual report on form 20-f and other filings with the Securities and Exchange Commission off. The company's filings can be obtained free of charge on the website at www.sec.gov 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 company's expectations with respect.
Bear to or any change in events conditions or circumstances on which any statement is based now. I will pass the floor to mister tsantanis, please go ahead sir.
Hello everyone and thank you for joining our call today. We'll discuss our results for the fourth quarter and four year period of 2020 and we will provide you with a general update for the major corporate events that have taken place until today. I will start by saying that 2020 was a transformational year for Simmons e where we managed to achieve a number of successful dealership and lay solid foundation for the future. We have indeed started to reap the benefits of our actions since the beginning of 2021 and we expect Synergy to prosper for many years to come off the highlights of the company's achievements for the trailing-twelve-month. Have been the following.
We're growing our Fleet by.
And more than 40% with one Cape vessel delivered to us in Q3 2020 as well as three more Cape vessels agreed to be acquired since the beginning of 2031 upon deliveries may have two point five million that way tons of cargo carrying capacity is the total investment of 83.4 million that has been and is expected to be funded mostly by customer as well as senior pet facilities from International financial institutions moreover. We have successfully completed the financial restructuring of a hundred seventy five hundred and seventy nine million dead.
And we have reduced our leverage by 71.2 million in addition. We have raised more than $175 million in public Equity openings, which strong institutional demand wage process have been used for positions and debt reduction as well as a strong liquidity as now for the future.
I said hold a sec with you has grown more than fivefold since December 31st 2019 that was twenty nine point nine million dollars to an adjusted equity in excess of one hundred and eighty million as of February 2021 finally pursuant or strong ESD commitment. We have been among the first companies in our industry to complete our Fleet environmental evaluation off the upcoming new rules the beginning of 2021 finest Synergy in a great position as the only pure-play capesize listed company to take advantage of the beginning of a possible life cycle that is expected to last for many years having said all of this I will now discuss the most important developments for the fourth quarter of 2020 and here today. In fact 51 before passing over the call to our CFO established actress will review our financial results in detail following data will provide a brief update on capesize Market fundamentals dead.
before opening the call for questions
during the fourth quarter of 2020. It keeps as Market remain volatile which mainly had to do with inconsistent iron ore production out of Brazil due to operational issues at Value off the both. The capesize index was approximately 29% lower than in the same quarter of 2019 and the time Charter equivalent rate. We learned during the fourth quarter of 2020 was approximately $16,511 while we generated ebitda of eight point three million dollars now notwithstanding this witness Global Iron and Steel demand remains strong are currently experiencing the highest first quarter capesize index since 2014.
For the first quarter 2021 approximately 98% of our Fleet operating days have been fixed at a daily rate. Which exceeds approximately $16,000.
Considering that q1 is usually the weakest. Of the Year. This figure is double the level seen the same period of 2020 and 2019 cash and cash equivalents as of December 31st, 2020 stood a 23.7 million compared to 14.6 million as of December 31st, 2019 while our adjusted cash position is approximately 68 million after giving effect to debt repayment and advances for aggressive Acquisitions their holders Equity at the end of the at the end of the fourth quarter of 2020 was 95.7 month compared to twenty nine point nine million at the end of the fourth quarter of 2018 while our adjusted Equity today stands in excess of a hundred and eighty million.
I discussed before.
2020 has been transported for the company as energy solidified its status as a pure-play capesize owner with a clear path to benefit from the strong dry bulk Market fundamentals over the number of years.
On February 12th, 2021. We agreed to acquire Japanese 2006 build capesize vessel that will be renamed Trader ship and is expected to be delivered to us in the second quarter of 2021 on March 18th, 2021. We agreed to purchase two additional capesize vessels that have also been built in a few WRX in Japan the first month Bill built in 2015 has a cargo carrying capacity of approximately 176000 deadly terms and will be renamed Flagship a vessel is expected to be delivered to the competition by the end of April 2021. The second vessel was built in 2010 at the repeat of the shipyard in Japan has a current capacity of approximately 182000 deadly thoughts and will be renamed buttons. The vessel is expected to be delivered to the company by the end of May 2021.
Especially survey and balanced water treatment system installation for all three vessels were completely recently by the current owners. And therefore we do not anticipate in carrying significant capital expenditure for this vessels. At least for the next two years more over the battleship is fitted with an exhaust gas scrubber system. The aggregate purchase price of the three vessels is approximately 2 million and we expect to find this amount with cash at hand. The company is also in discussions with leading financial institutions to finalize to finance but they position cost competitive financing terms following the delivery. The size of the company speed will increase the 14 capesize vessels with an aggregate cargo carrying capacity of approximately 2.5 million dead.
Including the position of the Good Ship in 2020. Our Fleet will increase by 40% from 10 to 14 vessels in the last 12 months. This will improve our ability to generate strong Transformer in a rising market environment.
This is our news AutoZone an upward trajectory. And this is already reflected in the market value of our Fleet. Please note that this is still far below the historical averages and is expected to rise even further.
Additionally 7/14 vessels will be fitted with scrubbers which would believe is balanced approach in dealing with IMO 2020.
Will be going to our senior loans. I'm pleased to announce that we have now fully finalized agreements with our lenders that we have mentioned in our last ending score on February 8th, 2021. We finalized amateur extension of a unique credit loan facility, which has now been extended to December 2022 from December 2020 on February 12th, 2021. We agree to the deluxe package and Provisions and the amendment of certain Financial covenants on a loan with Amsterdam trading Bank.
the total amount
Outstanding under these two facilities is approximately 46.6 million and be secured by 3 / vessels the total senior indebtedness of synergy currently stands at 151 million.
The government facilities for December 30th, 2020 the company reach an agreement with jelco Delta concerning 27.2 million of maturities falling view in 2020 month as part of the agreement 6.5 million or principal and the one of the jelco loans was pretty paid immediately while all other maturities were extended to December 2024 to declare life extension of maturity is 2024 applies to larger colognes and convertible notes which currently amounts to forty three point six million dollars energy and jelco birth date for the settlement or fall and paid interest through December 31st, 2020 and doesn't finish payable to jelco in an aggregate amount of approximately 5.6 million through a private placement wage is consistent with our Equity offering of August 2020.
The issues closed on January 8th 2021 in addition to the reduction of the applicable interest rate across facilities to a fixed rate of 5.5% off. I'm pleased that our lenders place that confidence in our company during a very challenging year and they expect that the comprehensive restructuring of hundred and seventy-five million offer in deafness since June 2020 has put Synergy on a sustainable long-term trajectory.
On February 19th, 2021 of a completed a registered direct offering $44 million, institutional investors that expressed strong interest participate the agrilife growth process. You were approximately 75 million the process from this transaction facilitated 53.6 million in additional debt repayments as well as the acquisition of 350 tje Japanese vs within 2021.
Subsequently to the registered direct offering we decided to pre-pay info the 21.6 million that was outstanding on the first interest loan facility. The maturity of the loan was originally scheduled for 2023 and the average applicable coupon was approximately 10% in addition in February 2021. A total of 12 million has been applied against the full payment of Junior and secure loads. The prepayment of the facilities just mentioned are expected to save more than two million dollars in annual interest payments for a company name.
As of today, the company has 155.1 million, issued and outstanding.
Looking Beyond I am about 20 20 since it was among the first companies to announce the completion of the evaluation of the Energy Efficiency for existing ship index over Fleet in preparation for the upcoming Dreamhouse gas emission regulations. This was conducted with the DMV classification society. And we expect that our vessels for remain compliant with applicable regulatory requirements until 2030 with no material cost for the company.
At this moment the full effect.
To be exi on the global drybulk market is hard to quantify since the compliance requirements will vary from vessel to vessel and will need to be assessed by individual basis. However. It should be noted that the capesize versus are generally larger than other dry cargo vessels and we estimate that the large part of the global Fleet will be required to slow down in order to make these regulations set forth on the size. That doesn't basis we expect that the effective supply of seems will use in the next year's summarize over the last fifteen months. We have a constitution. We have a good Synergy through the challenging operating environment or 2020 implementing a number of strategic initiatives with positive transformative effect on our company. We strengthened our Equity based reduce our debt and enhanced our liquidity while at the same time. We're increasing our Fleet by 40%
Students Easter Day in what we believe to be and knocked him a financial position to capitalize and improve market conditions to the goal of creating substantial value for investors money. And with this message. I would like now to pass the call to our CFO Star Wars who's going to discuss our financial results.
Thank you so much. Good morning everyone in the warm. Welcome to our fourth quarter 2020 earnings called. I hope that you and your families continue to be safe and healthy before we get into the discussion is the historical financials. I can only a customer reviews concerning the future for company. We have done a tremendous job over the last fifteen months to navigate Synergy through their set an environment of 2020 and are now in the best possible financial position to take advantage of the promising afternoon. Market.
The fourth quarter of 2020 was marked by increased volatility and they were slightly lower than what most in the participants had expected net operating revenues. That's fine. Today when you subscribe deducting Olga's expansion commissions, we're equal to 16.7 million a 13% reduction from nineteen point two million in the fourth quarter of 2019. This reduction follows. The 28% decrease in the Daily Times has their equivalent rate that was partly offset by increased operating days after the delivery of the good shape NP options of extensive drydocking sports car ventilation as was the case in the fourth quarter of 2019 the percentage reduction in our daily time Charter equivalent is roughly language 29% decrease in the BCI index over the same thing.
When they sequential basis our net operating Revenue in the fourth quarter was 5.7% higher than in the third quarter of 2020 due to a 2% increase in daily life and 3% increase in operating days. We are glad that our Fleet commercial performance stabilize that healthy levels during the second half of the year after the strong negative shock of the COVID-19 crisis. We're also glad to report that When taking into account the comprehensive Financial destruction that has taken place within the past month and the lower cost be giving the day that we expect to achieve over the next year's our fleets time Charter equivalent would cover comfortably all costs expenses including data monetization while generating free cash flow going forward also do is to keep a large part of our Fleet and Floyd on index links contact is likely to bear fruit during a rising market environment such as the wage.
We are experiencing right now.
How do you beat down for the fourth quarter was equal to 8.3 million down by 30% from 11.9 million in the fourth quarter of 2019. The large decrease reflects the lower engine off of the quarter given the larger size of a fleet and the improved market conditions and very optimistic about our ability to drive in B. Considerably higher in the coming years.
Regarding your financial expenses interest in finance costs too. 6.7 million the fourth quarter of 2020 compared to $500 million the same period of 2019 month this headline interest figure includes both significant known casting terrorists expenses relates to the accounting treatment of our convertible notes and a few large one-time expenses related to the recent Financial restructuring.
When focusing computer classes that expenses those are equal to 4.1 million the fourth quarter of 2020 and two three point 1 million after excluding the one of our restructuring expenses.
This waiting line was cutting their expense recording the fourth quarter of 2019. Now on the positive note, we experienced a significant decrease in interest expenses relating to a senior facilities. So the sole source of the world Rising expenses in the fourth quarter was the junior loans and convertible knows now that a the applicable interest rate has been reduced to five and half percentage in be in a half million of these loans have been repaid. We would expect to see significant into the Savings in this area.
Our net loss is the quarter ended December 31st 2020 was equal to 2.3 million compared to a net income of 3.1 million the same quarter of 2019 the logs in the current. Includes one time charges of one point six million in connection with financial restructuring of the company having put this important transaction behind us during this transformational year off the results of the company are expected to improve considerably.
Moving on to discuss the full-year results net operating Revenue was equal to 44.8 million compared to forty nine point nine million the corresponding period of twenty nineteen Thousand Year date tce for 2020 was $11,950 compared to $14,694 in 2019. It should be no time during both used to drive belt Market was subject to extremely unusual Black Swan events. We're satisfied to see our Fleet PC stabilizing at much healthier levels during the second home of the year as an indication of the amount of a certainty in volatility in the market. The tanks has equivalent tripped over the first six months of 2020 amounted to about 7000 per day.
Daily operating expenses increased by 10% in total during the four-year period of twenty twenty mainly due to issues related to the operation of scrubber equipment for the first time and we associate with learning curve as well as the impact of the COVID-19 outbreak report restrictions visual log down supposed by local governments other material investor lopex because explains in more detail about the last eight weeks called the coast in timing of glue changes were considerably higher having said that we are pleased to report the daily operating expenses seem to have picked in the 3rd, 2020 and are now finally only download victory.
going to
General let me set the expenses. We saw a 10% increase year-over-year which captures the increased expenses relates that ministration for company as a public entity through the challenging operator issue with the 20/20 looking into twenty Twenty-One on the back of the largest Fleet size of 14 vessels. We are lucky to see a meaningful Improvement on the professional Genie as opposed to operating ten vessels for the larger part of of the Year. Even our budget the daily per vessel cost savings engine expenses could be up to $400 per day.
You'd be done the 12-month period of twenty twenty was equal to 19.9 million as compared to twenty three point eight million in the same period of 2019 a decrease of 17% off and it loads was 18.4 million with a nineteen point six million net losses of the first half when heavily on the bottom line of the entire. Since the second half of the year olds to be profitable.
I can go to Berlin December 31st 2020. When did the corner of 23.7 million cash and cash equivalents and short-term time deposits shareholders Equity was equal to 95.7 million up from 29.99 the end of 2019 since the start of 2018 and also balance if they seem that was refused by approximately 29 million from 183 million down to 154 or fourteen million per vessel as of the end of the year.
When considering the important transactions that took place in the first three months of 2021 or total senior secured data's of the day is approximately equal to 130 million given the existing Fleet size to 14 vessels perform a security. Something for vessel is roughly equal to 9.2 million. Now as a reference the generic market price for 10 year keeps off by Clarkson's about 27 million while a fifteen-year-old vessel price is listed about Seventeen million based on the market value for a fleet and Loan and excluding any cash Holdings off the loan-to-value ratios of the is close to 50%
This level circles it is not only sustainable but actually on the very conservative side moving on like the folks and some of the important transactions that have taken place in the past month firstly. I'd like to start with amicable structuring of a junior loans as you remember. That was the most pressing matter in the last update for the third quarter.
When December 30th 2020 went into definitive documentation with jelco our soul Junior credit or press release agreement 27.2 million of maturity falling off extended to December 2024 additionally all interest accrued up to that date. Another fish payable to jelco was said to three private placement of units.
Alone, and all maturities were extended to December 2024. The interest rate on these instruments was refused to fix rate of five and half percent.
The amortisation schedule was also now provides for a minimum repayment of eight million in 2022 and 2023 and the cashier mechanism was also interested in the daily PCM, but she needs Fleet told him the completion of a public offering is February a total of 12 million was prepared against jelco facilities.
Moving on to the younique credit and Amsterdam Trade Bank agreements on February 8th, 2021 went and supplemental agreement to the facility with unicredit. Is that the secured by Thursday for capesize versus as mentioned customer. The four-link were agreed. The maturity date of the facility was extended from December 29th, 2020 to December 29th, 2023 the quarterly installments where it used from one point fifty-five million to one point two million cetera Financial covenants and the value maintenance Provisions wage.
Subsequently on February 12th, 2021 went in the supplemental agreement to the facility with Samsung Trade Bank that is secured by one of our capesize basis pursuant to the service agreement the value maintenance provision and set and financial covenants who are amended or entirely canceled the supplemental agreement became effective on February 16th, Thursday 10 to 1.
If you were to about the recent registered direct offering on February nineteen twenty Twenty-One, the company completed that it's a direct offering of 44.15 million of its commercials to place an affiliate institutional investors for aggregate gross proceeds of approximately 75 million vapt offering was priced at the market as this is defined by NASDAQ at 1.00 offered. This is in stark contrast to the terms of our previous offerings due to both the pricing being in line with the trading performance of the stock in a solid valuation environment month and due to the fact that no warrants or other teachers were offered as they resolve this transaction was a creative and the proceeds were used to facilitate the prepayment of loan facilities and the appreciation of city high quality versus doing what we think to be a good time just as dry bulk Market starts gaining steam pouring the conclusion of your feeling on March five the company
Will you prepare the credit facility interest Global secured by first priority mortgage on the lordship the standing balance for the facility was 21.6 million and the expiry date was June twenty three. The average applicable coupon was approximately 10%
The payment amount was funded fully with cash in hand.
volumes
Payment and assuming nobody financing of the vessel the interest savings for the company are expected to be one point three million for the remaining of 2021 and 1.8 million on average per year for twenty-two twenty-three additionally annual payments will be reduced by approximately two and a half million on our wage for the two years to come.
Furthermore in February 20-21 a total of 12 million prepayment has been applied against the full repayment of loans person to the mandatory payment terms of those facilities following the closing of the 75 million minutes a direct of the applicable interest rate of these loans was five and half percent resulting an expected annual interest Savings of approximately $860,000 per year.
Zim increase in equity capital and the extension of Salter maturities has been instrumental in improving the balance of the company Indian allowing us the flexibility to pursue value accretive opportunity that it wasn't looks like a rising market furthermore. I am pleased to see that the improvement in our balance. It was opened has opened up the door for us to access that Capital at more compact terms that are likely to lower our overall cost of capital for the next year's while contributing type of stability and cut generation capacity through lower interest expenses.
To conclude my remarks in that has mentioned also in our previous update. Our aim was to make it to take every opportunity to establish a long Runway World by even if Market, has failed to improve as expected. The company would still be able to be self-sustainable. We are proud to report that we were indeed able to do so during an extremely challenging time in the today. Our company is in the strongest financial position that it has ever been. This concludes my review I will not end the call back to some artists will be discussing Market in a fundamentals summer.
Things double our discussion about our industry Outlook by stating that after years of marketing balances. We're now entering into a possible super cycle the beginning of 2021. We're seeing the strongest start of the year for the capesize market seems 2014. This is driven by Health demand for Kia Roma team, but most importantly by the most balanced vessels Supply in decades as regards to the fourth quarter of 2020. The capesize market was affected by operational efficiency wage Brazilian. I don't know mines the market remains volatile and capesize daily rates during Q4 20, 20 range from a low of about $10,000 a day too high of about $5,000 a day.
Despite the volatility Global demand for still making raw materials remain strong throughout this. This mix of favorable fundamentals led to considerable recent spike in the Home Market in January while earnings so far in the first quarter have averaged more than $16,500 a day I stated before this is the start of the year since 2014.
Having in mind that one is traditionally the weakest quarter for Cape vessels. We expect to see a much stronger Market in the rest of the year. We're particularly happy to see this optimistic sentiment took the dog show in the times are the rates indicatively one here times at the levels for standard capesize vessel are currently around $22,500 per day, which is a big lie down from ten to twelve thousand dollars one year ago Cape asset values have risen as well by more than 30% since the end of 2020.
Looking at Market fundamentals over the next two years dry bulk demand growth is expected to average by more than 2.5% in 20 21 and 22.
In terms of I don't know and capesize demand. We expect violence in Brazil to continue steadily ramping up its production in the next three years. In order to reach its long-term Target of about 400 million tonnes per year. This compares favorably to current levels of about 320 million tons, and the effects should be quite significant environmental regulations in place. I'm still making for lowering carbon emissions should continue to drive demand for higher-quality. I don't know from Brazil moreover the trillions of dollars of global stimuli home connected to drive infrastructure demand, and I don't know demand for many years.
We're particularly optimistic regarding Investments apply as the upcoming environmental regulations will have a two-fold positive effect in the market first the immediate reduction of emissions that wage enforced in 2023. We lead to the speed reduction of the global Fleet by approximately ten to fifteen percent.
This will result been effective reduction of available tonnage capacity, which will be even greater adjusted for larger ships.
In addition the uncertainties surrounding the global Shipping emissions Universe after 2030 has led to the lowest newbuilding order book in decades.
The two factors. I just mentioned are expected to create conditions of a severe vessel Supply squeeze this can potentially Drive the rates and the asset values to supervise delivers.
As I mentioned earlier in a corporate developments as soon as it has been strategically positioning for the moment.
We have fixed the majority of our vessels or index-linked Charters that will allow us to benefit directly from a rising market and we have acquired high-quality knowledge in order to gain the maximum operating Leverage strong-minded.
Without note I would now like to turn the call over to the operator and open the floor for any questions. You may have operator. You have the call.
Thank you very much, sir. Ladies and gentlemen. If you would like to ask a question, please press star one on your telephone keypad and wait for your name to be announced again. If you would ask a question, please press star one on your telephone keypad and wait for your name to be announced.
Alpha questions for today is from Tate Sullivan from Maxim group, please go ahead.
Yes. Hello. Good good day. Thank you could just circling back on a couple of your questions comments during the prepared remarks. Did you say earlier that the fixed rate in the current quarter is around 16000 vs. Current rate for 22,500 or is that only on a portion of your ships or did I hear that correctly, please good morning. How long the races we have six dealerships on the floor above 98% of our Fleet days for q1. It's going to be a bit more than $16,000 a day which is fully in line with the DC. I mean the BCI the baltics are you mixing the beginning of the year has been around 16500 600 so we're totally in line with a PCI for q1.
Great, thank you. And and you you provided plenty of comments on your interest costs going forward after the restructuring. Can you and then Thursday before we're going to that the other comment about 22,000 was about the one here time set a rate. So having in mind that q1 at 16,000 thoughts about twice as much as the first quarter of 2020 and 2019. So it's usually the weakest quarter of the year one year going forward times at a rate. That's about $22,000 a day. So, yes, we are below the one he attempts at the race, but we are now completing the historically lowest quote over here.
Understood thank you too. And and and just looking at your cash interest expense table break down to versus what you may report in 2021. Did you and I I understand the Looting the restructuring expenses as well. But is there a is there a dollar range that you may be able to reduce your interest expense or any any comment for potential Gap interest expense for $21 off it just just too many moving parts right now. There are still some parts because as you normally we are applying some new ships. I mean we intend to get some set on Thursday. I mean we tend to approach leverage going forward on the very conservative basis. So we intend to know to leverage those versus above 50% off assuming conservative assumptions on our leverage control would interest expense, but you should not be more dead.
Then to two point six million two point seven million also.
Great. Thank you. And and you mentioned it starts. Do you have the targeted combined Capital ratio? And you gave I think you mentioned the current debt around $130 million today. Are you off being certain Capital ratios or leverage ratios in general going forward please. We are talking to me. I'm going to leverage ratio of 55.6% of it all. I mean, that's our Target today are may be slightly lower those levels considering that we want to finance the ships that we get because I mean we want to end up certain with the save them safe if we took action. So I assume that we leverage the opposition that around 50 to 55% We should end up at fifty-five to sixty percent of their own leverage as a company which is still off on the conservative side.
Thank you and last for me on the topic of securing the or of the financing behind the the ship acquisition the two additional ship Acquisitions. Are you seen similar rates to your other ships in a current financing have that changed since you restructured some of your debt, can you can you comment on what you're seeing from lenders? The last week would be raising the fact that the name of the company has refused a load and ratios have improved the load as soon as it has become much more bankable company. So the interest that we see from potential lenders are in in the region of free free and half percent plus live also considerably lower than our existing implied interest rate.
So, I mean you will we will announce any financing Arrangements pretty soon. I mean we are in discussion with some of our existing land disassemble ended but expect goes to be below below 4%
Okay. Well, thank you for all this comments and thank you for the comments about the market and build activity as well. Have a great rest of day.
Our next question for today is from from Global Capital markets, please go ahead. Yeah, good morning. I have several. So if we could just start off by one month, you know rates have been very volatile, you know semantics you think there's a super cycle coming up. So you want to stay a little bit open but one that's one thing that's been that fit you in the past the race had fallen out of bed when there are things that just seem to happen to the industry. So can you highlight how you're trying to lock in or take advantage of what is a very strong first-quarter and strong year and create a little more visibility on the cash flow front.
That's first of all, good morning. Paul. Nice to hear from you. That's an excellent question. We said especially in Q3 and Q4 month of 2020. We try to be as consistent with the time separate equivalent grade as we could same thing. We're doing now in q1. So as you can see, we have a very high contrast between 2:40 to 1 and we have already started to lock into some fixed rate that we believe on the staggered basis that will deliver about seven thousand $18,000 a day 6:40 to 2 and 2/3. This is what we're trying to do. So we're doing a shorter the Locking of our Fleet when we same opportunity with the S a market like you very well said we anticipate that the market is going to go much much higher in the coming quarters, but trying to have the visibility for the next two or three Palms.
As much as we can and avoid the the what?
Facility excessive volatility. We are trying to fix some of the ships that could be fixed at this at this rate. So a portion of our Fleet for 223 will be fixed and home fixed pretty much as an average of about Seventeen eighteen thousand dollars a day we have now, of course a bunch of deliveries coming up in the next couple of months, then we will continue doing short-term fix things as well. But the way that we think that the market is going to move from you two and two or three other words the thing we're going to suspend service advisor.
Great, and can you just clarify, you know with the scrubber investment reimburse? I thought your tce rates should be above the indexes by anywhere from $1,500 to $2,500. Just because of the structure of the tce reimburse. Can you just clarify, you know, whether that's the case or what's going on there? Yes, that's also very good question or some of the ships that we have the scrubbers. We did make a premium package above the market. So we get this investment and we get that premium some of our capes. However are not 180,000 deadweight arms. They are smaller than 170000 / 170,000 a great. So, I think we should have a small Discount Windows. So one is everything the other so the smaller ships are getting the small discount which is about dead.
5 to 9% compared to the index because they are a bit smaller ships and the scrapping physicists are making a premium so that pretty much average the whole thing and we're going that around the bulb.
Great, and then including the Good Ship, you know, all the Acquisitions don't have any debt right now. So you have you know for maybe call it ninety million acquisition said, you know were uncovered that you could lever up to that 50% Target. Are there other capes within the fleet that are also on Thursday morning time from the existing can deliver clips that we have on the plate The Good Ship and the lordship are are basically debt-free. These are the two ships as we have that three-month. We have two three more deliveries coming up. So, you know, we are in discussions like Stavros mentioned before with some Renown the financial institutions to get competitive level of about fifty percent. And this is what we expect to happen in the next couple of months. We're also looking into some additional Partners agreements birth.
Finance and Commercial joint ventures as well like the ones that we have already, but that's that's in the pipeline. We cannot announce anything yet because we have a lot of that going on and Adora, you know anything right now.
Great and demonic. So I think in your your prepared remarks you might have said how much ProForm a cash is right now, but if you didn't could you clarify how much cash you have after all the refinancing the early repayments and and net of the Acquisitions, you know, Accounting Office positions that are in process.
For my for the repayments three payments and the advanced would have paid for the ships that we have announced already. The cost is about 68 million dollars. So it's a very sizable off customer.
Yeah, that's what I thought. I heard sixty-eight million, but does that include the any any deposits on the you know, the current month, you know pending Acquisitions or you know, how clean is that number? What what else should we adjust for to get your current cash level? Yes. Yes deposit money for over three ships that we have announced already. So that includes all the deposits that includes every payments made. So yes that that includes that of course.
Okay, and then when when do you think you're going to file your you know your 20s and when can we get a full cash flow statement for the for a 2000 2028 we expect it to get to be filed on the 31st of March which is next week. So next Wednesday, we will be filing the 20th. Then we might have some additional corporate developer of sports of corporate development by that day.
Okay, and then you recently filed an F1 and I expected it to take longer but it looks like it was effective March 12th. Yes, what my understanding is the jelco has the option to convert 3 million of debt into you know shares at a pretty attractive valuation level. You know, they that is what they have 45 days to do that after the effective date of the F1. What what do you think is going to happen often? Have they told you anything about whether they're going to convert the three million into into Equity or you know, can you just discuss that if you know if you know anything about that, I don't have any guidance yet. We don't know what their plans are. So they might or might not so that's you know, build our control. It's it's an optional item that we granted. Mm.
Surprise was at fifty cents now, of course, it might look different base, but we don't know what they're going to do because you know, that's that's the option to 36. They want to know. Okay, and then you you said yeah, but a hundred fifty five point 1 million shares out how many of the warrants are still, you know, the class clown warrants are still outstanding or something. It's it's about if I remember what around eight million eight million warranty still outstanding which has not been exercising a year. So that's about it. It's a it's a small amount compared to vision.
Okay, great. And then
You know you with the acquisition you have, you know one additional scrubber. So you have 7 subscribers of a fleet of 14 pro forma. Do you anticipate putting installing additional scrubbers or do you think that's it? It sounds like you applied that, you know having half the fleet scrubbed is is a good way to look at it from a standpoint of created a little bit of flexibility on both sides of the equation not not really poor. The drydocks was done already all we are doing already right now in China do not take any scrap speaking from our end if we come to an agreement with chapters of long-term future chapters to install scrubbers in additional ships. We might consider doing so one of these new Aqueduct. We just announced happened at the scrubber and happen to have the scrubber that we feel comfortable with the equipment and you know, everything associated with the scrubber. So we proceeded on Thursday.
There are they you know, we take a very careful approach in the scrubber and we try to be as balanced as possible.
And then stubborn. Can you give us your current amortization, you know after everything's done and before the financing on the new vessels, how much debt is a choice? You know how much amortization it's due in 2021 and then if you give us 22, that'd be helpful.
Yes, I would have currently around 236 million of dead of Sunday. And as a rule of thumb you can you can assume that around 10% of the summertime month. So we thought on fourteen million that some one thousand nine hundred and now on top of that. I mean we have balloons that may come come come up from from time to time. Now as as as you may remember the recent restructuring. I mean, we have a clean to you run away. So basically you can assume that around 10% of our debt is being paid annually.
Yep, and you already satisfied the twelve million prepayment for jelco this year and then there's another twelve million that you might have to prepay its caches, you know life next year. So it's no no no, no the the payment that we need to tell cuz it was minion. That was a mandatory payment event through Thursday. It can be offering now payment application to jail for next year is eight million at the end of the year at the end of 2022. I'm sorry. We don't have anything else at twenty Twenty-One thousand eight million at the end of 22 and another eight million at the end of 23.
Great, that's helpful. Thank you strawberries.
Thank you.
There are no other questions. I will not hand back to the speakers for closing comments.
Thank you Jodi. As we mentioned in our earnings release. We're very confident that 2021 is going to be a very very positive year, and we took all these successful a 2020 and 2021 so far in order for the company to prosper for many many years to come. We're very optimistic about the market we have now a great Fleet and Thursdays, you know, we look forward to announcing more and more positive corporate developments that will create significant value for all the shareholders of the company on that. Thank you very much for listening to our home and look forward again to you know for any of your comments if you want by email or any other form of communication. Thank you.
Thank you very much, sir. Ladies and gentlemen that does conclude Corpus day. Thank you all for joining you may now disconnect.
Welcome to your conference school. Please continue to stand by your conference will begin shortly.
off off off off
Do you just stand by your conference will begin shortly?