Q1 2021 Star Bulk Carriers Corp Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to the Star bulk carriers conference call on the first quarter 'twenty 'twenty, 1 and find out for yourself.
We have with US Mr. Petros Pappas, Chief Executive Officer, Mr. Hamish Norton President Mr. Nicholas Rusk of Chief operating Officer, Mr. Sim of Spirit and Mr. Kristof Clarus co chief financial officers of the company.
At this time all participants are in a listen only mode there'll be a presentation followed by a question and answer session of which time. If you wish to ask a question. Please press star 1 on the telephone keypad and wait for your name to be announced I must advise you that this conference is being recorded today, we now pass the floor to 1 of your speakers Mr. Spiro. Please go ahead.
The.
Thank you operator.
And I am Cmos, Peter Koh, Chief Financial Officer of Star bulk carriers.
And I would like to welcome you here to the Star bulk carriers conference call regarding our financial results for the first quarter of 2021.
Before we begin.
And you kindly ask you to take a moment to read the safe Harbor statement on slide number 2 of our presentation.
In today's presentation, we will go through our Q1 results our cost of evolution during the quarter.
Update the dividend policy and an operational update and the latest industry fundamentals before opening up for questions.
And it doesn't and I will turn to slide number 3 of the presentation for a summary of our first quarter 'twenty 'twenty 1 financial highlights.
In the 3 months ending March 31, 2021 day.
TCE revenues amounted to $156.6 million.
Compared to $143 million for the same periods in 2020.
Adjusted EBITDA for the first quarter of 2021 was $84.7 million versus $32.6 million in the first quarter of 2020.
Net income for the first quarter amounted to $35.8 million or 36, 6% earnings per share versus $2.8 million net income of 3 cents earnings per share in the first quarter of 2020.
Yeah.
Time charter equivalent rate during this quarter was 15000 and $461 per vessel per day.
Total cash today stands at 230 for $2 million with total debt at approximately 1 for Boeing 64 billion.
The addition, we have the ability to use the 30 million revolving facility, which is currently on drone.
We continue to expand the platform with the recent acquisition of <unk>.
The vessel then.
Fleets, we have taken delivery of buy today.
We expect to take delivery of the remaining 2 comes from ex re sales at the end of May and the end of June and <unk>.
The total of 128 vessels on the water.
The company has amended its dividend policy and will pay of 30 cents per share dividend with respect to the first quarter of 2021.
Slide number for graphically illustrates the changes and the company's cash balance of the unit the first quarter of 2021.
We started the quarter with $195.5 million and cash and generated positive cash flow from operating activities of $79.2 million due to the improving freight market.
After including the debt proceeds and repayments vessel acquisitions, capex payments for scrubber and ballast water treatment and the installations. We arrived at the cash balance of 200 of $6.6 million at the end of the first quarter.
Please turn now to slide number 5 where we summarize the evolution of net debt over the last 12 months.
Where we have been able to reduce our net debt by more than $220 million due to the strong cash flow from operations.
Given the robust cash flow from operations.
And your liquidity position and stroke, the strong dry bulk market fundamentals and the board of directors has amended the companys existing dividend policy and start of returning capital to shareholders as per the sunlight presented in slide number 6.
Specifically, we have changed the minimum cash balance per vessel cash calls, resulting and the company paying a dividend of <unk> 30 cents per share for Q1, 'twenty 'twenty 1.
Payable on or about June 14th 2021.
And slide number 7 we demonstrate the inherent operating leverage of that come back to Ed.
And the freight market and the potential increase in EBITDA with any freight or fuel spend increases.
For example, with 45000 fleet available days and additional daily fleet wide increase in D. C by $2000 will increase our EBITDA by $90 million.
Similarly.
Assuming of total annual bank of consumption of 800000 pounds and increasingly the hi Fi fuel spread by $25.
Generate additional EBITDA by approximately 20 million.
I will now pass the floor to our CLO nickels rescuers for an update on our operational performance.
Thank you Simone.
Please turn to slide 8 where we provide the operational update.
Opex was up $4251 per vessel per day for the quarter net.
Net cash G&A expenses were $1.8.
The $7 per vessel per day for the quarter.
The combination of our in house management and the scale of the group enables us to maintain and very competitive costs complemented by excellent ship management capabilities and star bulk currently number 1 of the malls are listed peers in terms of variety of break.
And the fueled by most 2020.3 'twenty therapy Decarbonization regulation of implementation. The company has built a dedicated and research and development team and valley.
The raising all available technologies that on safety and reducing our vessels carbon footprint.
Basically the analyses of historical operational parameters, we believe the rash.
Sales of emissions profile will remain competitive within the upcoming comment on the density index framework, which is expected to be adopted by the IMO.
And then to continuously improve our performance.
And the enhanced planning and execution by our revenue.
So the monetization on the cost performance monitoring.
On the Capex from were also examining the impact of that.
To use energy saving devices.
Star bulk is actively engaged with various R&D workshops, and consortia and collaboration with other stakeholders across the maritime value chain.
Clothing engine maker of stratification of societies, and pure technology innovators and <unk>.
Pursuit of technically and commercially viable solutions and adjusting our vessels fuel systems to operate on carbon neutral fuels.
Slide 9 and provide some guidance around the future of Drydocking and ballast water treatment expansion for.
For the next 12 months and the relevant total of hard days.
The numbers are based on current estimates around dry bulk and retrofit planning vessel employment and the yard capacity.
The speakers and incorporate our current understanding of present and future shipyard congestion.
Since the beginning of the year 19 vessels have entered dry dock and 9 have been retrofitted with ballast water treatment systems with a majority of our larger vessels scheduled for the year, having completed the dry docks at the early part of the first quarter.
I would expect the Drydock expense for the next 12 months is estimated at $23.4 million for the dry bulk vessels when the other $26.9 million for the balance water treatment system Capex of 37 vessels.
In total we expect to have approximately 790 day.
And Dave for the forward 12 month period.
I will now pass the floor of our CEO Petros Pappas for a market update and his closing remarks.
Thank you Nicole.
Please turn to slide 10 for a brief update on the supply.
During the first 4 months of 'twenty 'twenty, 1 and total of 14.8 million deadweight.
It was delivered.
And for million dead weight and with simple demolition for the net fleet growth of 10.8 million deadweight or 3.3 percentage year on year and 1.1 percentage since the beginning of the year.
The origin of Luke has decreased the record low of 5.7% of on the fleet was $5.8 million deadweight reported. Furthermore, theres between January and April.
Upcoming environmental regulations, and the uncertainty about future propulsion.
New orders have the control White shipyard.
Cash at these quickly filling up with container ship and other orders.
Furthermore of the surge of global steel and iron ore prices has increased new building prices and for scrap prices to new record highs supporting demolition to a degree.
Average steaming speed of the dry bulk fleet stands at 11, 8 knots and despite the higher freight rates environment is on increased 3% year on year, mostly due to the increase and bunker costs as the.
The global economy opens up and oil projects consumption of recoveries during the second half we expect the bunker prices the experienced upward pressure that will support higher freight rates and scrub of earnings.
Why on themes related to COVID-19, and increased political tension in China towards Australia, and India is creating strong and the efficiencies portrayed the app.
Yes.
And the supply demand balance.
As a result of the bulk of the trends net fleet growth is predicted to correct below 3% by the end of 'twenty 'twenty, 1 and close to 1% by the end of 'twenty to 'twenty 2.
Let's now turn to slide 11 for a brief update of the man.
According to Clarksons total dry bulk trade during 2021 is projected to expand by 3.8% of these films and 4% of a ton miles.
And nation programs against Covid, 19, and rolling out and brought the optimism the markets with the IMF expecting 6% growth in 2021 and for 4% growth in 2020.2.
And the demand as the world and gradually opens up and the synchronized.
Global economic stimulus.
Commodity as Bryan just the use of historical highs.
And candidly and simplify the strong expansion and production and trade.
Furthermore, and you'll have to land the export projects increases and the Pacific rim demand are expected to and placed on miles and vessels requirements over the next few years.
Iron ore ton miles of expected to expand by people in the 1% during 2021.
Sales prices have increased the new record highs and of course steel mill profitability and higher despite the strong crazy and iron ore price.
Furthermore, sale price of the Atlantic and have been trading at significant premiums for the Pacific and the wide price arbitrage is incentivized higher steel exports with smaller vessels benefiting the most during the last months.
Brazil iron ore exports of slowly recovering from the 2019 disaster and had increased 40.
And 4% during the seasonally low first 4 months of the year.
While the last month, you reiterated the targets of 400 to 450 million tons of production by the end of 2022.
Closed on items are expected to expand by 6.4% during 2021 as global energy consumption experiences of strong recovery during the.
The last quarter, as China and India.
The output has been expanding at the higher phased and domestic production and have created shortages that have pushed stocks slower.
And he has been on the Australia coal.
First aid business still make us the diversified and seek coal cargoes from the longer distance sources, such as South Africa, Colombia, The U S and Canada.
The range on miles I expect that the expanded by 2.3% during the 21.
I'll start and 11, 2% increase during 2020.
China's demand for grain is projected to remain strong and the medium term and is the current 5 year plan focuses on the food security and at the same time of the Hog herd has fully recovered from the 2018 African swine fever outbreak.
U S soybean and corn exports stand at all time high interest Mark and the year with forward sales, indicating the Williams will maintain the record high levels during the next quarters.
And the Brazilian soybean exports season started with delays and use the heavy range, but is also catching up with the positive effects on the panamax demand during the second and third quarter of this year.
Minor bulk ton miles are expected to expand by 4.2% during 2021.
Mineral backstage.
And as the strongest positive correlation to the global GDP growth and a smaller again of the vessels will benefit significantly from the synchronized from Samsung recovered during 'twenty, 1.2020, 2 having said that West Africa bauxite exports will continue to expand the the high pace with the strong Pos.
The effect on <unk>.
Capesize on Midas.
Finally, our outlook for the market remains positive due to the offer.
And of the global economy, and consequent increase ton mile demand the gross alkies dry bulk commodities.
The record low of coupled with the upcoming environmental regulations that limit the new vessel orders and also create favorable long term dynamics for every industry, which our company is well positioned to enjoy.
Without taking anymore of your time I will now pass the floor of Robert the operator to answer any questions you may have.
Yes.
Thank you very much ladies and gentlemen of a reminder, if you have a question. Please press star 1 on the call. Thank you.
And wait for your name to P&L.
Our first question today and from Amit.
For us from Deutsche Bank. Please go ahead your line is open.
Thanks, operator for higher.
Thanks for question.
And I wanted to.
And just talk about the bookings and the second quarter and and how that will translate.
And to the cash balance and then obviously the dividend.
I think we can quite easily calculate the cash flow based on the TCE rate relative to the $11000 breakeven, but what's the fit.
And.
And then to understand at least for me is all of the other cash calls I guess theres. Some outlays on on the dry docking that you mentioned and the slide deck, maybe 10 of $11 million, but I wonder if theres also some working capital drag given the big Spike in rates during the quarter second quarter. If you can just talk about that and what you can say if anything about the dividend and the second quarter.
Based on your Formula.
Of over 80 per cent of the day is already booked.
Well I I guess.
Not in the business of of guiding on on earnings or or or the dividend and you know that that would be the job of of each analyst but I.
I guess, Chris do you want to talk about working capital.
Sure.
In a rising market.
Today's market dynamics.
Working capital.
<unk>.
For the freight receivables that you expect from voyages that you book at higher rates.
We are increasing.
We therefore expect to have a drag on the actual rates that we're recording in the specific quarter various of the bylaws. The index that you wanted on basically on a daily basis.
Therefore for.
We wouldn't we wouldn't expect to see the exact sort of index, but there will be a lag.
And an increased market is there's also no other performance in May and then you may of decreasing market when you're actually getting freight rates from a.
From a high freight rates for avoidance of the opening of Pos and and.
And therefore, you're making the high rates than the than the DDI, yeah and.
And and.
And the the working capital is typically about 25 day, our receivables basic and we are typically averaging about 25 days.
So.
And as rates go up you know, we've got basically 25 days of of revenue and working capital.
But I guess the.
The fact of the matter is though you're you're on.
And your average rates for the second quarter, so far with 80 plus percent booked is 40% above what it was and the first quarter. So I think it is it safe to assume that there is a significant increase in dividend and <unk> given the high earnings power for the working cap.
I'd say, we wouldn't be surprised to see Q2 would do better than Q1, yeah, I mean, you're you're you're not wrong.
And then the price the way the FFA curve works there is right now it looks like.
Or kind of steep rising at high levels back half of the year net working cap and reverse and so really kind of the third quarter is because of.
A much bigger number because you have the worst cash.
Right, just given the volatility and kind of higher or.
Longer so to speak.
Well I mean, we don't endorse the FFA curve as of as a forecast, but you know.
On the.
The extra day curve, if it were to come to pack would imply what youre talking about.
Okay and then just the last 1 for me and then he mix Theres a lot of legal language and you said.
You know management being able to change this policy whenever they want and of course that makes sense.
But.
And lots of investors that have seen.
Sure.
And and rates and dividends I think the the difference here.
Have a very good capital structure and a little.
Sure, but tell me like what would have to happen for you guys to abandon this policy of of of <unk>.
The whole surplus for the <unk>.
And our holders is at a really compelling M&A opportunity because you would have a lot of liquidity cushion embedded already where our weak market wouldn't necessarily be enough given that liquidity question. So just help us and Europe minor of the management team and the Board's mind, what would what would you kind of pivot away from.
And then just given all the work on the on the on the cap structure.
Well you know look it's the board.
Clear intention to stick with this dividend policy and the dividend policy was designed to work and a broad broad range of markets and I should point out that in 2019, when we adopted the dividend policy, which we've only very slightly and then.
And it here.
We had no idea there was going to be a global pandemic in 2020 and we did not suspend the dividend policy.
Due to the pandemic and the dividend policy by its normal operation.
Basically provided debt in the market that we had with the pandemic there should be no dividend under the policy, but we didn't we didn't of suspend or stop the policy.
And we hope that there is nothing that will happen that would make us the standard stopped the policies.
And if I may add.
The beauty of the policies that.
The S&P really allows us to return capital to shareholders when we make.
Operating cash flows from our vessels and therefore.
And therefore, we have started and being in the market that will enable last night, there and significant capital to shareholders and therefore, we do intend to keep the policy.
Yes, I mean, the only pushback came ish to that point was that last year you were.
The process of building to that threshold.
So you weren't really paying out much of anything and now youre at that threshold, where you are generating surplus cash flow and I guess I guess I hear what you.
We're seeing this as this is kind of all of the work for to get to this point I guess you know once you are at this point now or are there other attractive uses of that capital.
And allow you to pivot away from you.
And again to shareholders or is that would that be of very high growth.
Yeah, that's that's going to be a pretty high hurdle I mean, the board is pretty is.
Pretty much sat on this on this policy.
And on.
And where.
And we're happy to make attractive acquisitions, but if we make attractive acquisitions, we would hope to use our equity as we've done and the pack.
Got it okay for us.
During my questions I appreciate it thank you yeah.
Thank you.
Thank you very much. Our next question is from the line be given from Jefferies. Please go ahead.
Oh, the gentleman has gone.
Hi, Randy.
So yeah, obviously, you know the the share price today is reflecting maybe a little bit of underwhelming nature of with your maybe rate guidance.
Is there any reason why the the remainder of the <unk> 21, and won't be much higher than the 21000 and quarter to date bookings and maybe if you can add some color on time charters have you or maybe will you add some time charters to take advantage of this current market strength.
A lot of your peers, we'll put out every time charter. They do for example, but have you done any time charters recently.
Hi, and it's Petros.
Yeah.
We are and where we're very positive about the rest of this year as we are positive about well next year as well and and in general were positive for several years come big for various reasons and like with analyze if you won me later on.
And <unk>.
Speaking about the short term.
We are actually covered most of it for a smaller vessels.
For Q2, and we have about.
32, 33% often on the Cape size, so actually I think that youll.
We'll see good numbers there now.
We are not worried about the short term at all actually we think that it could be even better than what the president of sfas.
So for the year, which is like.
34, K for Capes and went for gateway the other 2 types, but having said that if for example, we see.
The Super IMAX from the ultra.
The ex.
Offering us $30000 for for 4 to 6 months, we would fix that.
First of all because it's above SFA and the HC.
C tradition, the number it could get the higher end of that but.
So what's the idea is that we fix.
We stay spots in general if we see rates that are higher than the msas or much higher than the msas.
And then we fix those for the short periods and.
And generally we like to have our fleet back somewhere in November early December so that we try to fix through Q1.
No.
<unk> been doing that every year and most of the successfully except of course, this year where things.
Went upside down and.
And the market was actually extremely strong and I don't think Ive seen this before in my current and maybe maybe in 2007 or 8.
Never before that.
So I think going forward, we will still follow our usual plan of.
Oh, the hedging and bid through Q1.
But for this year, there's no reason to do a hedge and less if the rates, we get our way of bold with of phase.
Alright, and have you done any 1 year time charters recently for example, what percentage of <unk> 'twenty 1 is booked.
Zero percent okay perfect.
Now for the dividend.
Seems like you decided to include the I guess $150 million and the recent write the refi as part of your cash balance. So maybe what drove that decision and then going forward. How are you going to prioritize capital allocation in terms of maybe more aggressive debt repayment further vessel acquisitions do you have a target leverage ratio.
Our net debt amount.
Okay.
And 1.
To answer the first 2 items.
The answer the.
The.
Hold on and so what was your what was your first question again.
First part was about the decision to include the 150 million day recently.
Yeah, So the decision on the including the cash from refinancing.
Based on the fact that our actual loan to value.
Today is substantially below the anticipated loan to value that we were thinking about in 2019, when the dividend policy was originally adopted.
Secondly, our leverages.
Much lower.
On you know and and then the cash.
Capital allocation policy is.
Clearly prioritizing the dividend.
We will we will certainly look at attractive acquisitions of vessels, but as I said before we will try to do that using our share. It's as we've done in the past.
And we do want to reduce leverage.
But you know.
And we're doing that slowly while maintaining the dividend policy.
Yes, that's fair all right well I guess, what what is your net loan to value now and you just mentioned.
And of that that's largely you know the job of the analyst because you know that that involves valuing the fleet, which is not something we're really and the business of doing but you know it's.
It's looking really good.
Thank you.
We have our view the Don Don are of course, but I.
You are the 1 who mentioned our net long I think you just said our net loan to value is below.
We read we read your work and other analysts work and we thank you and the other analysts are doing a great job.
[laughter] noted.
Okay I'll ask 1 last question on the same topic is there a net loan to value target for a year and that you're hoping to get to planning to get to.
Does it have a 2 handle.
Well you know look at.
The net debt.
And by year of our target frankly for a net debt at year end is is you know to be at least on.
Down by the amount of our amortization and you know that.
And that delevering already pretty pretty well and.
And you can.
And do better than that that's great.
Okay, Yeah, I see slide 5 and I hope that downhill trend continues.
Perfect for all.
And that you all fair thanks, so much.
Thank you Randy.
Thank you. Our next question is from Ben Nolan from Stifel. Please go ahead.
Oh thanks.
So I wanted to and.
Drill down a little bit just sort of in terms of how you would be thinking about what your available cash balances or whatever and and and the follow me with the final follow with me for a second here, but I just kind of was perusing Your fleet list and their <unk>.
On the 20 or so ships that are.
15 years old probably I don't know I'm on my estimates, let's say, whereas the <unk>.
The closing in on $300 million, there's probably some debt associated with that but there's probably also a lot of free cash flow and also if you were to sell those the ship count would go down and.
And that thereby your cash per ship would would increase dramatically.
And that the scenario first of all I guess, Oh, you're optimistic.
The mystic on the market, but are you also possibly of seller of maybe some of those older equipment, but and the situation that you were and.
How should we think about that.
That ratio right I mean on not only is the cash balance going up but the number of shifts is going down and sort of a twofer.
And when it comes to the your ability to pay dividends.
All of those they're sort of the the need to sort of carve that out and say, okay. This is replacement capital or something like that.
Okay. So basically the dividend policy gives the board of lot of discretion and the case, we sell of ships.
And as I think he would expect.
And if.
If we sell.
And are more of ships, we're obviously going to think long and hard about what to do with the freed up capital.
And you know where where shareholders we're going to do the right thing you know based on our best judgment for the shareholders and if the right thing is to pay the cash out we'll do that if the right thing is to renew.
The renew the fleet, we will do that.
But you know.
And as you can imagine in defining of dividend policy like this we don't want to tie.
On the boards and managements and if if we sell.
And on ships.
Ban the spectrum.
Imagine, let's say.
And we are all comes and Max that could be fixed today for a year or or or not.
And 2.6.
6 months.
Charters add between 20 and $25000 a day.
That's the vessel would make a profit of between 5 and the half to $7 million now is that vessel is worth let's say $15 million today.
And you actually get for 42.
For the 5% return on the value of the vessel within the year I wouldn't say all of the vessels like that today.
So.
And I take that to many of you believe that asset values of probably going to be rising them.
Well I mean, even the.
The breakeven would be.
And being at the.
$8 million to $9 million worth in the year from now.
If we make 6 to 7 profit.
During the next 12 months so I.
I would I would give this vessel.
Okay.
Does that mean that you would on.
On balance of probably a better buyer than the seller.
Well again, we'll look at it will we're looking always at attractive acquisition.
But our inclination will be the use our equity.
And we can as we've done in the past.
Right.
Okay.
Good enough I appreciate it thanks guys.
Thank you Ben.
Thank you. Our next question is from and monarch tough from Clarkson Plateau. Please go ahead.
Yeah. Thank you hey, guys.
And just wanted to maybe drill down just a little bit more on the <unk>.
And as you've mentioned several times on this call you're you're always happy to look at attractive acquisition.
But just as we think about it.
No you guys were pretty acquisitive several months ago, you bought 12 ships of pretty good prices.
Obviously since then the sale and purchase market has come to life, and a big way and asset values of jumped.
But just trying to maybe reconcile especially with petro sort of comments about the return potential.
How do you see where the market is today, where values are do you still see opportunities irrespective of say the the equity price and using that as the as it means to buy the vessel day.
And you still think that the now's the time to continue adding ships for star bulk or do you think now that use.
And now you're maybe more focusing on the dividends and the taken a backseat on on that.
On acquisitions.
Well you know look all of that catch us talk about the attractiveness of vessel prices generally but.
No.
We will still look for.
Definitely we're interested in and growth.
And.
You know.
We haven't we haven't.
<unk> taken a lab had growth take a backseat to the dividend, we think growth and the dividend are completely compatible with each other and we would hope to keep growing.
Yeah.
You you you saw that we were.
We bought actually 2 resale of <unk> a.
A couple of months ago, which we're taking delivery of 1 and the next few days and.
The second next month.
And that we didn't we didn't use our stock as currency. There. We just book the vessels, but we saw a fantastic opportunity and.
And they were very cheap and we went ahead and in the hands and.
Is that now that the prices of those vessels have probably gone up by about 1 percentage of it would probably go even more even higher because of <unk>.
Steel prices have gone up.
And they are adding huge.
A huge amount of money on the cost of building the vessels and.
I think that.
I think we have enough vessels and I Wouldnt go for new buildings, because if we if we went for that for example, the re sales were delivered within 2 months, so that was and no brainer, but if somebody will compensate for me.
Buying your building and and.
Delivering 2 or 3 years I wouldn't do that.
And the prices would be much more expensive irrespective of what of being positive about the market, we already have and.
128 vessels here.
And I think we have enough vessels, we will do accretive deals but.
We're not going to do.
To run up to the market I think.
Alright, Thanks, Petros actually that was you did just touch on a follow up question I had on that was the idea of of new buildings because of I know, it's a bad word to talk about ordering new builds but we have been seeing cost pressures and slots have been taken up by other vessel segments and sell it.
Did 1 of the kind of check your pulse on the idea of even though having to wait 2 or 3 years, if that was and attractive thing for star bulk, but it sounds like it's not.
Well.
First of all we're very happy that the slots and are being taken up by other types of vessels.
And we will be happy and even if the next available slots of uses in 2025. This will mean that.
And the <unk>.
<unk> situation is going to be positive for our trade and as we think that.
Demand will be fine as well, we're looking for a few of positive years going forward.
And I wouldn't like to disturb that.
Yeah that makes sense.
Okay, and then just maybe 1 final 1 and maybe hamish at the risk of getting you know and Yogi Berra types of response.
Wanted to ask about.
About the.
The the minimum cash threshold of that $2.1 million, but yes, the reverting to that starting in the fourth quarter, which is.
What you had outlined back in 2019 out of the long run the minimum cash.
You did mention that your LTV is lower.
Today than what you'd envisioned when you first of the policy in place so with that the do you see that $2.1 million being.
Being reduced as we move forward or is it do you feel like that's really set in stone.
Well you know.
I guess I mean, the truth is really neither 1.
We can't really anticipate what what the board might decide in the future to do about that.
Cash balance per vessel.
And neither do I think it's set in stone I mean, this is something that will be revisited.
And certainly don't have any expectation that it's going to be increased.
But you know we certainly neither can we plan on it being reduced but.
I would tend to agree with your.
The speculation that it may be more likely in the in the future to be reduced and increased but.
You know, we just don't we don't know.
Okay, that's clear enough Hampshire appreciate that and thanks, guys for the time.
Thank you Mark Thank you.
Thank you, ladies and gentlemen, as a reminder, if you wish to ask a question. Please press star 1 on the telephone.
Yeah.
That of a no further questions that come from Chile, I'll now hand back to the speakers for any closing comments.
Okay.
No further comments operator, thank you very much.
Thank you Sir that does conclude the call for today. Thank you everyone for joining you may now disconnect your line.
[music].
Yeah.