Q1 2021 Tsakos Energy Navigation Ltd Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to takeoff and navigation conference call on the first quarter 'twenty 'twenty 1 financial results we.
We have with US Mr. Texas out of properly chairman of the board Mr. Nikolas Tsakos, President and CEO, Mr. Paul Durham, Chief Financial Officer, and Mr. George <unk>, Chief operating officer of the company.
At this time all participants are in a listen only mode.
B of presentation, followed by a question and answer session at which time if you wish to ask the question. Please press star 1 on your telephone keypad and wait for your name to be announced I must advise you that this conference is being recorded today.
And now I pass the flow to Mr. Nicholas Ben and I was just president of capital link Investor relation advisor of Tsakos Energy Navigation. Please go ahead Sir.
Thank you very much and good morning to all of our participants.
I am Nicolas for notice of capital and inverse.
And the related to the advisor to Tsakos energy navigation.
And this morning, the company publicly released its financial results for the first quarter of 2021.
And you do not kind of a copy of today's earnings release, Please call us.
And I too want to fix.
6617, and 566 or email us at some day.
And at the capital and Dot Com and what we'll be happy to send a copy to you right away.
Please note the parallel to today's conference call. There is also a live audio and slide webcast.
Which can be accessed on the company's website on the front page at Www adult day.
D E and M Dot D R.
The conference call will follow the presentation slides. So please we urge you to access the presentation slides of the company's website.
Please note that the slides of the workout the webcast presentation the would it be available and archived on the website of the company after the compounds force.
Also please note that the slides of the webcast presentation are user controlled and that.
That means that by clicking on the proper button and you got moved to the index or to the previous slides on the euro.
At this time I would like to read the Safe Harbor statement.
This conference call and slide presentation of the webcast contain certain forward looking statements within the meaning of the safe Harbor provision of the private Securities Litigation Reform Act of 1995.
Investors are cautioned the such forward looking statements involve risks and uncertainties, which may affect tens.
The business prospects and results of operations and now at this moment.
The pass the floor to Mr. Pablo the caremark.
And the cycle of standards, we know the game.
Your line up of Blue. Please go ahead Sir.
Thank you Nicolas and good morning, good afternoon, and thank you for.
Joining our call today.
Producing.
Operating income under the present market conditions is a great piece.
For which the Nikos tsakos and the team deserve the zev.
Congratulations once again.
These results are fully in line with our industrial model of the strategy of which is the.
To provide high quality service to our blue chip customers well.
While ensuring high levels of cash generation to cover our obligations even in today's weak market.
Continuous fleet renewal.
State of the odds of vessels operational excellence and Amp.
For liquidity protect their and and position it to benefit greatly from the market upturn.
As we all expect.
Despite the challenging market we continue.
To pay a common dividend and.
The rapid way since inception.
We continue to reduce debt and the repay outstanding preferred preferred issues.
And lastly.
And the company is increasing its focus on our ESG footprint.
And maintain our high governor and the standards of both I know.
Areas of increased focus by you the shareholders.
And with this type of past 1 of the floor to Nikos tsakos and thank you.
Thank you chairman.
And of all votes.
Never.
And pleasure of door and important.
And a loss, making quarter I have to say that the width of the air force for everybody in the right direction and the first quarter and losses were significantly.
Bad debt and then the fourth quarter because I think this is what we are we are.
That's what the logically we are comparing ourselves to the last quarter of 2020 I think we had a lot of shortage and exceptional for all for what the first quarter or so and that's the way and we are going towards that direction of natural we have always been saying the company's strategy of probes.
All of that obligation with our time charter fleet and profit sharing and use of working once again.
Well whatever they do have.
Okay and anything for the for months.
And 1 last fall and we say of just a couple of million dollars, but I think this gives us the ability to take care of of all our obligations.
From the vessels of about that on time charter nonprofit chairs and.
And allows the company to maintain its growth.
And we are and are.
All of our fifth the down cycle lasts for Mr. Shao.
And his lives and every time the company comes a stronger out of it and what we're facing today, it's not totally.
And the <unk> market, but I think the structural change in our and the state and I think this is what we and the heads of items about our mental and operation of the committee is scheduled by the missed there and females of Metropolis NIE of former head of the idea of Moore and his team and.
We are looking on the talking to our clients of what will be the shape of the future and I think this is something we spend a lot of time and lot of effort.
And within the very proud. So far was the result of that we are achieving with all of the closing of course are derived from the ballroom and what we're doing and that day to day to make sure. We run a tight ship, we make sure the dollar seafarers and.
Personnel have been able to safely navigate through this unprecedented COVID-19 crisis that seems to be coming back again for all of them from all over the world and Uh Huh.
And of course make my comments.
The further down and I will be answering the question, but I wouldn't take again the opportunity to thank them the.
And the officers and staff of the use of course, therefore, the immediate response.
And to 1 of our seafarers.
The COVID-19 scare the.
And the are on are of good vessel, the Artemis offshore the west coast of the United States, 1 on its way of crossing towards Korea and.
And I have to say that within hours of promo first and report to the U S of course debt.
Helicopters together with our with the bond getting and fueling.
Helicopter and whatnot.
Uh huh.
And we're playing we're above the waters all of our device and actually picking up Odyssey for who now is recovering and the San Francisco of Hospital. I think these are things that make us proud and makes all of our seafarers and feel that they belong somewhere in there or not.
And.
And this of bus portion and the circumstances. So again, thank you very much to all of them and I think we are going to be doing a much more for them on thing.
Yeah and in approaching the debt.
Of all of this are going forward and with that.
And I will ask George shuttle.
To take us through the developments of the last the I would say 90 or 100 day 90 days and we won't be back to answer some questions and thank you very much.
Thank you Nicholas.
Good morning to all of you joining our earnings call today.
We'll start the call by thanking the officers and staff of the U S Coast Guard and for their successful efforts and the rescuing 1 of the <unk> 250 miles of the cost of San Francisco.
Human life is of Paramount importance and see what our shore, but saving life and see most of the times is more challenging due to the prevailing circumstance.
Circumstances, whether or otherwise and events like this 1 make all of us very proud to belong to the international shipping community by which the U S Coast Guard leads by example.
We navigate for over a year now through the Covid pandemic and although we see the light at the end of the tunnel. This unprecedented crisis is not over yet.
Our priority continues to be the health and wellbeing of our crew and shore personnel too.
No COVID-19 incidents and the fleet and no disruption of operations.
We used to report and so that we have monitored the situation with no major incidents and for this reason I would like the welfare once again, congratulations to our seafarers and short of personnel.
For the resilience and professionalism during the stressful period.
To think of tack with Columbia.
Management.
Technical managers for their efforts and keeping some powder of safe and in managing crude changes in an environment, where regulations and the lockdown restrictions made the planning and mission impossible.
Our IP for making sure we operate remotely seamlessly and without disruptions and the.
The last but not least the theme of medical experts and that is helping all of us almost daily with good advice and dealing with the deadly virus.
So think of the market has been very weak.
For more than a year now the <unk>.
Price of oil has recovered from the historical levels, we have seen during the first half of last year and that made the overall market weakness even harder as the bunker prices came almost back to the pre pandemic levels.
But there are also a lot of positives to consider oil.
Oil demand is recovering from the monumental losses for of last year.
And after a strong demand growth year and 'twenty 'twenty 1.
Experts now see a return to the pre COVID-19 demand levels by next year.
For <unk>, plus minus the collapsing demand diligently and with discipline and has now restarted and more than 40 per cent of the initial 10 million plus production of cats.
And plans to gradually add more of barrels which means more categories for a market that is therapy for the oil as global oil stocks are now below the 5 year average levels in.
And all of the main demand areas OECD and the developing world and of course of the supply of tankers continues to be at historical low levels. While the global fleet is getting older and new upcoming regulations I'd expect it to push the phase out of a big part of this aging fleet.
Let us go through the slides of our presentation and slide 3 we see that since <unk> inception, and 1993, we have faced for major crisis.
At this time of the company. Thanks to its operating model, which is built to be crisis resistant has come out stronger for the.
For modern tankers and 1993 for the pro forma fleet of 67 vessels for an average 15% annual growth in terms of dead weight tons and the for decades, we opened it.
And slide 4 we see the pro forma fleet and its current employment profile, we have of combinations of vessels and fixed time charters and flexible and employment contracts time charters with profit sharing seaways and for trading.
Net capture the market's upside.
All of dark blue color of vessels 24, and the slides are on fixed time charter rates, while the light blue and red color of vessels for 2 thirds of the fleet currently and the water have exposure and the market's upside this.
And this means that there and is well positioned to capture of the positive tanker market fundamentals and expect that the Calgary and freight rates.
We took advantage of the low freight environment to bring forward. The number of schedule of special surveys in order to have these vessels available once the tanker market rebounds and.
And seems flipped vulgarities of key elements of our operating model. We recently concluded the sale for free.
<unk> of our older tankers and <unk>.
And so you'd be the panamax tanker and 2.2005 built suezmax tankers.
Which we replaced with 2 new building orders that will increase the company's exposure into specialized sectors.
Nimbly and the DP, 2 shuttle tankers and LNG categories with both vessels coming with learn in terms of employment at that.
Slide 5 the.
Left side presents the all in breakeven of course for the vessel tax of the operating thing.
As you can see the cost base is low during.
During the first quarter of this year the revenue generated from the time charter contracts was against sufficient to cover the company's cash expenses Bang for the vessel operating expenses overheads chartering of course alone interest.
In addition, we have to highlight the purchasing power of Ccs.
And the continuous cost control efforts by management to maintain a low opex environment for the fleet.
And while keeping a very high fleet utilization rate quarter after quarter, and which for this quarter. Despite bringing forward. The scheduled dry dockings and ahead of time, we achieved and overall, 92% utilization.
And thanks for the profit sharing element.
And of stone of dense chartering strategy for every $1000 increase and spot rates per day will have a positive impact of <unk> 57 of sense. The the annual EPS based on the number of 10 vessels.
Currently have exposure to spot rates.
Slide 6 debt reduction is an integral part is also an integral part of the company's capital allocation strategy.
Since the company's debt.
In December of 2016, we have repaid 281 million of debt and.
And the repurchase of $100 million into series of step up of preferred shares the B and CS senior debt we had outstanding.
Today, the net debt to capital ratio is at 51%.
Slide 7 and in addition to paying down debt and growing the company through timely sale and purchase of land and you're building transactions. We continue to reward shareholders with dividend payments, we announced the day 10 cents per share dividend performance shareholders that will be based on July 2020.
'twenty 1.
Since the company New York Stock Exchange listing in 2002 and has rewarded the companys shareholders with almost half a billion and dividend payments.
Regardless of the market slide 8 it has been an unprecedented year for global oil demand.
Most of the Covid and.
And then make and the measures to contain it in 2020, we had the first year of negative growth since the period of the great recession in 2008.2009.
Year end demand was approximately down $8.6 million barrels for the day below the levels of the 2019 year and demand figures for approximately 8% down.
Most of the losses were in jet aviation fuel category of mobility and traveling came to an almost complete standstill last year the ex.
<unk> for 2021 is for all the demand to grow back of 5.4 million barrels per day, and another $3.1 million barrels per day, and 2022, reaching the pre COVID-19 oil demand levels at year end 2022.
Full of demand recovery of course depends on how effective we are going to be continue to deal with the virus and the <unk> mutations.
The early most of the 2020 of demand reductions were found in the OECD countries, mainly North America and Europe.
For the non OECD world, even from the second half of last year's the International Energy Agency raised demand estimates, particularly for China and the rest of the developing Asia. This year, we have seen the OECD countries rebound from the low base level. In addition to the expected.
Demand growth coming out of China, and developing Asia.
The global oil supply front of OPEC, plus producers continue to matter supply with discipline and almost half of the 10 million barrels of production cuts have been returned to the market.
The next OPEC meeting and 2 days, we'll decide on production levels from August 2021.
As inventories and developed countries and and developing where in the developing world as are coming down below the 5 year average levels and no.
Oil demand is expected to grow opex.
OPEC plus will continue to grow production levels in order to meet the incremental oil demand and higher demand from the second half of the year and the release of additional bulk of models to the market should be the positive catalysts for tanker demand and tanker rates.
[noise] supply.
On slide 9 with the oil demand recovering let us look at the forecast for the supply of tankers. The order book as of May stands at around 6.6% over the next 3 years the lowest in almost more than 20 years and at the same time and big part of the fleet is over 15 years.
360 vessels of almost 8% are currently above 20 years upcoming and environmental regulations could push more tankers approaching for above 20 year for Gulf of scrapping and as the next slide highlights 2018 was the highest scrapping years of recent records.
Last year scrapping was lower as expected. However, this year with the first 6 months gone and scrapping and both absolute number of scrap the vessels and the in deadweight ton already exist the full year 2020 statistics.
And with regulations coming and approximately 8% of the global fleet above 20 years, we expect the graph scrapping of numbers for 2021 to accelerate further.
Summarize.
Oil demand the recovery continues with strong growth expected in 'twenty, 1 and 22.
And supply more production increases out of on the horizon by both of Peg glass and other non OPEC producers.
Order book supply of tankers. The order book currently the issue is at historical low level of which points to a recovering and stronger freight market for the next day of <unk> 24 months.
<unk> balance sheet, we have built the crisis resistant of operating model.
We have and modern fleets well position to capture of the positive market developments, which are expected to start from the second half of this year, we have a strong balance sheet of strong bank of banking relationships that will allow the company to take advantage of the opportunities that will be presented and lastly, looking at how other shipping.
Sectors of our Ferring right now freight rates and asset prices for both containers of and brokerage.
And currently going through a very strong market.
If past history can be guidance for the future of there is always about the 6 month lag before that as a positive spillover effect to the lagging shipping sector and.
So of tanker should be the net shipping sector to enjoy a better market.
With the expectation of better days are ahead of US I will ask Paul to walk us through the first quarter of 'twenty, 1 financial support.
Yeah. Thank you George.
So quarter, 1 started with positive expectations.
The difficult market.
And we still have such expectations as revenue was $140 million.
And our loss and quarter, 1 was only for point of $8 million.
Which was less than the loss was successfully contained by our time charters that were still able as George just mentioned still able to cover all cash expenses, leaving the surplus of $12 million.
Well half of our fleet on the spot, we're able to generate a further 18 and of half a million dollars.
Much of our optimism was also due to the healthy cash reserve inherited from the strong markets of the past per year.
And <unk> us to meet the challenges of the current downturn.
Our results were also affected by taking advantage of the market low to advanced for dry dockings into quarter 1.
Wowing the vessels to exploit the better market later in the year.
However, the market conditions did not allow us to benefit much from profit share arrangements and contrast to the strong prior quarter 1.
Although we do expect profit share will play a major role and the eventual rebound.
Daily average TCE per ship.
<unk> thousand dollars.
As satisfactory average given the large increase and bunker costs and the <unk>.
Cool rates available and the market.
Operating expenses fell $4 million due to tighter economies and the lack of market conditions and partly due to reversal of prior year accruals relating to crew tax.
Average daily Opex per vessel fell 6% to $7400 too big of upon from 7900 of 7004 hundred that is rounded numbers, despite dry dock costs and a weak dollar.
G&A expenses and quarter, 1 fell 10% as management also applied tighter controls on the overheads.
As a result of all of these factors 10 achieved a positive operating income of $2.2 million.
In addition, finance costs fell by $27 million due to reduced debt by $50 million and to low interest rates and margins and 2 of $5 million increase and bunk of evaluations compared to the prior quarter 1.
Since the start of the year poor rates reduced our EBITDA to $37 million.
But we were still able to maintain adequate cash reserves, while the time charters and vessel sales continue to generate decent cash flow in.
In fact, we recently sold 2 more suezmax is and the sale and leaseback deal releasing $17 million cash after repaying $27 million debt.
Plus the Panamax the tanks.
Maya releasing $4 million cash after $5 million debt repayment.
And we aim to sell and more vessels as part of our fleet renewal.
Also we continue our ATM program, having raised about $19 million so far this year.
And the fact, we believe the market will turn during the second half due to positive fundamentals plus of possible demand to rebound as the lockdown measures abate and normality returns and.
And I'll return the call back to Nicolas.
Paul Thank you very much and looking forward for the.
More importantly, if the results are.
Next the next time and with that we would like to open the floor for any questions.
Thank you very much Sir ladies and gentlemen, if you wish to ask a question. Please press star 1 on your telephone keypad and wait for your name to be and now.
Our first question for today is from Randy given from Jefferies. Please go ahead.
How the gentlemen, how's it going.
Very good I think it's time for you to come down.
Chris again.
And I agree I agree.
And hopefully sooner rather than later, we all hope we all hope for.
All of Oxy and made that here with the Johnson and Johnson and the.
And I need to mingle with our good clients and friends. Thank you good deal well I'll be there a few questions for me first.
And I guess, just the most timely question.
For it in the news this morning, and you're partnering with equal nor for for dual fuel Aframax new buildings can you comment on that story or maybe provide some additional details of these ekland or our assets.
Well as you know 10.
And the tens model depends on partnering with the first class.
Our clients.
We are and the process of discussing not only with the corner, but with other clients.
For the for the step forward.
Our industry is changing the structure of the industry is changing and we had the big James backing in the 90 days from when the opened 90 changed the actual hall of the vessel I think we are in the process of.
Of the changing of the actual comp.
Compaction of the ship right now and this is something we are discussing with clients and there's not much we can say.
And for US we are very proud to have the expertise of our clients together with our team and looking for the future even more environmentally friendly and investments and the vessels out there and always with an accretive transaction in mind.
Okay, that's fair.
And then with those kind of accretive transaction and segue to your LNG charters and those counter parties can you give a little more color on those 3 LNG contracts in terms of durations rates counterparties.
Well.
The star of the Star of all of the energy market and for.
For the last.
I would say 2 quarters, so far have been the LNG. So.
We're very lucky and very well placed and thanks for the efforts to all of our in house team, we were able to actually deliver the vessels back to back from.
From the previews and employments to their new employments and without any loss of a single day. So I think that the this is very good and we're and we're talking about of what LNG as you know that the figures are.
And if we currently high so that was a very important also passing the survey so very on budget of those of those vessels and.
And.
And they range from I would say and average of 2 years to a minimum of 5 years for O for the other employments of adoption that takes it up to 2 of the 8 year period.
Got it okay.
And then I guess looking at the kind of just further our fleet renewal efforts and maybe on the sales side right you've taken around or you still have around 15 tankers. All around 15 years of age. So is the plan to kind of divest those as you're building these new kind of dual fuel vessels.
Yes.
The next time, we will be phasing out was very good quality. The ships I think perhaps we must be 1 of the very few companies that we have maintained.
A very firm.
Belief in where we built our assets and the majority of our assets having been built in places like Korea and Japan.
And I think this is where we are maintaining right now our our position. So we are looking to replace those very good assets, we have assets that day.
And the new system the yards.
Got it alright, and I guess last question <unk> is now pretty much literally complete.
All of the other peers give kind of quarter to date rate guidance can you provide that for <unk> and just trying to get a sense of how that compares to <unk>.
Well our.
Q1 was a difficult quarter, but I think as Paul.
Very elegant and he said.
And it was a modest loss managed.
Of course of the company's net.
Strategy of Oh for time charters and.
And the vessels so it towards the much it was.
Significantly better quarter than the fourth quarter.
And I believe that the second quarter with the help of our LNG input to it.
Going to be significant.
And it will be a better quarter than the lumpiness.
And the 1 that we just reported so I think thats net.
As much as I can say and I think as George and the Chairman and said we are looking at the better days ahead do we have the strong indication from charters that are out there looking for long term employment.
For the vessels the.
And the supply side. This is the lowest in recent memory and as soon as the non early nineties.
So I think the.
And the light at the end of the Tan and is appearing slowly but steadily.
Got it alright, well that's it for me I'll turn it over thank you so much. Thank you.
Thank you. Our next question is from Magnus for from H C. Wainwright. Please go ahead your line type thing.
Yes, good afternoon.
Just a couple of questions.
On.
The appetite among oil companies for time charter contracts I mean, the trading firms had been pretty busy securing tonnage.
Over the last couple of months.
Rates are still very low but have you seen much of a change.
From the old comp and as far as the appetite on maybe he can and more tonnage and I don't know how do you structure of these contracts with the rates still depressed.
Well I think from what George described earlier, we are we actually.
Played defense as you've seen in the United States of 1.
A lot of our renewal scheme, and we decided not to go for long term charters at the states the app.
The type of these there.
A lot of companies that are looking for I would say.
The low balling.
Low volume numbers, but we are in discussion for anyone who is usually on a minimum and the profit share and so they are quite of few over those of businesses that we are discussing and we are seeing signs that the people.
People have belief and the market, we've seen companies like frontline and making new investments in the.
And in Vlccs.
Recently and not only issue I think it is a good sign and we're seeing also pulling I mean, we're big supporters of pools, we strongly believe the pull us out of the best way of consolidation and Dr.
Actually allows you to keep for your in terms of sponsorship brand leadership properly maintained.
George the reported the reported reported we were able to control of expenses have another reduction of 4 of 6 or 7% and different circumstances, which we're proud of we went down from 7900 to 7004 hundred in Opex and a difficult time when COVID-19.
The restrictions put.
And lot of force.
The pressure on expenses. So I think we are thankful to our men and women on the ships and <unk>.
Officers of being able to do so and then through consolidation we are able.
To have a better and block negotiation with our clients.
Alright, Thank you and and just going back to the prior questions regarding selling some of these older ships.
And these chips are typically the ones that will have the best the re.
Rebound and asset values, if the market recovers and they could generate significant cash flow as well.
How do you balance that.
Having day, it's very well maintained ships that you know very well.
And keeping them and maybe capturing some of the market recovery going forward.
Versus staying compliant with new regulations.
Well the market we are doing.
We are doing transactions trying to have some imagination and what we do so 1 of the ways that you can achieve exactly what you describe as of with some sales and leaseback transactions of 2 as you know are something that the company has always believed and so in that sense you are able to sell of the vessel footwear at the <unk>.
Damian motor significant premium for the hit AIDS and but then maintain exactly what you said the use for another 3 years of you're trying to flow to capture the upside so.
And I think you hit the.
The nail on the on the head with your with your point.
Alright, good and just 1.
1 more question as far as the dry docking you brought back some dry dockings and 1 Q.
What kind of refresh my memory, what what's your plans now for <unk>.
And.
And I'm sorry <unk>.
Most of the we're basically done with 2 kids and so what what can you bring forward and <unk>, we're doing that all of it from <unk>, we're doing another for bringing forward.
And we're doing in the 12 months the liard, we're bringing ships that are net.
The.
Early 'twenty 2 doing them now because they are and the right location of the right time. So I think it's better to use the the summer lull and kind of them ready for as we go forward and the fourth quarter.
So I think I understand.
Therefore, the ships and another for ships.
I would say efficient and efficient dry dockings when the when the rates that either.
And just 1 last question if I may what are the cash balance dropped quite a bit it's a little bit below and your comfort level, even though it's about my comfort level.
What's the what do you guys stop sale.
Comfortable with current cash position, even though it's come down a little bit.
Thanks to the efforts of our chairman and the team here you will find out of the third quarter of it has the rebounded significantly.
Sure.
Very good thank you alright very good.
As a reminder, if there are any further questions. Please press star 1 on the telephone keypad.
That almost all the questions that are waiting at this time I'll hand, the call back to Nikolas Tsakos and CEO. Please go ahead.
Well before I ask our chairman to say his last wire wise words, I would like again to.
2 of these days that we are in the process of a structural change and our industry.
The structural change.
The company, we face it again back in the early nineties with Europe and 90 at the.
The time within 40 years, we've transformed the company from a single single company to a fully double double company with the help of everybody.
That was a big change and the Hull design of the ship I would say the biggest change since the inception of shipping with you today.
Today it looks it was likely to usual thing what are the <unk>.
And there was a lot of discussion about the <unk> safety and about how efficient and safe. It would have been going forward, but it has been proved that it has reduced pollution and I'm looking for award by 99, 9% and the.
Having missed the Metropolis here, who was in the forefront of those discussions of the volume I think it was a very.
The important move and thank you very much the same day.
And the environmental and operation is now and discussion with our clients for the change in the engine design, which is the next step so.
I think the industry took the.
The environmental and I'm sure.
<unk> off of the Hull and the early nineties kind of the open 90 day, and we are and the same process and the companies they're with exactly the same enthusiasm much much stronger company with the support of our clients and discussing with all of our clients over the next step and I think for 1 of your questions earlier about discussions with clients, yes, that's what we.
Do we sit down with them and we try to find what will be the shape of the future and hopefully.
It was and do it by making some good returns in the meantime.
And with that I will ask.
Thank you.
Thank you.
We of course.
All of the best and the next quarters and.
Congratulations for the proactive management.
And that has positioned the than what it is ready to benefit from the market recovery well done.
Thank you. Thank you the oil.
Yeah.
Ladies and gentlemen, and that does conclude the call for today. Thank you for 1.
For joining you may now disconnect.
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