Q1 2022 Dorian LPG Ltd Earnings Call
[music].
Greetings and welcome to the Dorian LPG first quarter 'twenty 'twenty 2 earnings conference call.
At this time all participants are in a listen only mode.
A brief question and answer session will follow the formal presentation.
As a reminder, this conference is being recorded. Additionally, a live audio webcast of today's conference call is available on Dorian Lpg's website, which is www dot Dorian LPG dotcom.
I would now like to turn the conference over to Ted Young Chief Financial Financial Officer. Thank you. Mr. Young. Please go ahead.
Thanks, John Good morning, everyone and thank you all for joining us for our first quarter 2022 results Conference call with me today are John how would you vote terrorist chairman President and CEO of Dorian LPG Ltd, John Lewis, Chief Executive Officer of Dorian LPG, USA, and Tim Hansen, our Chief Commercial Officer Andrew.
A minor this conference call webcast and a replay of this call will be available through August 11.2021.
Many of our remarks today contain forward looking statements based on current expectations. These statements may often be identified with words, such as expect anticipate believe or similar indications of future expectations. Although we believe that such forward looking statements are reasonable we cannot assure you that any forward looking statements will prove to be correct.
These forward looking statements are subject to known and unknown risks and uncertainties and other factors as well as general economic conditions.
On a more of these restaurant uncertainties materialize or should underlying assumptions or estimates prove to be incorrect actual results may vary materially from those we expressed today.
Additionally, let me refer you to our unaudited results for the period ended June 30, 'twenty 'twenty..1 they were filed this morning on 10 on form 10-Q. In addition, please refer to our previous filings on form 10-K, where you'll find risk factors that could cause actual results to differ materially from those forward looking statements but.
With that I'll turn it over the call to John Nesbitt terrorists.
Good morning, everybody and thank you for joining us this morning to discuss our first quarter.
Natural year 'twenty 'twenty 2.
Our results and Ted John and I are speaking from Stanford Tim Hansen from Copenhagen.
We had a healthy market this past quarter, North American exports rebounded swiftly going into April and May as winter storms debated on the golf and U S. LPG production net export capacity once again proved resilient.
This swift increase and a temporary.
It resulted in a temporary ship shortages in the west and pushed rates up the bulk of it began the quarter on a upward trend, reaching a peak rate of $64.57 in mid may before the increase in bunker price. So it started to put some pressure on earnings.
Rates remained healthy for the rest of the quarter and we are optimistic about market strength going into fall and winter.
On the operational side, our shoreside staff have worked very hard to continue.
To facilitate safe crude changes around the world, despite the continuous and new logistical challenges due to the Covid pandemic.
Our Drydocking and scrubber upgrade program is now complete.
The last 2 ships left the shipyard in late May or early June in total we have installed 10 scrubber share some sensors somewhere at 2019.
12 of our 22 own chips are now capable of operating with scrubber hybrid scrubbers, enhancing their earning potential and commercial flexibility.
In June after the M. P. C 76 meeting the I am on announced a near term carbon and greenhouse gas emissions reduction measures.
We have been planning for these matters and are now in the late stages of our analyses of various admissions reducing technologies.
We plan to compare these add on technologies to the environmental on financial considerations around converting some of our vessels to burn L. P. G is fuel.
In calendar year 'twenty 'twenty.
Efforts to reduce emissions are also achieved about 1 and a half million in fuel savings and we continue to enhance those efforts with new software and technologies.
Okay.
We have classified the captain Marcos on the L, which is debt free as available for sale.
And we will be reporting future developments in due course.
The past quarter saw commodity market fundamentals stabilize as crude prices rose the double they their average isn't second quarter 'twenty 'twenty.
LPG demand is consequently, also rising, especially on the east global experts, where our exports were up by about a million a half tons. This quarter with the largest increases coming from Houston and the rest of the U S.
As we come out of a summer we expect exports from both a U S or on the middle East to increase as OPEC implement production cut reversals in August and winter demand returns.
Our outlook for the second half of 2021 remains on domestic production forecasts continued to be revised higher.
The mine continues to ramp up driven by the pet chems sector. The Panama Canal has seen increasing congestion from container on the LNG.
Ships on dismayed pushed more of the O G. She used to balance around the Cape increasing ton mile demand.
We expect this trend to continue and be amplified when new emission regulations come into force.
Continuing our commitment to returning shareholder capital the board of Directors has declared a cash dividend of a dollar per share of the company's common stock returning over $40 million.
Growth capital to shareholders.
We have now returned over $260 million since our IPO in 2014.
This announcement does not reflect the commencement of a regular dividend, but we have responded to clear feedback from our investors that they wish to see dividends alongside stock buybacks and we will continue to evaluate both.
I'd like to point out that the declaration of a dividend in no way changes our view that our stock is still trading at a meaningful discount to our intrinsic value.
I will now pass the line over to Tim to further brief you.
Thank you.
Thank you John.
John.
To begin with some macro factors crude oil prices rose throughout the quarter with Brent averaging around $69 a barrel compared to just 32 barrels in Q2 of 2020.
The propane and butane. Consequently rose however, the relative reprice to crude oil drops from the previous quarter across all major regions.
Would you therefore remains a desirable commodity.
As a result global sea born LPG supply rose as an estimated 1.5 million tons in Q2, 'twenty 1 from the previous quarter on a 6% increase from the same period from 'twenty to 'twenty.
The majority of the rise was from the U S where exports reached an average of 4.4 million tons per months rebounding swiftly after the polar storm in February.
Which demonstrated the robustness of LPG production and export capacity in the North America.
Middle East LPG seaborne supply remained relatively constant with production cuts and Iranian sanctions remaining inflation through the quarter.
Imports into the major consumption region rose, particularly moving to China, where LPG imports increased from around quite from 7 million tonnes in Q1, 'twenty 1 to $6.5 million tonnes in Q2 'twenty 1.
Is this off the 2 new PTH clients began operating in Q1, and then Houston credit growth utilizing propane as a feedstock started production in April and May 'twenty 1.
Imports from feedstock.
Huge life's illustrates the consumption of LPG as a feedstock for petrochemicals, which increased in Q2, 'twenty 1 compared to the Q1 'twenty 1.
Where propane favorite as a feedstock for the production on ease of Italy, and whatnot, the propane naphtha spreads in northwest Europe widened to $90 on average in Q2 compared to an average of $23 in Q1 'twenty 1.
The demand for LPG transported.
I would say the Jewish shipping market characterized by monthly volatility by.
By comparable quarterly breaks are.
Mortgage to the first quarter reporting you'll just see index averaged $53 in the second calendar quarter on 21, only $2 below the performance from the Baltic Index due in first quarter 'twenty 1.
Yeah.
LPG 1 the rest of them were cheaper route made gains in April in first half of me because of it are relatively lack of available tonnage in the middle East.
This is when the worst market fell dramatically on the back of the protest on in February.
So other than to stay east and avoid the V go to rates in the west the knock on effect was not by April It was becoming evident there was not in northwestern is on route to the U S via the Pacific or trading in the Atlantic Basin to cobalt will nail it can.
Gosh the deficit of Vlccs from me loading in the U S. Mint got about 20, Vlccs departed from east of Suez market during April and May.
Which again caused the lack of ship supply in the east allowed to Baltic index to rise.
Half of the cortisol declining balance sheet. This was largely due to the growth in exports volume from the middle east or the more stricter restrictions imposed by the Chinese authorities on vessels, having called India as a response to the increase in Covid cases in India at the time Force do you just you want us to.
Reassess or an already complicated situation wanted to avoid situations on vessels not being allowed to discharge from China menu.
Menu on when this opting to avoid the cargo inquiries into India, which made the list I was trying to just market that for the middle east to the far East trade.
Loan growth and contributed to a falling volta.
Through April on me.
On the Houston cheaper rates traded between high Eighty's low ninety's per metric tons, a premium to the Baltic index by June there wasn't an oversupply of tonnage in the west.
I listed in from the East Margaret in the West premium to the bullets you index narrowed.
Although the freight market measured in U S dollar per ton was comparable to the first quarter. The increase in crude oil also made the shipping more expensive as bunker cost rose.
For the last earnings call, we had forecast as LPG production in the United States to quickly recover from the Cola votes ex told me a temporary and this has indeed materialized inventory levels trade with levels of previous years, our production and exports have rebounded. It was 1 simple cost with debt the OPEC plus countries.
Would agree triggers production cuts during this quarter.
While this did not materialize on schedule live reversals have now been agreed from all of US on whats in Middle East exports are expected to increase as the year progresses.
Well, what's your view on the gross.
Thank you Tim.
During this quarter, we have completed the scrubber retrofit program often hybrid publish 2 on.
On fleet, which started in the third quarter of 2019.
And Dorian now operates 12 scrubber vessels.
The last day of asphalt retrofitted with hybrid cloud Bush were completed and commissioned in early June.
Including dry docking and the completion of their 5 year Special survey requirements.
With the completion on phase 2 basketball as I talked about 'twenty basketball, so the Dorian LPG fleet have now except for the past.
5 year Special survey cycle.
Since the beginning of the calendar year, the actual price spread.
High sulfur fuel oil to low sulfur from fuel oil supply to a scrubber.
The fleet has averaged over $105 to talk to you all.
As we envisaged that spread has produced earnings advantage for a scrubber fitted vessels and validate our original expectations on the payback period by having returned about 1 third of the Capex.
June 30 of 2021, notwithstanding the all end markets collapsed during market on the calendar year 2020.
Dorian continues to evaluate LPG deal flow technology.
And those who do offshore LPG, new buildings and retrofitted vessels entering service.
We'll continue to consider and upgrade for some of our vessels.
We're continuing to investing our vessels performance and efficiency.
Reduce emissions and lower operating costs.
And improve their environmental footprint is very important to Dorian LPG and we continue to explore other incremental energy efficiency technologies.
Greenhouse gas emissions from shipping came sharply into focus over the last 2 months, but from the email Andy you with separate on environmental proposals made for future implementation.
The <unk>, maybe 76 adopted several amendments on Marpol Alex's.
Would become effective later this year and finalize the technical measure for energy efficiency of existing ship index.
On the ESI in short and the operational measure of carbon intensity indicator.
C III and short.
With implementation anticipated towards the end of 2022.
They have now provided guidelines on how to calculate implement survey and set the price and offer and they have all fried apply.
Compliance alternatives on 19 power limitations perpetual.
Let's see I I factor.
Actions have been agreed.
Until 2026.
Which all phases, 1 and 2 and further discussion is to follow on phase III well. They give 2027 to 2000.2030 day 29.
C III operational measure what impact the expected performance from existing vessels and reinforce the importance of a 9 year SAP implementation plan, which prioritizes improvement option for each vessel.
Hey, you glean deal is now driving EU policy initiatives towards our climate neutral on Europe by 2050.
These initiatives proposed effective January 2023 day.
Maritime transport into the European Union emissions trading scheme ETS.
Yes.
Giving a phasing period from 2023 to 2026 and requiring all vessels in.
And I'll talk to British comparable for 50% of that I'm on.
Debt and update it.
Harvey regulation program.
Which is monitoring reporting and verification.
If you are you maritime framework policy focuses on your.
Measures to drive a shift to low carbon fuel.
From 2025 O vessels inbound and outbound everything.
Possible on 50% of the yearly average well to wake.
Energy intensity used on board, including electricity they received from the shore with their phasing in of 2% reduction in 2025, and aiming to reduce energy intensity by 75%.
In 2015.
In view of all these above all the above regulations the options available to the VLCC fleet are limited to engine powered indication average.
The efficiency technologies dual fuel engine upgrades for LPG as fuel carbon capture and Biofuels biofuels.
Most of these options will have a significant impact on the VLCC fleet over the next 2 years encouraging scrapping of older vessels and necessitating project capital expenditure on upgrades of the fleet towards improved efficiencies to reduce carbon intensity and ambition.
The outlook from a regulatory perspective is that there will be an urgent need to consider energy efficiency from all existing pass holders and we conclude that a significant portion of the younger VLCC fleet trading capacity utilization could be reduced to address those upcoming compliance considerations.
And with that I will pass it over to Ted Young.
Thanks, John.
I'd like to focus today on our financial position on liquidity and also discuss our unaudited first quarter results.
At June 32021, we had $78.3 million of free cash as of August 2nd Monday, our free cash balance stood at $82.6 million.
Please note that since we repurchased $14.2 million of stock during the quarter on an additional $2.7 million flowing on the quarter and we really have generated quite strong cash flow through the through the quarter and beyond.
With a debt balance of $589.1 million at quarter end, our debt to total book capitalization stood at 38, 6%.
We have no refinancings until 2025 ample free cash and an undrawn revolver.
Also since the Captain Marcos has now been classified as vessel held for sale, we expect to generate additional cash upon completion of the transaction.
We continue to expect our operating cash cost per day for the coming year to be approximately 21 to $22000 a day, excluding an $8 million progress payment that is due for our new building on our fourth fiscal quarter the.
The quarter ending March 31.2022.
Further to John's comments. This dividend is an irregular dividend the payment of this irregular dividend is responsible to our shareholders have communicated very clearly to us that they want a dividend to be part of our capital allocation strategy and we've heard them loud and clear.
For the discussion of our first quarter results. You may also find it useful to refer to the investor highlight slides posted this morning on our website.
Turning to our first quarter chartering results, we achieved a total utilization of 96, 1% for the quarter with a daily P. C. Net TCE revenue over operating days as we define operating days in our filings of 31571, yielding utilization utilization adjusted TCE, which is.
TCE revenue per available day of about $30003.42.
We also show you a spot TCE per available day, which reflects our portion of the net profit of the Helios pool for the quarter of about 30040.70.
Overall, the Helios pool itself reported at spot TCE, including <unk> of approximately $30256 per available day for the quarter.
Daily Opex for the quarter was 9689, excluding amounts expense for dry dockings, it was 10131, including those costs.
Improvement over last quarter.
Within Opex not related to dry dockings, we've seen increases in crew costs, most notably those associated with crew travel higher average airfares additional hotel nights to comply with local COVID-19 restrictions and the like have been the main culprits.
During the quarter, we saw our daily Opex again, excluding dry docking cost decreasing sequentially, which is consistent with our expectation of improved opex as conditions slowly normalize.
Our time charter inexpensive was 3 and a half million dollars, reflecting a full quarter of 1 vessel and the re delivery of another during the quarter.
As a reminder, we do not include time charter in costs in our vessel operating expenses.
Going forward, our T C N cost should be $2.4 million per quarter starting July 1.
Total G&A for the quarter was $8 million in cash G&A, which is G&A, excluding noncash compensation expense was about $7.4 million.
Roughly 1 on a half million dollars quarterly G&A reflected bonuses to non named executive officers from.
For members of senior management as outlined in our recent filing we will recognize those bonuses in the amount of approximately 2.41 million during the quarter ending September 32021.
We continue to be vigilant about all of our G&A costs.
Our reported adjusted EBITDA for the quarter was $29.8 million to.
To give you some indication of the quarterly activity, we generated close to 45% of our quarterly EBITDA in the month of June reflecting the uptick in chartering markets.
Yeah.
Yeah.
As you know we look at cash interest expense on debt is the sum of the line items on our P&L interest expense, excluding deferred financing fees and other loan expenses and realized gain loss on interest rate swap derivatives on that basis total cash interest expense for the quarter was $5.6 million roughly flat with last quarter.
We continue to benefit from our hedging policy and the favorable pricing of our Japanese financings, leaving us with a current interest cost all in fixed hedge on a small floating piece of 367%.
We repaid just shy of $13 million of principal during the quarter, which is consistent with our scheduled amortization payments.
In addition to the 9 special surveys completed during the fiscal year. Just ended we finished 2 more with scrubber installations in the quarter ended June 32021.
Bringing our scrubber equipped fleet to 12 vessels with the completion of those vessels. The first special survey cycle for Echo V. L. G. CS is now complete.
Although we currently hold a roughly 70% economic interest in Helios, we do not consolidate its P&L or balance sheet accounts, which has the effect of understating, our cash and working capital.
We believe it is useful to provide some additional insight in order to give a more complete picture.
As of Monday August 2nd 'twenty, 2021 the pool held roughly $22.3 million of cash on hand.
Including the dividend just announced Dorian Wilbur will have returned over $265 million of cash to shareholders, including $170.6 million during calendar 2021alone.
Note that following the repurchases through to mid July of $16.9 million.
Waiting to 1.189 million shares.
We now have $31 million remaining under our current repurchase authorization.
We of course remain interested in accretive growth opportunities that meet our risk reward criteria and we will always be prudent in deploying our cash, but our financial position allows us to act quickly on meaningful opportunities as they arise, including further opportunities to return cash to shareholders with that I'll pass the call back to John.
Thanks Ted.
Mr. John Operator, we have a we can open for questions.
Okay with the prepared remarks completed we will now open the line for questions. At this time, we'll be conducting a question answer session. If you would like to ask a question. Please press star 1 on your telephone keypad comps.
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For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
1 woman from Mojave poll for questions.
Do you have it on your screen.
Well I told them you can re prompt Africa.
Our first question comes from Sean Morgan with Evercore ISI you May proceed with your question.
Hey, guys.
Appreciate this is maybe somewhat new news in terms of what's happening with.
The pipeline potential for the I guess, the LPG pipeline across the Panama Isthmus.
How do you sort of gauge.
But what that would do to utilization for the global VLCC fleet and independent from Panama does proceed with this project does that is that an indication from from the government of Panama that they think that.
We're gonna be.
Having high sustained over utilization of the canal kind of as a new normal going forward.
Well, we we take it as as having that optimistic tone to it but.
And of course, we don't know, if it's going to happen and when and when it will happen. If it does but it is a it is a letter of intent and I think we all have an answer for this 1 I think I, let John Nucor's give you the numbers that we've calculated that would be displace than what it would do to to overall demand I think he has it.
Encapsulated John.
Yes, John.
John Thank you very much I'm sure.
Sure Tim also might want to chime in but.
We figured that.
Sean if even if they build the pipeline and even if it was 250000 barrels a day.
For take 2 to 2.2 days on the change that for 1 cargo a day or do you have to go through.
It's a kind of top GAAP measure measure to help.
Right.
The pressures on the come out.
And actually no container ships have priority LNG ships quite a priority.
It's probably an additional measure to help on or a bit on the on.
Being able to the throughput enough cargos.
On the other had it kind of sets up the country.
The 2 tier of Covid.
I'm pleased he's going to be on the west side, and something is going to be on the east side and so that's also going to cause increased ton miles.
And other activities.
Like Jason of the fleet so in general.
The fact that income could figure it is positive for LPG.
Sure.
Secondly, it's just.
A way to try to help me.
Good day, ladies and.
Increased amounts of Falcon, Keith I would have to go through I don't know if he wants to add something on that.
Yeah Tim.
Tim go ahead.
Yeah.
John as John is right.
It's a positive.
But there is a problem in the in the Panama on that.
As such I mentioned, I guess you'd be even considered which kind of demonstrates that the delays we've been talking to volatile we'll continue and on property arrives.
And when you look at the capacity on.
And on the project.
Maximum around 5 vlccs per month, so it's not something that.
That would make a big.
Yeah, it's on my.
The man are you if theres a beach talked on the delay should be more than that.
Really 10 days and in fact to to make this a viable solution. So if there is 10 day used to laser in Panama going on that's a positive sign on and you will see multiple on the mountain Dew.
Hum.
And of course the thing is.
Fragment the market more and are on calling for more efficiencies. So.
This is even consider nothing goes on it's a positive sign and something longer than on again the size of the project itself.
Something that that's that should be.
Should be worried about in that sense.
So if I'm understanding you guys correctly, then they'll still be a need for vlccs to transit the Panama Canal. This this pipeline wouldn't fully some supplant.
Those canal transits that kind of exists today in a normal market.
Yes, that's correct.
Okay.
Oh total so once you get price.
Since many years old or export needs from from U S to lease.
Pipeline would be even stronger.
I don't think it would if fully built I don't think it would displace more than the demand for 5 ships.
Fully built.
Yes, that's correct, yeah, we we estimate capacity Oh.
90000 barrels per day from your owned by Ashish.
Sheesh capacity cheaper months on and that is that is and given that that they built sufficient storage. So that it's not just the throughput but actually.
It doesn't cost any any delays on that you can note the meals fully in enrollment to date cycling on and discharged from Apple.
2 day cycle.
If there's only a pipeline there.
Yeah.
On vacations around logistics.
Logistics will be will it be worse and there'll be less simple ships.
And then with the sale of the Captain Markos does that does.
Does that portend potential exit on your ownership of the John and then Nicholas a better kind of have the same older vintage.
Or is this just kind of a 1 off.
Possibly we're looking we're.
We're looking at sales and and I think they they we do relate those 2 to the to what I said on it in the script about my my my my script about intrinsic value, so a wild where at a big discount and they're just natural and natural.
Turning to look at the sales of the older ships.
I wouldn't.
B you shouldn't be surprised if we do more.
Okay, Alright, thanks, guys I'm going to turn it over.
Hi, John.
Okay.
Our next question comes from Omar <unk> with Clarksons <unk> Securities. Please proceed with your question.
Thank you Hey, guys good morning.
Okay.
Yeah, Hi, E. Obviously, you guys have become much more aggressive I'd say, you know returning capital to shareholders on the share buybacks in the past is that the big tender offer this past March and now you have the special dividend.
John and Ted.
Guys made it pretty clear in your opening remarks that the.
Special dividend or it's an irregular dividend.
What are your thoughts about you know.
Yeah.
Going forward with a regular dividend how did how did you come up with the idea of just doing a special versus instituting a regular dividend policy.
Well it did.
I'll, let Ted to explain the difference between a special and an irregular dividend.
It's a bit of an archaic.
It's different but the definition, but but we purposefully said H irregular it because we're saying it is not a special so it we're not saying it will not we will not have future dividends. We just want to keep the optionality. While we have these this this first of all.
As long as we're generating enough money, obviously and whilst we have this discount to our intrinsic value and we want to keep that optionality very much in the in the front.
And if you want Ted to give you a little little textbook differentiation. He is right here.
Yes.
Yeah, I think I think John kind of nailed it but look the reason, we're calling an irregular is and not special especially the west says it's gonna. It's it's unique it may not it may never happen again regular obviously means it's gonna be pursuant to our policy and irregular as something in between for us.
We looked at our cash balance.
And took a look at how we felt about the short term outlook and said, yes. We can we can return capital. The next question why isn't and I think again, we heard loud and clear from a hand, a large handful of shareholders they'd like to see a dividend as part of this capital.
Capital allocation plan, and so I think our board and management said okay.
Let's be responsive on the other hand, it it doesn't necessarily follow corporate finance 1 on 1 given the discount at which we're trading relative to our intrinsic value. So it's.
As John said, we want to retain the Optionality, we certainly wanted to reward shareholders.
Uh-huh, including ourselves is we own stock and weren't necessarily wild about you know.
Selling out at different points in the cycle, but on the other hand, we continue to be mindful of the discount to our intrinsic value and <unk>.
Clearly a dividend or a dividend as part of the potential method of closing that gap, but buying back stock and capturing that discount directly for remaining shareholders is is pretty is pretty attractive. So I'd say that our thinking is is still we're still pretty stuck on the fact that where it's such a significant discount.
You know we we.
We are you know we want to continue to work on that but again dividends will undoubtedly be some portion of our capital allocation strategy going forward.
Okay.
<unk> debt.
Hum.
So it just was going to ask you it does make sense.
Uh huh.
But as you mentioned the intrinsic value and in what seems like you'll be selling day Marco score versus you know the share price definitely theres, a big difference to capture.
When we think about this irregular dividend.
Should we think about it as you know.
You're basically taking the proceeds from the vessel sale and giving it to shareholders is that a good way to think about it.
Oh no.
No.
Okay that'll be another that'll be another capital allocation decision.
Got it.
Okay, and then I.
1 more and I know John you had mentioned this that you are looking at the older vessels. When it came to this 1 in particular, obviously, it's the oldest in our fleet.
On the decision to sell that vessel did it come about more are you looking to renew.
Or did the Kawasaki new building as it replacement potentially or was this more the.
Buyer coming to you looking to acquire the assets I know, it's maybe not that big of a difference, but ultimately how did you come to the decision to sell the vessel.
Holistic I think we're looking at it as a market.
We don't we don't we're not.
We are optimistic on the market, we're not we're not there to reduce our exposure, but I think it's natural in the cycle to kind of renew on and this is partly renewal and partly a partly.
Partly what you said before again.
The intrinsic value. It's when you see you on your you can sell an asset at a such a premium to what the market is valuing it on it's.
It makes sense.
In that respect so.
It's it's all of those considerations that are bought took on too into account.
Got it thanks, John on and agree appreciate it and I'll turn it over.
Thank you very much on Ma.
As a reminder, if you would like to ask a question. Please press star 1 on your telephone keypad, a confirmation tone will indicate your line is on the question queue. Please hold while we poll for questions.
Yeah.
Yeah.
Yeah.
Okay.
Okay. At this time, we have reached the end of the question and answer session and I will now turn the call over to John Hydro with terrorists for closing remarks.
Many thanks for all of you who dialed in on your and for the questions.
And I wish you happy rest of the summer please stay safe and talk to you in a quarter bye.
Bye bye.
Yeah.
This concludes today's conference you are now free to disconnect at this time have a great day.
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