Q3 2021 Euronav NV Earnings Call
Good day and welcome to the Euro in the third quarter 2021 earnings Conference call all participants will be in a listen only mode.
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Please note. This event is being recorded I would now like to turn the conference over to Brian Gallagher head of Investor Relations. Please go ahead.
Thank you good morning, and afternoon to everyone and thanks for joining <unk> Q3, 2021 any school before I start I would like to say a few words.
Information discussed on this call is based on information as of today Thursday November 2021.
Concerning forward looking statements that involve risks and uncertainties forward.
Forward looking statements reflect current views with respect to future events and financial performance and May include statements concerning plans objectives goals strategies future events performance underlying assumptions and other statements, which are not statements of historical facts.
Forward looking statements attributable to the company.
This is actually on its behalf.
First to be qualified in their entirety by reference to the risks uncertainties and other factors discussed in the company's filings with the SEC, which are.
Which are available free of charge on the S T.
<unk> website at Www Dot FCC go Cubs.
And I loved the company website at Www Dot you announce they'll call you should not place undue reliance on forward looking statements.
Each forward looking statement speaks only as of the date of that particular statement.
The company undertakes no obligation to publicly update or revise any forward looking statements actual results may differ materially from these forward looking statements.
Please take a moment to read our safe Harbor statement on page two of the slide presentation.
I'll now pass over to our Chief Executive Hugo Stoop to start with each of the slides you got over to you.
Thank you, Brian and welcome to our call today wherever you are in terms of the agenda I will firstly run through the Q3 highlights and make some comments about what we believe will be seen as a trusted all distinct to cycle.
Brian or head of Investor relation will then look at the current themes in gets leased instinct market before I return to discuss in more detail. So the strategy now for six years.
So turning to slide four and the highlights page.
There were more low lights doesn't highlights during Q3, which was arguably the most challenging freight market in the last 20 years.
This was driven by two key factors lack.
The lack of commercially available borrows.
The OPEC plus tapered their cuts it didn't translate into adult darice available for the independent fleet such as jewelry.
Furthermore, the illicit trade around sanctions Iranian buttons took away what we what would've been otherwise borrowers required to be transported by the rig late to treat.
The market also suffered from an oversupply of vessels also Oslo. This started to be eroded as we exited Q3.
We have continued to use the low freight rate environment to accelerated dry docking you said no completed 23 year to date was not a full will be done by year end, that's around 40% of our underlying fleet.
However, the market has improved strongly since early September the improvement and breaches come from a low level of freight rates, but this sustained improvement has sequentially improved each week over the past six weeks.
This has been driven by a number of factors in categories, such as greater number of barrels available for exports in both the Arabian Gulf and the Gulf of Mexico.
And improved demand for oil in particular, a few logs are some additional demand comes from came from customers able to switch between various forced to choose and willing to do so because of the elevated gas prices and finding and increase recycling activity in the older tonnage. These.
This gave a better balance between fleet supply and supply of available barrels for exports.
Recent earning calls and presentations, we've consistently stressed the constricting factor for the tanker market in the medium term effects.
Factors, such as fleet age order book ratio and incoming emissions regulations it.
It is encouraging as we move into seasonally stronger trading period to see that the market is gaining traction and rates moving higher.
All of this is good and goes into the right direction, but a return to profitability will require continued improvement on those oil demand side as the winter progresses.
Turning to solid financial or leverage stands at 48, 7% then he supported at the end of September with Hunt with 791 million of available liquidity.
We were pleased to refinance our 200 million Nordic bonds at an improved pull in early September, allowing us to make sure. We continue to have access to alternative source of capital such as the Nordic bond market.
Or timing looks positive already as yields have risen steadily seats.
Despite the loss in the during the Q3, we will distribute a treatment.
For sure I spoke previously made some quarters.
With that I will pass over to our head of our Investor relation, Brian Gallagher too to make ultra walks you through some market highlights Brian over to you.
Thank you she got.
And then I'm going to run through some of the catalyst we can seeing over recent weeks or months that he alluded to earlier.
Coaching elements of this feature is the fact that this has not been an exhaustive list. Other factors also play beyond the list that we highlight on slide five.
Recycling for instance September alone saw four Vlccs four suezmax.
The global fleet, that's a 1% reduction in fleet size alone and it's been followed up in October with another three VLCC equivalents, which are execute the fleets.
Huge squeeze in fuel prices and things like natural natural gas. During Q3 has also driven some switching both for economic sense security of supply reasons.
Estimates vary but this winter, there's a consensus between half a million and a million barrels per day of additional crude demand coming from this fuel switching source about one off factor is a very strong benefit to our marketplace.
Certainly it's been for striking in weeks amongst the production wise isn't global crude has not always translated into a like for like increase in export barrels. But this feature is also starting to change starting in late Q3.
For instance, we saw in September the 550000 barrels a day.
Loan were exporting from the Persian Gulf and must be followed up with nearly 700000 barrels from the same region during October alone.
Fourthly further recovery of oil demand is expected to continue beyond this winter seasonality as we see increases in areas like jet fuel continue that trajectory towards pre COVID-19 levels of consumption.
Finally, another six points at some point need E argue the inventory build will have to begin.
They themselves forecast stocks will start to rebuild starting in January.
Global inventory in terms of the oil and crude around the world is way below the five year average to the end of 2019.
Inventory built historically been very positive for tanker markets I'll provide further encouragement to our view that the market has now reached the trough.
Moving on to slide six the short term perhaps all.
All supporting a more general improvement in both the crude demand picture and also the supply dynamics.
<unk> combines the combined with the trajectory of the IEA forecast of oil demand.
Over the coming quarters with that sort of the proposed OPEC plus tapering projections.
Unlike other industrial and shipping sectors. The late cycle nature tanker shipping means that we have yet to regain the pre COVID-19 level levels of consumption. The other sectors, we enjoyed already.
This slide illustrates clearly that the anticipated a question in the market recovery in both supply and the demand for oil should continue to drive tanker market going forward.
What happens is the largest platform available to investors.
Daily place to benefit from this recovery a slide seven illustrates.
This slide highlights the robust diversified platform that we have built to navigate what we believe is the upcoming our next stage of the tanker cycle.
Our large fleet as a core focus of 37, Vlccs, which are amongst the youngest amongst all competitive at six seven years of age on average.
We're supported by multiple contracted revenue streams, which were 2021 will drive our cash break even rates to a very low with highly competitive level.
Our strong balance sheet has allowed us to simultaneously invest in the future. We're expanding our core fleet for instance by 15% with eight new eco vessels, which will start delivery in January next year.
And yet we retain a very conservative leverage ratio.
Our fully integrated platform has been supportive of shareholders as well.
We've returned over $1.2 billion of cash dividends since we listed in 2000 and pool on the loan in the past 21 months, we returned $2 $4 per share via dividends or buybacks.
Platform will provide investors with a very strong exposure to the future development of the tanker market as we now showing a bit more detail on slide eight.
Slide eight focuses on the free cash flow generation for sure from your in house and when we compare ourselves with all the multiple pairs. It's clear that returns will be very competitive for the up cycle metrics are particularly of 50070 $5000 per day.
You wouldn't have with them on that basis, then provides the highest potential that said from a platform that we've built over many years.
We looked at it a bit more detail earlier.
That concludes a very quick run through our market view on your positioning I'll now pass it back to Hugo for summary.
Thank you Brian.
While traffic light slide on the left on slide 11 shows a double upgrade of oil demand and always supply.
<unk> has continued to grow, albeit remaining below the pre COVID-19 levels of consumption.
Production growth of crude continues steadily and now importantly convert into increase in export. This is more than probably due to the fact that all inventories across the globe on now below the five year average.
And all are all the variables well, Tom mods and vessel supplies are unchanged, but here too. There are some positive signals for instance, Q3 was the lowest quarter for tank orders in 25 years with the yards full of orders from other shipping sectors and incoming environmental regulations.
That came with no surprise.
The medium term picture for vessel supply is particularly encouraging.
As I said in my introductory remarks, we knocked out of the boots, yet, but given how low the freight rates were over the summer we welcomed a rebounding and hope to reach profitability levels in the not too distant future.
We are of the view that Q3 will represent the trough of the cycle and our platform is very well positioned to benefit over the coming quarters of improved tanker fundamentals and the short term catalyst as they gain traction.
That concludes our remarks, thank you for your attention and I know parse boss back to the operator to take your questions. Thank you very much.
Thank you we will now begin the question and answer session.
To ask a question you May press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys.
Is it any time your question has been addressed and he would like to withdraw your question. Please press Star then two.
In the interest of time. Please also limit yourself to one question and one follow up.
At this time, we will pause momentarily to assemble our roster.
And our first question comes from Jon Chapell with Evercore ISI. Please go ahead.
Thank you good afternoon, he's O'brien.
Qdoba electron has as the tone has shifted from maybe cautiousness to a consensus optimism that things can only get better from here. It seems like some arbitrage opportunities have opened meaning.
The time charter market seems to be moving up while spot continues to kind of ebb and flow around pretty weak levels and also secondhand values have lifted as well. So when you think about your strategy for the next 12 months understanding your backdrop of being optimistic, but we don't have 100% line of sight have you thought about.
Creating or taking advantage of some of those arbs by.
Getting rid of some of the older ships as the new vintage come on next year and or putting some more ships unchartered, it's to raise your break even at the beginning of the cycle.
Well I mean, thank you very much for this very nice summary of where we are because that's exactly where we are and where we feel we are.
I think that's a feed rejuvenation is always the agenda now remember that towards the end of the year, we will potentially lose full vlccs because they were on the <unk>.
<unk> seen a leaseback with no purchase obligation at the end of the charter. They will reach 15 years, we will have the opportunity to read the lift them just prior to the 15 year survey, which was by design.
So at the end of the day the sheets of we get at similar times, and then those who will be revisit condensates.
For it so if we don't do anything else.
We are almost one for one in terms of fleet rejuvenation now.
In this market you have to be opportunistic so you have to look.
At whatever you can do to create value for the shareholders. All the time, that's oh pretty what we do.
And there is an opportunity to to extract more value of the market and as you said take advantage of the arbitrage, we will certainly do that.
I'll end by it by saying that.
Tens of time charter market I mean, we are seeing indeed increase D to EBIT.
I believe that that's only be choose the charges or looking at a market which is.
On the rise and they want to lock a steel what Dvds discrete value and obviously being on the opposite sides, which we believe is probably too low compared to what we could expect.
Okay that makes sense to you.
Brian One for you you know, there's a slide that lays out the short term factors that are gaining traction.
Listen I'm in the same boat as you guys, but it's been continually disappointed in the pace of this recovery.
Covid setbacks aside what are some of the risks that can continue either to derail or delay the recovery that you've laid out here with all these other catalysts.
Yeah, It's a fair point, Jonathan otherwise I think that's probably outside of Covid. Maybe street risks is that firstly I think the recovery I think everyone's sort of frustration has been a bit patchy. So we see some really strong numbers. The last three months now in terms of exports from the Arabian Gulf, but clearly that's not been.
All out by other parts of the OPEC plus bakery.
I'm, absolutely downs of productions, just not simply able to be raised in certain parts of.
The OPEC consortium was it was so I think that it's probably one risk that we don't get any sort of uniform.
<unk>.
I think a second risk.
It's clearly going to be from.
OPEC plus itself in terms of how it behaves in a way.
It wants to see things develop and I think the last whiskeys, obviously, one thing that people have forgotten about.
Is the oil price now we are reaching a pretty elevated level 70 hogs lots of headlines about how long the prices.
And the difficulty that we're.
It wasn't counsel as we if you remember back a few years ago, we used to have a slight young where we spoke to demand destruction kicked in.
I stopped at these sorts of levels in the mid Eighty's. So yeah. If we continue to see a high oil price that could also sort of charcoal saw some of that sort that are reasonably fragile demand recovery, but it's not nothing is guaranteed as you say, but I think the point we wanted to make is the.
Pushing against that those cabinets is.
We do expect that the seasonality will be slightly driven out of our business as we get through the winter.
Simply on the basis that we got that recovery and we also believe as we said in the last couple of calls that we think ton miles would be a story for 2022.
You talked about the fact that it is very patchy, but oh, so they're awesome.
So as you guys had very strong fundamentals, but we're trying to reach two from 'twenty. Two 'twenty three onwards. The encouraging thing is that we didn't have to think very hard to come up with those catalysts, because we're seeing them everyday.
Every day over the last eight to 10 weeks, but you're right to highlight it isn't nothing's guaranteed on somebody's arbitrage, but we will continue to be very focused and will continue to be very very driven because we're.
We're seeing as a run rate today.
A single voyage on round voyage is being delivered at $20000 a day plus as a life number over the last few days, but the trajectory has continued since we are putting these numbers together okay. That's great. Thanks, so much Brian Thank you Hugo.
Bye.
Thanks.
Question comes from Randy gave you with Jefferies. Please go ahead.
Howdy team here in F <unk>.
Hey, very well on their way.
Good good all right so.
Yes, Brian I know you historically included some commentary regarding the Iranian fleet and maybe potential impact of additional Iranian barrels coming to the market. There wasn't in the presentation. This time, but any updated commentary on that situation and maybe the market impact of a new deal there.
Yeah, I mean, we we've obviously been very keen to keep that in People's site.
Sidelines.
We're taking some of the data from some very good sources, including our U N I E. In terms of some other data sources, yeah, I think the potential benefit would be both structural because we looked at the data we'd like to saying we got a around about 45 to 65, Vlccs, we think in stride and they're all HIV.
18 years of age or we've got a very high scrap price.
We've obviously had the news or the night, the Iranian talking to engage with the Europeans own 20 knock in November.
Does lead opens with deal we think there'll be that structural benefit of the older tonnage, leaving the fleet, which has not been engaged clearly commercial trades, but will be very positive for sentiment because we're talking about 5% of the world's fleet potentially leaving in a short it looks like it's on.
So operationally I think it's probably pretty consensus now there's seven hundreds of thousands of a million barrels a day of it spend if you like out of the commercial world and those that those barrels should logically return to commercial players like ourselves and our competitors and the Iranian fleet took nine months to come back in full operational.
Mode from the win.
Obama lifted the sanctions in 2015 16.
There's some good data points there nothing has really changed if anything but like just like we've seen as the Iranian.
To China trade has actually dropped off a little bit and you just making the point in recent presentations.
Don't see these tried growing it's just.
In a world, where we've had a buyer.
What was the price must mercury plus when we've had a world and in a sort of delayed recovery from Covid COVID-19 related issues over the last 18 months a million barrels a day essentially is a very big number in our world. So that's the benefit but structurally in terms of the sentiment is older ships with the fleet.
An operational benefit as they as those borrowers would turn to the commercial Blake So no real change in the numbers Randy.
Clearly it does seem that on the game with Brexit.
President Biden also pushing for additional barrels.
One I'm holding oil price down, but there's some some very strong.
The tailwind is now potentially that could bring this back into the into play into 2022.
Sure Yeah that makes sense, thanks for the color on that.
And I guess, secondly, and Hugo.
Investor has taken a pretty big position in your own App right. So theres been some rumors about you and I have possibly being acquired so first any any comments on that possibility and now on the other hand have there been any maybe internal discussions about your own app actually being an acquirer of a smaller player at this low point.
The cycle.
Yeah.
I hear this one wood Cowen.
And it's the elephant in the room go ahead, no I was going to say I was surprised with some of the first the question but.
That's probably because we had the one on one conversation with some of your prior to the call. So I think that you are absolutely right. I mean, this is an investment so contracts and as used vehicle that he used to make investments.
And it's helped Trump on acquiring shares of Euro debt is like we've seen them in.
In the past with the other companies, who think that shipping market is small markets, we come across each other all the time.
Good luck to each other.
And there is nothing unusual there what people need to understand is that full John it's very difficult at more to what he is into frontline and so we are very happy that he has chosen our platform to invest what would they be D would be a great investment because he's super bullish on the tankers in general.
So I would say towards the vessels on the school if you have this kind of.
Cosmetic person and knowledge of the person about the tanker market investing internet and all the people who took this route.
As far as as COO.
As far as consolidation is concerned.
I think Thats fair.
15 years ago, 17 years ago, we set up disbursal in order to try to to have to consider additional market and that strategy has not changed dramatically now.
We were on the panel with frontline DLD bites and we both said that's what needs to be consolidated in priority all of the small players.
That's really the people that are.
So without hurting the market.
Simply because they don't have the capacity to gather the information that we do being prison the market all the time.
And that should be the priority. So we think that the market will consolidate further we would like to be about spin and debt consolidation into priorities will be to consolidate.
Smaller players.
But you know.
If you look at what we've done in the past more question of opportunities rather than really deciding who you acquire and at which point in time.
Okay.
Got it no that all make sense and I think so yeah additional color there.
Thank you.
The next question comes from Chris <unk> with Weber Research. Please go ahead.
Hi, good afternoon.
Thank you and your.
Great. Thanks, I wanted to just ask a bit about slide number six.
The IEA demand forecast.
Q1 before recovering.
I wanted to just get your view do you think the tanker market recovery.
This, albeit at a slight lag or do you think you can actually come sooner.
Yeah.
Thank you <unk>.
Yeah, well go ahead Brian.
Okay, you'll maybe quite a bit muffled on that but yeah. We're just taking a data points and the reason we're trying to sort of just with that slide in mind is that we want to just try and show that the catalyst we see clearly that could be one off which you guys said earlier with regards to some of the fuel switching that's not that's going to be sustainable.
For more than that this winter period.
These are the official sort of agencies that are giving that the bus demand numbers from the IEA and they are continuing to see expecting to see less seasonality.
We think that as we go through 2022, as we get that sort of demand recovery because they are looking for the last final. If you got building blocks in particular, the world's getting back to normal more transportation, which is about 55% at the end use of crude oil not.
Not being reflected in.
High demand for jet fuel and therefore, the refiners are using more crude as the rule product. So yes I would.
Just trying to show is that new business trajectory through.
The next four or five quarters, which equates followed obviously.
With the caveat that Covid doesn't return that there was this trajectory because we have to remember that.
Real underlying point, we're trying to make is that the crude tanker market.
Like cycle, we're not like other shipping sectors or other industrial sectors, where they've already recovered to where they were in Q4 2019, we havent got to that stage yet.
In terms of our crude consumption. So that's the point, we're trying to make is that where we are still in a recovery phase and that should as we get into it into the final stages of that with a module supply as we're seeing with the tension in the markets reflected in higher freight rates, but that's the trajectory we can see all things being equal bugs bugs of increasing supply.
Our oldest plus continues to taper their production cuts, but also demands continue to come through just to show you that background of both supply and demand is very supportive and its underlined by some of the short term catalyst that we got.
Alright. Thanks.
Thanks, Brian and just maybe one more for me.
The successful B 30, biofuel trial will nevertheless, the.
The vessels are limited.
Good morning.
Well.
I can probably take that one so we've done several trials and we continue to do so.
The reason why we are able to do it because we have access to our biofuel that has surprised at all.
Very very thin margin above the illicit food as you can find it in the market and that's because of the specific subsidies.
Available for European companies in the Port of Rotterdam.
Now the reason why we interest in testing does she was just because we believe that they would be part of the fuel mix in the future and as we all looking to decarbonization if they can.
Could be priced similarly priced in the <unk>.
Choice is obvious.
Now every time we are.
Shifting you know was buoyed by the way the key is when we shifted from inches of food to elicit truly reside with shifting from a few to a different view, we need to be very cautious and we need to test. It gradually over short periods of time are initially over.
Longer periods of time, but maybe when we all near report maybe waiting a twin to report and then finally the final stages to test them over the full duration of one voyage.
Thinking about how do you how do you address sort of what you would anticipate doing with your dividends once the cash flows little bit higher as we move forward.
Well, thank you for a Christian to use that so it's very important for people in the cool to understand does indeed, and Belgian we may be at a disadvantage, but there's a lot of nicknames to avoid 020. Okay me back when did your foreigners. So we don't believe we disadvantage compared to the others.
It's just a question of feeding the form.
And making sure that either you are a valued things upfront all you're paying me back and then it's relatively straightforward we have improved the page on the website to.
To show you how you can do that so that should be very very helpfully, obviously for the Belgian War. Belgian citizen, then I'll just need to have to pay it with a let me back but that just seems you are you a citizen you have to pay it with all detection D. U S. <unk>. So I think it's more of an administration problem, then anything else and maybe the difference is that in.
In Belgium, if you don't feel that for them then to company <unk> automatically, but it's certainly not something that that you have to do if you wish decided to to pull up the phone D.
The the <unk> the balance between share buyback in dividends will indeed be driven by where the sharp sharepoint seats compared to N a V.
There will always be a sort of a balance between the two because we don't want to go full speed on only one of the twins spent twitching tectal to to the shoulders and I'll see what we have done in 2020 was very useful for us in terms of understanding what's one sort of return does to the shape or.
Fries and what the other soda returned as to the shape wise as well as reinvesting so that capsule into a renewed feet. You know, we are coming closer and closer to the time, where the first measures taken by D. I <unk> see I will take faith and we are also hearing quite a lot of positive.
Comments from our clients that there are more and more interested in chartering in vessels that can consume as little as possible and name and therefore, it <unk> as lethal as possible. So we also need to be golf will <unk> needs to be minded about how we review to feed and whether we should to accelerate.
Just reach for you Oh, not so as always <unk> there, there's there's a slide into bitch Uhm addicted, we using road shows which shows how we allocate capstone in something that is very dynamic we're at the point of taking the decision we're looking at everything possible.
<unk> debt reduction, but as new or or live which is at the moment relatively conservative but included that if if we were to exceed 50% for instance.
And it's at that point in time that we take the decision. So it's very difficult to make a better policy than that because we are in the wintertime market. We are in the cyclical market and there's a lot of dynamic around the company itself.
Okay. That's very helpful. Here and then for my follow up just hopefully pretty straightforward. You you said that I think twenty-seven vessels are being dry dock. This year is 40 per cent of the fleet and some that's brought forward. So well for next year at you know what's the what's the Bowie here how much less what are we assuming that it should be.
It's about yeah.
Yeah neither.
Yes, I can help here and indeed, he had a blindingly, okay and can you make any budget. So we are planning to have about 16 can I. Please have a thing for him to take it too.
Perfect, Thank you and and and and and by the way Similarly to what we have done this year. If it turns out to be a fantastic here you can delay because basically you have you have a window of <unk>.
Six to 18 months, if you <unk> to dry docked you'll vessels suspicion you do want a list in 15 years of age. So again this is.
Our plan or budgets full she that number of vessel, but we would be very dynamic when we think about it.
Yeah. Your your mouth the gods here there you go I I hear you too thanks, Yeah.
Your next question comes from <unk> with I N. G. Please go ahead.
Yeah. Good afternoon can you hear me.
Yes, we can.
Okay perfect.
And my question is about spreading and you have seen a nice number sameness in September I think for fish for can you give any and if they just show me. What you think is happening Indian I'm, saying the last quarter of 2002, 21, and maybe in the first months of 2022.
Given the fact that for example that that's what was a delay between let me say low price and it.
And stripping.
Yeah. So it was you you you're you're hitting the nail on the head to carry.
A couple of factors I mean, 2020 was a fantastic here in terms of their knees I lost people to directly go from booming there too very bite yeah with they believe that they should scripted. This is very difficult. So you always have the time delay or a time lag between a good year and the decision to scrap of this.
That's the first one just seconds born does that obviously those decisions have been polluted by the fact that some people were willing to pay a premium for very old tonnage that they would use until their end of life and then did you say three.
<unk> <unk> they were paying one or two of treatment and all of the scrap prize for those vintage and then trading the shapes and and what was very lucrative <unk>. So it's not available for companies such as you and that which was to to transport Iranian or.
We believe that first of all the U S is looking at it's a little bit more cozy than what they have done in the past and secondly, and maybe more importantly, that's there has been so much tonnage bold fold that trade that now it is oversupply. So that trade is too many <unk> compared to the number of barrels that'll being.
<unk> from the around mostly to China by Malaysia. So the the last couple of sheep that we've seen being I presented full for sale prison, either either for scrapping of <unk> <unk>. There was no bids which were Ah well D too Scruff prize and therefore.
They went for scrap which is is a signal that the appetite for these ships four <unk> Street is is vanished to feed that is currently doing it will probably continue to do that to doing something happened in the country, but no more ships will be there.
So everybody who now it looks at what it can you can currently.
But more importantly, what he has to spend in order to pass a survey and be certified to operate in the market.
I'm paid to the amount of money that he can get from the Scruff Prize because crappy is very very and it did at the moment would probably choose clapping and that's why we believe that two four and in two one or the rest of 22 should be very interesting in terms of a number of humans that will be eliminated from the wall Street.
Okay, and what <unk> what was that dismal my name you said, a number of <unk> and <unk>. Let me shave use were store because I seem to have some as long as they're used for storage. There was nobody caring about the name is a D H a federal.
That's that's totally correct, so and I'll talk to that they they can get a another type of <unk> certificate, which is a lot to a lighter. So you don't <unk> you do not need to spend that amount of money, but there are very very few thank us which are all being use a storage unit at the moment, if we're talking about the the 15 O 20.
20 year average so you always have a number of vessels and in that number you see a lot of the Iranian feet itself, because they could I'll choose the their ships to trade in any way they need to sheep's as a buffer for their all production before you speak export to the.
Wish it to channel so.
<unk> is Brian <unk>, you're all the minutes, we see sanctions being lifted or another put a C. B b and apply to Iran. Oh, two most kitschy being put on what they do with the oil.
All of that should have a positive impact to our market and it remains to be seen what's to it will be and what impact. It will have that we are very hopeful that something is likely to happen.
Thank you.
Thank you.
I think that that question and answer session.
Like to turn the conference back <unk> <unk> <unk> <unk>.
Well. Thank you everyone for attending just kidding.
Getting swollen and we hope that the next one would be with the hope you improve market and bedroom use.
As we as we come up with only all so thank you very much and talk to you next time.
The conflict has now concluded. Thank you for attending today's presentation you may now disconnect.