Q3 2021 EuroDry Ltd Earnings Call
[music].
Thank you for standing by ladies and gentlemen, and welcome to the Euro dry conference call on the third quarter 2021 financial results, we have with US today, Mr. Odyssey dispute us She chairman and Chief Executive Officer, and Mr. Tussle facilities, Chief Financial Officer of the company at this time all participants are in listen only mode. There will be a pre.
<unk> followed by a question that answer session at which time if you wish to ask a question you will need to press star one on your telephone keypad and wait for your name to be announced I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed.
So passing the floor to Mr. Pete Us I would like to remind everyone that hit todays presentation and conference call, you're a dry will be making forward looking statements. These statements are within the meaning of the federal securities laws matters discussed may be forward looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such.
It's not being realized.
Kindly draw your attention to slide two of the webcast presentation, which has the full forward looking statement and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it I would now like to pass the floor over to Mr. Peter. Thank you Sir Please go ahead.
Good morning.
And thank you all good morning, Dave.
I'm scared for each school.
We go from here.
Non smokers.
The purpose of today's call discussing results for the third quarter was a nice bump.
'twenty one.
Right.
Our income statement highlights are shown.
I wondered devin.
Right.
It's bad news.
The net income of 11 point basically.
Got.
That's good.
Goldman Sachs.
Hussein.
77%.
Yes.
Adjusted EBITDA for the corporate EBIT.
Okay.
For the nine months.
Once that's done.
At this time.
The second one.
Great.
Brandon spoke said thank you.
Neither these droughts.
All of these drugs.
Not yet where they need to meet.
Sure.
I am CFO practices.
And then some.
Nathan.
Thank you.
Hum.
Hi, guys.
That's pretty good.
Good one.
Is it quite as liquid bread some goods.
Uh huh.
So we thought it was.
Bill.
Great.
Thank you Colin.
Yes.
They're burdened with Goldman Sachs.
Pardon.
Very good.
Thank you.
Good luck with the light.
We shouldn't look at that.
There were no dry dockings.
That's really the third quarter.
Yes.
Why isn't it.
The company at eight nine.
Nick filling seats, but it's really about 16.
16000 citizens, who are eight yes.
Yeah.
In the chart that we put out.
Let's turn to the CEO of scripts.
Okay.
5000.
Great.
Right.
1000 buildings.
Yes.
One of them.
Well congrats Todd.
Okay.
They did have a book to bill.
Dave.
2007.
For the day for the quotes have been paid.
Awesome.
You bet.
Political Cleveland office employment.
The small 60 to 80 days.
Okay.
Yes.
There will be some good news.
So the repo book.
What about you said the burn.
<unk> thousand.
Hum.
And we pass throughs.
People's about eight to nine.
The 28000 type curve.
No.
Good night.
It was extended.
90, 845%.
Thanks for the Midland Basin.
Okay.
During the third.
One the company.
So what would create that remains.
The equivalent to one part of the books Betsy.
So is there anything that would be.
So.
But that would be the price of diesel.
With the launch of one 7 billion.
Oh good.
So 80 days in Q1.
This is the equivalent of one part of the books that she does.
1000 <unk>.
Okay.
<unk> made good globally that position.
3000 into Cogs.
Dave.
The game is about 700000 buildings.
Okay.
Yes.
Right.
Smith.
Uh huh.
David.
For 2021 has been negligible.
Two 7 million.
As you can be very profitable.
The board will decide.
Sure.
Yes.
Yes.
Yes.
Sandy.
The preferred shares.
He used to be approximately $13 6 million.
Yes.
It does.
The company's balance sheet will be when CEB.
Okay.
Hey, Ted.
When cheap bank debt.
Yeah.
So that'd be about.
Concerns about my book.
We are in the process.
You have applied.
Okay.
One thing said.
Please turn to slide five.
You did.
Got it.
Yes, we need some more production.
But you need to increase to 90 units further complementing our philosophy.
We've been very soon.
Yes.
Our loans without the need debates.
Scottsville.
Police cause the value of the data.
He is the guy who proudly capacities of dogs.
50000 Boes.
Slide six shows the current deputy.
Yeah.
As you can see the effect.
Well before Covid.
One for Bob.
Thanks Neely.
Right.
About the extent that we need.
Crazy good food.
This figure excludes.
Exclude ships or music stars with Hudson.
With that a little bit.
One can reasonably conclude that for me.
It depends a lot on the market.
<unk> really been shooting bugs.
Thank you Sydney.
Got it.
We remain optimistic about the market fundamentals.
It's got some good things about the premium.
No.
Sadly that can go wrong with the market highlights for the quarter ended September 30.
Really a third school dry bulk rates continue to climb throughout the.
Well, it's quite strongly in the Covid.
I assume.
You haven't spoken about Covid.
Soups.
One seven times EBITDA today.
And Facebook.
Yes.
So I couldn't do at home.
The balance sheet.
Maybe why you haven't been fun and chocolate which comprises of mattresses.
7000.
The $30 a day due to COVID-19.
Did you say 59000 tons of them.
But the last day of the Covid.
But last week ago, one year time charter rate.
Oh Wow.
We've got positive volumes.
According to Clarksons.
For my second one.
Sure.
Yeah.
You are now reconnected.
Hello, excuse us.
We will consult friends, we have continuing footwear.
So we go to slide seven.
We will go in all the markets highlights.
But for this quarter.
We've had reached the point to say that after the strong Q3, we have seen in the last months of significant drop in the chocolate market, where panamax vessels had dropped to about 21005 tons of bonus for the day.
On the second time to market. According to Clarksons during Q2 be.
Secondhand bulk carrier prices increased by 17%, while new building prices and kidneys due more than 37, and 34 million tons. So much so much vessels respectively.
Our year to date the fleet has grown by three 4%.
Please now turn to slide nine.
Normally Calgary continues on Baker due to weakened compared to the previous.
But between the two I had less provisions for a customer in July.
At closing to be absorbed but I am pretty poor growth forecast have been revised slightly downwards.
Global growth projections for 2021% to 549% compared to 6% in July.
1000, <unk>, we kept unchanged at four 9%.
Beyond 2020, due the Ireland continues to forecast the moderate global growth less than the three 3%.
For 2021 this module type neither of these into the flex more difficult near term prospects for the <unk>.
Advanced economies doing due to supply disruptions fueled by higher commodity prices as inflation expectations continue.
Both spreads sort of emerging markets and developing economies are also be locked down for 2021, especially for emerging Asia.
Particularly the people live me the U S is expected to grow 6% for 2021 which is below the July forecast of 7%.
The downward revision reflects a slowdown in economic activity, resulting from the values in COVID-19 cases and related production caused by supply shortages and the resulting acceleration of inflation.
<unk> expense.
Economy is expected to grow 8% in 2021 slightly less from the July forecast, you're scaling back with public spending.
And then.
The differences, we see will be added to each one.
While India, India is growing.
We look at things, it's nine 5% for the years of 2021.
Looking at the dry bulk trade growth and based on Clarksons projections for 2021, and two demand growth expectations continue to be on an upward trajectory at four 6% for this year.
For 2022, and 2023 dry bulk trade is expected by Clarksons to grow with the most of the phase two.
Three 3% and.
5% respectively.
Please go to slide 10.
Because the percentage of total fleet up until November 21 stands at six 8%, which is still around the lowest levels. We've seen in the last big surprise for us.
And if it doesn't close their books and continuing demand trends for the coming years, we expect that fundamentally supported and continue with the rebound in the dry bulk market for the next couple of years.
Please turn to slide 11.
Dry bulk fleet towards them.
According to Clarksons net fleet growth is projected to two 6% in 2021.
Based on the current level of deal books fleet growth will be at historical low levels in 2021 and 2022.
Demolition in 2021 'twenty two is expected to be more of a less than five years with very low level. That's the effects from higher freight and fairly low bunker prices limiting symptoms, which can often OIBDA and the accretion targets.
Currently the 2023 of the business increasingly we said.
Neither of these are likely to again be sort of normal levels.
So please turn to slide 12, and summarize our outlook out in the Covid by by Tomorrow.
The global recovery continues as we said before at a solid pace. Despite the ease of sales for the ability of the Denver variant of COVID-19, and despite the backdrop of significant commodity and energy price increases, which have started to reduce the pace of economic growth and threats.
The creation of an inflation environment.
The dry bulk market has been in the strong trajectory on the back of highly supportive conditions in the commodity markets, having reached 11 year highs in Q3 2021.
In the last months, we have seen a slowdown in growth.
Betsy you've seen demand in China, which has affected the whole basket.
This has to do mainly with the logistical issues are now.
<unk> had some bad mix that contributed to the Chinese government has the power and the needs to stabilize and therefore, we expect revenues to remain at higher levels at the short and medium term outlook.
And the churn.
In the short and medium term outlook generally positive and supported by one of the lowest order book server.
Furthermore, ordering of new ships in the future for 'twenty 'twenty to rebuild the business is expected to be mainly due to lack of available slots and chipsets.
In addition, the lack of clarity for the fuel of the future is not known to be optimal for even five years out makes separation the venue.
And then certain proposition.
Overall, a steady recovery in dry bulk volumes alongside limited supply growth.
The global economic sentiment should translate.
Confirm improvements into 2022 and guy can absorb.
However, pointed conditions remain volatile as a number of risks remain around valuable northern COVID-19 today, and the eventual cost of the Covid.
The ingestion of these timing of the implementation of the UI and more environmental originations from January 22003 onwards.
Key elements in the direction of the month.
Interesting times as always remember him.
Let's turn to slide 13.
The left side of the slide shows the evolution of one year time charter rates are fundamental dry bulk vessels since 2002.
I wouldn't overemphasize, the one year time charter rates for Panamaxes.
Capacity of 75000 business I was stupid to around 21 clubs buy clubs the bottlers.
In a very prevalent unprofitable levels, despite the Cogs and 30% prediction.
As you can see on the right hand side of the slide the carbon price of a 10 year old panamax vessels around Covid surprised midyear.
Over the past year Drybulk prices has really been exceeding.
Exceedingly the historical median amount over two levers.
<unk> significantly lower than prices seen in 2013.
Yes.
In addition brought it with me.
Gross capitalizing on the strong market by posting significant revenues and generally strengthening our values.
Absolutely credit increases significantly from Mexico that envelope.
Evaluating how best to use for the benefit of our shareholders.
This can be in the form of further debt reduction.
<unk> buybacks.
Do some of the business.
When the position secured by strong charters.
Which would be doing it with future risks down to a minimum and that are competing.
Most probably it could be a combination of some of the above.
We remain positive and excited about the prospects of beautiful dry.
Trade mix and continue to evaluate opportunities for investment or any other form of corporation exploiting a public midstream and marketing platform.
Let me now pass the floor over to our CFO Bachelor show some weakness.
<unk> value for medicine.
Highlights in more detail.
Gotcha.
Thank you very much good morning for me as well.
I will now walk you through our financial highlights.
Third quarter and nine months period ended.
On September 32021, when compared to the same period of last year.
So, let's turn to slide 15.
For the fourth quarter of 2021, the company reported net revenues of $19 5 million.
<unk> engine and the funding of 96% increase over total net revenues of $6 8 million during the first quarter of 2020.
<unk> gains were primarily the result of the higher time charter rates are versus churn in the third quarter of this year as compared to the third quarter of last year.
So on the increased number of vessels operated during this quarter.
The company reported net income.
Oh yeah.
Productivity of $12 1 million.
Net income attributable to common shareholders of 11 8 million as compared to a net income of <unk> 5 million and net income attributable to common shareholders of <unk> 1 million for the change the April 1st quarter of 2010.
In those and other financing costs for the third quarter of 2021 remained roughly unchanged.
Last year, <unk> 6 million.
Change the increase in the other in South Central Texas began during.
During the period was offset by the decrease in LIBOR rates.
Adjusted EBITDA for the third quarter of 2021, <unk> million compared to $2 8 million during the third quarter of 2020, representing a 362% increase.
Basic earnings per share attributable to common shareholders for the third quarter of 2021.
<unk> 47.
Calculated on $2 6 million basic shares outstanding.
Diluted earnings were $1 39.
Consummated from approximately $2 7 million diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of 0.0 $6 for the third quarter of 2020 calculated on approximately two 3 million shares basic and diluted.
Excluding the effect on the income attributable to common shareholders for the quarter.
The unrealized gain and derivatives.
The adjusted earnings attributable to common shareholders for the quarter ended September 32021, which has been.
With $84 per share.
And 377%.
Outstanding diluted respectively compared to adjusted earnings per share.
Zero appointed unified.
Basic and diluted for the third quarter of 2020.
Usually security analysts do not include the above items in their published estimates of earnings pressure.
Let's now move on the on.
In the second half of the slide to discuss the nine months results for the year of the year.
For the first nine months of 2021, the company reported total net revenues of $42 1 million.
Lending and 165% of our portfolio.
Revenues of $15 9 million during the first nine months of 2020.
Which again was the result of the increased number of vessels we operated.
Higher average charter rates our vessels during the nine month period compared to the same period.
Last year.
We reported net income for the period of $15 1 million.
Net income attributable to common shareholders of protein 2 million actually convert.
Net loss of $5 6 million net loss attributable to common stockholders of $6 7 million during the first nine months of 2000 correct.
Ebay and other financing costs for the nine months period. It can change one amounted to $1 7 million compared to $1 9 million for the same periods of 2020.
This decrease is mainly due to the decreased LIBOR rates on our long term the current year compared to the last.
Also in 'twenty, three and beyond we recorded a non cash expense.
One 7 million loss on debt extinguishment upon the conversion of certain of our decks interact.
Adjusted EBITDA for the nine months of 2021 was $26 3 million compared to $1 8 million active.
During the first nine months of 2020, representing 1626% increase.
Basic earnings per share attributable to common shareholders for the first nine months of the year.
$5.84.
Gulf of Mexico.
$2 4 million approximately two 4 million shares outstanding.
Earnings per share were $5 $73 calculated on approximately $2 5 million weighted average shares.
Shares outstanding compared.
Basic and diluted loss per share of $2 $97 for the first nine months of 2010.
Again, excluding the effects on the income attributable to common shareholders for the nine months.
The unrealized loss and gave us.
And the loss on debt extinguishment.
While last year's results the adjusted earnings per share.
<unk> attributable to common shareholders for the first nine months of this year.
We continue.
$7.42 banking $7 in 2009 diluted respectively.
Compared to a loss of $2 $7 per share base diluted for the same period of 2010.
Again as previously mentioned.
This initiative not include unrealized.
So the line items they publish at Metro for inspection.
Let's now turn to slide 16 to review our fleet performance.
We will start our review by looking first at our utilization rates for the third quarter of 2021.
In comparison with the change to the same period of 2010.
Our utilization rate is broken down into commercial and operation.
During the third quarter of this year, our commencement utilization rate was 100%.
Our personal utilization rate was 99.
4% compared to a 100%.
Commercial and 99% operational for last year.
Another <unk> of 841 vessels were owned and operated during the third quarter of 2021.
Government and another time charter equivalent rate for 2000, 28000 $1090 per vessel per day compared to seven vessels that we own and operate in the same period of 2020 and others like $1872 per day.
Our total daily vessel operating expenses.
Including monitoring fees.
General and administrative expenses.
With regards to Cogs.
I think it's about 6000 forefront.
<unk> hundred $95 per vessel per day during the third quarter of 2021 compared to.
<unk> thousand $397 per vessel per day for the third quarter of last year.
We will move up and down the table you can see the cash flow breakeven rate that we said during the third quarter of this year.
<unk> dot com functional drydocking expenses.
<unk> expenses raw entertainment in an hour.
Our preferred dividend payments and spacing pattern.
That's for the first quarter of 2000 21 billion.
Daily cash flow breakeven rate was about 1991 golar production per day.
<unk> 9009.
$174 per vessel per day for the comparable theatre with third quarter 2010.
The economics on the hard part the hard part of the slide.
Our nine months figures.
During the nine month period.
10 to 21, the first nine months, our commercial line utilization rate was 100% operational utilization rate was 99, 6%.
Similar to the levels for the same period of last year.
Yes.
<unk> 749 vessels were owned and operated.
During the first nine months of 2020 earnings another time charter rates.
$22232 per vessel per day compared to $7.
Up everything in the same period of 2000 2019 commanders the time charter equivalent rate.
8000 $9077 per day.
Our total daily operating expenses again, including management fees G&A.
<unk>, but excluding drydocking costs for.
For the nine months period.
And in September 30th.
This year.
I wanted to $6510 per vessel per day compared to $6195 per vessel per day for the same period.
<unk> 2000 per day.
That doesn't look again at the bottom of this table to see our cash flow breakeven level for the nine months period.
Which amounts amounted to $10461 per vessel per day.
This year compared to $11209 for the.
For the same period, the first nine months.
Since 2010.
Let's move now to slide 17.
It does use the slide for the last few earnings calls to provide our shareholders and investors.
To access the earnings potential of our fleet.
Two to three quarters.
But they've been shown in the slides has two components.
So part refers to our fixed rate contracts.
This is not working with a small percentage of our available days than the fixed rate contracts, especially in the surgical second quarter.
2022.
Yes.
We consider these two tools fortuitous as the market is performing very well. Despite introducing brokers are accretive mentioned producing deals expected to produce significant earnings for us.
The ethical vessels.
Hi.
Congress nuke.
So they are relevant to their site.
Thanks.
Our calculator and pickup as a result, the Superman and Panamax bulk portfolio trades actual November TMT program trademarks are important parts of the second week.
Muscle Shoals houses index level that translated to age for our ships.
Display understated.
Final blended rate.
The operating days of our fleet, which you can see right below the supermassive Panama forward anything to save them.
As you can see turns out to be very similar to the index levels.
Based on these assumptions and by further assuming for simplicity.
<unk> thousand dollars per vessel per day operating expenses and G&A costs.
And then 5% commission rate one can estimate.
Contribution.
We grew our EBITDA.
The final results.
<unk> 45 for the fourth quarter of 2021. Additionally, we adopted.
Negotiated contract for 90 days for the quarter, but we can't.
This overall election sites is meant to provide as I mentioned in the previous call. It full propulsion there I'll be done.
For the upcoming quarters.
This page here for the fourth quarter of 2021 and the first.
First half of 2022.
Or do you want to remember four make his own assumptions about the range to do that calculation.
The growth of Jersey mix based on the on restaurant base at the banks.
Which are approximate approximately yeah.
Equal to the press ahead with our fleet, Jeremy uncertainties, which a consensus mentioned about 30% lower than what they were two weeks ago.
We expect normalized EBITDA contribution.
This is for 2022 this is a bulk of that 2021.
Let's now move to slide 13 to review our debt repayment profile.
On the top part of the slide we see our loan and balloon payments.
Bank debt.
After September 32021.
One with an outstanding debt of about 7% to $2 9 million.
By looking at the chart.
Thank you look over the next three years, because <unk> annual repayment.
As of about $12 million a year.
This translates to about $1 3 million.
Excellent for roughly about $4000 per vessel per day.
I would love to balloon payments using two <unk>.
For about 11.
Conducting affairs to one of our <unk> sensors was by the time it would be five years old.
We expect the balloon, we expect to be able to finance.
As a matter of quarters, we have done.
The previous occasions.
But quickly a quick much here on the cost of funding.
We all know its margin of our debt as you can see from the column on the right path, but we're not and there are parts of the slides is about two 8%.
Assuming the library.
About three.
Present on the top of it we can estimate the cost of our senior debt would be more than 3% three 1% myself.
Regarding the South Texas team I'm, sorry, Steven mentioned.
Our board of Directors decided in November to do some of the unusual we accrued to redeem all of our ascending series B preferred shares at par.
And that should reduce our funding costs.
This redemption will increase the earnings per share of our common shareholders.
Bye.
$8.
<unk> 22 and by about zero.
Okay.
Okay.
It seems to be preferred shares were perpetual and from the beginning of 'twenty industry were to.
We pay the proteins that can be.
Yes.
At the bottom of this slide you can also see a projection of our cash flow breakeven level over the next 12 months.
As well as the breakdown of it which is.
And that cash flow breakeven level is expected to be.
Around $3678 per vessel per day.
Let's now move to slide nine.
19.
We can see some highlights from our balance sheet.
Yes.
This slide.
Give you a snapshot of our assets and liabilities.
Simplified way.
When our asset side.
You can see that we could perhaps another assets as of September 32021 of about $26 1 million.
And then on our asset side the book the book value of our vessels.
200 <unk>.
$6 million, bringing the total book value.
So it's two one current $156 7 million.
On the liability side.
Our debt as of September 32021 stood at $73 9 million, which approximately represents four 7% of the book.
Value of our assets.
Our preferred equity as of September 30 stood at $13 6 million, which accounted for another 18, six identical assets well our remaining liabilities approximately were $7 5 million or four.
Four 8% of our book taxes.
That leaves us with a net book value of $61 7 million, which translates to 2020 to $3 per share. However.
The market value for our fleet.
Significantly higher mutual value.
We need to make such an adjustment to get a better estimate of the value of the company.
We estimate.
The end of September 2021, the market value of nine vessels.
What was 50% higher than their respective book value, suggesting and 90% for firearms at $47.
In total our share price has recently increased.
Portrayed the range of between 25 and $32 per se.
It seems significantly below that level, and therefore investing into our company and it presents an opportunity with significant upside potential.
And with that I would like to turn the floor back to where it needs to continue the call.
Hello.
Let me open up the floor now to R&D.
Over lunch as you move out from the Christmases ago.
Thank you we will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone keypad and wait for the automated message advising your line is open. Please state your first and last name before you ask your question. If you wish to cancel your request. Please press star two.
We will now take our first question.
Please go ahead. Your line is now open.
Hello, Hello, Hello, This is Tate Sullivan from Maxim Group.
Just a little macro to start I mean, it seems like shares for a lot of the dry bulk companies are following what the indices of Diamond recently coming down from the peaks in your comments earlier about steel domain demand in China, flagging recently, but I've heard various comments from dry bulk companies on that can you give a little more about how that might be.
A temporary factor in the seasonal considerations as well please.
Sure.
Jim.
The language of the iron ore inventories.
Steel in China has been significantly depleted so.
Yeah.
The prices have also been on.
China is a very.
Yeah.
Really decide.
It sells when when they buy and sell.
I hope.
So I think that when they realized that the prices are.
Lola.
And they want to move with a economies they have the capacity some styles the ordering that even though we've seen that happen time and time again.
And when they do that.
We'll see again significantly reducing the volumes.
A violent nor would it be.
<unk>.
So I I think that.
And you've seen as you've seen it in the Capesize vessels.
Today today, how would they vary.
Yes.
Hello.
With this kind of the movements.
Great. Thank you and I apologize if it broke up a little bit there, but I see how and when that has happened time and time again in previous cycles as it usually is.
The timeline.
At four to five months setting the.
The rates the forward rates seem to baking that in for the first six months of 2020 'twenty two.
Yeah.
Yes, you're breaking up a little bit but.
Neutral.
Okay.
These are the rates again within the first process 2022, definitely we think we agree with.
It's Mike.
Yes.
Yeah.
Thank you. Thank you.
Toss us on the on the preferred equity redemption.
A great move and lower cost of funding.
As well can you just refresh on the accounting for that in <unk>.
Redeeming those at par at $13 six versus the last carrying value was $13 one will not be a loss in <unk> and can you just what's the conversion price on that Robert.
Go ahead James.
I'm, sorry that we can't do it.
Initiated seven seven years for both gave the company the the option after five years to redeem them there.
Yeah.
And given the fact that we have.
We say, 8% for that piece of our funding.
It will become 14%.
14 months.
Size of it was a good use of our revenues.
To pay down to deal with the whole amount of the preferred equity.
Keep the dividend so turning to our shareholders.
Great Okay. Thanks.
Thank you both.
Okay.
We won't be there than <unk>.
Your line is now open.
Hi.
So France noble capital markets can you hear me.
Yes, we can hear you Brooks.
Okay.
Do this faster, but you broke up a lot on your last answer. So can you highlight you know.
What youre going to retain how much cash youre going to use to redeem the preferred in the fourth quarter.
Yes.
I think we're gonna huge $13 6 million, which is exactly what the outstanding amount.
Refer to them as.
Yeah.
And so we will say that slots the NDA approval dividends I believe by the time, we're going to do the let's say the redemption will be something like 400000.
Accrued dividends.
The majority of which is already now in our results for Q3, So we would say that that's true.
I can't I estimate that that would be about $14 million of cash needed.
To retain the.
So it sounds like the accrued dividends.
Okay, and then can you.
It looks like you've traded.
The first quarter of 2022 FFA market can you just highlight whether.
And your thoughts behind that and.
Whether you expect to put any faith in place or the first half of fear or even.
The full year for 2022.
So our goal with.
With those assets.
Fraser.
Thank you lip Bu.
We only use accurate phase to hedge out association.
So because we've had them.
All our ships in the spot market.
Rather than fixing the siding side.
Sounds good.
We decided the.
To fix.
At the beginning of October.
After three.
For Q1, essentially Calgary Calgary, one vessel for Q1.
That's the level, which was 31000 and something which we deem very satisfactory at this time so it was done.
Against one alright, all conversions.
As the moderator to move down.
We felt removed was barely up at all.
And we thought that Q2 with Covid.
Assume it should have been.
That's what it is proving to have beam program.
So we've lowered the glass position Troy spoke with royalties of $700000 in the same city had again our ships open.
Suppose the in Q1.
This coming year.
We will never see us doing as we offer you will never see us buying assets saves when we have the ships that are open in the market because that would increase our exposure in the market.
We don't want to do.
They want to use their portrays the cloud with our position.
Of course, if at some point, we think that you have over Gaza.
Mike.
Hello, some positions to reduce the cargo could take some proceeds.
Okay and healthy.
See this as the SFA market move back up to where you would be potentially looking at selling again and creating cover or some hedges for the first half of the year or two.
Hi, This is Paul.
Paul.
It hasn't moved that much yet.
Around the levels that are that should be closed out position, maybe even a little bit lower than the levels that we closed the acquisition of two story. So it's not uncertainty thousands of excited again about how low.
<unk> is very low twenties.
Sure.
Nevertheless, we think that we would like to take additional without them. We do believe in the market.
You should see it AIDS.
Happy new year to happen.
<unk> been spotted in the show.
We're not ready to fix our vessels out.
$20000.
Yeah.
Yeah.
No.
Sorry.
Yeah, we'd rather keep them a little bit.
You'd rather keep them spot.
We do see them approaching $30000 again.
It will take some additional cogs visible.
Either by fixing them, one time services all of it through our Prophage Lucy.
Yes, mainly today is a pretty abrupt Dave, but I see the FFA for Panamaxes are.
We're down under under 20 or closer to 19.
That's helpful.
Customers can you talk about the dry docking activity it looks like dry docking expenses are going.
Going up for the next 12 months and they potentially total close to $4 million can you just highlight how much downtime or idle days would be associated with those products.
Yeah, I think that's in front of me the exact dry docking schedule of the vessels.
It's a lot less.
First nine months of the year with a very little very lucky almost no dialogue with us and that's why you saw a significant drop in the Drydocking expenses.
I believe we might have one or two dry dockings for next year.
Happy to provide it typically takes about candidates we bucked the trend 25 days.
For the off market for the Drydock.
We could take down one of our younger vintage.
Between five and.
$700 $1000 for diagnosing and inflows with 1 million for the.
For the cloud Panamaxes.
And that they need more specific or offline. If you want to talk to them, but what I recall a couple of decades.
Yes.
Helpful. And then David can you talk about the.
S&P market, just what you're seeing there and sort of your stance right now on.
Additional moves.
To either enhance or fleet or expand the fleet.
Yeah.
Right.
But I think we need two trials.
She Tao how are things setting.
That is down.
Now for this vibrant.
Moving the mouse with the very strong improvement in charter rates that we saw in September and the subsequent drop.
In October.
How's that.
Next our values.
And.
If we do see the longitude correct seamless fathers valued resource codes.
Haven't seen that yet.
It doesn't happen in the market.
Low for quite some time or relatively low for quite some time.
<unk>.
So we want to see how things develop before we decide on the <unk>.
<unk> move.
And acquire we may be another shoe.
All the revenue.
Sadly in the Norwegian volume and replacing it with a younger one would see something business or so.
That's for certain.
But we are not ready to implement any of these options at this point.
More of a wait and see situation.
We've got Goldman.
Great that's helpful.
Remiss if I didn't.
It looks like.
<unk> acquisition. This morning, it looks pretty interesting congratulations on that.
Yes.
Yes.
Yes.
So they're really the move but that's a different company.
Okay.
But thank you so much.
Thank you very much. Thank you. Thank you.
Yes.
We have no further questions.
I'll now hand back to Peter for closing remarks.
Thank you everybody for participating in today's call and we'd be back with you next year.
Of the year.
Which you all know.
It would be great.
And we'll take it from there, let's see what 2022 will bring.
Bye.
Okay.
Yes.
Thank you that concludes the conference call today.
Thank you for participating and you may now disconnect.
Yeah.
Thank you thanks, everybody.
[music].