Q3 2021 Grindrod Shipping Holdings Ltd Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to the Green was shipping Holdings L. P. D conference call on the third quarter 2021 financial results, we have with US Mr. Martin Wade Chief Executive Officer, and Mr. Stephen Griffiths, Chief Financial Officer of the company at this time all participants are in a listen only mode.
There'll be a presentation followed by a question and answer session at which time if you wish to ask a question. Please 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, we now pass the floor to one of your speakers today. Mr. Wade. Please go ahead Sir.
Thank you operator, welcome everyone and thank you for joining our call on the third quarter and nine months 2021 financial results.
Where else do you turn to slide two let me. Please refer you to the forward looking statement disclaimer.
On this call we will make certain forward looking statements, including statements regarding our future financial and operating performance.
These statements include information regarding future time charter contracts outlooks for the dry bulk market, although operating matters. These.
These statements are based on the briefs and expectations of management as of today all.
Our actual results might differ materially from our expectations.
You should read carefully the risks and uncertainties as described in the slide presentation.
Yesterday's press release as well as the risk factors included in our annual report.
Our filings with the SEC.
We assume no obligation to revise or update forward looking statements, whether as a result of new information future events or otherwise except as required by law.
In addition, during this call we will be discussing certain non-GAAP financial measures additional disclosures relating to these non-GAAP financial measures, including reconciliation to the most directly comparable GAAP measures.
Do you see yesterday's press release on pages 24 to 26 of the slide deck, which is posted on our website and our filings with the SEC.
Now can I. Please ask you to turn to slide four for an overview of our third quarter and nine months 2021 financial highlights.
During the third quarter and first nine months of 2021, when you're old shipping achieved stronger results when compared to the same period in 2020, taking.
Taking full advantage of the robust market conditions on the earnings power of our expanded owned fleet. Following the acquisition of the remaining portion of IV S bulk subsidiary.
So the third quarter 2021, we generated record gross profit.
Adjusted EBITDA and adjusted net income of $62 million $69 million and $45 $8 million or $2 38 per ordinary share respectively.
With respect to your figures for the nine month period of 2021 $110.2 million 30.
Study $1.5 million and $68.5 million or $3 56 per ordinary share.
Our CSO CFO, Steve Griffiths will go into more details on our financials later on in this presentation.
Executing under our share repurchase program, we acquired a combined total of 91971 ordinary shares in the open market on NASDAQ and the J S seats during the third quarter at an average price per share of $14 87.
During the first nine months of 2021, you repurchased a total of 125338 ordinary shares at an average price of $13 16 pushout.
As of September 32021, we had cash and equivalents with $78 $5 million unrestricted cash of $6 $6 million.
Now please turn to slide five to look at our operational highlights for the third quarter of this year.
As announced on September 1st we exercised our option to extend the chartering period. The 2015 built supermax dry bulk vessel <unk> P. S. Pinehurst for further 11th of 13 months of $10000 per day, starting from approximately January 2022.
In addition on September the first 2021, we announced the acquisition of the remaining 31.14% equity stake in Ibs, both joint venture.
And concurrent redemption of the IV asphalt preference shares.
Subsequently on September 15th 2021, we amended one of our existing credit facilities to draw down an additional $23 million to partially fund the Ips bulk acquisition.
Subsequently on September 16th 2021, we closed the acquisition and concurrent financing of the 2019 Japanese built ultra <unk> bulk carrier IV S. Phoenix.
The vessel before the end of the Clinton not tripping coal fleet.
And originally chartered in for a minimum period of three years from delivery with two one year extensions and no purchase option.
Acquired the vessel for $23 5 million, which we believe reflects a significantly reduced price relative to the fair market value of the vessel due to the early termination of the prevailing charter agreement.
The financing arrangement was with a separate third party in Japan on attractive terms for a net amount of $25 million.
Now turning to slide six to discuss our recent developments.
Particularly pleased to announce the declaration of our first quarterly cash dividend of 72 cents per ordinary share.
Factoring out a new dividend policy and a capital return policy of returning approximately 30%.
Although our adjusted net income to our shareholders through a combination of share repurchases and quarterly dividends.
The dividend is payable on or about December 13th 2021 to all shareholders of record as of the third of December 2021.
Yeah.
A key focus for the capital return policy to create a simple transparent sustainable capital return policy that allows the company to retain significant cash flow to further strengthen the balance sheet and pursue growth while rewarding shareholders when material dividends and our share repurchases in times of market strength.
Lastly, we recently exercised our option to extend the charter and payer to the 2014, one built ultra <unk> bulk carrier might be asking a ruler for.
A further 11 to 13 months.
$10000 per day, starting from approximately January 21st 2022.
Now I'll pass the floor over to stay Griffith, our Chief Financial Officer, who will go over the financial highlights and performance for the third quarter of 2021, Steve.
Thank you Martin.
Turning to slide eight as Martin said earlier.
During the third quarter 2021, we achieved stronger results taking full advantage.
The condition and the earnings power of our expanded fleet. Following the acquisition of the remaining portion of our obvious bulk subsidiary.
In this context revenue increased to $135 1 million in Q3, 2021.
Compared to $53 9 million in Q3 'twenty tricky.
Gross profit increased to $62 million in Q3, 2021 compared to one six in Q3 2020.
Net profit attributable to owners of the company increased to 44 million.
Or $2 29 per ordinary share in Q3 <unk>.
Dan do you want it from a loss of $14 3 million or a loss of 75.
Sure in Q3 2020.
On the right hand slide of slide eight we got over the first nine months of 2021 revenue increased to $366 4 million compared to $221 1 million during the same period of 2020.
Gross profit increased to $110 2 million compared to $10 5 million in 2020.
Net profit attributable to owners of the company increased to $66 1 million.
Or $3 44 per ordinary share in 2021 from a loss of $24 8 million or a loss of <unk>.
$1 81 per ordinary share in 2020.
Turning to slide nine the strong operational and financial performance of the first nine months of 'twenty 'twenty. One has allowed the company to strengthen its cash liquidity and reduce its net debt to $167 1 million from $227 2 million at year end 2020.
While simultaneously pursuing growth initiatives, such as the obvious bulk transaction.
We believe grandmother is well positioned to further pursue its expect to Greg and capital return strategies.
On slide 10, we provide a bank loans and other borrowings repayment at.
At September 30.
Do you Wanna.
Limited debt maturities until 2025, combined with a conservative and monetization profile provide us with balance sheet stability going forward.
We will now briefly discuss results in the business for the third quarter of <unk> 21.
Hey, Scott.
Good day with 3993 minutes.
Yeah.
21 versus 6700, and say <unk> per day for the same period in 2020.
<unk> Ultra Max TCE per day was <unk> 9934.
Three months ended September <unk> 2031, compared to 10800 and said you want good day for the same period in two.
2020.
As of November 15th 2021, we have contracted approximately 1274 operating days at an average TCE of 50228 day for a handy size it.
And approximately 1007 1704 operating days at an average TCE of $53341 per day, whereas Super Max Ultra mix. The average long term chartering cost per day for the Super Max Ultra Max fleet for the fourth quarter of 2021.
Is expected to be approximately 12890 per day.
Now turning to slide two.
Oliver the rise in the Drybulk freight rates, thus far in 'twenty or 'twenty. One is easily demonstrated this as our historical results.
During the first nine months of 2021 approximately 90% of the Feight was predominantly trading either on index linked cargo contracts.
Short term time charters or in the spot market, leaving us exceptionally well positioned to take advantage of the strong strike rate environment.
To put this into context that every $1000 change in TCE per day equated to approximately <unk>.
$3 7 million of TCE revenue during the third quarter of.
Of 'twenty, 'twenty, one and that sort of core fleet.
Now turning to slide 18, it shows the quarterly cash breakeven analysis for the first nine months of 2021.
I'm fleet breakeven was 10953 to vessel day day, how long term charter in breakeven was 14171 per vessel per day.
And cool dry boat breakeven was $11743 per vessel per day.
The cash breakeven rate per day increased operational expenses net G&A interest expense and debt prepayments.
Turning to slide 14 for a breakdown of athlete.
With an average age of approximately seven years at core fleet consists predominantly of eco vessels, both in Japan, which is among the youngest and most efficient in the industry.
Commercial and operational advantages.
Turning to slide 15, we wanted to provide our shareholders with more clarity on the value of our long term charter in vessels and an associated purchase options and on this slide we provide additional financial information on these contracts.
Im dynamic and flexible commercial strategy.
Opportunistically chartering in vessels on both long and short term time charters with extension options Optimizes, our ability to service I called that contract and it enables us to maximize earnings and profitability.
As all of these have been contracted at levels significantly below current charter market rates.
Furthermore, we have purchase options for five of our long term chartered in vessels all of which are now well in the money and below the prevailing market values.
By presenting us with highly attractive options to grab it.
Pete.
The recent acquisition and financing of the obvious Phoenix during the quarter is a prime example of the advantages and benefits of this strategy.
With that I would like to turn the call back over to Martin.
Thanks, Dave.
Now please turn to slide 17 to look at the fundamentals of the dry bulk sector.
They have been developing against the new market environment.
The Drybulk cargos hit hardest by the global pandemic with cold and minor bulks, all on ore and grind with far more resilience.
Thus far in 2021, we've seen a material pick up in coal mine about demand.
Closely correlated to global GDP.
Energy shortages, and particularly natural gas of course thermal coal demand to increase materially for power generation.
Can you size isn't Supermac says have been further helped by congestion in the container shipping business, which is leading to certain bags cargoes in break bulk likes steel.
Steel scrap returning to bulk carriers.
Turning to slide 18.
The slide depicts on beyond all tried rebounded faster than expected in the first half of 2021 before starting to slow at the end of the third quarter due to Chinese steel production restrictions.
Demand has exceeded expectation, but remains below 2019 levels grain.
Grain flows remained healthy in 2021 after a very strong 2020.
Manav Baltimore has rebounded significantly driven partly by the steel forestry cement niccolo.
Alumina trades.
Now to slide 19.
The charts on the left indicates had you saw it soak supermac charter rates rose over the course of Q3 2021, reaching levels last seen in 2000 Tonight.
Asset prices have increased considerably since the lows of late 2020, but remain.
The low levels reached in 2010, despite higher comparative charter rates.
Now turning to slide 20, and the dry bulk order book continues to shrink to multi decade lows and is estimated at six 8% the fleets with approximately 16% of the dry bulk fleet 15 years or older.
And a further approximately 7% of the drop out for 20 years or older measured by deadweight.
Despite strong market conditions, new ordering remains constrained by uncertainty relating to interest engine technology and emissions.
2021, and 2022 supply growth is forecast to be three 5% a 1.5% respectively.
And you saw some super Max order books are the smallest in the dry bulk fleet at four 5% and five 9% respectively.
Finally, let's turn to slide 22 for our conclusions and strategy, let's start with our achievements since the beginning of 2021.
The strong drybulk market conditions led to our best financial results in Q3 since our spinoff in lifting in 2018 with the sale of all our remaining spot trading product tankers, allowing us to focus on dry bulk that's an optimal time.
As mentioned our acquisition of the remainder of IV S bulk it was an attractive valuation.
On the commercial side the dynamic approach of the company that includes Opportunistically chartering of vessels on both long and short term charters in order to service all cargo contracts, there's very significant fruit.
Our long term charter in vessels were contracted at well below current spot current market charter rates and all contained favorable extension options and or fixed price purchase options that are now notably below their current market values.
This allows us the option to pursue growth prices considerably below providing levels in the secondhand and charter markets as evidenced in the I P. S Phoenix acquisition.
In addition, we've been able to complement our core fleet with a number of short term chartering vessels, which we hold a series of charter extension options commercially favorable levels.
Together with our own fleet predominantly Japanese built vessels. These options demonstrate the flexibility of our operating model.
The corporate sides, having concluded a string of strategic and transformational transactions, we transitioned to a quarterly financial reporting.
In addition, we are pleased to reward our shareholders with the initiation of a quarterly dividend and capital return policy.
Also important to add here that's in the third quarter, we completed our first secondary offering which has benefited shareholders through increased daily trading liquidity strong U S institutional shareholder base and increase market float in the U S, which has now reached over 30% of shares outstanding as of October 2021.
Now looking ahead.
Both fright rates continue to increase in the fourth quarter of 2021, they'll have cold moderately in the last few weeks freight rates have been supported by a rebound in commodity moms in pricing in 2021 across a wide swathe of commodities, including grains on all call them minor bulks.
The smallest new building order book indicates supports market recovery due to construction and vessel supply growth as demand continues to recover.
Due to a record amounts of new container ship orders, thus far in 2021, even if dry bulk orders worth to pick up materially limited shipyard spec capacity means that most of the orders could not hit the water until 2024 at the earliest.
To the extent that demand continues to grow even moderately the lack of available supply growth these sort of attractive potential multi year window for the dry bulk market.
In this environment with stronger market fundamentals, we are comforted the grin, Russia pig can reinforce its market position and create significant value for our shareholders.
With this I. Thank you all for joining our call today.
Look are looking forward to reporting further progress on grant road shipping with that we'd like to open up for questions operator.
Thank you.
A reminder, if you wish to ask a question. Please press star one on your telephone keypad.
Your name to be announced if you wish to cancel your request. Please press star two once again. Please press star one if you wish to ask a question. Please standby, while we compile the Q&A Keith.
And just last question comes from the line of pay you thought from Naval capital markets. Please go ahead. Your line is open.
Good morning.
I was just wondering if you could highlight them you know what's going on currently Martin.
And you know if.
If you would highlight any changes that you've seen in the cargo book from either a volume or pricing perspective, and then sort of give us an idea of what.
What your where youre booking right now so we can sort of get an idea of what the rest of the quarter it looks like.
Oh, Hi, Poe.
That's up a few times, it's interesting because obviously the market has been great. So yeah in basically.
Hasn't really paused and then what happened, but there's no doubting that with China's announcement, it was going to try and cool cool it steel industry and to a degree coal prices, we saw a slight easing of demand from China. Although then when you look up the year as a whole and especially the last couple of quarters, China hasn't had us.
Yeah, we did with iron ore down coal flat, what does that actually happen is it the rest of the world. That's picked up the slack and Oh, sorry for the record steel production outside of China. It's been very positive now, obviously, China cooling off a little bit taking some of the heat out of the market and there's talk about.
Blue skies for the Beijing Winter Olympics.
Yes, it has come off as usual with shipping but also what's happened is that a lot of our charterers have taken the opportunity to pull back from the market and.
Cargo or delay nominations.
We're starting to see this week, we had a ship open last night and in our South Africa area in and someone came open suddenly oh, well they have to fix the ship and made it a needle.
Needed a prompt nomination and we had a ship for it and the right. We got was what we would've got a month ago. So it's still very tight.
It's been anything, but I think I think a little bit of a game is being played which I have no problem of charterers doing I mean, it's been a bit of a one way street all year.
They've come off but fundamentally our levels beginning with the two we're only back to where we were in May which was glorious so yeah and in some ways. It. It's it is healthy but what what what we're enjoying is the demand outside of China throw out the world is that is increasing and the U S. Any.
Structure gets going.
It's quite amusing when when he was announced that all the infrastructure Etfs and uncertain.
Companies in America that all this will benefit up 10, 14%, but.
Of course, if a man.
It's gonna do infrastructure, it needs steel and cement and a lot of that was gonna have to be imported that's gonna come on ships. So this is really very exciting going forward.
And then to follow up with that Martin.
Last couple of months, you said that the 2022 calendar at that phase.
Under valued.
You know theyre down a little bit from when those comments were made would you still stand by those comments and think that you know the 2020 to theirs.
The outlook looks still pretty good.
Very much so I mean, if it if we could pick up say 58000 ton as it forget.
Okay thousand deadweight ships.
Pay rates for next year, well I don't think what anybody else there'd be a whole load of people doing that it's physically impossible.
And if we're seeing period right now.
N D for 33, if you want to take a <unk> 33 on one year charter it's in the low twenties.
For Supers, it's mid high Twenty's. So it has cooled off the fsrus as usual.
I think they're underestimating is it sentiment I think he's got anything really to do with the fundamentals as we see that the.
If it comes off X thousand day in a couple of days, then picks up again and I remember that there's a whole industry of day trading. This the masters of the universe and the softening of the mining houses and grain trade is to play play there. So it's there I mean, yes, it's it's a useful benchmark obviously, we watch it.
But it looks very oversold at the moment and I'd say, that's the other alternative if he if he can't take physical trips not the way doing because we don't speculate but you can just buy the paper and the exit vol slip below even now what what spot levels, though.
I appreciate that it's pretty thin market too, but we.
I really appreciate the additional disclosure on the purchase options for your charter bins.
It looks like the nearest one would be the pinehurst on roughly the first quarter 2023 can you talk about you know the pinehurst newer meru and sort of how you're viewing that and then also maybe talk about how you potentially might replace the crimson.
Which comes off long term charter in the second quarter 2022.
Well, the PON husband, neuro or the actual purchase options.
We already have them.
The way, we've had that that the right to buy them for the last couple of years or two years on one on one you all know so that they exist. So now it is up to us when we were when we declare those options.
And Oh, the type them in at its core ships, which is what we will be doing or of course, we could just sell them into the open market and pocket. The money. So that both those ships now rests with us and we can more or less do it anytime during 2022, we want likewise.
The next to call me out what will be in the second half of 2023. So we have flexibility that's why the way. We we have a couple of a number of older hand is with very very low leverage. So if you can sell a 11 12 year old handy size and ER and by Oh exercise it.
Purchase option on a five six year old ultra Max with the same amount of money because it's very interesting.
It's nice to have lobbyists Crimson Creek, because it's been with US for my friends marrow, if any for a long time.
And as usual with our friends in Japan.
There'll be discussions do we want to extend it or not that that'll be a discussion and that's the thing that with all our relationships and friends in Japan. It is once you have ships on charter unless the actual owner wants to sell them E. There's always a discussion would you like to extend at whatever the market levels, though when we go forward from there so Uh huh.
Hopefully, we will not lose the Crimson Creek.
It's not just yet, but my colleague Carl will be having that discussion in due course, when the mayor of any onto discuss and likewise.
And if you wouldn't mind I just have one last one the you know what's interesting on slide nine when you're talking about the asset asset values versus the current rates and you said that 2010.
Asset prices were higher.
Higher rates were lower.
And that's in contrast to his day do you have a reasonable explanation explanation for you.
Matt.
Contrast, Martin.
But of course in an end in the two thousands it was almost <unk>.
Yeah.
Unknown levels, whereby I think that the previous market equivalent. So that's all I'm reliably informed that might be in the 19 fifties. So I didn't there was anyone alive and what happened in the two thousands it kept on going up and up was never get away and but I think people forgot the shipyard capacity was being added on at a rapid rate.
In China with all the Greenfield yards. So there was always a big push to get ships on the water now now obviously, we've seen a big appreciation in secondhand values. This year with the value being Ken Ken can buyers get the ship now on the water and immediately be it begun adding a lot of cash.
But I don't think people who've got carried away on that basis, and and you know if you can go back even a month you could fix are the super Max out for a couple of years somewhere in the high 20 is field.
Find that same ship for somewhere in the low 20 millions.
Watching that shut down pretty quickly. So this is it.
Asset prices can go a lot higher but even at today's levels. They are undervalued to know anything beginning with the two in terms of earnings and going forward. So I think this is it that you just do the cash flow and you've got obviously the other peoples floated in London. It's the same thing if you actually look at secondhand values.
Put them out for a couple of years is that to your model you pay Daniel that pretty quite quickly. So I think a lot more can can happen in asset values, especially with basically no new buildings coming in as we said the yards are full and who knows what your order in terms of technology and with E. S T.
There's a lot more upside there to come yet so we're very excited by that.
Great. Thank you very much.
Thanks, Paul.
Thank you. Your next question comes from the line of Randy Givens from Jefferies. Please go ahead. Your line is open.
Howdy, Martin and Steve How's it going.
Alright, great.
Yeah long time listener first time caller.
Grant's on the on the record quarter, the large dividend I guess, a couple of questions. Following up on those options on the charter in vessels all of them clearly deepen the money like they go to remain profitable in the coming years for the chartering options how far in advance do you have to exercise those seems like just two or three months before expert.
<unk> is that correct and then for the purchase options when do we have to make a decision on this.
It's the it's I mean in terms of the charter options. It's generally a three or three months and the purchase options are we have a window and basically we got it because it gives me I don't know three or six months notice so that there's a lot of flexibility there.
So a very very flexible model now now now that a lot of these ships that the fixed rate periods have ended and now we're an optional years, but this is where we have the you know obviously talking to the owners a lot whereby when we catch the option and with our Japanese friends, we want to give them enough notice because obviously most of them have finance.
But yeah.
It's literally in our option with with very limited time, I hate to do it.
Right.
Okay.
Then.
In terms of the split between share repurchases dividend payments, how did you and kind of will you may be determined that with the new dividend policy clearly based on your guidance here on a quarter to date rates <unk> will almost certainly exceed three Q results right you have plenty of cash and net income.
Distribute and your shares are trading at pretty steep discount to NAV here.
Yeah. It's it's it's interesting obviously, we appreciate it when you took up the research and you came out with an N. A V 22 without any insight into which one of the reason we've done it in until our Japanese child to book and what goes on that because obviously there is quite a lot of value.
And it is frustrating to be honest when you look at our EBIT dollar earnings per share and the multiple we trade on is Maude. If you take an annualized EBITDA were barely more than one one point to 1.3.
It is striking.
With the dividend payouts everything so we perceive a shares yes, obviously as we've done in the previous two open periods, where we have the mandate to to to do share repurchases, obviously without saying too much. It's let's see some we're looking at because the disconnect between value and where we should be.
It is.
Huge.
Yeah, No. We are we clearly agree Oh, and then I guess the last question.
Just in terms of guidance for short term charter in days for the fourth quarter and maybe if you have it for 2022 and maybe that's a little too far in advance, but any guidance at least for the fourth quarter number I know third quarter kind of came down a little bit on the second quarter.
Yeah Randy.
Yes, Hey, if you tie that yeah, yeah, I'll I'll take that obviously due to the short term vessels, it's difficult to provide an exact number as to exactly what percentage, we've got that if we use that.
He says that God, a weekend, we roughly a 78% of the handy covered at that rate for Q4 and about 70.
On the Super anxious and that's just using our Q3 days has it got we've been fairly consistent.
And the number of days for each of the quarters. So.
Yeah, that's the guy.
That works.
22 now we.
We don't give any garden guidance on that.
Alright.
All right, Thanks, again, and keep up the great work.
Thanks, Randy I appreciate it.
Thank you, ladies and gentlemen, as a reminder, if you'd like to ask a question. Please press star one on your telephone keypad.
We have paid from nasal capsule market snakes. Please go ahead. Your line is open.
Just a quick one on the Steve if you could give us an ideas for the charter higher costs on a quarter from my perspective were little lower than expected.
Can you give us an idea at this point in time with the fourth quarter Shire charter hire costs look like.
We've given gotten yeah, there's a in the hot 12 for our long term fleet.
Again pretty much its pretty much been constants in the in the 12, thousands I mean from.
From all the time, we reported it it's been a bit higher at some stage because of the kind of increase that's index linked.
Now obviously, if the rate goes up the net charter rate goes up as well so yeah still.
In the 12 thousands going forward.
Yeah, and I think you must've had like 14000 for 2022.
But that includes the G&A.
Okay.
Sorry.
On the actual charter actually in the hot two out and that on the breakeven on the breakeven graph that increase there.
The G&A expenses paid that added to that.
Okay, Great and then Martin.
2021 was the year.
As you highlighted huge achievements.
Whether it's fine in the joint venture, whether it's buying assets everything else.
It's been a significant year, it's really transition due to a much more much stronger amborn basketball economy can you highlight your strategic goals for 2022.
How are you kind of follow up on this.
[laughter] I'm trying to figure out obviously a reduction in debt I mean that that goes it goes without saying that I think all of the listed companies and Oh I've always liked the great model or you have no debt to survive irrespective and maybe we can't quite get there, but to reduce I mean stable totally I mean, we have.
Financing cost of 4000, if we call that it makes us a very very competitive play out going forward.
Obviously, we have these purchase options on at attractive levels. We have some a number of older hand is that with very very little debt and and and.
A sharp rise in second hand values were decided.
Randy previously he was if we can sell some older hand isn't and literally cashman immediately with with brand new five year old ships ultras and that would be one way of maintaining a very modern fleet and a which is also is key with <unk> coming in but also the flexibility.
And we still I mean, you know the the way the markets come off recently are they going to be some interesting trial to deals out there you talked about the paper I mean physical shapes, it'll it'll be interesting because there's always people looking for cover.
We we we are a cargo operator, as well and we're managing to that those contracts now coming up for renewal at far higher levels, and we always want to keep.
There has to be some short term periods ships against it we still have the benefit of the strips. We the half a dozen ships, we took last year with options so that theyre very very cheap.
It'll be dependent on the market to a degree now isn't the time to do anything stupid, we're now set.
And look to maximize as we're doing taking care of them maybe at some point, but that's the beauty of having cargo to weaken kind of excuse me Mike that cool.
But at the moment no way, we were confident about the market going forward and and I think more of what we're doing which which dare I say is working quite well.
And really you're really well positioned for 2022 congratulations.
Thank you.
Thank you I will now hand, the call back for closing remarks.
Well, thanks, everyone much appreciated and and we look forward to publishing our Q4 figures are in February Steve.
Yeah.
Thanks, everyone for joining.
Into Arizona.
Thank you. Thank you.
Yeah.
Right.
Thank you very much thank.
Thank you for participating you may all disconnect.
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