Q1 2022 Frontline Ltd Earnings Call
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Good day, and thank you for standing by and welcome to the front line Q1, 2022 earnings conference call.
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I'd now like to turn the conference over to your first speaker today, that's boss Dodged. Please go ahead.
Thank you very much.
Good morning.
Afternoon, everyone and.
Welcome to Frontline's first quarter's earnings call.
I think I'll start off with saying, it's a it's safe to say that this has been a busy quarter in many respects.
The conflict in Ukraine has been the mom thing on our organization first of all in order to support our crude most Ukrainian and Russian nationals. In so many instances is working together on our ships.
Our legal and compliance team have worked relentlessly and ever changing fashion this environment.
Making sure we are staying compliant.
But it's also very satisfactory to see frontline has managed to manoeuvre all these challenges and traded our ships very competitively at the same time.
To top it off we announced the proposed combination with euro. Another early April I mean, it seems to have been working diligently together to finalize center Procrit transaction structure for this combination.
So, let's move to slide three and and look at the highlights.
In the fourth quarter frontline achieved a $15700 per day on our VLCC fleet.
We achieved 19000, sorry $16900 per day on our Suezmax fleet and $19000 today are a luxury such Aframax fleet.
So far in the first quarter of 2022 seven.
74% of our VLCC days at $22600 per day.
With the 70% of our Suezmax days are $32700 per day.
And 58% so far in luxury for Max stays at $46300 per day.
All numbers in this table are in the low to just discharged basis as is usual for frontline.
Also this quarter I would like to draw your attention to slide four to explain the differences in returns depending on the vessel characteristics.
Yeah.
You can clearly see.
On the figures on the right hand side on this slide.
That's.
Earnings differentiate looks irrespective of what type of ships were trading.
As you can see on the left hand side frontline has a young fleet.
8% of our fleet. This is regarded eco vessels and we hope she spent 3% scrubber penetration penetration.
So you also can see old discovers our focus on the VLCC and Suezmax.
That's how the highest consumption.
Let's move now to $17100 per day premium for Ibs C between an equal with scrubber compare to traditional non equal.
VLCC or vessel.
For the Suezmax is the premium is minus $2500 compared to a non nico.
And for the LR twos, it's $8500 a day premium pet trend on legal.
So basically this high oil price environment.
Affecting us a lot.
This does not tell the full story, though.
How's the technical operational and commercial performance. We managed to achieve is also very much dependent on our talented team.
And we work more like asset managers, optimizing our portfolio of multimillion dollar investments.
The traditional ship owners.
With that.
I'll, let you take you through the financial highlights Thanks, Josh and good morning, and good afternoon, ladies and gentlemen.
Let's then turn to slide five and look at the income statement.
Uh huh.
Britain revenues.
Oh boy, that's $4 million and adjusted EBITDA.
In the first quarter of 'twenty two.
We reported net income of 31 point.
In cents per share and yet.
What's to come with one 6 million one one cents a share in the first quarter.
And the adjustments that they have made this quarter consists of a 24 9 million gain maybe that's it.
I think I've been sitting in that and gain on marketable securities of $6 1 million gain on sale of vessels.
One 4 million gain on insurance claim and have won 13 million amortization of acquired time charters hartsville satisfy and one one.
1 million shares since almost all centered company.
Yeah, just didn't happen in this quarter decreased <unk> 8 million compared with the fourth quarter of 'twenty one.
And the decrease in adjusted net loss was driven by an increase in average time charter equivalent earnings.
Due to the higher television debates in the quarter HOKA. That's my older movements in operating games and expenses.
Dan.
Taking it off the balance sheet.
Slide.
Thank you.
Totaled six numbers have decreased with $56 million.
In the first quarter compared with the fourth quarter of 'twenty one.
The balance sheets in the month in this quarter are primarily related to the state or the end of Q Tankage Lion and Panther in.
In addition to ordinary debt repayments and depreciation.
As of March 31st 2022 frontline has.
But of that $79 million in cash and cash equivalents, including Undrawn amounts under our senior unsecured loan facility lots of those securities and minimum cash requirements.
Short term debt includes total balloon payments of 261.1 million put cheating existing loan facilities with maturity in the third quarter 2020 see Richard.
Which is expected to be refinanced prior to maturity.
That's been taken care of a center.
Slide seven.
And keep them close to them has always been and sometimes DNA.
And the <unk>.
Core values of the frontline passports, keeping it simple good focus and maintain lean and efficient management team.
This slide shows our that client performs pairs in the first quarter of 'twenty two.
Opex G&A and interest expense.
This together with outperformance of parents on revenues this quarter explains disappear operational performance well sometime in the first quarter of 2022.
Dan I think if.
I look at slide eight.
Yeah.
Yeah.
Yeah.
We estimate average cash cost breakeven rates for the remainder of 'twenty two of approximately $23700 per day for the segment.
$19800 per day for the Suezmax tankers and $16600 per day for the election packets.
The fleet average estimates is about 20001 hundred per day and he can guide up on certain vessels in the period from the second quarter to the fourth quarter of 2022 with an impact of $750 per day.
The distribution of the vessels if the D C five suezmax tankers and five electric package.
Rerecorded opex expenses, including dry dock in the first quarter of $8200 per day for Vlccs.
$7000 a day for the Suezmax tankers and.
$7900 per day for day like you attack it.
In the first quarter, but dry docked one needs a fee, which was completed in the second quarter and to an acute tankers, where one was completed in the second quarter.
The graph on the right hand side of the slide shows the free cash flow per share after debt service and free cash flow pre.
Free cash flow basis, Karen fleet, and she had priced between and so to me that's alternatives ebay.
Based on historic toxin in TCE rates.
So versus in the period to 2021 adjusted for premiums in scrubber and eco vessels jumped.
Frontline has the free cash flow per share or two.
And fourth tier cities, and a free cash flow yield of 27%.
Free cash flow yield with potential increases with higher TCE rates and honestly believe like basis.
With that I leave the kudos again thank.
I came here.
So the headline for.
My Q1 tanker market report is basically volatility is back.
If you look at the graph on the bottom left side on slide nine.
You'll see that after the coming through periods, almost 18 months, where they've been hovering between 10 and 30000 on the good day, where suddenly rocketing up.
The quarter was fairly quiet.
Noble oil demand will says makes itself averaged around $98 8 million barrels Q1 is historically, our seasonally I shouldnt shoulder quarter and the demand was down $1 7 million barrels compared to Q4.
<unk> came in the same number in fact, so this is the first quarter for a long time, we've not grown significantly.
Inventories.
But if you compare it to Q1 last year.
You start to see some some significant changes the mom Wilson sucked up $4 5 million barrels per day compared to last year.
Supply will have increased by $6 3 million barrels per day.
As we enter the year oil and transit stop stabilized around 1 billion barrels and as I mentioned inventory draws dwindle.
Then they sniff Ukraine sparked volatility.
S trade lanes started to change.
And what we saw towards the end of the quarter and into Q2 is quite product demand growth in both U S and Europe , starting to open arbs from Asia.
COVID-19 continues to affect in particular Chinese demand.
More so due to their cereal tolerance policy and full Lockdowns. This is predominantly what's affecting VLCC utilization.
Let's move to slide 10.
I'll try to.
There's some explanation as to what's going on with regards to the rest of the flows.
So new trading patterns are evolving.
And Russian on oil and product export.
Black Sea and the Baltic well sounds correct.
More than 360000 barrels per day.
Since February 22.
Compared to me.
European imports from Russia are down.
One 4 million barrels per day in the same period.
This has been replaced by imports from Asia Freak out in Americas to Europe .
Asos increase their imports from Russia.
I'll pay something in the 50000 barrels per day.
Unknown, which is seen on the top right corner on the on the graph at the top here.
Hum.
Another 1.1 billion barrels unknown, it's basically because this is trucking.
The vessels have yet to reach their destination port.
So as we move forward this will become more and more known to be lovely.
So in essence 2 million barrels.
Oil per day.
Is diverted.
Compared to what's regarded the global trade, Oh boy or seaborne ore, which is around 38 million barrels per day.
This amounts to 6% and 6% of oil is now traveling.
I'm pleased to present longer if not twice.
Twice, a distance and some even argue two and a half times the oldest ones.
So geographically Europe is obviously a.
Close to two Russia, and now significant amounts of crude oil and products or selling parts of Europe .
To to clients in predominantly Asia.
Whilst Europe needs to replace those same barrels from either middle East West Africa or U S.
The only way to kind of stop this trend.
It would be a blockade of Russian exports or direct sanction some oil itself.
A likelihood.
I'll leave to you to the two to discuss.
But in addition, we have an element of U S. Now.
Are you getting to or or or indicating.
Two lists sanctions on Venezuela crude.
For exports to U S and Europe .
So basically this hole.
Cause change well diversion or disruption.
It's not cool thing both put in particular from Axis that also two losses since Suezmax is.
Basically.
Tighter market conditions.
And we have prior to the the Ukraine and emission.
If we move to slide 11, because there's another thing going on in our markets as well.
I look at the products market.
We are in fact in what's regarded or you can read the headlines coming out more and more on diesel shortages.
This is cool thing.
Great quarter refining margins on Arps token up.
The jury's still out whether if it's all due to disrupted this little slower or middle distance flows from Russia, because theres also an element of quite strong demand in particular in Europe as well.
So basically what's happened is that refining margins have.
Literally exploded.
As you can see on the rough on the left hand side. There. This is northwest Europe spoke to refinery margins.
From from May 20 to Vantiv to until.
Now.
Yeah.
These.
Margins are some due to lack of feedstocks feedstock.
Also some due to the higher demand.
And this is basically opened up for the first time in quite a while wide arbitrage is from middle East.
Information.
Okay.
So let me give it see off the current situation is very hard to call, but this is a structural challenge.
Refining capacity in both U S and Europe was reduced during the COVID-19 pandemic when this when they were suffering.
The soft iris refining margins.
There is full refining capacity in middle East and Asia, and this is growing as well.
Okay.
Yeah.
Okay.
Then let's see.
Move to slide 12 on the tanker order books.
This is the first time since 2000 and a team that's.
We have seen fleet growth turning negative.
What's been done in this top left shocked is basically just to look at the net.
Fleet growth in deadweight terms.
Year on year change.
Than that.
Recycling of tankers during the same period.
As we can see.
We started this development late in Q4 and throughout Q1.
That tanker fleet growth has actually turned negative.
The last few times, we've experienced it so first in 2013 2014, secondly towards the end of 2018.
It was followed by a period of high volatility I'm Sally good market rates.
We split we expect this to continue.
Just looking at the various order books.
We continue to be in the same situation. If you look at the Vlccs first.
Where there is a large portion of that fleet.
That should have been retired.
And still is floating on the seven seas. So eight to choose Vlccs will come tapes, either they are already above 20 years. So that'll become above 20 is in 2022.
For the Suezmax is the same number is 67.
And for the LR twos, instead, we'll think 'twenty two.
So the order book as the audience with.
Is dwindling there no new orders being placed in fact, so they've you'll see on Suezmax segment, we haven't seen one single order placed since September last year.
So the LR twos, there is a bit of activity in <unk> have been ordered so far this year, but it's still not putting them into basically the outlook for that sector either.
With regards to.
When you can expect to receive that so should you go out and order now.
I think 2024.
More or less out of the question I didn't need to look into 'twenty to 'twenty five.
It's still the case for the main yards that build tankers.
They're far more interested in building other asset classes that yields them better margins.
So to sum it all up.
Well if demand continues to rise the global oil supply issues are swelling with the Russian exports curtailed.
We got some volatility in Congress back in Q1 'twenty two.
As I've said, a few times through Med D media and with the analysts now it's too early to call the big cyclical upswing.
We have hopes.
Tanker fleet growth is now in negative territory.
That's expected to continue at an accelerating pace as long as no new orders are being placed.
Some months are expanding.
Significantly and in particular for Suezmax and Aframax Russian flows are devoted.
There is a high end product demand and record refinery margins in Europe and this is very supportive of our allowed twos, which we refer to as the vlccs of the product market.
It is expected, though that with these refinery margins one should see increased refined rhythms.
Which in the EM would support to VLCC.
We're very happy that frontline is able to quickly capture volatility with what we regard the inefficient diversified fleet local space agile approach to the market.
Okay.
Lastly.
Before Q&A.
Let me do a few points on the frontline that you were in a combination.
As I mentioned initially.
Since we went public with this in April .
We have been working diligently together.
And what we want to achieve is.
As a combined company with a $4 $2 billion market cap.
This would incur.
The wider index inclusion, we believe it will attract attract share liquidity.
And of course broker coverage.
We also believe it could improve access to cap restricted finance resources.
Frontline and you're not alone are actually regarded small cap or borderline smoke now we're moving firmly into the mid cap. If you look at the New York sub pieces.
We believe the combination would give enhanced commercial frame.
The significant size, we would have significant size in all relevant trading or experience and this would yield efficiency and utilization.
There's also significant synergies.
Discovered between the two companies.
So on Opex, G&A and financing I'm.
And just finally.
With both companies.
Regard themselves at leading on ESG and this will obviously form force in that respect in the industry.
With.
I'd like to open up for questions questions.
As a reminder, if you would like to ask a question over the phones. Please press star and one on your keypad. If you want to cancel that quick question compressor Kate So please press star one to any questions.
Your first question today is from the line of Jon Chapelle from Evercore. Please go ahead.
Thank you good afternoon.
Just want to start re left off and I understand that there's probably some limitations around what you can say regarding the potential transaction, but frontline's, obviously historically been a very active company sale and purchase et cetera. Also you know based on your quarter to date rates. It looks like you would return to a dividend payer you formulated policy.
As soon as the next quarter I just wanted to know as you're finalizing the terms of this transaction and you're waiting for more clarity or a potential close are there any restrictions on your normal strategic activity, whether that's operational or financial as it relates to capital return to shareholders.
Not at this point.
<unk> is not in effect.
Okay.
And then I guess, we'll have to wait to see the terms and see if it changes not at this point I wanted to ask a a market question you did a very thorough job you know explaining all the different pros and cons of the market. The vlccs have obviously been a pretty big laggard and I just wanted your view on what me had the vs catch.
Up to the rest of the segments and is it just a function of China opening up from its lockdowns and renewing them. The import growth of that nation is it that combined with a kind of the secondary and tertiary fallout of redrawing the crude map because of what's going on in Russia, Ukraine or is there a chance.
That you know, it's just a much stronger market given the geopolitical backdrop for mid size and product carriers and the vs. Although they'll do well may not return to their kind of top of the leader board across the asset classes.
Well I think that the.
Well if you look at you know history has thrown a lot.
After this throughout the year. So if you go back long enough on the there is one truth that.
All of these asset classes are highly into correlated so I'm I find it hard to believe that this time will be different that will have a prolonged period of time, where are you now you almost have an inverted relationship on learnings where they allowed to use as a top performer the suezmax.
In the Midland the Nielsen see at the bottom.
But I think the biggest question Hannah I alluded to it in my and my summary, as well as thoughts.
The global support oil supply situation is a challenge a oil price is telling us that we're not able to produce or at least not able to export oil.
So so this together with the China situation is is what's holding back the vlccs as far as I can see it.
There are a few sources of incremental grid wont being a U S. If production comes up they are doing the SPR releases now I don't I'm not sure. If we've seen the full effect of that yet in the markets are potentially with China that could become more apparent.
Secondly, we still have Iran on the on the sideline.
Well, you know I'm I'm, not too optimistic I've been more optimistic earlier quarters on them this quarter on microtia, there, but I'm quite optimistic on Venezuela. There are actually movements have been the seller that could kind of change the situation.
And that would be kind of you know that could.
Even though I'm a seller comes up in a situation where they are limited to export to Europe . It was basically shifts the balance meaning more of us. If we can go to to China for instance, and that would be able to see business.
So.
I don't think this is a long term situation Ah I think kind of you will find you know we're already seeing.
Also sees the digging into Suezmax cargos were seeing suezmax as dig into Aframax cargos and so forth. So this tends to to to kind of even out but right. Now I you know what would be the trigger here I think it will be very interesting to see if a beijing avoids big Lockdowns in China, and we see China come back.
For full force.
Thank God, we'll see more of a of what this market has to give us.
Okay. Thank you very much.
Yeah.
Thank you. The next question comes from the line of Christian from what the research. Please go ahead.
Yeah.
Hey, good afternoon, how are you.
Hi, good afternoon.
I noticed in the.
Report just I wanted to ask a little bit more if you can elaborate on the decision.
Time charters with.
And if that loss of termination of 600000.
The $4 5 million.
Those basically the adjustment to the balance on the when we canceled it.
Oh.
Okay. That's something we have had every quarter, Florida, yeah, how many yet.
It's actually a M.
I just meant that he has to make a in order to them adjust to what happened back in 2000, and then pitch.
His team and the merger between frontline and frontline 2012 happened.
At that point in time.
It sounds like 912, a scam accounting acquirer and sometimes can even take a bus Uh huh.
Our client.
And.
Maybe to be valued at.
And that at that point in time, and we took on the balance sheet then.
And a validation.
And kidney.
Finance leases and they see that kind of adjustments you need to compare.
Pat you want to be to look at that point in time post the profit share.
Should pay in connection.
Some of these leases.
So this is Sam and I think in a way that would be too too much profit share on the balance sheet compared to what we actually pay them.
That's why we had to do this saying that long explanation.
Okay.
Okay Yeah.
And did it was kind of related to <unk>.
The earlier question on if theres any restrictions regarding the merger.
I know there are about four vessels that are commercial management and I just wanted to know.
That will continue.
The merger goes through or Yep.
Yeah, that's the question.
Yeah, No sure Chris It's a fair question and the answer is yes, you know whether the you know because of the merger it wouldn't change.
And if our kind of commercial arrangements.
Alright.
That's it thanks, Larry Thanks Inger.
Okay. Thank you.
Thank you. Your next question is from the line of Christopher <unk> from Jefferies. Please go ahead.
Hey, good morning, and thanks for taking my questions.
Good morning, Frank.
So on the AR on the 12% of the fleet. That's non eco I guess, how are you thinking about these vessels in context of of course I'm of 2023 and beyond but then in context of that merger with your own Abbott's pending are these sales candidates in your minds or are they more likely to be incrementally upgraded too.
Comply with the new regulations.
Where it's a good question it's.
They're not with regard to sales candidates candidates to be quite honest I bet, it's more related to where we think we are in the curve.
You know I I, where.
Or we firmly believe that we were entering a period now where actually tanker global tanker capacity carrying capacity will be slipping a at the same time as we believe the oil will flow in in demand will be if not a fantastic at least are maintained.
So so basically having a kind of has its own water has the value going forward. That's that's kind of our main thesis.
These vessels that are non eco.
Woods.
Kind of what we've looked at that.
Tough capex needed to in order for these vessels to be challenged by by.
You know and there's efficiencies that come 2023, and it's extremely proof.
I don't know if you're familiar with the term of de rating and basically is limiting the engines power capacity Hum them. You you you actually fall in love and you can do other adjustments as well, which is low capex investments. So I'll start there.
Covered on the earlier quarters. The frontline fleet is in fact in quite good shape to face E C I and on the following <unk> over the next yes, our average rating is eight.
When it comes to design.
We are quite confident we'll be able to maintain that for a prolonged period of time and this has to do with the simple fact that you know these.
These vessels have the capabilities of reducing power output.
Okay. Yeah. Thanks for the color on that that was really in depth.
My second question is related to the strong quarter to date rates that frontline is booked here. So it seems that you have come in above some of your peers. So I was wondering if you could talk about is that just due to.
The way frontline accounts for these or is there an operational or maybe positional advantage that you had during the quarter that allowed you to outperform.
Well, we obviously we report according to to use them on the on the load to discharge basis overtime. This basically it makes no difference from a from a reporting on a discharge to discharge.
But when the glide one should assume the southern portion of our open days at the end of the quarter were no income can be accounted for.
So, but I think what we've seen over the last few quarters post glazing, yes, the earnings have reduced but maybe more so on the big year vessel classes that have longer voyages done on the smaller vessel classes. So so you know I would expect or we can at least finger fingers crossed.
So that's the LR twos and Suezmax says will fall more in line with with our with the kind of the the guidance on the Vlccs there was room for for a potential adjustment depending on what the market does from hearing.
Okay. Thank you very much.
Also on your question, you'll find that amongst our peers. Most are reporting on a load to discharge those or a discharge to discharge basis.
But there are also at least one [laughter] vector of course is in a similar manner.
Yes.
Most of these stocks is actually I think you just got to stand it Hum.
They sit in a way he reported on that basis.
You know probably not the case to them I have to say.
Hum.
Okay.
Alright fair enough. Thank you very much.
Thank you there are no other questions at the moment as a reminder, if you do have questions. You can press star one on your key pads.
Yeah, we have a question from the line of Nickelodeon from second place. Please go ahead.
Sorry, I think I was on mute thanks for taking my questions.
Can you give me some color or maybe concrete examples on where you draw the line between crude that you will transport that.
Has or might have Russian content. So that says this is what you want so I'm, assuming you won't do anything in the Black Sea. He bought but would you load any crude Baltic would you carry crude to Asia.
He has been sort of floated in the black sea what bolt on smaller ships and then one status T S onto onto a VLCC would.
Could you load crude in Fujairah that.
May or may not have Russian crude blended into it in part kind of where do you draw. The line and then how do you think youre drawing the line at exactly the same places all the other kind of publicly listed companies will not so I'm basically trying to understand kind of how much of the Russian crude will.
Effectively kind of moved to you know.
Great market ships or whatever you call them kind of similar to the way Iranian and Venezuelan crude is carried currently.
Hmm.
But it's a it's a very good question.
Good question to answer because this is basically been the theme.
Here in our company ever since I'm kind of this situation and stops it. So basically what we have decided to do is basically to follow.
The sanctions so basically what he used well the U S. The U K.
They decide we follow.
So so basically we're not taking a moral high ground to put it that way, but we're following what the politicians wants us to do.
And I think one has to keep this in mind.
That's.
Ever since this war started he you have been importing large amounts of gas and oil from Russia.
These are these sorts of molecules that the world needs. So so basically this is what this is frontline's position. So basically we are we work within the framework that is kind of given to us.
But with.
Effectively.
Due to kind of the the web of sanctions. This is you know prohibiting us from doing a lot of business with Russia.
And and it's also there's also something called breaking sanctions or risking breaking sanctions.
And basically what has happened is that most of the publicly listed illness.
Obviously have a lot to lose should they fall into a like.
The sanctions issue with either U S U K or you are basically refrained from taking the risk and this is where we have landed as well.
But.
You mentioned like a gray market.
Still Russian crude is it's allowed us to trade Hum, if you're allowed to load and you're allowed to transport it so well.
What's happened is that owners that don't feel they risk.
Marshall This is an independent owners.
That's kind of the as you know the measure the risk and they feel they can live with that against kind of the premium they can make.
They have.
Moved into this trade.
So.
You know I'm I'm, I'm, obviously, not going to criticize or do anything for for how owners decide to conduct their business, but the matter of fact is that we've seen them.
You know this is a highly inefficient trade because you're actually them sailing long distances.
I'm going to say.
The near by ports. So this is done pulling tonnage out of the normal kind of bread and butter non Russian trade.
Meaning that for us when our Suezmax sits we're experiencing them tighter markets in West Africa, and U S Gulf and so forth. So you you get basically.
You have the same effect on the tanker market.
It's almost as if you were going through restaurant listing the barrels yourself.
How this is going to evolve its very difficult to say as.
As it is right now.
And we're already seeing it Russian crude is actually able to flow pretty pretty freely into the market.
And predominantly it onto Asia, both with oil and products. We have you know too is fairly small degrees C in SCS and the <unk>.
The activity like that it's more or less the ships that are just selling direct.
I think in order to.
This is what are the kind of the political world. Once if you want to stop Russian exports.
Needs to do something with the with the way the sanctions are structured.
And the on the.
Teams to be well, it's not off the table of course, and our multiple tissue. That's a it seems to us that seem to refrain from that at least until now.
So so as I mentioned in my presentation that Russian exports out of bolt skin laxity, a full only 360000 barrels per day since February .
So that tells you that that this oil is moving still.
Have you picked up any cargoes in the in the Baltic and the loss but.
We have.
Well one location yes.
But that's been under contracts so basically when the ship is commercially.
The third party.
That has happened yes.
But obviously, we have a very kind of tight policy at home I'm looking at all the implications we bid for instance, never ever someday Ukrainian national to a Russian port and.
You know, making sure that the crude matrix and so forth. This is okay.
But this has been a challenge for all owners throughout this period is that due to the way. The sanctions are our picks up you are sometimes not even not in a good legal position to refrain from calling.
It's a contractual issue.
Yeah Yeah.
Pardon me.
Uh huh.
Okay. Thanks, Thanks for taking my question.
Okay.
Yeah.
Thank you we have no further questions from the phone line, so I'll hand back to the speakers.
Thank you.
Thank you so much for listening in.
Obviously think I'd like to thank my my organization for doing a fantastic job this quarter.
Thank you.
Yes.
Thank you.
This concludes the conference for today. Thank you for participating and you may now disconnect.
Yes.
Okay.
[music].