Q4 2021 SFL Corporation Ltd Earnings Call
Good day, and thank you for standing by and welcome to the Q4 2021 S. F. L Corporation earnings Conference call. At this time, all participants are in a listen.
After the Speakers' sensation, there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone please be advised US today's conference is being recorded.
Any further assistance please press star zero.
Now I'd like to hand, the conference over to your Speaker today you lead your tuck. Please go ahead.
Thank you and welcome to <unk> fourth quarter Conference call I will start the call by briefly going through the highlights of the quarter and following that our CFO Aksel Olesen will take us through the financials and the call will be concluded by opening up for questions.
Before we begin our presentation I would like to note that this conference call will contain forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act of $19 95.
Words, such as expects anticipates intends estimates or similar expressions are intended to identify these forward looking statements forward looking statements are not guarantees of future performance. These statements are based on our current plans and expectations and are inherently subject to risks and uncertainties that could cause future activities.
So operations to be materially different from those set forth in the forward looking statements.
Factors that could cause actual results to differ include but are not limited to conditions in the shipping offshore and credit markets. You should therefore not place undue reliance on these forward looking statements. Please refer to our filings with the Securities and Exchange Commission for more detailed discussion. So we're risks <unk> uncertainties, which may have a direct bearing.
<unk> on our operating results on our finance financial condition.
The announced dividend of <unk> 20 per share is an increase of 11% over last quarter's dividend represents a dividend yield of around 9% based on closing price yesterday.
This is our seventh this second quarterly dividend and over the years, we have paid more than $28 per share in dividends or $2 4 billion in total.
And we have an increasing fixed rate charter backlog supporting continued dividend capacity going forward.
The total charter revenues was $166 million in the quarter with around 75% of this from vessels on long term charters at around 25% from vessels employed on short term charters and in the spot market.
This includes or included the seven handy sized brokers, we have sold so going forward, we expect a higher relative share from long term charters.
The EBITDA equivalent cash flow in the quarter was approximately $121 million or 10% higher than the previous quarter.
Over the last 12 months, the EBITDA equivalent has been approximately $434 million.
And the net income came in at around $80 million in the quarter or <unk> 63 per share.
Got a gain related to the sale of the bulk of $39 million and otherwise there were only minor one offs in the quarter, including a negative mark to market effect on interest hedging instruments.
There were also around $1 $1 million higher operating costs in the quarter due to additional crew rotation costs linked to Covid restrictions, we expect a similar effect also in this quarter, but hope that the restrictions will ease soon.
And virtually all of our crew.
Vaccinated already.
Our fixed rate backlog has increased and stands at approximately $2 8 billion from owned and managed vessels. After recent acquisitions and disposals, providing continued cash flow visibility going forward.
The backlog figure excludes revenues from the vessels traded in the short term market and also excludes future profit share optionality in.
In addition, we have excluded charter hire relating to the drilling rigs to be conservative in light of the ongoing financial restructuring in seadrift.
We continue building the portfolio with modern assets on long term charters and have recently agreed to acquire four modern LR two product tankers in combination with time charters to trafigura.
The structure is similar to the three suezmax as we announced last quarter and the deal includes some interesting optionality features if the market should.
The strengthened during the charter period, where sales can be triggered with a profit split and if not the long term charters amortized as the vessels down to a comfortable low level with a good base return supported by the $160 million charter backlog linked to these vessels.
In the quarter, we also finalized the sale of the 700 sized vessels for an aggregate net sales price of around $98 million. In addition to the sales price there was around $15 million net cash flow from trading the vessels at high rates until delivery. So they've had a very nice contribution for us.
In 2021.
We have also source multiple new financings at attractive terms and see loan margins creeping downwards, and we fully redeemed the remaining $145 million convertible notes in cash during the quarter.
During the fourth quarter, we took delivery of three of the seven tankers with charter to Trafigura and we have already taken delivery of three more leaving only one suezmax vessel to be delivered expected later this month.
Excluding the drilling rigs the backlog from owned and managed vessels was $2 8 billion at the end of the quarter.
Over the years, we have changed both fleet composition and structure and we now have 75 shipping assets in our portfolio.
In addition to the long term chartered vessels, we have eight vessels trading in the short term market currently and four to five coming off their long term charters later this year.
<unk> also had significant contributions to cash flow from profit share over time, both relating to charter rates and fuel savings.
The aggregate profit share was around $20 million last year, and $7 $5 million into the fourth quarter alone.
We do not have a set mix in the portfolio focus is on evaluating deal opportunities across the segments and try to do the right transactions from a risk reward perspective over time, we believe this will balance itself out, but we tried to be careful and conservative in our investments with a focus on technology and transition over time to more fuel.
Efficient.
Technology for propulsion.
The two drilling rigs are not included in our reported charter backlog figures and with respect to see drill and the ongoing financial restructuring we cannot give more details than what we have disclosed in our press releases or is otherwise publicly available.
After <unk> plan of reorganization was approved by the court. They estimate the emergence from chapter 11 within the first quarter of this year.
We received more than 70% of the lease higher under the existing charter arrangement for vast leanness invest Hercules during seed <unk> chapter 11 proceedings.
Both rigs are active and working for all companies and the charter rate the sufficient to cover debt service relating to the rates.
And we are of course pleased to see strengthening drilling markets on the back of the very firm oil price.
We have entered into a new agreement relating to the harsh environment semi sub vest surplus under this new agreement with <unk> drill the vest surplus is contracted to be employed with oil major equity nor in Norway, and Canada until September October and thereafter, redelivered to us in Norway.
<unk> continues to receive a bareboat hire over around $60000 per day, while the rig is employed under a contract and generating revenues for <unk> and approximately $40000 per day and all of the modes, including when the rig is idle and mobilized to and from Canada for the equity rewards.
The rig is now on its way to shore for some upgrades required for this job and is expected to move to Canada in the second quarter.
With regards to divest leanness, which is on a sub charter to an oil major in the North sea until the end of 2028, we continue to have constructive dialogue with <unk> and the end user for the continued operations of the rig under the contract.
We have not yet agreed final terms with <unk>, but this is expected before their emergence from chapter 11, given the ongoing discussions we can unfortunately not comment anymore on this for the time being.
Over the years, we have gone from a single asset class chartered to one single customer to a diversified fleet and multiple counterparties and over time the mix of assets and charter backlog has varied from 100% tankers at the beginning to nearly 60% offshore at 10 years ago.
Two container vessels no being the largest segment with nearly 60% of the backlog.
If you look at the Counterparties.
Mainly to end users and market leaders in their respective segments and relative few intermediaries, where we have less visibility on the use of the assets and quality of operations strategically. This also gives us access to more deal flow opportunities such as the repeat business with Maersk MSC Evergreen and Trafigura as example.
<unk>.
Our strategy has therefore been to maintain a strong technical and commercial operating platform in cooperation with our sister companies in the wider <unk> tankers group. This gives us the ability to offer a wider range of services to our customers from structured financing effectively to full service time charters and.
And with full control over vessel maintenance and performance, including energy efficiency and emission minimizing efforts, we can impact improvements to our vessels through the life of the assets and not only be possibly owning vessels employed on bare boats, where the customer may not always have an incentive to make such improvements.
In addition, we can retain more of the residual value in the assets when we charter out on time charter basis and in the current environment with rising raw material costs and inflation driving replacement cost for vessels. This values for the benefit of SSL and our stakeholders.
Comparable deals this value is usually retained by the charterers through fixed price purchase options.
This is illustrated by the recent sale of 790 sites brokers. We're upgrading platform has enabled us to trade the vessels in the spot market during a soft market and when with the market values doubled last year, we could sell the vessels with a significant profit.
And with that I will leave the word over to our CFO Aksel Olesen, who will take us through the financial highlights of the quarter.
Yes.
Thank you Mr <unk>.
This slide has shown our pro forma illustration of cash flows for the fourth quarter. Please note that this is only a guideline to assess the company's performance and is not in accordance with U S. GAAP and also net of extraordinary and noncash items.
The company generated gross charter hire of approximately $166 million in the fourth quarter, including $7 5 million of profit.
With <unk> with.
With approximately 75% of the revenue coming from our fixed charter rate backlog, which currently stands at $2 8 billion, providing us with strong visibility on our cash flow going forward.
In the fourth quarter, the liner fleet generated gross charter hire of approximately $90 million, including approximately $3 1 million and profit split contribution related to fuel savings on some of our large container vessels.
Of this amount more than 90% was derived from our vessels on long term charters.
Following the company's recent acquisition of <unk> backlog currently stands at approximately 2 billion with an average remaining charter term of approximately 4.4 years approximately seven three years weighted by charter hire.
Including the recently announced transactions as well as 16 crude oil product and chemical tankers with the majority employed on long term charters.
Our tanker fleet generated approximately $17 5 million and growth towards the higher during the quarter.
The net charter hire received.
The 5% was derived from our vessels on long term charters among others from glioma and Phillips 66.
And that chart right from the company's two suezmax tankers employed in the short term market with approximately $3, one compared to $1 7 million in the previous quarter.
Late in the fourth quarter is developed with delivery of one suezmax tanker and look through product tankers with five year charters to trafigura through.
The remaining two suezmax tankers.
Product tankers.
<unk> delivered during the first quarter with full quarterly earnings effect from the second quarter.
Our global fleet generated approximately $46 3 million in gross charter hire in the fourth quarter, including $4 5 million in profit share contribution from our capesize vessels on charter to Golden Ocean.
During the quarter, the net fleet center two drybulk vessels.
Mr <unk>.
The long term charters.
Of the 11 of trading in the short term and spot market.
And then in this setting and it's both a short term market generated approximately $21 2 million in net charter hire during the quarter compared to approximately 27 in the previous quarter.
During the quarter the company completed the state and delirium, seven smaller handy sized drybulk vessels to an Asian buyer in the <unk>.
<unk> generated net sales proceeds of approximately $19 million. In addition to strong earnings during the fourth quarter prior to delivery.
As to build on two drilling rigs, which have been charged to open subsidiary Ambev.
On the overall trends in the fourth quarter received approximately.
<unk> 3 million in charter hire from the rigs.
This summarizes and adjusted EBITDA of approximately $121 million for the fourth quarter compared to $107 million.
Quarter.
Yes.
We then move on to the profit and loss statement as reported under U S.
As we have described in previous earnings calls our accounting statements are different from those of a traditional shipping company.
And that sort of business strategy focuses on long term charter contracts a large part of our activities are classified as capital leasing.
As a result, a significant portion of our charter revenues are excluded from U S GAAP operating revenues and instead.
Revenues classified as repayment of investment in Putnam thesis in the long term.
Consult in associates, and long term investments and interest income from associates.
So for the fourth quarter report total operating revenue according to U S. GAAP of approximately $152 million, which is less than <unk> $166 million of charter hire actually received two reasons just mentioned.
During the quarter. The company recorded a profit split income of approximately $4 5 million from our Capesize drybulk vessels on charter to Golden Ocean in.
In addition to approximately <unk> 1 million from fuel savings arrangements on some of the large container business.
The company also recorded a $39 3 million gain relating to the sale of our seven smaller handy sized drybulk vessels, which we over delivered the new bio before year end.
Operating expenses of our fleet is up compared to the previous quarter.
Through a combination of new vessels entering the fleet.
And expenses relating to COVID-19 measures among others due to our efforts to maintain a normalized change cycle for our seafarers, despite challenging traveling restrictions around the globe.
In addition, we also saw an increase in depreciation due to the new additions to our fleet and also the consolidation of the best surplus during the third quarter.
So overall and according to U S. GAAP the company reported a net profit of approximately $80 million was <unk> 63 per share.
Yes.
Moving onto the balance sheet.
At quarter end, <unk> had approximately $146 million of cash and cash equivalents.
Additionally, the company and marketable securities of approximately 25 million this market process at the end of the quarter.
Furthermore, the seven debt free vessels with a combined factory a market value of approximately $170 million, including two <unk> product tankers with the company took delivery of before the end of the quarter, most paid with approximately $80 million of cash.
We expect to drill down and financing for all two tankers during the first quarter.
Yes, approximately Portland.
$30 million of remaining Capex of recent head count that acquisition is expected to decline but facilities.
I notice it felt older assets with long term charters.
During the quarter approximately 145 million was used to repay the balance of the convertible note, which is due in October .
Furthermore, the company received approximately 98 million in cash proceeds from the sale of a 700 necessity book vessels during the fourth quarter.
So based on Q4 numbers that equity.
Equity ratio of approximately 28, 4%.
Then to summarize the board has declared a cash dividend of <unk> <unk> per share for the quarter, an increase of approximately 11% compared to the previous quarter.
This represents a dividend yield of approximately 9% based on the closing share process to date.
This is the second consecutive quarter dividend and since inception of the company in 2000 and $428 per share or more than $2 4 billion. In total has been returned to shareholders through dividends.
It fell a successfully committed more than 1 billion with recent acquisitions.
Paul.
In the process and expanded our relationship with some of our key clients by investing in modern eco design container ships and tankers and at the same time disposal of older less efficient methods, demonstrating our commitment to further improve our carbon footprint, which you enter ESG strategy.
Following the recent investments our backlog from a shipping assets now stands at $2 8 billion, providing strong visibility on future cash flow debt service and continued distribution capacity.
With a strong operational platform and our access to attractively priced capital <unk>, well positioned to execute the new accretive investments in the quarters to come.
With that I give the word back to the operator will open the line for questions.
Thank you Sir.
A reminder to ask a question you will need to press star one on your telephone.
Your questions. Please give Tom Husky.
Please standby, while we compile the Q&A queue.
Okay.
The first question comes from the line of Randy Stevens. Please go ahead.
Howdy team SSL how's it going.
Hi, there around here and nice to hear from you.
Yes, Sir.
Looking at your fleet here you recently took delivery of numerous tankers you sold right. Some of your dry bulk vessels now currently dry bulk is only about 11% of your contract backlog basically the smallest sector in that and then with the recent pullback in asset values over the last few weeks and even in March.
Despite further strengthening in charter rates is drybulk the asset class of choice for growth at the moment, it's not what sector is.
Yes, we look at opportunities across the board in all of these segments.
They generally and then certainly we would we wouldn't mind do more deals in the dry bulk space.
But we also have to be cognizant of sort of market structure in that segment that typically dry bulk vessels are traded more than.
In the spot market, then on long term sort of logistical type the solution. So so our preference is of course longer term charters. There are not that many long term charters in the drybulk market. Despite the.
Numerous vessels there. So we are we're chasing transaction opportunities wherever we can find them and I think with our diversification as you point out we can look at deal opportunities in many segments at the same time and are not tied to only one.
Sub sector. So so yes, we look at opportunities there as we do elsewhere as well.
But that kind of be specific.
We always we are happy to announce deals as we do them, but we cannot speculate on how much we should invest in eight segments sure.
I don't expect to give our card survey here.
I was going to ask some questions about the drilling rigs, but it sounds like your mom on that for now which is understandable.
Looking at the dividend great to see that kind of continuing to rise is the plan there to slowly increase that going forward and what are some of the hurdles or maybe catalyst.
For further increases.
Absolutely I mean, we are always happy to police are their shareholders.
<unk>.
We've been paying dividends of 72 times, so we're starting to get the get the get the track of that one.
The dividend and this is more based on our dividend policy or communication policy around dividend, we will never guide on forward dividends.
Dividend is set every quarter by the board.
At the discretion of the board, but of course as you as you well know over time and over the 72 quarters, it's typically been stable or increasing.
And with only with of course, some adjustments when there has been market events sort of driving it so of course as we have been.
Doing quite a bit of business new business last year, and one 1 billion, new investments et cetera that will come on stream cash flow from this tanker vessels for instance, we will have.
Right a bit of cash flow from those vessels are already in the first quarter and full cash flow effect in the second quarter and also other transactions is of course, we do we do this only with one sole mindset that we hope to increase distribution capacity going forward, but exactly how much and when I cannot tell.
<unk>.
Yes, no that's fair.
Thanks again, that's my two questions.
Thank you very much thank you.
Thank you next question is from the line of Greg Lewis from BTG. Please go ahead.
Hey, Thank you and thank you.
Good afternoon everybody.
Hey, all of SAR, MSG, and New York last.
Last week.
Question around just following up on Randy's question around the dividend clearly youre not going to give any guidance.
Our guidance around the dividend.
But it does seem that we're kind of targeting.
Some sort of percentage of cash flow at least that's what it's looked like over the last couple of quarters.
Is that kind of a fair way to think about the dividend going forward or is it more a function of.
Your outlook on the market.
I think.
Who would have said no.
We don't give any guidance on promises on dividend I think give us important for us is to see that.
But they have a good first carefully going forward as kind of can.
We can have a sustainable dividend going forward and.
And that is to build a its kind of natural that we're able to increase that dividend over time.
Thank you.
Specific percentage et cetera.
While the sustainable was the contribution from when the cash flow in each quarter and.
Going forward as well.
Okay that makes sense okay.
Okay, and then so I mean, yes.
In the press release, you mentioned that seven vessels are on our unencumbered you mentioned.
The actual estimated fair market value of those vessels is there any way to think about the potential borrowing ability on those vessels.
How should we think about that.
Absolutely I mean, we.
Tend to draw up the facility.
Before electric product tankers.
After this quarter.
I would say the part of part of the reason for having that and having some unencumbered vessels is that it enables us given our financial flexibility enables us to go ahead and close on transactions early and not wait on the financing to be arranged to get a deal done. So so you can say the net effect here is that we can.
The benefits of the cash flow from the vessels early and then we secure and source the financing at of course best possible terms.
Some weeks later, so so that was that was sort of the answer that we also have some some smaller obviously, it's like the older vessels that are unencumbered.
We don't have any immediate plans necessarily to put leverage on them.
We have the flexibility all waste and can do it on short notice if we need to so you can say, it's sort of we have it's sort of a you can say so you can say, it's a part of spare bullet investment capacity and with our portfolio of assets.
Will be situations, where some have.
Lower leverage and maybe we can refinance if we think that leverage has come down too far compared to asset values and widespread so it's an ongoing.
Call It dynamics in any company exactly out of a portfolio approach.
General observation and we see that.
We have increasingly access to a temporary attractive capital.
Either more on new banks coming in and competing on terms. So I think for ethanol, it's a very good environment.
And then and then as I.
As I look at the portfolio.
Clearly asset prices.
Got it.
Gone up.
Almost exponentially in container ships clearly that's your largest pool of assets in the portfolio.
As youre thinking about that business.
As youre thinking about those assets and you're talking to your lenders.
Realizing that the bulk of your assets are on long term contracts, maybe we're not we're.
We're not really going to benefit from the strength in rates.
And that is driving those asset prices higher.
That being said alright.
<unk>.
Is there an opportunity to put on additional leverage on any of those.
Whether it's container ships or other assets where prices have gone higher.
Despite the fact that a lot of those vessels are on long term contracts.
I mean, you could potentially that's not really how we think about that I think as a shareholder I would think that the.
Value out of our backlog is really kind of the.
The valley of the counterparty.
See that the majority of the backlog of around $2 billion.
I would say probably investment grade Counterparties I think that that's.
The strength of the company.
Our new have extremely good visibility on that cash flow.
And we have been very particular on choosing the counterparties that they have in the portfolio that those are companies that we believe will.
Perform even if you kind of set the charter market will soften which it will in the future. So it's more kind of having substance in the company and not necessarily kind of using that to leverage up because you also have a minimum value clauses in loan agreements et cetera. So.
Have to be very prudent.
In deciding what to do.
Okay, Hey, everybody. Thank you for the time.
For Ya.
Thank you.
Question comes from the line of Liam Burke from B Riley. Please go ahead, yes. Thank you.
Asset values are up not only with containers, but pretty much across the board in all your vessel classes.
Has that affected your acquisition backlog.
And are you still seeing the opportunities.
Or have your opportunity has gone down or you're still looking at a attractive pipeline.
I think.
If you look at our competitive advantage.
Light vehicle that has strong operational platform that we have and the fact that if you look at the portfolio approximately 90% of revenues are from time charters.
And on the 10% from.
From bareboat, we basically have.
Different approach to deal origination and they also see a lot of kind of repeat or inquiries from existing clients.
With that kind of relationships that they've built over many years. So I think in terms of kind of new opportunities.
Of course, both speak to see brokers that you also talk to our clients.
And we see a nice.
I think it's a good deal flow if you see more deal flow in terms of time charters WT and more financially driven these like variable.
The banks are coming strongly back too.
Learned as well as kind of a <unk> money. So I think for US we continue to see attractive opportunities.
Fair enough you mentioned in your prepared comments that technology and as important for obvious reasons on emissions going forward are there any vessels in your.
Fleet that you would think okay could provide technological risk groups.
Good for technological risk to allow you to sell sooner.
Well.
Risks may be strong where there, but if we look at our fleet.
The vessels are.
Maybe.
Sure.
At least.
Yield going forward will be smaller bulk carriers.
The vessels, where we see.
Well, which we are quite positive to that.
Big tankers they are they are.
We'll not have a problem from that perspective, and also our large container ships are in a good position and especially if we look at our new building program with the LNG a dual fuel car carriers.
Also going to contribute very well towards the overall fleet.
Carbon intensity.
Indicator.
Because when we are coming into 2023, and four where it is going to be an increasingly aggressive target to stay ahead, but with or without.
Our current fleet.
We are well positioned we think.
<unk>.
And I think maybe just to add to trip's com to comment there. There's a trip surely our chief operating officer, maybe also add to that that we will have our ESG report out in a few weeks' time for the last year I think you will see if you compare the report from the previous year, you will see a very significant change in our in our fleet composition and.
On the metrics.
A combination of all of our acquisitions of very efficient.
Vessels, including a dual fuel new buildings and the sale of less sufficient the small bulk carriers.
We also disposed of last year and also many small feeder container ships that were disposed of in the middle of the year that which were generally quite old.
And therefore.
That had a negative impact on our on our average on those metrics. So I would say we are very focused on on these issues and of course, our mindset is that we should continue to develop our portfolio over time.
With that of course, SaaS one of our key decision.
Elements great. Thank you.
Okay.
Thank you next question comes from the line of Chris Wetherbee from Citigroup. Please go ahead.
Hey, Thanks, guys can be aligned with you on for Chris maybe we can start with the the comments quickly I'm. Just curious if you can quantify what the COVID-19 impact on cruise was from an expense standpoint in terms of the headwind.
Constant.
Sorry.
Ask the question.
I mean, the cost of coal.
<unk> costs for us is pretty round numbers $1 million per quarter.
That seems to be quite steady.
It was during last year and it seems to be approximately where we are at the moment too.
And this has to do with travel costs.
<unk>.
General sort of delays in moving people around.
Great that makes sense can we talk about capex, So where do we currently stand with that looking forward here, what's the mix and the strategies that going forward there.
Yeah, I think really.
The only outstanding Capex currently are.
Carrier dual fuel new release coming out of China with 10 year charters to both saw again group on carillon respectively.
We are in active discussions with several financial institutions.
It's more about optimizing their financial terms than anything else. We have received extremely strong interest.
Based on kind of.
Quality of the ships dual fuels third quarter, Counterparties and the interesting segment with good supply demand outlook.
So and then of course, we have paid down installments to the shipyards for for all those four vessels as well. So we don't expect a very significant.
Call It Capex net cash capex.
Because most of the remaining investments in those vessels can be covered by financing of course, we focus on optimizing not minimizing the cost of that capital of course, but from a from an overall perspective at a $4 billion of balance sheet. I think we have a very low capex.
And so the relative numbers.
So just following up on that one thing is especially I'm just curious what is the backlog or that any congestion in the shipyards are youre seeing right now.
Congestion.
Well, we see if you want to go out to get new vessels typically car carriers container ships now you'll probably be looking at 2020 for even 2025.
So if you want to go to sort of first or second tier yards in Asia.
China or Korea. So I don't think you will find many 23 deliveries.
At the moment, so basically look at late 'twenty four 'twenty five I think.
That answer your question and also prices have been has been going up there is inflation of raw materials, but so.
So and also labor in these countries, where most of the ships are being built. So so this is also helping our overall fleet structure or I would say any shipping companies in the fleet portfolio because its new building prices in a way of pulling off also secondhand values.
Yes.
As a percentage of replacement costs, which is which is benefiting us so.
We we don't mind call it increasing shipyard prices and as we do new transactions. So as long as we can get charters that is reflective and gives us a decent return even even if David if prices are coming off.
We are still good.
Introduced resections.
Higher price and some yards are reluctant to take orders going much further in or further out I mean sort of mid 24, because of the risk of rising steel prices and general inflation. So.
The yards are also that reluctance to take new orders very far into the future.
Sure that makes sense. Thank you both.
Thank you.
Q.
I would like to hand back over to the speakers for final remarks.
Thank you then I would like to thank everyone for participating in our conference call and also thank the asphalt teams on board the vessels and onshore for their continued efforts DNI and delivering value for our shareholders. If you do have any follow up questions. There are contact details in the press release, where you can get in touch with us through the contact pages on our webpage.
Www Dot SSL Corp, Dot com. Thank you.
That does conclude our conference for today. Thank you for participating you may all disconnect.
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