Q1 2022 Navigator Holdings Ltd Earnings Call
Can work the merger integration is mostly moving ahead, we keep capturing synergies synergies and our results continue to improve our spur.
A special Thank you goes for the management Committee comprised by Niall, Our Chief Financial Officer or event, our Chief commercial officer, and Michael <unk>, Our Chief Operation Officer, because they have been leading the company and working together as a high performance team throughout the merger.
And we are very glad to have the new Houston office up and running with Randy in charge of our business development in North America and Investor Relations.
Second on behalf of the board I would like to extend our huge appreciation and gratitude to our longest serving board member Alexander Erica and to the valuable support of <unk>.
Both have stepped down from the board when we decided to reduce from nine to seven members, although no longer serving on the board both remain committed to the ongoing growth and development of navigator gas.
Active and supportive shareholders.
Yeah.
The World is going through special times, with amazingly volatile markets huge pandemic and geopolitical disruptions and at the same time going green.
The European Energy crisis, the Russia, Ukraine conflict, the highest inflation 40 years multiple interest rate rises in short order and the latest Chinese lockdown have all created material economic headwinds and have impacted trade.
But the profile of the COVID-19, economic recovery has been supportive of shipping markets with returning volumes.
Cotton supply chain disruptions changing trade patterns and inefficiencies that may mitigate and even create further disruption upsides for freight rates.
Despite recent financial market Jitters, several global market of service belief the economic expansion continues and expect commodity energy and shipping markets stay healthy well into 2023.
Emission reduction policies reduced ship speeds as from next year together with a low order book for our petrochemical gas sector segment, I believe will impact the market supply demand balance, creating additional volatility and improving freight rates of course time will tell.
Turning to the quarterly highlights on slide four we are pleased to report a much improved financial performance for the first quarter of 2022 compared to the first quarter of last year.
We achieved a quarterly adjusted EBITDA of $55 $7 million, resulting in a strong balance sheet with $168 million in liquidity roughly twice as much as last year.
And we continue to reduce our debt levels through program debt amortization.
On the commercial front, we see the market is steadily improving our realization at nearly 90% and an improving time charter equivalent of nearly $23000.
The rising freight rates can be explained by three underlying factors first U S.
Natural gas liquids production and exports are on the rise.
Erica propane production for April was 7% above last year and now at the highest level on record since shale gas production started.
In addition, ethylene exports reached an all time high of 137000 tonnes during April resulting in incremental demand for seaborne logistics.
And throughput at the enterprise navigator ethylene export terminal at Morgan's point totaled approximately 267000 tons achieving record profitability in the first quarter.
Second the Russia, Ukraine conflict is disrupting traditional supply sources and trade routes.
Typical sourcing from the closest geographical supplier is being challenged as European customers are increasingly looking further afield.
<unk> petrochemical gases.
Which translates into more ton mile demand for gas tankers.
The same is happening to all products, we transport, namely LPG and petrochemical gases and ammonium.
Third there is less substitution effect across tanker segments gas tanker segments.
Increased U S propane ex productivity is providing higher ton mile demand for larger gas targets, which in turn reduces the interest ship segment competition.
The same can be seen in the <unk> handy sized gas carrier segment with ships employed in ethylene and ethane trades fully refrigerated vessels employed in ammonia trades, and therefore fewer vessels available for LPG and easy petrochemicals.
Lastly on the commercial front, we completed the sale of two of our oldest vessels during the first quarter a good prices further reducing the average age of our operating fleet.
Looking forward.
Our outlook remains optimistic as shipping utilization and rates are on the rise North American NGL production and exports continue to climb.
Courted by strong prices and supply and demand of ships keeping becoming tighter.
Sorry, and supply and demand of ships, becoming tighter.
Following the record Q1 ethylene export through our terminal we expect similar levels in the second quarter of April and May volumes have remained approximately 800000 pumps from us.
This reflects a robust.
End user demand in Asia, and Europe for competitively priced U S ethylene in.
In summary, we continue to see large geographical price differentials across almost all the commodities react transport and because of this several U S. Midstream companies have recently announced large investments targeted at NGL infrastructure processing and exports.
Both of these developments and the cost advantage of the U S. Production, we are evaluating expansion of our ethylene export terminal in Houston together with our partners at enterprise.
The increased size of our company more efficient ship operations reduced overheads and improving market conditions are helping us to deliver stronger results.
22 has begun with good science for navigator gas, which should translate into stronger cash flows positive earnings momentum and value creation for all our shareholders.
We had the vision the best people the right ships.
The terminal the integrated business model, the correct strategy and the financial health to position navigator gas well for the future.
Now I would like to hand over to Niall who will give you a more detailed financial review. Thank you.
Thank you Doug.
And good morning, everybody.
During the first quarter the company generated a net income of $27 million, which equates to $35 a share.
Our $12 6 million or 16 personnel, if the unrealized gains on derivative instruments and foreign exchange losses are eliminated.
This strong operational performance compares to a net income of $2 8 million or <unk> <unk> per share for the first.
Quarter of last year.
The adjusted EBITDA for the first quarter was $55 7 million a record for the company, which compared to $31 million from the first quarter of 2021 and to $55 2 million for last quarter Q4 of 2021.
Total operating revenues for the quarter were $119 8 million compared to 80, $785 7 million for.
Compared to fourth quarter of last year.
$10 2 million of this $34 1 million increase in revenue was principally as a result of the seven additional handy size vessels, joining the fleet as part of the Entre gas transaction offset by a slight reduction following the sales navigator Neptune on January 14th of this year.
There was an additional parking and a half million dollars generated as a result of the revenues derived from the unit cost pool, representing revenues from the now nine smaller union gas vessels. Following the sale of the happy burnt and 1999 since two.
<unk> thousand 600 cubic meter.
LPG carrier in March 2022.
We also continued to see an increasing charter rate environment during the quarter, which accounted for $3 4 million of the increase in revenues this quarter as average charter rates rose to $222933 per day, or 697, and a half hasn't dollars per month compared to 21 900.
$56 per day for the first quarter of 2021.
And this was an increase from approximately 22 $5000 per day achieved in the last quarter of 2021.
Vessel utilization to nudge up to.
89, 5% for the quarter compared to 88, 2% a year ago contributing an additional $1 1 million to revenues.
We have four investments in Drydock during this quarter part of our scheduled time is taking a total of 94 names and with a capital cost of $4 $6 million.
And part of my investments are central to enter Drydock for in our plant in service on the constant the remaining nine months of this year after night.
At an expected aggregate cost of $12 $9 million and Drydocking costs are the only scheduled capital expenditures we have in 2022.
Operating revenue from Luna pool was five points nine.
$9 million for the quarter, representing our share of the other participants net revenues, which voyage expenses from the Luna pool of $4 $6 million representing.
Representing the other participant share of our net revenues from the pool.
Consequently, our vessels have the benefit of the net benefit of $1 3 million from the pool. During this quarter similar to the $1 1 million benefit in the first quarter of last year.
Voyage expenses increased by <unk> three points.
2% or $5 2 million during the quarter to $21 $9 million.
Primarily as a result of the seven additional handy size vessels in the fleet most of which were subject to voyage charters, thereby incurring these pass through voyage expenses.
Bunker costs, which is the vessel's fuel and forms part of the voyage expenses continues to increase significantly in line with charging energy prices globally.
Our vessel operating expenses.
Our opex increased by 41% to 38 $1 million for the first quarter compared to the hospital or 2021, all of which was as a result of the additional investments in the fleet during the quarter.
In fact vessel operating expenses per vessel per day reduced again this quarter by $51 per day to $7841 per day compared to $7892 per day for the first quarter of last year and approximately $8000 a day for the last quarter.
Of 2021.
Depreciation on our vessels during the quarter increased by 63% or $12 2 million when compared to the first quarter of last year. The reason part of this increase are twofold first there were 16 more vessels in our fleet during the quarter compared to last year, which accounted for $5 8 million of this increase in <unk>.
Secondly, following the company's decision to reduce the estimated useful lives of our lessons from park to year to 25 years at December 31, 2021, the effect on depreciation was and will be an increase of approximately $6 $1 million per quarter.
General and administrative expenses were approximately the same for both comparative quarters at $66 $3 million with the increase of costs relating to ultra gas at $1 2 million being offset by a reallocation of technical management costs to vessel operating expenses and a reduction of cost generally associate.
With the closure of the New York Office.
In other income the management fees and from the other participants for our management of the Luna pool was just under $100000 for the quarter.
The unrealized gains on derivative instruments were $15 2 million for the quarter, primarily relating to movements in the fair value of interest rate swaps has a five year LIBOR swap rates have risen significantly over the course of the last quarter.
We have fixed interest rates on two of our loan facilities at 0.36% on one and one 3% on the other and the loans assumed as part of the ultra gas transaction each have LIBOR fixed at approximately 2%.
In addition, there was an unrealized gain on our Norwegian bonds relationships through cross currency swap to $2 million.
Interest expense for the quarter was $11 million, an increase of $2 million on the fourth quarter of last year, all of which was as a result of interest on the additional $183 million of debt outstanding associated with the ultra <unk> vessels.
Our share of results from the ethylene Marine export terminal was a record profit of $6 $5 million this quarter.
<unk> based on 267000 tons of ethylene throughput charges during this quarter.
This compared to a loss of $605000 from the first quarter of last year Q2 pipeline integrity issues at that time.
The $6 5 million dollar profit as the second consecutively quarterly profit at this level. Following a profit of $6 4 million in Q4 2021, we have previously given EBITDA guidance of between 20 and $25 million per annum from the channel with now that we better understand the capability of the terminal.
EBIT guidance, the EBITDA guidance for 2020 to increase to between part D and part D $5 million based on the annualized profits over the past two quarters. In addition to annual depreciation at the terminal of $5 2 million.
On the balance sheet on slide eight we see that the company had cash of $168 1 million at March 31st and a further $22.9 million available from Undrawn.
Revolving credit facilities associated with our secured vessels.
Our minimum liquidity covenant from our various bank loans and credits agreements is a maximum of $50 million.
During the first quarter in January 2022, we sold navigator Neptune a.
2000, built ethylene carrier for $21 million.
And then March 'twenty to March 'twenty, two we sold the happy Bart a 19 98999 8600 cubic meter LPG carrier.
Our $6 1 million.
Neither of these vessels vessel disposals required any debt repayments.
It is worth highlighting that both of these vessels were sold at or in excess of their respective book values generating a small profitable just under $500000, which supports the current value of values of the vessels on our balance sheet.
Our total debt at March 31 was $910 million and is shown as shown on slide nine it reduced by $22 9 million during the first quarter.
Our debt comprised of loan facility secured by our vessels.
Approximately.
$687 million.
Our credit facility associated with the channel up $51 million and two Norwegian bonds, which in aggregate amounted to $171 7 million.
With respect to the Norwegian krone denominated bond in the amount of $71 million.
And which has a maturity of November 2023, we have a call a call option at a redemption rate of 286, 4%, which we are currently evaluating.
On slide 10, we outline the estimated cash breakeven for 2022 at $18300 per day.
This lower level enables us to generate positive EBITDA and even the toughest of markets and we have maintained we maintained cash generative throughout the shipping cycle.
In the box on the right hand side of Slide 10, we provide our expected daily opex across the various vessel segments ranging from six $5000 per day for the smaller vessels to $8800 per day for the larger more complex midsized ethylene vessels. We also provide a range.
<unk> expected annual spend for 2022 from vessel Opex G&A costs depreciation and interest expense.
On slide 11, we outline the historical EBITDA showing an uplift in Q3 2021, a quarter in which the ultra gas transaction was was concluded and a further increase in Q4 2021, which takes into account the full quarterly earnings how many ultra gas vessels as well as a doubling.
Of the net income from the terminal.
On the graph on the right hand side of slide 11, we outline with a bar on the left of that graph the annualized EBITDA based on Q1 2022.
After each bar moving right shows the potential EBITDA is the average charter rates across the fleet were to Orion were to rise by $1000 per day, giving EBITDA of $260 million of the charter rates were to rise to approximately $25000, a day and $350 million of charter rates.
Climbed to $30000 a day.
And with that I'll hand, you over to Lloyd for his remarks.
Thank you Mike and good.
Good morning, everyone.
The macro economic stars are finally, starting to align for navigator we are.
In an environment for our gas and its derivatives are in high demand due to disruptions to longstanding trade flows.
And we are also experiencing in global realization that gas.
As a necessary lower carbon energy source as a stepping stone towards to future green transition.
In addition, we're also seeing supercharged investments in North American natural gas liquids production and infrastructure.
Especially from the mainstream confidence.
One factor pointing toward the NGL production environment, if the rig count U S rig count has gone from a low in March 2020 of 244 to 728 today a dramatic increase.
In connection with this we are seeing renewed interest in Debottlenecking European import infrastructure to enable reliable seaborne imports across the Atlantic for all gases.
LPG petrochemicals and ammonia.
All of the products we carry.
In addition, the permit situation is restricted to prolong squeezed on supply chain and commodity prices such as steel leaving.
At least the had the size segment with only 7% fleet growth over to mix the years.
All of these factors set the stage for a robust freight environment going forward.
We expect America to go from strength to strength as a reliable producer and export drove competitively priced gas products and derivatives.
<unk> is perfectly positioned to benefit from benefit from these positive developments.
We can clearly visualize this growth.
On page 13.
Our natural gas liquids production in North America.
Exports.
U S propane production for the month of April set a record of approximately 2400 barrels per day.
Ethane is closely linked to increasing natural gas liquids production.
Also on the rise.
Domestic demand remains relatively stable.
Hence any new incremental volume reinforces continued U S competitive pricing compared to other parts of the world.
And continuing demand for seaborne transportation.
The East Coast export terminals are also increasing exports with Marcus hook, reaching record levels of LPG throughput in April and Repower malls export terminal in New Jersey as recently commenced their LPG export program once again.
The demand for hand, five shipping is reflected in third party brokers time charter assessment.
We can see that the market sentiment for shipping rates is strengthening on page 14.
Our core handled by a ship types <unk> ethylene capable semi refrigerated.
Or fully refrigerated vessels.
<unk> steadily improved.
Since the low in September 2021.
And are now showing between 900000 boes per months.
Through a range of $650000 a month.
Pending on the ship.
We have recently extended four semi refrigerated vessels for 10 month time charters above with the best rated quoted by third party brokers.
Meaning that the curve takes a little while to reflect current market dynamics.
Our employment mix is continuously changing to the needs of our customers.
The graph on page 15 illustrates our earnings dates.
Our first quarter is showing two trends.
First.
13% of our earnings base are in ammonia.
This is the highest proportion in navigators trading history.
We believe this is set to continue as we go forward.
The World has woken up to the opportunity of Blue and Green ammonia floor in the first instance, carbon free of feedstock for more efficient crop production and food security.
And secondly is potential for carbon free vessel fuel.
Blue ammonia price nicely and with America's unique position with cheap natural gas and easy access for carbon capture and storage urology.
The second trend.
During our earnings based on petrochemical time charters are up tremendously.
During the first quarter, we had eight vessels on time charters employed and carrying propylene ethane and ethylene.
I think it's a reflection of the changing industries appetite for a reliable virtual pipeline service of these products.
As opposed to traditional petrochemicals spot market.
In a way it is an extension of the American midstream business model, reaching overseas to international markets.
Okay.
Provided U S ethane is priced competitively.
U S produced ethylene in turn should also be attractive to international consumers.
Page 16 illustrates our continued arbitrage between America to Europe and to the far east.
This arbitrage supports record volumes of ethylene being exported from the U S Gulf.
And we expect a minimum of 200000 tons of ethylene to flow through our Morgan's point ethane export terminal for the second quarter.
With the joint venture terminal now delivering on its potential.
And U S natural gas liquids fundamentals coming back into Vogue.
We have started to look at the potential to expand the terminal together with enterprise. We are currently evaluating this ability in terms of engineering cost timing customer appetite.
On various permits in order to get a better understanding of the project as a whole.
The permit situation in the <unk> segment is fairly light.
On page 17 illustrates Amir as I mentioned before a 7% increase for this segment over the next.
Few years.
We are confident that incremental supply of product and thus demand for vessels should materialize to accommodate these additional units.
And bear in mind that 20% of handy sized vessels on the water today are above 20 years of age.
And therefore, the situation can further be balanced should vintage vessels be recycled.
So all in all on the following page.
Navigator is very well positioned we had a record quarter EBITA and robust liquidity liquidity situation, which are directly influence.
By 90% roundabout, 90% utilization rates.
Rising SLS rising charter market.
And our strong ethylene export through the terminal.
And all of these things, where we think is set to continue in the outlook.
There's very limited vessel supply.
Continued production increases in North America on oil and gas products and derivatives.
Investments in the infrastructure. So we are a sector. We believe that the stars as I opened with are pretty much aligned for a positive environment for navigate to thrive going forward over the next couple of years.
You're very much back to Randy.
Thank you, Oregon, So yes, we will now open the lines for some Q&A to raise your hand, Crestar nine and then you'll have to our mutual self will start six or using zoom just use the radio and pumpkin.
First question your line is open.
I think he is on mute.
Randy can you hear me can hear you now go Jorge this is Ben and ever gotten this spend on over at Stifel.
So I have a couple.
Oregon, you'd mentioned a re contracting some of the vessel Tonight.
Assume there for a Canadian exports.
Any sense appreciating that you might not want to say specifically, but.
Relative, let's just say for four.
The vessels that you have on contract across the fleet.
Any sense I was wondering what the uplift is in rate on a percentage basis relative to where things are currently contracted.
These particular vessels that you're referring to are indeed, the ones trading taking notes.
Canadian product from the West Coast to Asia.
And the rate is 20% a year on year.
But they are higher than what.
Some of the third party ship brokers are quoting.
For a 12 month time charter rate in that segment.
Traditionally handy size.
And the size of the rate assessment lags when it goes up or down because theres not that many transactions.
Happening yet from week to week. So there is definitely the rates that are being done for those trades are up on what you see publicly.
Published by some of these ship programs.
Okay. That's very helpful. Appreciate that.
And then.
Moving over to the ethylene terminal obviously, you guys are talking about the possibility of expanding.
Enterprise has been very vocal about that themselves just thinking about kind of the strategy I know when you did phase one the idea was to basically have almost everything.
Fully contracted before making that final investment decision.
Being an expansion and a good market.
Are you thinking of it the same way or.
Or.
The joint venture would be willing to maybe move forward with the project even if.
And you can go with whatever 60% contracted or pick a number.
And one thing.
Keep in mind Ben this one when we did the original joint.
Joint venture of Phase one.
You can call referred to as phase one.
The pipeline, taking product from Mount Belvieu down to the terminal was upsize.
In anticipation of a potential expansion similarly, the storage tank above ground storage tank was upsized from 50000 cubic to 60000 cubic because we both felt enterprise and navigator.
We should be prepared for a future for a potential phase III.
<unk> capacity and then you needed those assets to be capable of doing that so.
So that's all in place so.
And that was incremental cost.
Cost at the time.
When the assets are there.
Professional expansion.
This strategy is that we probably don't need 90, 495% throughput commitments for the project to go ahead, what that level is what level. It's.
Both enterprise and navigate the comfortable with that is a different question. Richard we are investigating at the moment.
Okay.
Fair enough and then and then lastly for me and I'll turn it over.
As a lot of this new capacity is coming online whether it's from the ethylene terminal or other.
The LPG and petrochemical exports coming out of the United States, you talked about only a 6% order book.
Seems like there could be room for additional orders I guess I was curious if you guys are.
Be contemplating that and or.
Is there any appetite on the part of navigators to maybe do M&A.
M&A or will go out.
As was the case last year.
Increase the size of the fleet.
Through existing assets.
I think it's something that is on our minds.
We're looking at it.
Continuously we always have.
The thing with the <unk>.
At <unk>, they started competing with ethane.
So there will be competition between ethane and ethylene markets for shipping.
So we envision envision a situation whereby.
We removed some shifts from ethane trade into ethylene so to give you. An example today our ethylene Luna pool is about 50, 50% 50 50 at play in Italy.
So the tonnage is there depending just.
Just depends what the product is willing to pay.
But if all the ships that are trading today moves from ethane to ethylene and there is enough. But then the question is what will happen to the ethane trade. So it's.
A bit of a dynamic situation between the two.
Right and then I guess the question is how do you resolve that.
Is it through new buildings is it is it you know.
You guys, taking a bigger position through second hand acquisitions, perhaps.
Okay.
It's all on the spectrum, but what we can do and what we can control and so forth.
Sure.
We contract with and what product reshape on the existing assets.
Right right, Okay fine.
Good enough I will turn it over to appreciate it. Thank you guys.
Thank you Ben.
All right next caller, we will open up your line now.
Hi, Good morning, gentlemen, this is Chris Robertson at Jefferies. How are you.
Thank you.
So throughput has been elevated in April and May at around 100000 tons in the month can you talk about your expectations for June and how that might relate to any technical or operational capabilities. Our limitations. There and then following up on that can you talk about any expectations for seasonality in the back half of the year.
Hi, Chris.
Thanks for the question.
For the ethylene terminal Q1 was 367000 tons.
For Q2, it will be above 250, so close to Q1 so.
April and May about 100000 tons June will be a little bit less why.
It's more of a tactical approach from the joint venture whereby it takes time or 125.
Tons, an hour to fail.
So we want to start your line.
Third quarter <unk> of July we had a full tank. So at the back end of June the terminal is unlikely to have full export capability or throughput because you want to go out with a bang first through July .
So it would be a little bit less in June , but overall similar to Q1.
Okay, yes, thanks for the color on that then.
So just looking at the ethylene terminal with the expansion plans, but I wanted to ask more on the east coast operations. So given the situation with Russia and Ukraine at the moment Europeans trying to source energy from different suppliers, and maybe that being a more structural change in the long term have there been any plans or.
Discussions around.
Expanding operations in the in the northeast to supply Europe .
Thanks.
You are absolutely correct in your assessment that the Europeans.
Woken up to the fact that they need to diversify supply.
Reliable supply of all energy products.
Including LPG, including ammonia, including petrochemicals, so where do they look while there's not that many places that can look but the closest one is.
East Coast of America.
So we are seeing an increase of exports from the east coast on propane to Euro and that is for sure are set to continue in a bigger way than we have seen in the past.
Because the Europeans needed.
What is happening now is that the post winter <unk> started export operations from New Jersey.
The markets they are connected and finally in commission.
<unk> so the east coast is set to help and support the European demand.
And the effect of that is longer.
The ships have to say longer to dogs opening remarks is that the disruptions is happening and we see it and instead of sourcing product from closer locations. Then you have to look across that landscape.
For shipping demand. This is generally a positive.
But the U S East coast, absolutely will play a larger role in providing energy security for Europe .
Thanks for the color on that or even I. Appreciate the time guys. Thank you.
Thanks, Chris all right next caller.
Good morning, gentlemen, this is <unk> from value investor's edge. Thank you for taking my questions.
Following up on the increasing rate environment sector. I was wondering if you could provide some further commentary on the charter market has.
Two year or three year contracts seen similar increases or have these increases mostly taken place on a shorter term fixtures.
And thanks for the question agreement.
Sure.
Traditionally the handy size time charter market is.
It's around about 12 months subject to typical duration.
In our segment.
So at any given point of time, if you have 12 months' time charters they need to be renewed.
As you as we move through the year.
But depending on the market conditions at those particular points in time then.
Additionally, we are able to breathe.
Greens rates or drop rates in this.
Current environment, we are in an up cycle, we talked about as far as aligning theres a lot of.
As with many fundamental reasons why the shipping market, our shipping market is tighter or more balanced than it has been in the past so renewal of time charters that are coming off we.
We have seen a re commented are at higher rates than we've done 12 months ago.
So we're in we're in an up cycle, we believe when repeal it and we can show to an increasing average rate across the board.
Alright, that's all from me. Thank you guys for taking my questions.
Thanks Kunal.
I see another race fan here.
Go ahead your line should be opened this material mute yourself.
Hi, This is David Cohen from Minerva advisors.
I'd be interested in any commentary you could provide with regard to the linkage between the change in the accounting lives of the vessels down from 30 years and subsequent investment decisions you might make in the fleet.
Is there a direct linkage is there an indirect linkages there no linkage. Thanks.
I think in general there is no or very little linkage.
The investment decision on vessels has made on its own merits and probably has a shorter timeline than done either 25 R&D talked for years.
And it's certainly not something that we have looked at in the past.
To make an investment decision based on 30 years. So I don't think that's that's a critical component of that decision I think the decision made to move from 30 years to 25 was more about the evolution of the shifts and the.
Economics on the ecology of newer ships relative to your older ships and as we've had some and we mentioned that we sold the navigator Neptune, which is 22 years of age. This year, we can do a comparison between those ships and some of the new ones, which can be rather dramatic not just.
Economically but also environmentally.
There is there is minimal.
In terms of.
Our investment decision based on either.
25, or 30 years.
Thank you best of luck. Thank.
Thank you.
Yes.
Alright, it looks like no further questions. So thank you again to all for joining us on this call and hearing and seeing again optimistic outlook for the future. If you have any other questions feel free to email me directly Randy that given at navigator gas Dotcom, we'll talk soon.
Thank you.