Q3 2022 Euroseas Ltd Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to the <unk> Conference call on the third quarter 2022.
Actual results.
I have with US Mr. Aristides, Peters, Chairman and Chief Executive Officer, and Mr. Tassos athletes Chief Financial Officer of the company at this time all participants are in a listen only mode. There will be a presentation followed by a question and answer session at which time if you wish to ask a question. Please press star one on your telephone keypad and wait for you.
Name to be announced.
I must advise you that this conference is being recorded today and please be reminded that the company announced their results with the press release that has been publicly distributed.
Before passing the floor to Mr piece that I would like to remind everyone that in todays presentation and conference call <unk> will be making forward looking statements. These statements are within the meaning of the federal securities laws.
Matters discussed may be forward looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized.
Let me draw your attention to slide number two of the webcast presentation, which has the full forward looking statement and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it and now I would like to pass the floor to Mr. Peter. Please go ahead Sir.
Yeah.
Yes.
Okay.
Good morning, ladies and gentlemen, thank.
Thank you all for joining us today for our scheduled conference call.
We believe that this is Lee <unk> Chief Financial Officer.
The purpose of today's call discussing the financial results for the third quarter. The nine months period ended September 30.
52.
Let's turn to slide three.
The Thanksgiving of 2022, we reported total net revenues of $46 million and net income attributable to common shareholders of $25 $2 million or fleet, rather than the 50 cents per share basic and diluted.
Adjusted net income.
Local government stay at home.
$29 million or $2.90 per share basic and diluted.
Will they be done from the periods 2000.
$6 2 million doses.
In spite of the company's common stock dividend plan.
Declared a quarterly dividend of 50 cents per share for the third quarter of 2022, which will be payable on or about December succeed.
Therefore, there was on the record on December nine 2002. This represents a nine 4% annualized heating or not a stock price of last Friday.
Yeah.
As of November 14, 2022 with adults.
139000, although equivalent stock in the open market through about $3 million under our share repurchase plan of up to $20 million announced in May 2018.
So can you go over the financial highlights in more detail later was inflation.
Please turn to slide four where we discuss operation transferring into operational developments.
Okay no sale.
Yes.
Without giving up his.
His own vessels were fully contracted during the quarter.
There are also no.
All of these answers during the quarter.
On the dry dockings.
The vessel leaves the rest of its sales were 46 days.
Which about six days occurred in the second quarter and full basal goods within the third quarter.
Thank you Sue.
Most of the best in the World for scheduled dry Lucas well for total savings of 51 days of which 41 days well within the quarter and the interest during the fourth quarter.
Most of those vessels of the retina B also underwent a drydock for a period of about 53 days.
Finally, most of our vessels are denied the blades and Aegean Express have both been in dry dock since October 2020, due November 15 2016, respectively.
While I cannot I believe he was in dry dock days system damage was identified.
I'll, let them see millions of subscribers under items have been notified and the managers are presently working to evaluate necessarily bad options.
Please turn to slide five where you can see our guidance fleet profile.
Our fleet consists of making vessels, including 10 feet. This is amazing the immediate container ships with cargo capacity of 59000, Teu and the Netherlands age of 17 years weighted based sizing.
Yeah.
Turning to slide six.
Type of vessels under construction, which consists of nine April feeder container ships.
The carrying capacity of 2600, <unk> and believe me the carrying capacity of 1800 units expected to be delivered within 2023 and 2024.
The 90 feeder container system has a capacity of 52000 Teu.
After the delivery of these new buildings, our fleet will consist of 27 vessels with a total carrying capacity of the books.
1000 Teu.
Slide seven shows our vessel employment schedule.
As you can see fixed rate stands at approximately 99% for the remainder of this year, 78% from 2023 and almost 54% in 2024.
And then the young.
Right now I really view crowd was six to 12 month time charter rates from the vendors.
Yes.
From payment charter rates have declined significantly since the beginning of September with local payment rate of demand growth in the response to the global economic slowdown changing consumer films and the alleviation of conventional nishu.
Schedule, the new building container ship deliveries starting from mid 2023 on moves in combination with further strong spending in both congestion will likely add further pressure on the container shipping today more so than the largest containership segments.
Nevertheless, the race.
Still higher than at the end of 'twenty, 'twenty and well above the 12 year historical median.
Please turn to slide 10, where we summarize the containership market highlights for the third quarter.
Cool.
And then just medicines, one year time charter rates across all segments have generally seen yourself the decline in the last three months.
Other items of eight Boes a day during the Q3 was down by 10% to 30% compared to Q2.
Cool.
We have since fallen by more than 7%.
Yes, the second pad.
In addition to good eastern Massachusetts by about 12% in the third of course will strengthen.
Over the second quarter.
While prices dropped at an even lower level in October 2022.
The container for second hand sales activity was launched wire.
In Q3, 2022 as a major macroeconomic uncertainties and weaker demand trends, mainly extend the appetite for new innovation.
On the contrary new building price index increased by about <unk>, 3% in the third COVID-19 over the second quarter.
With new building prices remaining firm despite negative market sentiment.
Yeah.
The container ship fleet has grown by approximately 12% year to date without accounting for items, especially reactivation offer to the right.
The idle containership fleet as of October 24 students about one 8% of the bleed over the fleet has been increasing gradually change last year.
No container ships have been sold for scrap so far this year and none are expected to be sanctioned by the end of the year as a result of strong containership market thus far.
However, it is projected to be gone through 2023.
Surely as markers school.
Older tonnage is replaced with more modern ships and reducing the environmental regulations coming into effect.
The last prices softened to allow $600 per lightweight ton in the third quarter.
They still remain above 40% above the 2019 that occurs as a result of currency depreciation some softening of seeding markets.
Please turn to slide 11.
The global GDP growth is forecast to slow from 6% in 2021 to three 2% in 2022 and two 7% in 2023, according to the Iron Man.
This is the weakest growth profile in the last 15 years apart from the global financial crisis, and the critical phase of the COVID-19 pandemic.
But that assumes embrace Russell's invasion of UK, China zero Covid policy. So in energy prices I mean global inflation, all weighed down heavily on the dry bulk out.
So there's growth is projected to slow to 32% interest expense into significantly lower.
And then you can use marking one of the worst performances in almost half a century.
In 2023, the IMF expects a slight let's say new standards.
244%.
For the United States was revised downwards to one 6% for 2022.
Two 3% in previous presentations and is now projected to inch down just 1% in 2023.
On the other hand European growth or objections have increased three 1% from previously two 6% in 2022.
The risks to the mainland and downside and in 2023 GDP growth is expected to be just 5%.
Growth in emerging markets as focus can be slow into 'twenty. Two why is the only country, where the vessels for gas seems to be Brazil within the anticipated growth of two 8% from one 7% previously forecasted.
Due to the invest robustly in calculating Latin America.
For 2020, all lot of developing countries are expected to do a little bit worse in 'twenty two.
Said, the household which should've been proved relatively tricky too, but still face a negative growth.
Two 3%.
Okay.
Looking at the current data.
Good.
According to Clarksons latest that he says containerized trade is now expected to be negative at one 6% in 2022.
For 2023, Containerized trade is expected to grow by only one 7%.
Gross rate on growth projections are being continuously by as the effects of the geopolitical tensions between Russia, and Ukraine on the royalty growth and trade.
<unk> continuously assess.
Yeah.
Please turn to slide 12.
The containership fleet is relatively young with most vessels under 15 years old and only 10% of the fleet over 20 years old.
The right side of the slide shows the legal schedule of the gathered companionship.
Which is expressed as a percentage of the fleet.
The certain figures for 2022 to 25 to reflect the anticipated fleet growth before any scrapping and slippage.
Not as soon as expected new deliveries of about four 5% of the current fleet.
It can be delivered in 2022 nine in the hospital in 2023 and nine 8%.
Yeah.
Currently the total containership order book stands at close to 29% completely.
The majority of the deliveries are scheduled for the second part.
Yeah.
Please turn to slide 15, where you can see the fleet age profile.
Four six from 1000 to 3000, Teu, which form the backbone of operations and the size of Asia, where we have focused our new building program.
As you can see the breakdown of this segment.
Before the book still significantly better than the broader picture.
The order book currently stands at 14, 3% half of that over the whole fleet and the number of vessels over 20 years.
20% is double that of the whole fleet.
Thus, we are very optimistic that we will be able to employ the seven eco new builds that will deliver from Q4 2023 through Q4, 'twenty 'twenty four is very satisfactory levels.
Remind you that the first two vessels of our new building program that will be delivered in the first half of <unk> have been soft in for three years is very lucrative debates.
Please turn to slide 14, where we discussed that I would think some of it for the containership markets.
Political and economic uncertainties are affecting the prospects of container shipping with todays rates plunging over the past the vessels you basically said.
Declines in spot freight rates to be needle in time charter rates have been smoking rates falling by about 7% in the last few months.
While the charter rates have also fallen due to the easing in supply chain disruptions that were built up over the same day and lot of the slowdown in containers on vessels demand because of it being due to the weaker category.
When painless shipping market is facing volume headwinds and meet them increasingly pessimistic economic outlook.
Due to the Russian trade conflict inflation pressures on consumers and the shift back towards 70 sustainably.
Well I'll speak briefly we expect the market something events to continue.
The high yield book set to hit the water in the next 36 months is expected to exert pressure on the supply of seats and consequently titles.
Yes.
Somewhat mitigating this pressure the new environmental regulations will ultimately result in human slows so slow.
Even slower steaming by since you've been CEO .
Hello.
Effectively removing excess capacity from the market.
These could slow the decline in rates well, even oversee if we've reached with the stabilization in the global economy as well.
Let's move to slide 15.
The left side of the slide shows people loose of a one year time charter rates for containers with a capacity of two and a half thousand teus since 2010.
The decline in rates is evident with one year daily time charter rates for these container ships currently standing at $19100 plus day according to Clarksons.
With that I turn side of the slide shows the historical price range for the new building in both companion suite for the capacity of 3000 Teu.
As you can see there has been a sudden decline in secondhand vessels prices, it's going to be utilizing steadily in the last few years often it belongs.
In the meantime, new building prices remain elevated despite the small drop in the last month.
Many bad the explosion of charter rates from late 2022 August 2022 because it allows us to faster all of those vessels is very profitable and H for periods extending up to three or more years, creating a backlog of contracted revenues in excess of $450 million.
On the strength of this extremely successful period, we embarked on two outcomes floating with these new building program in order to limit. These nine modern ecologically friendly features of the vessels.
We should have already contracted to support it for me.
Period of three years, it's highly profitable rates.
We intend to gradually transition into one of the most environmentally friendly feed the doctor basis.
Our balance sheet has strengthened considerably.
That's why our liquidity, which will continue to grow strongly using 53 and 50 54 as well.
<unk> got a new building program based on our secured chocolate categories.
In view of this we continue to evaluate the investment opportunities are familiar right as market conditions change.
With a focus on potential acquisitions. This will not require above five minutes viewed the charts of H B Fuller.
We are also returning cash to shareholders through a lease stablish steady dividend.
By executing on our buyback program.
And with that I will now pass the floor to our CFO <unk> <unk> to go over our financial highlights in further detail.
Yeah.
Thank you very much.
Good morning from me as well, ladies and gentlemen.
Thank you Michelle.
No.
Well next go offline so far for example.
Okay.
Oh qualifying them highlights.
Fourth quarter and nine months.
And at September 30.
Awesome.
In comparison to the same period.
Yeah.
With that let's turn to slide 17.
And before.
Plenty to combat Covid.
Paul what type of range.
Yeah.
And one of the most fungible.
Total net revenues of 10%.
During the first quarter of 2021, which was mainly the result.
Higher charter.
Charles It's all vessels.
So there's no comparison.
Compared to last.
When you operate it only went up with anthem.
Well more vessels.
The company reported net.
Net income and net income.
Common shareholders for the third quarter.
$95 2 million that's.
Compared to a net income and then can you kind of applicable to common shareholders.
$8 5 million for the fourth quarter.
Yeah.
Almost 200%.
There is a novel financing costs.
Well the fourth quarter of two problems I'm pointing to amounted to one 3 million compared to one 6 million called the same to me it looked like.
This concludes.
Can you amount of debt, we can almost twice the market in the same period.
I mean creased equal weighted.
LIBOR rate.
Hum.
Compared to the same park Walker, who calls them.
It did not work that's one of the three months ended September .
The company recognized an unrealized gain of one eight.
I mean, it's like a strange swap contracts.
For the three months ended September 30 of.
21 last year the company recognized a small gain on the sale.
Yes.
Oh, that's good could be bad.
Third quarter of 2020 pool was $26 2 million compared to 10 6 million.
During the third quarter of 2021.
And then things or almost 50%.
Basic and diluted earnings per share.
Common shareholders, well, that's no fault of Louisiana.
I think in a comfortable life.
Nathan.
Seven.
Weighted average number of shares outstanding.
Bad.
Basic and diluted earnings per share.
1.1.
One points respectively.
Respectively.
For the third quarter of two classroom one calculate that.
On the bonds seven 2 million weighted average number of Cytosorb.
Excluding the effect on the income.
Goldman Sachs.
Okay.
Realized gains neighborhoods.
Thanks, Jason.
Hum below market time charter supply.
The vessel depreciation.
Paulson.
Question on the consolidation of vessel supply.
I'm.
Okay, but no market places.
What's up there.
We'll go to common shareholders for the quarter ended September 32000 claims the pool would have been two bottles of 9%.
So both the diluted compared to adjusted guidance of.
$1 16 per share basic and diluted.
Walter the same feeling.
For 2021.
Walter language will exclude that.
Yeah, maybe I like getting them to anybody.
And then there's two more people will be above items and the problem with that so that's why we like Boston's ourselves.
What was a look at the numbers for the corresponding nine months.
And at September 30.
During 2021.
Well the first nine months of the year the combo meals.
Can you quantify total net.
Okay.
Paul.
He presented when it all comes down in 15.
What I'm, saying.
Please.
Paul that's either niche or 65 6 million.
Following months of 'twenty to 'twenty one.
The result of higher average earnings.
The vessels.
Finally, a number of vessels owned and operated during the period compared to last year.
The company reported net income and net income.
Attributable to common shareholders for the period.
Oh, $85 9 million as compared to a net income of 22, and then that income applicable to common shareholders of 19.6 million.
For the same period, the first nine months of 2021.
Can you talk more about from Congress.
You bet.
Other financing costs.
First nine months of 'twenty plentiful.
Our mouths to feed them across medium comparison.
Kicked off last year.
This includes a blueprint.
Amount of debt and what kind of label as well.
Bank launch.
In the current period.
Back in the business.
Again, just wanted to walk home that's horrible first nine months this year.
The company recognized an unrealized gain of $4 1 million.
So it's complex.
<unk> 4.4 million gain will be recognized over the same period of.
Yes.
Adjusted EBITDA for the first nine months of trying to trying to do was $91 5 million compared to $26 6 million for the first nine months of two.
'twenty one.
But to kind of conform to four person crews.
Basic and diluted earnings per share.
Common shareholders.
My mom children's wear.
Were $11 nine one cents.
11th almost 96%.
Did you calculate it on about $7 2 million.
Weighted number of shares outstanding.
Basic and diluted earnings per share of 2.8 before.
To $82 for the first nine months of Formula one.
Again, excluding the effect on the income attributable to common stockholders for the first nine months of this year.
Realized gains on derivatives.
National survival below market chart to supply.
Depreciation.
On the portion of the consideration since acquiring it at that.
No market softens, we have bumped up there.
The common shareholders.
First nine months of the year.
Which have been $10 since I've been to one basin.
$10 67 per cent by muted.
Compared to adjusted earnings per share to balance it sounds like the six basic and $2 and.
And so if a false sense of that.
Same period of last year.
Let's now move to slide 18.
Our fleet performance.
Well, John we will stop our review by looking first at our fleet utilization rates.
Third quarter.
2022, and trying to Taiwan.
It's Sean here.
That's the only way you started utilization rate is broken down to commence CMO punished.
One of the first quarter of 'twenty plans at all.
Amongst young people I hear somebody who wants 100%.
Operational utilization was 99, 5% compared to 100% comparison in 98% operational for the third quarter 'twenty to 'twenty one.
Our livelihoods and gain back some of their own.
During the first quarter of this year.
And not much time charter equivalent rate.
$2092 per day.
<unk> to 14 vessels.
During the third quarter transatlantic lawn garden on Albert's 19000 forefront of $92 per vessel.
Our thoughts on the bank more expenses, including management fees <unk>.
<unk> expenses, excluding dry docking cost.
<unk> $7001 per vessel per day.
First quarter of this year.
<unk> 7200 mm one bonds.
That's Super Bowl for the fourth quarter as planned in terms of law.
The bottleneck is stable.
Perhaps low breakeven rate for the third quarter of 'twenty two.
Which in addition to the operating costs mentioned above takes into account interest expenses diagnose and expenses along with payments, but it's huge.
The payment system.
Thus during the first quarter of 'twenty can you talk all day.
A low breakeven rate was phone calls from Tucson boom.
$12 per vessel per day compared to 11801.
$1 per vessel per day for the same period of last year.
Nick let's go over to their high sparkles is stable.
Our utilization rate on the remaining.
This way the same figures for the nine month period.
Yes.
During the first nine months of 2022, our commercial utilization rate was 99, 9% tomorrow actually utilization rate 99, 6% compared to 100% comparison in 98, 5% operational for the same period of last year.
Well my votes 16.8 vessels were owned and operated.
During the first nine months of 2022 every month, an average time charter equivalent rate.
2008, $2014 per day compared to 14 vessels.
Yes.
<unk> thousand $478 per day for the first nine months performance.
Looking again at the bottom of the table, we can see a breakeven rate of cost of low breakeven rate for the nine month period until 'twenty two being full 2019.
In dollars per vessel per day compared to 10000.
$377 per vessel per day for the <unk>.
Oh for 'twenty, one as you can see that there was an extension of some long repayments, making up most of the difference.
Let's now move to slide 19.
Well, that's all fine.
Four wall breakeven level.
The slide you can see on a scale problem in getting things over the next several years.
Our long entertaining and stayed until this year.
And it's about maintaining them backwards.
These include bank of.
Comparable 27 medium over the payment we made through the first nine months, but that's not a problem for 1.9, but neither one of a balloon payment that we made them over here.
Without payment.
Payments of all crowding debt going down over the next couple of years.
We have a balloon payment I can't remember a balloon payments and flanking strategy for.
Which we expect to be.
Be able to finance it would choose to do so.
<unk>.
He is not doing bad debts were fine.
But nothing that we expect classroom to find non cloud.
Let's start with group.
Well I thought the week of the slide.
They came out about the coastal part of it.
Wow, it's marginal for parking deck. It was about 2.8, so 85 or something.
Sure Hey.
Barring a cough or something new.
Can you talk about the cost of our senior debt.
Now that's about seven 4%.
Towards the end of September .
However.
We are calm for all swap.
Swaps.
Function will fall back.
I'll talk about.
Cost of debt.
As of September 30th drops.
Drops down to about 5000 lives.
Which involved the Brooklyn market.
We can see our cash flow breakeven level.
Jack.
Months.
As you can see we expect to be done to beat the ball for $2000 per day. So that's one per day of which about 4000 tons or dollars.
Completed from a longer term savings.
You can listen to what they want.
Pension fund.
Financial highlights, let's move to slide <unk>.
Hmm mm.
Our balance sheet.
Most of September 14th.
Thank you too.
Oh awesome.
Cause another car and thoughtful amounting to about.
1.1.
Our bankers, but we think probably building well.
Buildings.
Spending at about 55 million kind of close the book value of our vessels.
The bonds to fund an authentic medium as I'm thinking like bottled book value for all sorts of about 300, plus one seven.
On the liability side.
But that's what most of September 30.
22 stood at 115.
$16 7 million.
When you think about 76% of the book value of bosses.
He has really popped up.
On the liability side the value of our recently acquired below market softness which was estimated to.
Two question variation, because that's where you've got some acquisitions in the fair value of $78 8 million or about 1.1% of our outfits.
All of our assets and other liabilities.
<unk> to about $17 9 million or four 3% in themselves football book value call options.
However, the market value follow for me, it's my prior year hedge book.
Somewhere along that.
Oh, sorry.
Charter adjusted values for all of Us.
And we'll bring some conflicts.
He makes at the wall fault with vessels is approximately 400, I'm, sorry, $2 6 million young I spoke at the end of September which translates to a net asset value.
Company.
<unk> hundred 95 is about.
Or about $55 per se.
He sent me a sense for how long.
$20 per share.
Vascular exactly it's a huge discount to our net asset value appreciation.
Appreciation potential for our shareholders and investors based on the above mentioned.
But it was my phone just thought.
I would like to make a simple calculation that highlights second finding that some aspects of nursing centers right.
Our balance with a chocolate bar.
The tumor bumble fast plenty plenty tool and Yang of 'twenty plentiful run our new building program concludes we kept about 11005, something like 50 contracted days.
Right.
$73000 per day.
But also about 4000 5000 doing well so often things.
No. It was a lot there, but take into account all of the costs. We are supplying them. Although the next yes in one quarter.
<unk> 21 loss per se.
On the top of that weapon goes we learn something.
You've always been Justin.
So I'm going to start day, one further well watch our contracted base on that.
Hum.
So it's about 1%.
This certainly suffice to fund the remaining equity portion of our new building program.
Then once those plans are plentiful.
The stock price.
Circumstance fleet of ours, that's only remain in corporate spreads on that well.
Another 10 to $15 per share.
Value for our company.
We have not accounted.
For the payments and have already made for 15.
50 million or so I mentioned earlier.
$2 5 million of cultural kinds of things.
With the above.
And you mentioned I wanted to highlight the strength of our belief in the value of yours.
And with that I would like to close my part of the presentation and trying to claw back to what Steve just to continue the discussion.
Thank you guys. So I want to open up the floor for any questions. We may have.
And at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
You May press star two if he would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your handset before pressing to start keys.
And our first question comes from the line of Tate Sullivan with Maxim Group. Please proceed with your question.
Thank you. Good day can you dumps first touch on debt considerations of the repairs on the I cannot a bridge in terms of the remaining useful life of the vessel and how much the repairs may cost and ultimately what would make you decide to scrap the ships.
That are apparently short.
Yes. This is.
Something I cannot really answer at this stage because we are still evaluating the situation.
Of course, we.
We believe that the.
The cost still very beds will be covered by.
By our reinsurers. So the reason is going to be a significant advantage, because but we need to see how much time. This oh.
I suppose it would take before being able to make a final refrigeration.
Okay. Thank you and then regarding the Newbuild market for container ships and understanding it's bifurcated between the larger ships and the size of your ships.
Is it have there been any reports of any newbuild delivery delays at all I know, it's usually quite reliable, but but in this current environment do you expect to take your ships, mostly on time from your shipyard.
Yes, I would say I do believe that we will take our other ships. Most of your time, we're building on the one we're building distribution one of the most of it hits the Bulls She's got a June the world Eh, we'd see the known to be on time and not face delays. So I will do.
Things that we will see delays.
Definitely not any significant delays.
Yeah. Thank you and last for me is are there any with what we've seen the rates do and with the Newbuild center construction, not not yours, but across the industry or have any operators considered selling ships under construction in this market or not at this point, yet or could that be an opportunity going forward.
We are not aware of it yet.
Some would be willing to go ahead and Saturday the sheets are at this point in time, especially.
At the prices, which I know the new building devices. So there is a lot of because these students all new build prices dropping anyway, because they were never.
Exorbitant high as opposed to the values of second hand ships.
Thank you very much.
Thanks.
Okay.
Our next question comes from the line of James Jang with Universe Securities. Please proceed with your question.
Good afternoon.
So I shouldn't say that.
Hi, guys.
Hi.
So the Doctor a bridge yeah, so the damages and everything but you know I guess it would be fair to assume we shouldn't look at any earnings from the vessel until what maybe if you don't scrap yourself I guess until the second half of next year would that be fair to say.
I think that's fair to say.
Okay, and then going on to the vessels going off charter He's got Joanna the key long hydraulic.
And Antwerp, they're going to be coming off charters throughout 'twenty three.
When do you start discussions with our re chartering or extending charters and if you could kind of let us know because it looks soft next year for rates with the new builds coming in.
And with the revised down forecast for economic growth.
<unk>.
I mean would you be would you would it be fair to say that you would take.
You know the low market charters at this point in time.
To protect some downside risk or would you be willing to go through 'twenty three and then tried to reach out to them when the vessels will be delivered.
Yeah, I think evident both even less than that.
The stage to do something with the vessels that are not put all the jobs are as old ones too to take on the ships today.
Coming opening three or six months time.
And similarly, the owners don't want to fix it at the.
Are they that are seem to be so much.
Softer than they were so the only fixes that you're seeing done the very few vessels that are opening up.
That's currently being fixed.
Okay, So what about the Joanna.
Have you had any discussions with the current charterer to extend even a few months or is that still up for discussion.
We have not had any discussions yet, but we've agreed with COVID-19.
Really discussing within the next month or so because of these shipping needs. It. It does come open if the first ship to come open.
And we will be discussing.
I presume within this next month.
Okay excellent.
And I guess my final question here is with what's let's say 23 is is really bad for rates.
How does that affect the dividend would you be able to support the 50 songs.
As we you know 20.
24 should be a better year like would you keep the 50 cents in 'twenty three.
Or it's not even thinking of a crime.
Yeah.
Tell you about the current thinking because obviously every quarter. We reevaluate then we keep that said he'd village to decide what the dividend will be as we close the but the way we have thought about it is that the.
The dividend is sustainable and will continue.
Within the next few quarters at least and I.
I remind you that you know 50 sense that we are currently paying is.
Just 15% of the net income that we are making so.
We do expect that.
Throughout 2023, we will easily be able to be paying a dividend.
But.
I won't throw at me seats, but I believe that that wouldn't be the case.
Okay excellent well actually just one final question here I know the market's soft everything is doom and gloom right now, but how.
How is the SMP market yeah, It just gone quiet.
Or is there still some activity.
No that's very very little activity on this SMB market.
Very little activity very few ships coming open.
Only a handful of our buyers are driving the market.
Yeah.
People have secured longer term time charter for the split to the vessels and they're not willing to sell to discounted prices. So we're really at the wait and see situation and only what is necessary is being done in these markets.
Excellent okay.
That is all I had all right. Thank you very much.
Thanks, Dave.
This is James.
Thanks.
And our next question comes from the line of Paul Frankly, a lot of Allianz Global partners. Please proceed with your question.
Yeah, Hi.
Good morning, or good money on it.
Good morning.
So she went through the you know.
The Newbuild advances right now are 50 million you have you know potentially financing of $200 million to $220 million.
Are you assuming on your financing lap or leverage levels and then can you walk us through your remaining capex for the new builds in 2023, 24, and 25, just sort of overall ballpark number for each year on on your knees newbuild costs.
We have.
Our new building program will cost about 64.
Oh, Oh Oh.
50 million, which I've already paid.
Mike Sullivans, we expect to find people with about 60% so well I.
I can't say on this slide 19 about 200 to 200 million of a dust cover about 60% and we ought to make yet we kept to make about 100 million.
Our equity payments between now and be entertained before which is why we expect our new building program.
Cool.
Yeah.
Yeah, I mean I guess.
They can probably get a detailed schedule of payments, but I guess, what do we have to make about a.
40% of the payments of their maintenance payments in <unk>, Kansas.
60%.
Deliveries in 2010 before.
So but that would be my answer.
I think that's of course at the mall.
Got it.
Okay.
Okay, Great and then you know.
You talked about the current market you talked about some of the rollovers potentially for you know the charters and Randy can you you've already locked into the nine new builds are you in any discussions for marking and additional new builds or is it sort of the same thing that's going on the market right now you know limited.
Interest, making long term commitments and you know we'll have to wait to see that the next newbuild contract.
We have all these money clothing. The monarch is oh are the three things that are right now with the with the government uncertainty.
I would think that.
We would probably not be moving with this within this size of the year.
So for something new.
But our we are constantly following the Mark Gibson and if there is something to discuss we will oh listen mode.
Great. Thank.
The next they must be led to believe that these two core plans it sounds it seems like Wow.
And we have reached the end of the question and answer session. I will now turn the call back over to MS. Dd's Peterson for closing remarks.
Thank you everybody for being with US today are not calling for that in school and we'll be back with you at the beginning of next year and can you discuss how the video to close thank you very much.
Thank you.
Well.
I'm, sorry, just conclusive and you may disconnect your lines at this time. Thank you for your participation.
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Okay.
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Yeah.
Yeah.
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