Q4 2022 DHT Holdings Inc Earnings Call
Yes.
The conference will begin shortly to raise them.
Okay.
Good day and thank you for stunted by welcome to the Q4 2020 to DHT Holdings, Inc. Earnings Conference call. At this time, all participants some of the listen only mode. After the speaker's presentation, there will be a question and answer session.
Asked a question Joe in the session you will need to press star one and one on your telephone you would then have an automated message advising Johan is raised to withdraw your question. Please press star one and one again please be advised that today's conference is being recorded.
Now I'd like to hand, the conference so that you'll speak to today state of health of sudden. Please go ahead.
Thank you.
Good morning, and good afternoon, everyone welcome and thank you for joining DHT holdings fourth quarter 'twenty to 'twenty two earnings call.
I'm joined by Dht's, President and CEO and Mark Smith.
As usual, we will go through financials and some highlights before we open up for your questions.
The link to the slide deck can be found on our website th tankers dot com.
Before we get started with todays call I would like to make the following remarks.
A replay of this conference call will be available at our website <unk> com until February 16th.
In addition, our earnings press release will be available on our website and the Edgar system.
Net to our form 6K.
As a reminder, this conference call we will discuss matters that are forward looking in nature.
These forward looking statements are based on our current expectations about future events those detailed in our financial reports.
Actual results may differ materially from the expectations reflected in these forward looking statements.
Aren't you to read our periodic reports available on our website on on that.
Our system.
<unk> the risk factors in this reports for more information regarding risks.
Yeah.
Our balance sheet is in excellent shape the quarter ended with hung around $26 million of cash and in addition, the company used availability under our revolving credit facility.
234 million shooting total liquidity of 360 million as of December .
31st.
Financial leverage is about 19, 4% based on market values for the ships.
Debt per vessel was 11 8 million at quarter end, which is significantly below current scrap values.
Reflecting on the strong freight market and our competitive cost structure EBITDA for the fourth quarter was 95 4 million with net income of 61.8 million equal to 38 cents per share.
Opex for the quarter was $19 9 million and included some periodical variations mainly related to stores and spares.
G&A for the quarter came in at $2.8 million.
In the fourth quarter, that's one muscles seem that spot market earn $63800 per day and the vessels on time charter made $36100 per day.
On average that achieved TCE for the quarter was $56900 per day.
The first three months of 2022.
More or less a breakeven.
Breakeven on net income for the full year came in at 62 million equal to 37 cents per share.
D. C continues to show a very stable and competitive cost structure and opex for the year was 73.8 million equal to an average base talking $250 per day for the fleet.
On the next slide we present, the cash spreads for the quarter, we started the quarter with $65 7 million of cash and we generated $95 4 million in EBITDA.
Ordinary debt repayments and cash interest amount to two nine and a half.
A million 4 million of new debt issued in connection with the refinancing.
And on a half million allocated to shareholders through the <unk>.
The dividend payment.
In December we prepaid $28 7 million of long term debt in the quarter, and then with $125 9 million of cash.
Okay.
In the fourth quarter, we entered into a 37 and a half million refinancing of DHT Tiger with credit Agricole.
The facility is repayable in quarterly installments.
625000 per quarter with a final payment of 22 and a half million. In addition to the last installment in December 28.
No new long bear interest at a rate equal to sofa, plus 200 bps, which is equal to LIBOR, plus 200 and something items.
I've mentioned on the previous slide in December we prepaid $23 7 million under the Nordea credit facility.
The voluntary prepayment was made for all regular installments for 2023 and it reduces the company's cash breakeven levels for the year.
In January we entered into a $405 million secured credit facility, including 100 million uncommitted incremental facility.
The new facility will be refinanced the outstanding amount.
The ABN Amro credit facility on its secured by 10 of the company's vessels.
The facility is repayable in quarterly installments.
$625 million equal to 625000.
For vessels waiting maturity in January of 'twenty to 'twenty nine.
The new loan bear interest at a rate equal to sofa, plus tundra, 90 bps, which is equivalent to library tundra 64 Bips.
I mentioned, a refinancing of the credit Tegra <unk> Vietnam real credit facilities are in line with D. H T style financing, which includes a 20 year repayment profile on it.
Next year tenor.
Subsequent to these refinancings DHT weighted average cost of outstanding debt under our revolving credit facilities.
Quote to LIBOR plus 277 Bips.
With that I will turn the call over to spine.
Yeah.
Thank you Brian .
And notwithstanding your dividend policy loss here.
With our strong balance sheet and only building Capex is simply take for a new dividend policy to distribute 100% from net income to be a good business.
And as promised in our last earnings call.
Good morning.
Based on the tenure to fourth quarter financial results, you'll pay 38 cents per share quarterly cash dividend on February 24 to shareholders of record as of February 17.
Okay.
<unk> excellent.
The policy, we would on a regular basis informed the market on how much our ships on the time charter equivalent basis.
This advice will be released shortly after every quarterly close so.
So well ahead of our quarterly financial results.
Additionally, we will at the same time it why is the bookings made to date for the subsequent quarter.
The purpose is to be transparent and to guide all our ships earnings, thereby assisting you all in setting out our expectations for our financial results.
We got here.
Our bookings to date for the first quarter I will take you three.
Yes, you will see we expect 510 days to be covered by our term contracts at an average rate of 33900.
We expect to have one passcode 394 days for the quarter of which about 66% has been booked.
The average rate of 56400 per day.
Combined domestic today this indicates bookings of 75% of the total base at the weighted average earnings of 48000 per day.
And the last Laila, we are estimating the spot P&L breakeven for the first quarter, allowing you to model our net income contribution based on their own assumptions.
<unk> spot rates.
Yes.
The freight rates towards the end of last year.
However, diesel replacement levels, reflecting underlying market balance and based on what we see now we expect rates to improve for the balance of the quarter.
We think our plans regarding to make good sense in relation to our dividend policy.
On this slide we are sharing our estimated breakeven levels for the year. It will take you three.
The estimated P&L breakeven for the fleet as a whole is about 27200 per day.
This includes the increased annual depreciation of $7 2 million related to a retrofit program critics soft gas cooling systems.
When adjusted for the fixed income that we have the P&L breakeven for the spot fleet is about 25400 per day.
We estimate the cash breakeven for the fleet as a whole to be 18100 per day with us.
Spot ships requiring to make 14 tells me 200 per day for the company to be cash neutral.
Keep in mind that our cash breakeven numbers include all cash costs.
Opex G&A maintenance capex cash interest and debt amortization.
This illustrates the headroom of about nine <unk> per day between cash breakeven net income breakeven levels for the fleet.
It is perpetual cash flows being allocated to general corporate purposes.
Here, we provide you with an update on our project to retrofit the remainder our feet exhaust gas cleaning systems.
We have to date completed two other retrofits to current Kathy arc.
Another two will enter the yard later this quarter and look forward to early in the second quarter.
The project is developing according to plan both from a cost perspective and in terms of plant based.
<unk> for the ships.
Yeah.
The fuel spreads are holding up row, resulting premium earnings for ships with systems consult.
We are not facing any operational issues and are pleased pleased to the C suite.
The lost tax of our hips with these systems.
Following this our entire fleet will be fitted with exhaust gas cleaning systems.
These ships are attracting increased interest from customers for long term charters.
Okay.
We're very favorable fundamentals in our markets.
And we expect this to have legs, resulting in good earnings for the tanker sector.
We see the early innings of the impactful China reopening.
The size of the allowance second batch of crude oil in pork protests for refiners in China suggests expand stayed domestic tomorrow, requiring increasing refining refined heroes.
Non OPEC supply growing supporting longer haul transportation.
Additionally, and geopolitical events are disrupting certain trades, reducing the productivity of the larger fleets.
This disruption is not expected to disappear anytime soon.
And as we all know there's hardly any new surprises where ships coming.
The VLCC order book now stands at two 2% of the savings.
The older part of the fleet is growing quickly with about 14% of the fleet being older than 20 years of age and 30% being older than 15 years.
These numbers will expand rapidly over the coming years and at the time and regulatory requirements are expected to result in reduced speed for a good part of the fleets.
An increasing number of fix are engaged in trades, either partly or fully sanctioned.
This fleet has also referred to as the shuttle fleets.
Although these ships currently serve a purpose and the great market we.
We find it hard to believe that they will stay in business overtime wherever returned to the compliant markets.
We believe this could be viewed as good news scrapping.
In due course, and our expectation is that the fleet will start shrinking over the next couple of years.
Okay.
So going forward our plan is clear.
You should expect continued strong discipline in executing our business model and strategy.
We have a great team of people in a low loan since company culture, all focused on delivering safe reliable services to our customers and strong results for our shareholders.
We are tuned for rewarding times with a quality fleet ships older than the Walter.
A rock solid balance sheets.
Premium revenue generation and the low cost structure.
We think returning 100% from net income to shareholders could be fair to square and good business.
The open up for questions.
Thank you as a reminder to ask a question you will need to press star one and one on your telephone and wait for your name to be announced to withdraw your question. Please press star one.
Again.
Please standby, while we compile the Q&A roster.
Okay.
Okay.
We will take our first question on the <unk>.
Comes from the line of Atlantic Coast Guard from Clarksons <unk> Securities. Please go ahead. Your line is open.
Alright. Thank you. So I noticed you added depth capacity there this quarter by 100 million. So can you talk about the Victor talked about a bit about your leverage position.
And in general.
Willing to increase debt on their existing ships to pay for the extra caution on potential new investments.
So our investment strategy is very.
Very much the counter cyclical.
Hello by building the balance sheet that we have done.
It will continue to do these of course are forced the company to have investment capacity.
The time to be right.
And then sort of core of its debt.
We should hope and wants to expand at the right time.
Organically without having to rely on external capital to do it. So if we can have a balance sheet that has the capacity to invest those investments will be highly accretive to our owners. So that is the simple plan.
Yeah.
Okay.
A small follow up you still have a few older vessels in your fleet.
Quite a significant increase in volume so how do you look at these best assets today in house or decision process and making divestment decision now.
I think it's unlikely that we will divest these four ships at this juncture the ships are already in.
We have high quality ships.
They are used to service our customers they make good earnings and we expect them to continue to make good earnings and this total tanker market going forward.
So.
They're not sales.
Anytime soon.
Okay. Thank you.
Okay.
Thank you we will take our next question.
Okay.
And the question comes from the line of Jon Chappell from Evercore ISI. Please go ahead. Your line is open.
Thank you good morning, or good afternoon.
Two quick ones for you sign one specific and one on the broader market just.
Just to DHT to be clear I.
I think the payout ratios perfectly clear and it makes a ton of sense given your balance sheet and where we are in the cycle right now, but is that does that make fleet expansion and modernization.
Kind of mutually exclusive decision or do you still have the capabilities, whether it's through having finance or the.
Part of the cash flow not the net income that youre not paying out to consider that.
Well two things to that I mean, this is a very relevant question. So of course, our balance sheet with the current leverage ratio has capacity to increase the debt level, if you like to make investments.
But we do find that the current asset prices are sort of clarify Tim to.
We're looking to invest so there is no immediate.
To do that but in due course that is the way we are building investment capacity.
We also tried to illustrate on the deck there is meaningful difference.
Between.
Net income in a breakeven and cash flow breakeven.
We'll be able to continue to build.
Some level of funding that.
Can be used for either investments or even further deleverage to free up there. So so let's see how all that plays out.
The size of our balance sheet is quite meaningful and I think you should expect us to have the capacity to make <unk>.
Especially if you like.
When the time is right and when Theres more clarity on ship designs.
Okay that makes sense.
On the market and the cycles like no other.
Usually the Vlccs are kind of lead the recovery both from a timing perspective and from a magnitude perspective and that certainly hasn't happened this time around.
Given the fact that a lot of the ton miles have been probably the ton mile expansion has been really kind of mid size driven.
That OPEC is maintaining their cuts through this year, how do you foresee the historical relationship between Vlccs and mid sized crude.
Playing out over 23 and in the longer term.
Of course, these past sort of line loss in particular has been annoying.
You said modest worthy of being a pure play as a company.
I think over time things tend to sort of normalize because cost of transportation will do matter for the customer base.
And.
Yeah.
Maybe not a quick fix this.
Well the ships might still have an edge.
The near future.
Keep in mind that vlccs tend to transport almost 50% of seaborne crude.
And most of the new oil coming to the market. This year is in the Atlantic.
It's really for US are also big clients, new large refineries in China in particular, so we don't think all of this is going to go on smaller ships and it's really inefficient.
It is a Nit pick trades problems reports.
More of a turnaround.
The level of congestion et cetera. So I think there is a desire at least for some of the declines to two.
To continue to use to build ships for sure. So it's hard to say.
Then this whole sort of I'll call normal again as I alluded to in our comments.
We don't think the disruption is expected to be superior in there immediately.
It will continue here for a little while longer.
It doesn't mean that the east will look make good moments so.
We saw in the first quarter.
We had some fixtures well above $100000 today in the mix.
I think so.
It's certainly possible if not being hampered by the smaller smaller struggles.
Okay. Thanks, Brian .
Thank you we will take our next question.
And the next question comes from the line of Oman Doctor from Jefferies. Please go ahead. Your line is open.
Thank you Hi, Svein.
I just wanted to follow up maybe on John's question, we've seen some fits and starts and for Vlccs over the past.
Six months or so a strong run up in the fall of pullback here back in December January and some momentum here. The past couple of weeks can you maybe just give us a backdrop of what's been driving some of this volatility.
And then what you think is in store for this market over the next few months just some big picture perspective.
I think some of the volatility was related to.
Imports to China Chinese buying of crude.
Fourth quarter, so that we see this as sort of a backhaul again.
The.
Last couple of weeks the rates are up some 10 plus points and is still moving.
The U S Gulf to the far East trade is up at least $10 million.
And Thats also still moving.
And it's really volume of crude and planning for this we think is related to the reopening of China and if you look at the growth us being an install not only for the crude oil import proposal four refined oil export.
There are still strong numbers for both but there is a little bit that this is somewhat of a dislocation in the favor of imports.
I think the only way you can read that is that they expect domestic demand to expand quite meaningfully in China and that.
That is going to continue to drive our rates for the big ships up we think.
Okay. Thank you.
And then you mentioned the Atlantic Basin, just in your earlier comments.
SBR was a big driver of volumes late last year, but we haven't seen any real I don't think theres been any SPR releases. This year is that is that affecting VLCC cargo demand out of the U S call.
Or is that not yet translating into any reduction in volume.
Or is it a core set of positively impacting.
It's up to the beginning of the fourth quarter.
But U S production is expected to increase.
Youll see that Europe of course.
We're taking some of those incremental barrels in vlccs proceeds towards small ships. So we have a number of our ships trading to Europe , which are all two to three to four port discharge.
So I don't think you should.
It's not only about the SCR is just about there is the model for that order production is going up all of our advisers are big numbers, but Brazil is up north sea is up so.
All lines up so theres other areas not just U S.
Okay, yes, thanks for that Simon just maybe touching on the West Africa that was also a bit about our that was a bit of a laggard last year.
Although there has been some positivity here recently are you seeing any increase in volumes in that region.
Well, it's been sort of sideways I think that there are certain.
We have the potential to ramp things up if there Kevin.
For lack of a better way to get their act together already felt so theres been a lot of disruption and difficulties there, but they have the ability within OPEC quarters to increase production, but I think where the oil prices are they have all the.
Commercial incentives to make it happen as well so.
We can only assume that they are working on trying to make it happen.
So yes.
Yeah.
Okay.
Thanks, Brian I'll turn it over.
Thank you we will take our next question.
And the question comes from the line of Chris Tsung from Weber Research and Advisory. Please go ahead. Your line is open.
Hi, Good afternoon fine how are you.
Good thanks.
I wanted to just touch on your service program. It looks like you were able to complete two of the eight and you have a few more now sliding into Q2 I was just curious is this a function of where the spot.
Spot market was doing.
Q4 availability at the yards too.
Retrofitting vessel lining downtime with their dry dock schedule just.
Trying to get a sense of what's going on there.
Yes. So you have to just total so of course.
Of course, the rates were very strong in the fourth quarter. So we had the opportunity to take ships to the Rx.
In November if we wanted to but we decided to push it back and these voyages are quite low. So you do quickly golar corporate amongst our country.
Are you sort of expectation. So two completed in the first half of January and we have seen in the Rx now therefore come out shortly.
And then a little bit to go in and sort of early March.
Two we expect early in the second quarter.
As I said.
Time.
This quarter according to plan.
Plan for 30 days per ship, probably slightly improving on that.
So the early days.
Don't see really any challenges with the yard in terms of capacity to get these things don't look low driven by that in terms of your capacity.
Perfect. Thanks for the color and just I noticed that you have.
Thank you.
Incentive fees, there that the tanker market.
Frequently is struggling as you presented in your earlier remarks, like what would it take for you to.
Invest in prudent expense and also would you be more interested in newbuild oil prices likely use the vessel.
No if we ought to buy ships in the water they have to be of equal design build from 2016 or later nickel. So they haven't sort of superior fuel economics to the older.
Siblings.
So Paul.
Also look at the buildings, but they're able to have more clarity.
What type of fuel our space is going to consume in the future. So so.
Yes.
Order anything and then of course lastly.
Oil prices to be more in our favor.
Before we deploy capital. So we do think we have three ships in the water, let me makers and the company will certainly be profitable most forecast now in terms of earnings.
We'll be steady as she goes.
Alright, perfect. That's it for me Thank you sang.
Thank you we will take our next question.
Our next question comes from the line of this Carlson from Kepler Stefan <unk>. Please go ahead. Your line is open.
Thank you.
I was just wondering you said.
In your comments that you see.
An increase of one.
Where you are.
That's up to you.
So discoveries for period.
Are you contemplating to do additional comp.
Certain business or are you happy with the mix that you have between spot and term.
Awesome.
Well, it's part of our plan to build a bit more fixed income if you want to build the book in a measured way ill take one step at a time as well.
Liquidity is also at a super deep.
But there is an increasing number of clients now asking for term contracts in the title is also getting longer and rates are going up so.
Shouldn't expect us to eventually build more fixed income so but there has to be.
There are chip the right counterparties the right structure, the right mobile all of that so.
He has got test cricket dollars 16 as for Capes.
Okay.
And I hate guidance in terms of you know what would you be ideal mix in terms of.
The same for capacity.
Durations.
So I gave you a simple answer to the higher the rates are moving even more we will be willing to fix for longer.
So we our intensity sensitive to demand right. So.
That's fair enough Alright, that's all for me. Thank you.
Thank you we will take our next question.
Yeah.
Another question comes from the line of Robert Silvera from R. E. Silvera <unk> Associates Marine surveyors. Please go ahead. Your line is open.
Well. Thank you gentlemen for taking my call first of all and.
I wanted to compliment you.
We consider ourselves long term investors and I watched a few years ago. When your long term debt was opened $900 million and because of the way you run the company.
Rates surged back a ways.
We brought it down to about 300.
Therefore under funded 100 million.
Which I think is an amazing achievement on your part good management.
We as shareholders look at the <unk> 38 dividend and the fact that it's a 100%.
Earnings.
Yes.
Nice and generous on your part, but we would personally like to see you.
Issue like half of that dividend and the rest of it go again to prepayment of debt.
The things that are going on in the interest rate markets I don't see.
Interest rates going down, particularly in a hurry again and that.
This company.
Gets stronger and stronger with the minimum of debt minimizing that debt and it will put you in that position you spoke of strategically to move when the time seems right to move.
Because you'll have a rich cash position and balance sheet with very very little debt.
So that's where we're coming from and.
Is there any chance that you would shift to a position of increasing the debt reduction rate.
So the dividend policy, we announced last year. So it is quite fresh.
We spend a lot of time thinking about how to help to frame this and in particular to the point that you are raising here that we have a comfortable capacity to continue.
To reduce our debt so.
As you might see focus report in addition to paying out 100% compared net income and we also did an extraordinary prepayments.
All the all the amortization lower at one of our largest facilities. We did that in the fourth quarter. So that's been sort of just continuing to working down the balance sheet even further.
Also there is some.
As I said, there is about $9000 a day difference between the P&L breakeven on the cash breakeven so that.
Depending a bit on Fridays and bookings in the air but that <unk> 70 million.
So that's the capital will be allocated for general corporate purposes, which could be investments that could also be further debt prepayments so great.
And then the cash flow breakeven that includes the ordinary debt.
Debt repayments right, which for this year of 2023 7 million. So so we try to be wise about it.
The only way to do things, but we think we have struck a good balance here to continue to work on the balance sheets of ours at the same time reward our shareholders.
And I agree you have done a wonderful job I'm, just encouraging you to give a little less dividend.
Our debt reduction I think it will pay off in the long run the share price will definitely.
Go higher with lesser debt.
Also I have a question about your reference to.
Parent.
Can you I didn't realize we had some sort of a parent and could you explain that for me a little bit more color on what is your.
Your reference to the parent.
Yeah.
I didnt refer to apparent so.
Micro amortization of another <unk> or maybe the line will submit correctly so.
And what complex did you hear the word current we don't have any tariffs.
Oh, let me read it to you.
It says attributable this is in the profit loss after tax.
Thank you.
It says total comprehensive income slash loss for the period.
<unk> two owners of Noncontrolling interest and then attributable to the owners of parent.
And I'm just asking what's.
What's the parent.
In this context DHT Holdings, Inc.
Brent.
So it's no other path.
ASD Holdings, Inc.
Okay. Thank.
Thank you for the clarification.
Well just keep on doing the great job that you've been doing we've been with you for years.
We're really pleased thank you one of the best.
Crude oil shipping companies in the World in my opinion, and then the company's opinion.
Thank you. Thank you for the kind of works on the encouragement.
Good day.
Youtube.
Thank you we will take our next question.
And the question comes from the line of Geoffrey Scott from Scott Asset Management. Please go ahead. Your line is open.
Good afternoon.
Don't mean to get into a debate with the prior caller, but you rightfully pointed out that debt.
You have 125 million approximately in depreciation expense non cash which is available for debt repayment and or purchase of new ships and drive so there's plenty of debt capacity, if you pay out a 100%.
My question has to do with.
The policy itself.
When the announcement was originally made.
It was effective immediately.
If all things.
Change if it were to change.
To something other than 100% would that change also be effective immediately.
Or would that change be announced and effective.
After a six month period, or 12 month period, or 24 month period or some other timeframe. So the question is really.
If it were to change or could it be done in fact youre effectively immediately thank you.
That's a good question so I think.
Barry.
So major terrible in all markets and our business look then I think to change this new policy it would have to be in the context, though.
Big strategic.
Strategic changes or a strategic move or a big M&A transaction, where you need to face things differently and if that's the case I think we need to give the market down there are holders as sort of a.
A good heads up well in advance as opposed to save starting next week. So that's just a general thinking behind that.
It's been sort of our ambition that all along to try to build a company that has the.
The ability to really reward holders.
Annual dividends and part of that is also to have low leverage. So so it's sort of a one of the.
That's the sort of pillar so what we're trying to build that so and we don't want to be a company that is the view.
You there.
Turning quickly from left to right and look to have visibility for our owners.
I think it was 1% of total some years back that what is wrong with you guys. It is doing what you said you're going to do and it took us as a compliment.
And there is still is still with us.
Alright, I have nothing but compliments. Thank you very much for your time I appreciate it.
Thank you.
Thank you once again, if you do wish to ask a question. Please press <unk>.
One and one on your telephone.
And we will take our next question from Nick.
Western comes from the line of Michael <unk> from Jefferies. Please go ahead. Your line is open.
Good morning, I'd like to go back quickly to the dark or Shadow fleet.
Do you estimate the size of that fleet is and presumably we define it as ships earned by Russian interest and can you comment.
The longer term ramifications at this ownership.
Do you believe that they will behave in the marketplace like someone who is a commercial operator or do they have a little different agenda that may cause them to ultimately make the market tighter worse.
Kidney weaponize this ownership critical world infrastructure.
Yeah.
It's a big Big question so.
There are some nuances here in the shuttle fleet. So you have the trade that is.
Sort of.
It is fully sanctioned being transporting crude from Venezuela and from Euro. So and then you have what is sort of our partner sanctioned.
Also by some companies itself section, which is the transportation.
A rational and crude oil.
We have seen in the last six to nine months in particular.
Significant amount of funds being made available.
The two companies in Dubai.
Either or.
All maybe whether it's owned by restaurants or other people. There's a lot of them are already asking there, but there is the source of funds is really the key for us in understanding what drives this.
You do have a sense that a lot of these businesses that are buying older ships.
Our funded by Russian capital in some shape or form and they are buying these ships to transport the retro crude oil and they do that at a significant premium so they make more money than the compliant market is doing so.
So there is a.
Second commercial incentive for them and being willing to do that in itself.
Do they have any sort of political agenda or.
Military agenda and stuff like that.
I don't know so.
And in terms of size, we saw earlier this week.
One of the largest trading companies in the World suggested that this shadow fleet is moving up towards 600 ships in total.
This is not only is the seasonal this case, it's also suezmax aframax and <unk>.
And product tankers.
<unk> refined products. So these days goodwill.
I'm sure they're very careful about this because they are users of a big user of ships, so theyre, probably monetary risk space.
Great detail.
To avoid being entangled insulting undesirable. So some of it is becoming a big deal frankly and then.
Maybe you know maybe the.
The presentations that have set out the current sanctions.
So aware of this that it would happen.
It's an acceptable collateral damage if you like by trying to achieve the other thing so depriving these countries or revenues related to selling oil.
But.
There are some flag states here that are there.
<unk> registered a number of the ships.
We question, whether they are actually following up the ships that are registered and whether they are complying with the.
With laws and regulations.
In North America, and stuff going on and then we just can hope that.
The politicians that set out. These these strategies related to sanction also try to start to peek into these issues.
Because.
There is also going to be safety concerns.
The Boulder, if we suddenly have.
Big old oil tanker with 2 million barrels so running around in a space that is also close to where people live so say for argument.
Argument, the Singapore Straits for that matter or.
Yeah.
West Indian coast or in the middle of the Arabian Gulf or whatnot.
That is sadly maybe that's what it takes for this to get up on the pension stand of politicians.
Okay Murky I think that's a good word sum all that up thank you very much. Thank.
Thank you for your question.
That seems to be no further questions at this time I will hand back for closing remarks.
So thank you very much to all for following DHT.
We wish you all and good day.
That concludes today's conference call. Thank you for your participation you may now disconnect.
The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.
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