Q4 2022 Euroseas Ltd Earnings Call
[music].
Thank you for standing by ladies and gentlemen, and welcome to the Euro six conference call on the fourth quarter 2022 financial results, we have with US Mr. Aristides Petard.
Chairman and Chief Executive Officer, and Mr. Tassos Salinas, Chief Financial Officer of the company at this time all participants are in a listen only mode there'll be a presentation followed by a question and answer session at which time you can if you wish to ask a question. Please press star one on your telephone keypad.
Wait for your name to be announced I must advise you that this conference is being recorded today.
Please be reminded that the company announced their results with a press release that has been publicly distributed distributed.
Before passing the floor, but Mr. <unk> I would like to remind everyone that in todays presentation and conference call Euro six 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.
Kindly 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'd like to pass the floor over to Mr. <unk>. Please go ahead Sir.
Okay.
Yeah.
Good morning, ladies and gentlemen, and thank you all for joining us today for the scheduled conference call.
Again, we just got to leave yourself Chief Financial Officer.
The purpose of today's call is to discuss our financial results for the quarter and full year December 31st 2022.
Passengers, who will go over our financial highlights in more detail later on in the past if there's inflation.
Let's turn to slide <unk>.
Our income statement highlights a solution.
For the fourth quarter of 2022, we reported total net revenues of $42 $9 million and net income.
We need to move to common shareholders of $23 million or $2.86 per diluted share.
Adjusted net income attributable to common shareholders was $17 $7 million with $2.50 per diluted share.
Adjusted EBITDA for the period stood at $22 9 million.
Please refer to the press release for the reconciliation of adjusted net income.
The common shareholders and adjusted EBITDA.
As part of the company's common stock dividend plan, our board of directors declared a quarterly dividend to <unk> 50.
Common share for the fourth quarter of 2022.
It will be payable on or about March 16 to the shareholders of clinical the months 922.
When Covid recently.
Until February 14, 2020, so Lee we can refer to.
251685.
I'm in stock in the open market for a total of about $5 $3 million under outstanding purchase plan of up to $20 million, which was announced in May 2022.
For the full year of 2022 net revenues.
$183.3 million and net income attributable to common shareholders was $106 $2 million or <unk>, 78% they used it.
Adjusted net income attributable to common shareholders for the period was $95 million.
First thing mid 13 points, principally Douglas and 15 points $22 per share basic and diluted respectively.
Adjusted EBITDA for the period stood at $114.4 million.
As CFO cashless will go over the details and more.
The highlights in more detail later on.
Please turn to slide four where I will discuss our recent sale and purchase jobs, giving an observation as well.
Following the announcement to sell the motor vessel at the naphtha based on December 29, 2052 at the gross price of $14 $2 million. The vessel was delivered to its buyers on January nine 2023.
Moving on to our more recent charters and developers.
Most of the vessels are understandably was extended from five to seven months and $14500.
Unfortunately, we had one incident.
London valves vessels motor vessel Aegean Express.
<unk>.
There's been vessels was completing the scheduled drydock.
That's absolutely Continental shipping line she has said.
While we are pursuing legal action. We have also entered into negotiations to find a replacement charter supervision.
There were no items, all commercial off hire periods of this quarter.
Well the Drydocking for round two vessels, partially a special survey with dried up during the fourth going through 2022.
One is the <unk> express, which I touched upon earlier, which underwent repairs from mid October through the beginning of February 2023, the other vessel undergoing dry dock during the quarter was motto vessel spaces.
The period of approximately 29 days.
Please turn to slide five where you can see our current fleet profile.
You will see Scotland fleet is comprised of 17 vessels on the water, including 10 feeder container ships.
Intermediate container carriers with a carrying capacity of about $53 3000, Teu and the Netherlands as a sentiment in the last few years.
Turning to slide six.
We've revamped our vessels under construction, which consist of nine that can feed the campaign is expected to be delivered during 2020 324.
The first of which is expected to be delivered by the end of next month.
Six of the new buildings will have a carrying capacity of 2800 teu each well could even have a carrying capacity of 1800 teu each.
The 90 physical data and since we have a capacity of 22 2000 Teu.
After the delivery of these new buildings. The fleet will consist of 26 vessels with a total carrying capacity of about 75000 Teu.
Let's now turn to slide seven to see out of a vessel employments.
As you may see kind of a strong charter coverage throughout the next two years with about 80% of our fleet being fixed for 2023 and the almost 54% for 2024.
And these figures have also taken into consideration the first two new building deliveries, which haven't been fixed at $48000 per day from the date of their respective deliveries.
Turning now to slide nine we'll review how the six to 12 month time charter rates from developed over the past 10 years.
The last two years the container market registered an all time high in terms of time charter of H. One two combination of shifting of demand patterns of incidences and also a tight supply situation, which intern, prompting significant spikes.
Well, knowing this market strength, the containership charter market started softening dropping significantly since their peak levels in the summer.
Sure.
As the graphs clearly show six to 12 month time charter rates that goes all containership segments have dropped significantly since mid 2022 with a feed decided at rates close to the 10 year average rate while intermediate sizes are currently even below historical rates.
Yes.
And those categories are still higher than the 10 year median level.
Let's move to slide 10, where I would go over the main underlying market themes.
During the fourth quarter, one year time charter. This experience has started to decline of 7% compared to Q3, 2022 and fell by a further 15% to 25% in January.
During the last couple of weeks rate seems to be stabilizing at still profitable levels.
The second hand price index decreased the Netherlands by 46% in the fourth quarter of 2022 over the course of 2022 according to Clarksons.
The containers some second hand sales activity was much quieter than doing before Australia 22, as the major macroeconomic uncertainty and weak demand trends diminished appetite for new investments.
The new building price indexes decreased by just one 2% in the fourth quarter Australia.
Well look at three of your score.
Despite the negative market sentiment.
Most of the building ships can easily move lower.
The containership fleet as of January 16 students about two 2% of the fleet and hasn't been gradually increasing since the middle of last year.
Yeah.
There was an uptick in the container ship recycling activity towards the end of the year, which is expected to increase in 2024 amidst weak market conditions supply pressure from fleet growth and the introduction of a new energy environmental regulations.
Despite this price.
It's softening in the fourth quarter of 2020 to about $550 per lightweight ton. They are still about 35% above the two homes are a 19 methods.
Finally, the containership fleet grew by approximately 4% in 2022 without the accounting provides the vessels of activation of the rising et cetera.
Please turn to slide 11.
V I N nationally right, it's global growth projections for 2020 to be in 2020 full signaling some positivity in Russia, Colombia grows and greatest unexpected resilience in the number of movies.
Yeah, there's no clubs Expos growth slowed to three 4% in 2022 only to two 9% in 2023, and then rebounds to 341% and 20 sinful.
There's no change in central Bank of age to fight inflation and the rest is woven in grain appears to be working without leaving the world through the previously feared that assertion.
The recent reopening of space, the way sort of a faster rebound with it.
Projected GDP growth of five 2% in 2020 to be in the four 5% in fiscal 'twenty four.
In 2020 to be GDP growth in the United States will slow to one 4%.
The 1% and 2024 as the Federal Reserve work can you give us the eighth highest daily inflation certain schools they got them.
Well on the European growth focus for 'twenty to 'twenty three is up by 42% from the three of you say unless people.
Is this still positive <unk>, 7% for the year.
Sure.
Some signs of resilience to kind of your energy costs, a milder than expected winter and gradual tightening of the Ecb's monetary policy.
Our growth in environment of one 6% as expected in.
Before.
Growth in the emerging and developing countries is expected to bottom out and still positive levels during 2015.
At NOLA levels than in 2022 and recover intrinsic trend before.
The Russian economy has also recently been upgraded to 3% for 2020 so.
It was the previous quarter, the IMF expects it to be negative $2 three per se.
So 20% before it is now expected to recover to 241%.
India is expected to grow with the fastest space by 621, 1% in 2023 and six 8% in 2024.
While the Brazilian economy is not projected to grow one, 2% and 50 23, and one 5% in physical before.
According to Clarksons estimates containerized freight demand reacted aggressively downwards.
So do you think through the market slow down in the second highest since 2010.
Containerized trade is also expected to be marginally negative in 2023 with a significant rebound of 341% is expected in 2024 in line with the expected global GDP and it does it.
So based on those projections are being continuously revise as the effects of geopolitical tensions between Russia, and Ukraine or what was the growth in trade.
Being continuously assess them changed.
Yeah.
Please turn to slide 12.
Wherever you can see the total fleet age profile, a little bit of data.
The containership fleet is relatively young with most vessels under 15 years old and only 10% of the fleet over 20 years old.
There's also the book as a percentage of total fleet status of 28, 8% as of February .
Up to 47% from the previous quarter.
Demolition volumes look likely to pick up in 'twenty to be 'twenty 'twenty four with an impetus from the softer charter market and the upcoming environmental regulations.
Turning on to Slide 15, we also we will also go we'll go to the fleet age profile, a little bit mix of containers in the 1000 to 3000 Teu range, which is quite different.
The total.
<unk> vessels are the backbone of our operations and the primary focus of our new building program.
About 23% over the one to 3000 Teu fleet is over age, meaning mainly of easily get up and.
No.
Yeah.
The order book as a percentage of the fleet stands at only 13, 2% as of February 2022.
So the balance is quite.
Good at this point and it seems to be quite good for this size range.
Let's move to slide 14, when we discuss our outlook summary for the containership market.
Political and economic security affected container shipping with freight rates dropping dramatically in November and December 'twenty two.
Charter rates without them towards more normal levels from the exceptionally high seen between 'twenty, one and the first half.
As already said.
The container freight index continued to weaken fallen 8% from the January 22 beat and just.
6% above the pre COVID-19 and get out of those.
Container shipping market is starting to clear pressure with freight volumes falling by nine 4%.
This person has been amplified by extensive retail inventories, which have reduced new shipments alongside underlying economic headwinds and the impacts on consumer activity.
In Asia, the cost of living cares.
At the same time, both congestion in the euro during the pandemic used cars because they are significantly increasing effective without it.
In 2023 market conditions are generally expected to soften further.
With rates expected to continue to bolts and potentially below typical historical average levels.
While new vessels that will be delivered into the market in the next 24 months will likely increase the pressure.
Yeah.
So 'twenty 'twenty four onwards, though the outcome of a number of issues, which significantly affects the overall demand for containers.
Firstly, the geopolitical developments surrounding the Canadian that I'll show after love as well as other global finishes.
Currently the economic conditions, resulting from the global fight against inflation low interest rate rises across the globe.
And certainly the new environment, that's good relations about getting the car solutions, which will probably result in more slow steaming within 32015, 50% before effectively removing capacity from the market therefore, improving market fundamentals.
The spread between charter rates achieved by the eco vessels is expected to further increase.
Finally, the smaller size vessels in the range of 1000 to 5000 Teu are expected to perform relatively better users at a healthier supply situation.
As mentioned menu shifts shouldn't be scrapped and the order book is much lower.
Without a doubt of course the flow of larger vessels trades. Currently served by midsize group really couldn't mitigate and any differences to an extent.
Yeah.
Let's move to slide 15.
The left side of the slide shows evolution of one year time charter rates for containers with a capacity of 3000 Teu since 2010.
It was reasonably clear that the one year time charter rates have continued to slide gradually as the rates have come down from an average of about $19900. A day in the fourth quarter of 2022 to around $17000 per day as of the end of last week.
The right hand side of this slide shows the historical price range for new building container ships with a capacity of two and a half thousand Teu.
Well actually it's of course are still at levels of discounts, we consider dividends as Biogen. However, these uncertain they should be able to grow that significantly further if at all during the year.
Especially new building prices due to the inflationary environment and the gradual fall of the dollar's value may even increase.
I mean based on the full advantage of the rise of charter rates over 2021 and the first half of 'twenty. Two we have secured the revenue stream or $415 million, which is sufficient to allow us to reward shareholders by paying a steady 10% dividend.
Golf that obstacle.
But it just says through outstanding buyback without them.
Fund, our eco new building program and.
Still have sufficient liquidity to pursue other attractive opportunities that will arise in the upcoming 18 months.
And with that I will pass the floor to touchless do go through our financials in more detail.
Thank you very much entity. This morning from me as well, ladies and gentlemen.
And then use that over the next short form.
I will give you an overview of our financial highlights for the fourth quarter and full year of 2022.
Without his donaldson's equivalent theater inch of 'twenty to 'twenty one.
Let's start by turning to slide seven King.
For the fourth quarter of 2022.
Company reported total net revenues were $42 9 million.
<unk> and 12, 1% increase.
Total net revenues of $38 3 million during the fourth quarter of 2021.
Nothing can I use the word.
Oh yeah.
Hi.
<unk> vessels.
In the fourth quarter of last year compared to the fourth quarter of the year.
Before.
The company reported net income and net income attributable to common shareholders for the fourth quarter of 'twenty 'twenty four 'twenty, two 'twenty 3 million as compared to a net income and it can come attributable to common shareholders of 22 point very chameleon during the fourth quarter of 2020.
Right.
Thanks Dennis.
Another financing costs for the fourth quarter of 2022 amounted to one 6 million compared to 48 million during the same theater into 2021.
This increase is due to.
The increased amount of debt and the increase in the average LIBOR.
Until we face in the most recent period compared to last year.
I'm trying to trying to do we also interest income.
Okay.
That's probably last few.
Okay.
Okay, our speaker accidentally disconnected, but he is back with us.
Because you don't go up.
Because I think on the webcast.
Okay.
So in Q1 and you Susan.
Yes, he is on.
Thank you.
Your life.
Yes, I can hear you I, just wonder if that sort of stuff.
Okay.
Let's see.
Yeah.
Oh yeah.
Current.
Okay.
I mean my language.
Yes.
Okay.
Right.
Okay.
Yes.
Okay.
Basic earnings per share attributable to common shareholders for the fourth quarter of 2022, we're at $287.
Calculated on 7.08 million weighted average number of shares outstanding.
Diluted earnings per share were $2 $86 calculated on seven 1 million weighted average number of shares outstanding compared.
Basic and diluted earnings per share of 316.
314.
Respectively for the fourth quarter of 2021.
Excluding the effect.
On the income attributable to common shareholders for the quarter.
Unrealized gain on derivatives yeah.
Amortization of below market time charter stock wise and.
The vessel depreciation on the portion of the consideration vessels truck wise without touch time charters allocated to below market time charters.
Adjusted earnings per share attributable to common shareholders for the quarter ended December 31st 2022, once you have been $2.50 per share basic and diluted.
Compared to adjusted earnings per share.
$3 19, basic and $3.18 diluted for the quarter ended December 31st 2021.
The main thing.
Similar adjustments for the year for the period.
Usually security analysts not including the above items in their published estimates of fair earnings per share.
Let's now move to the.
Alright part of this slide to review the same figures for the full year of 2022.
The company for the full year reported total net revenues of $192 7 million.
Presenting and 90 694, 6% increase over total net revenues of $93 9 million during 'twenty to 'twenty, one again as a result of both.
Okay great.
Vessels owned and operated and non Chavez charters with a rash.
During last year.
<unk> to 2021.
The company reported net income and net income attributable to common shareholders for the year of $106 2 million.
As compared to a net income of 43 million and net income attributable to common shareholders of $42 4 million.
The 12 months of 2021.
Yes.
Interest and other financing cost for 2022 amounted to $5 1 million compared to $2 8 million for 2021.
Again this increase is.
Due to the increased amount of debt we carried and.
Increased LIBOR rates that we had to pay during the year.
I would like to note again as well here that in 2022 for the first time mushrooming.
Net interest income.
[noise] point 27 million.
Adjusted EBITDA for 2022.
Page to a friend and a $14 4 million compared to 52 7 million. During the 2021 again, primarily as a result of higher revenues.
Hi, David.
It's Eric.
Basic earnings per share.
They want to common shareholders for 2022 was $14.79 one.
One diluted earnings per share.
$14.78 calculated on approximately seven 2 million weighted average number of stores for understanding compared to basic earnings per share of six point.
$7 and diluted of 6.0 $6 for 2021 calculated on average running about 7 million weighted number of shares outstanding.
Excluding the effect on the income attributable to common shareholders for the for 2022.
Gain on derivatives, the amortization of the below market sharp shock, while the vessel depreciation.
Attributed to the acquisition of below market charters.
Adjusted earnings to common shareholders for the year 2022 would have been fair.
13, 23 and $13 $22.
Basic and diluted respectively compared to adjusted earnings of $6.03 and $6.02.
Basic and diluted from 'twenty to 2021 with the same adjusters adjustments made.
Mentioned above.
Let's now turn to slide 18 to review our fleet performance.
We'll start our review by looking at our fleet utilization rates for the fourth quarter and full year of 2022 and 2021.
As usual our fleet utilization rate is broken down into commercial and operational.
So in the fourth quarter of 2022, our commercial utilization rate was at 100%, while our operational utilization rate was 95, 1%.
Compared to 100% commercial and 98, 5% operational for the fourth quarter of 2021.
On average 18 vessels were owned and operated during the fourth quarter of 2022, and an average time charter equivalent rate of $29400 per day compared to about 15 vessels in the same period, the fourth quarter of 2021 and another.
It's $30068 per day.
Our total daily operating expenses.
Management fees and general and administrative expenses.
$7907 progression per day during the fourth quarter of 2022 compared to $7708 per vessel per day for the fourth quarter of 2021.
If we move further down the table, we can see at the bottom of the cash flow breakeven rate, which we paid during the fourth quarter of this year, which takes into account also drydocking expenses interest costs loan repayments and preferred dividends you Fannie.
Daniel without of course prefer dividends were paid in cash.
That's for the fourth quarter of 2022.
Yeah.
Our cash flow breakeven rate was $15500 or 74.
Taking a closer if I forgotten to $74 per vessel per day compared to $11950 per vessel per day during the fourth quarter of 2021.
Looking now on the highest part of the slide we can review the same figures for the full year.
During the full year of 2022, our commercial utilization rate was 99, 9% and now better understand utilization rate 98, 4% compared to 100% commercial and 98, 5% operational during 2021.
On average in 2022, we own and operate at 17 point 12 vessels.
Adding an average time charter equivalent rate.
<unk> thousand $964 per day compared to $14 25 vessels during 2021 and current average $19327 per day.
Let me go off the table, our daily operating expenses again, including management fees and G&A expenses.
Excluding dry docking cost averaged about 7005 friends and $48 per vessel per day.
Two 7000 foot crowds and $12 per vessel per day.
2021.
Again at the bottom of the table, we can see our daily cash flow breakeven for the year, which amounted to 14004 concentrator $6 per vessel per day in 2022 compared to $10782 per vessel per day in 2021.
Finally in the very last line of the slide.
We can see the common dividend that we paid expansion dollars per day for the.
Fourth quarter it was 2165.
Dollars per vessel per day, while for the full year.
Only friend David those are counted.
1690.
The $9 per vessel per day.
Let's move to slide 19.
I'll review our debt profile.
As of December 31st 2022.
That was the founder and an 8 million.
Thanks, Joe for the same date.
Scheduled debt repayments over the following 12 months that is during 2023 amounted to about 56 million.
More than half of our debt a figure that includes about <unk> 1 million of balloon payments of which 31 million six two were already made last week, resulting in three more of our vessels, becoming kind of encumbered.
We currently intend to make the next balloon payment of $7 1 million during the second quarter of 2023 from our own funds.
Two more of our vessels unencumbered.
Again at this point, we're planning to refinance the last portion of our balloon payments at the end of 'twenty 'twenty say of $17 4 million.
Clearly, our low leverage and the launch and the increasing number of unencumbered vessels that we have.
Increase our flexibility and our.
Our ability to raise debt to fund the investment opportunities should they appear.
Looking at the chart on the bottom of the slide we can see.
Yeah.
Our cash flow breakeven level over.
Over the next 12 months and that amounts to about 14000.
$119 per vessel per day.
Of which $4170 contributed from loan repayments.
A final comment before we leave this slide she has to do with the cost of our debt.
Average margin of our current debt is about $2 two.
And 85%.
Assuming and assuming a LIBOR rate of four 8% on the top of it we can estimate the total cost of the foreign senior debt to be around 765%.
However, if we look at the cost of our debt.
A portion of the debt interest payments are locked via our interest rate swap contracts.
The cost of our debt would drop to about 516%.
Of course, we expect to assume additional debt to finance, our new building program, which is estimated to be in the June of $200 million to $220 million.
So some of our presentation, let's move to slide 20 to review our balance sheet.
Again as of the end of last year.
Assets included cost and other cash equivalents amounting to about 38 million other current assets.
Advances that we've made for our new building program stent stood at about 59 million.
And the book value of our vessels stood at around $225 5 million and that includes <unk>.
One of the vessels that were held for sale.
Total book value for our assets for about $328 6 million.
On the liability side as I mentioned earlier, our debt stood at Hampden and an 8 million representing about 33% of the book value for our assets.
Also hit the fair value of our recently acquired charters below market charters, which stood at about $35 million for Boston in the 5% of our assets and also other liabilities of about 17 and a half million.
Or about five 3% of the book value of our assets.
However, it should be noted here that the market value of our fleet, it's much higher than its book value.
Just on our own estimates and using charter adjusted values for our fleet.
The market value change as far as new building contracts and here she have taken into account the developments regarding Aegean experience with their teeth as mentioned earlier.
The estimated market value for our fleet is approximately $666 million as of the end of last year, which translates to a net asset value for a company of about 344 million well in excess of $48 per cent.
Recently, our shares have been trading around $19 per share thus representing.
A significant discount to our net asset value and offer a good appreciation potential for our shareholders and investors and based on the above measure.
With that final note I would like to close my part of the presentation and turn the floor back to our activities to continue the discussion.
Yeah.
Thank you Tassos, let us open up the floor now for any questions that we may have operator please.
Perfect. Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Information tailwind to Kate Your line is in the question queue. You May press star two if he like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Our first question comes from Tate Sullivan with Maxim Group. Please proceed with your question.
Hello, Thank you good day boats.
On the on the Continental shipping line news.
The Aegean Express the only ships chartered by CSL.
To start.
Yes of course I was expecting.
This question.
Indeed this is the only shape these job to do these jobs to do this is a small charterers with whom we have had.
The long relationship having had the vessel on his child for quite some time.
The.
It is very unfortunate.
Scotland.
And we hope that it wouldn't but it has now.
[noise], taking legal action against the childhood, who because of defaulted.
So we will see what the outcome will be on that.
All the vessels seeks to much bigger and.
Strong names, so I don't really anticipate.
And the issue with those services going forward.
Okay, Thank you and and and related to the new builds coming into your fleet and the two of them to come in in the next three or four months you already have contracts for and then the third.
Third schedule for delivering able even for Q 'twenty three can you talk about the recent newbuild contracting environment for similar built ships.
I mean, what you're what the potential levels for that so that shift is.
Or has there been any similar sized ships entering the market.
There hasn't been any any all of that is as far as I know for similar type ships.
But the the Anthony.
And which these would be secure if they.
Would it be around the prices that we paid we have not seen any new building prices generally dropped dramatically.
And this is for two reasons.
One thing is the dollar.
All of these is dropping a little bit.
Compared to where it was a few months ago.
Secondly, due to the influx global inflation the cost of building a ship is becoming more expensive. So I do not think that we will see significantly lower.
Prices for new seats that may be all of it in fact, it could be even higher than simply so.
Is that these concerns will be the basis.
Certainly some of the main.
Mailing.
Versus the first one is to be delivered in December 23, and the last one in December before so seven vessels that we will get sometimes in 2020 before we are not demanding savvy to fix them at this point in time.
We are very confident that we will be able to easily employed and to employ them at.
Decent levels of close is not as high as the levels that we fixed the first couple of vessels.
Still.
Very profitable levels, but we will do that much closer to the delivery of value.
Okay.
And my last one.
You announced a contract development.
With that Joanne for 14500.
What is the current when does that current contracts expire or does that metric slide deck on page seven as well.
Sure.
That's fine.
In.
Yes.
Bill expires in about two and a half months from today. This is the analyst can expire then it could last for another two three months.
We did that.
Maybe three four weeks ago I come to the members.
The level is a decent level, giving us a decent profit on the ship.
The charter market is still.
Above.
Are you still at profitable levels.
Despite the huge drop.
We tend to think that this is a disaster.
But it's not really take away the super cycle, which was withdrawn.
It's still good levels that we have seen.
Okay. Thank you very much have a great rest of the day. Thank you.
As a reminder, if you like to ask a question. Please press star one on your telephone keypad, one moment, while we poll for questions.
There are no questions at this time at this point I'd like to turn the call back over to <unk> CEO . Mr. <unk>. Thank you you may close the call. Thank you very much everybody for listening into our.
Our Q4 and end of year results, we will be with you in three months time for the Q1 results have a good day.
Thanks, everybody.
This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.
Okay.