Q4 2022 Seanergy Maritime Holdings Corp Earnings Call
Speaker 1: you
Speaker 2: Meritme Holdings Corp. conference call on the 4th quarter and here ended 31 December 2022. Find out the results.
Speaker 2: Well, with us, Mr. Stamatis Tannis, Chairman and CEO of Mr. Svarogisgis, CEO , Finance Officer of Cierengysh molding corp.
Speaker 2: At this time, all participants are in Listen or Leave mode.
Speaker 2: There will be a presentation followed by a question and answer session. At this time, I wish you like to ask a question, please press star 1 1 on your telephone. If you would like to cancel your request, please press star 1 1 again.
Speaker 2: Please be advised that today's conference is being recorded.
Speaker 2: Today Tuesday March 14 2023
Speaker 2: The child webcast of the conference called Accompanying Slides will be soon made available on the Synergy website.
Speaker 2: W do ennergy mindment DOT com.
Speaker 2: Please now turn to Slide 2 of the presentation.
Speaker 2: Many of the remarks today contain forward-looking statements based on current expectations.
Speaker 2: Actual results may differ materially from the results projected from those forward-looking statements.
Speaker 2: Additional information containing factors that can cause the actual results to defray material from those in the forward-looking statement is contained in the forward quarter and here handled December 31, 2022, earning release, which is available on the Synergy website again.
Speaker 2: If you would like to turn the conference over to one of our speakers today, the Chairman and CEO of the company, Mrs. Tamati Stannis. Go ahead, sir.
Speaker 3: Thank you.
Speaker 4: Hello, I would like to welcome everyone to our conference call.
Speaker 4: Today we are presenting the financial results for the fourth quarter and the full year period of 2022. We are also pleased to announce the distribution of another cash dividend, which is basically equal to our net profit for the fourth quarter.
Speaker 4: The fourth quarter was another profitable period for Synergy and concluded our second consecutive profitable year.
Speaker 4: First and foremost, in 2022, we clearly prioritise our holder rewards, as I will discuss in detail in this call.
Speaker 4: We made generous distributions to our shareholders despite a series of microeconomic and political challenges that occurred during the year.
Speaker 4: First, there was the invasion of Ukraine by Russia and the ongoing military conflict.
Speaker 4: Second, the heightened uncertainty about the probability of a significant slowdown in the global economy due to the spike in inflation.
Speaker 4: Last but not least, 2022 marked the third consecutive year of severe lockdowns in China, which negatively affected industrial production and economic growth.
Speaker 4: However, the recent lifting of COVID-related lockdowns in China has already had a positive effect on general economic activity and fuel production and we expect to see accelerated raw material imports.
Speaker 4: We are bullish for the drive-out market outlook and we believe that Synergy is very well positioned to benefit over the next years.
Speaker 4: Turning to our highlights with regards to our financial performance, for the full year period, net revenue reached $125 million, adjusted dividend was $65.6 million while net income amounted to $17.2 million.
Speaker 4: As regards to 4th quarter, we recorded net revenues of 28.5 million and adjusted EBITDA of 12.5 million while net income was equal to half a million.
Speaker 4: Since the fourth quarter of 2021, we delivered approximately $58.4 million of value to our shareholders in the form of dividends, share buybacks and the repurchase of convertible securities.
Speaker 4: Our board of directors approved a cash dividend of 2.5 cents per share for the fourth quarter of 2022, which is effectively out of our net income.
Speaker 4: I am confident that our financial performance will be able to support good shareholder returns throughout the shipping cycle.
Speaker 4: Regarding our vessel transactions during 2022, we sold or spun out our three oldest vessels built in 2004, 2005 and 2006, while in the same period we acquired two modern Japanese vessels, the Honor Ship built in 2010 and the Scrubber Fitted Paro Ship built in 2012.
Speaker 4: These transactions have a positive impact both on our fleet's average age as well as our profitability based on lower fuel consumption, better rating on the Baltic Age Index and scrubber premium earnings from the Parachute.
Speaker 4: During the second quarter of 2022, we concluded the spinoff of United Multan Corporation, which commenced trading on the North American Capital Market on July 6, 2022 under the symbol UC.
Speaker 4: All shares of United would be distributed to our shareholders.
Speaker 4: United, in its first year of operations, generated a significant profit and distributed massive dividends to its shareholders and, hopefully, to synergies original shareholders that retained their United shares. In January 2023, we completed successfully the tender offer for Class E warrants, repurchasing approximately half of the outstanding securities.
Speaker 4: thus reducing dilution risk.
Speaker 4: On February 16, 2023, very recently, we affected a 10 to 1 reverse split of our common stock and on the 3rd of March we regained compliance with the Nasdaq's minimum bid requirements.
Speaker 4: We expect the increase of the nominal price of our shares to have a positive effect on the marketability and trading liquidity Mainly by eliminating certain price related trading restrictions.
Speaker 4: As regards to our financing updates, Synergy has completed new entry financing of almost 125 million in 2022.
Speaker 4: We are also working closely on other deals that would improve further our financing costs and release liquidity. We're constantly working towards optimizing our capital structure and preserving our liquidity while evaluating our options to refinance our indebtedness at lower interest rates. Following up on our environmental, social and governance...
Speaker 4: We are guided by ESG principles in our operational and strategic objectives and we recognize the growing importance of these efforts in achieving the best outcomes for all companies, stakeholders and society. Lastly, given the large discount of our share price, we are
Speaker 4: as compared to its intrinsic value, I have decided to personally purchase another up to $1 million in additional common shares. I intend to commence my purchases following the release of our earnings, which is now, in line with our internal trading policy and with restrictions.
Speaker 4: Turning to slide 2 for a more detailed breakdown of shareholder returns, approximately 18.5 million in regular dividends and 4.5 million in extraordinary dividends have been declared since the fourth quarter of 2021.
Speaker 4: This represents approximately 20% of our current market cap.
Speaker 4: Additionally, during the same period, significant capital was deployed in repurchases of shares and other potentially dilutive securities.
Speaker 4: More specifically, 3.5 million has been allocated to share and warranty purchases and 32 million was utilized to buy back convertible notes.
Speaker 4: On a final note, during 2022 our shareholders also received shares of our spin-off United Money Time, which in turn, as I mentioned before, after a very profitable series of transactions, has made significant distributions to its shareholders. Since the initiation of our capital returns in the beginning of 2022, we have been working
Speaker 4: Synergy has paid approximately $22.9 million in cash dividends, translating to $1.2.75 per share.
Speaker 4: when including the value of the United Maritime shares received as part of the spin-off, total distributions amount to approximately $1.61 per synergy share, or a 26% dividend yield based on this Friday's closing price.
Speaker 4: Please turn over to slide 3 to discuss our fleet's commercial developments. Our fleet currently consists of 16 cape-sized vessels with an average age of 12 years, of which 9 have scrubbers installed.
Speaker 4: Our latest acquisition, the ParaShip, was placed into an index link time-satter with a major European operator for a period of about 10 months.
Speaker 4: Additionally, following our last quarterly update, we completed the sales of two of our oldest vessels, the tradership and goodship, built 2005 and 2006. All vessels were delivered to their new owners in February of 2023.
Speaker 4: As regards to our commercial performance, the daily time-starter equivalent in the fourth quarter was approximately $17,300 representing a 16% premium to the average Baltic Cape size index.
Speaker 4: In the full year period we recorded a daily TCE of about $20,000 per day or a 24% premium over the BCI. Our decision to focus on high quality vessels and scrubber premiums and buy our fleet in combination with some proactive hedging through FFA conversions.
Speaker 4: have alleviated the effects of the falling spot market and we view this as an important validation of our commercial strategy. For the first quarter of 2023, we expect to earn daily times after equivalent rate of 10,200, which may sound very low, but it's a premium of more than 40%.
Speaker 4: over the average BCI year-to-date. In addition, we recently decided to convert the floating index-linked rates on two of our vessels to fixed rates at approximately $20,000 from the second quarter of 2023 until the end of the year. We are actively monitoring the FFA curve and considering further conversions as the marked conditions.
Speaker 4: and now it looks improved. I will now pass the call to our CFO who is going to discuss our financial results before I return to discuss our market update.
Speaker 4: Stavro, please go ahead.
Speaker 4: Thank you so much. Welcome everyone to our earnings code. Let us start by reviewing the main highlights of our financial statements for the fourth quarter and 12-month period that ended on December 31, 2022.
Speaker 4: In the fourth quarter, we achieved net revenue of 28.5 million, reflecting a decrease from the net revenue of 56.7 million in the same period of 2021. The reduction in our revenue came as a result of the decline in the average daily time charter equivalent of the fleet. In the fourth quarter, we achieved net revenue of 28.5 million, reflecting a decrease of 28.5 million in the same period of 2021.
Speaker 4: which was mainly due to increased volatility in spot earnings and the software overall market conditions.
Speaker 4: Our adjusted EBITDA and net income stood at 12.5 million and half a million respectively.
Speaker 4: However, we remain profitable amid these unfavorable market conditions and in fact we were able to outpace the market as which is reflected in the Baltic Cape Size Index.
Speaker 4: For the 12-month period net revenue was $125 million with our average daily time-sutter equivalent rate standing at $20,040 compared to net revenue of $153 million and an average daily time-sutter equivalent rate of $27,400 last year. Net income for the 12-month period was $17.2 million.
Speaker 4: approximately 28 million in dividend distributions and buybacks.
Speaker 4: At the same time, our assets soared to $514 million while our debt also increased but remained at modest levels as it is reflected in a debt ratio of approximately 51%.
Speaker 4: Our net debt at the end of the year was $227.4 million.
Speaker 4: Finally, total shareholder safety was 222 million as of December 31, 2022, from 245 million at the end of 2021.
Speaker 4: Overall, and given the software keeps as market we witnessed in the second half of the year, our performance was satisfactory with RTCE and ADAS TPDAT outpacing our average performance over the last five years.
Speaker 4: The effective deployment of our corporate and commercial strategies allowed us to obtain an adjusted EBITDA margin of 51.6%, thus 5% below the record margin achieved in 2021. As regards our operating expenses, we noted the rise in 2022 due to the high inflationary environment. In total, during the coming months, companies will be able to
Speaker 4: Our average daily operating expenses, excluding pre-delivered expenses, was $6,819, reflecting a 10% increase compared to the previous year. However, with most of our sleep now being managed in-house and with the increased efficiency that we have seen as of late, we expect these expenses to be trimmed in the coming year.
Speaker 4: Moving on to our debt profile and some details on our financing updates. The senior debt outstanding at the end of 2022 was 249 million which translates to 13.8 million per vessel, secured against an average market value per vessel of about 25.4 million.
Speaker 4: In a year that we accomplished the partial renewal of our fleet, we managed to attain a corporate leverage at modest levels, at around 53%, despite the market values correcting by approximately 25% during the second half of the year. Additionally, during 2022, we completed the 10 million buyback of convertible noise.
Speaker 4: during the short tightening of FETs interest rates, a share 400 base points increased during the period.
Speaker 4: Our efforts to improve the overall terms of our facilities continue this year with total refinancings and financings of 124.8 million with the average margin of our facilities dropping further to 2.9% as of December 31, 2022.
Speaker 4: versus 3.2% the year before.
Speaker 4: I will now move on to discuss the financing transactions that have taken place since our last update in more detail. In December , we entered the 16.5 million loan facility with our existing lender, Alpha Bank, to finance part of the acquisition cost of our latest cape size, the partnership.
Speaker 4: The facility has attempts of four years.
Speaker 4: while the interest rate is 2.9% plus SFR and will amortize through 4 quarterly installments of half a million, followed by 12 quarterly installments of 400,000 and a 9.6 million balloon payments as maturity. Meanwhile, in connection with the recent sale of goodship
Speaker 4: The company prepaid in February the 12.9 million on the AB bank facility which was secured by these two vessels.
Speaker 4: In addition to these transactions, the company has recently obtained one commitment letter from one of our existing lenders, Danish Finance, for a loan facility of up to $15.8 million. The support of our banks is apparent even in today's volatile market conditions. This facility will be used to part the finance very precisely.
Speaker 4: annually, subject to the achievement of certain carbon emissions targets and the territory agreement will be five years.
Speaker 4: Moreover, we are in progress discussions for a sale and lease-back transaction of up to 19 million in order to reduce finance at improved terms and existing sale and lease-back agreements for one of our 2010 build caves.
Speaker 4: Moving on, and before returning the callbacks from ATSIC, I would like to discuss our operating leverage and some guidance for a company's performance once chartered rates have been stabilized at healthcare levels. The potential for high RIBDAR in 2023 is clear, as it is illustrated in the graph you see. Even if rates settle this year at the same numbers as in 2022, we expect Aribida to overcome the 60 million, while if a great year of 2021 is repeated.
Speaker 4: Our projections show an EBITDA of 148 million. At this point in the year, these projections are obviously subject to significant uncertainty but the increase in potential profitability is clear. This concludes my review. I will now turn the call back to Samadhi who will discuss the market in the inters...
Speaker 4: diverging from the usual historical pattern. As discussed in the beginning of this call, the global picture was negatively affected by the invasion of Ukraine by Russia and the ongoing military conflict. In addition, rising inflation had a negative impact on the global economy by increasing uncertainty and industrial input costs.
Speaker 4: Lastly, 2022 was the third consecutive year of lockdowns in China, which resulted in a negative macroeconomic backdrop punctuated by falling industrial production and economic growth.
Speaker 4: The average level of the Baltic Cape Size Index for the year 2022 was approximately 16,200 with a first half average of 18,200 and a second half average of 14,300. We are pleased to see the market achieve these levels amidst the current market.
Speaker 4: slower industrial activity and we are confident of further improvements as conditions normalise. Let's discuss now the high level demand and supply picture for 2023 and onwards.
Speaker 4: In terms of vessel demand during 2022, China's industrial production fell due to squeezed profit margins and weak real estate activity.
Speaker 4: The Manufacturing Purchasing Managers Index fell to its lowest level since the COVID lockdowns and to the second lowest level since 2010.
Speaker 4: So far in 2023 we have seen a reversal of these negative trends as the latest two months manufacturing PMI in China registered the highest increases of the past 10 years.
Speaker 4: Other forward-looking indicators, such as excavator sales, which have historically been good predictors of future construction activity, have also turned upwards, while profit margins and utilisation for steel mills are abounding strongly and Brazilian iron ore exports are finally back on track for better performance.
Speaker 4: This is supported both from incremental improvements in real estate construction and car production among others.
Speaker 4: Aside from China, we expect the massive infrastructure projects in the Middle East area, which are in excess of 1.5 trillion US dollars until 2030, as well as India's accelerated economic growth rate, to be key factors for raw material demand.
Speaker 4: Moving on to vessel supply, figures are very encouraging for the Cape-Sci sector. First, the current universal order book is at the lowest point in decades.
Speaker 4: The combination of high steel prices and high interest rates greatly reduces the incentive for new vessel orders, while limited CPR capacity would make it almost impossible to get a new vessel delivered before the end of 2025 at best.
Speaker 4: As regards to demolition, high scrap prices are likely to incentivize the continued demolition of ineffective tonnage over the next years, especially as stricter environmental regulations set in. Along with the potential for fleet speed reduction due to EXI and CII in the new regulations.
Speaker 4: the effective cave size fleet capacity will be firmly under control or even reduced in the coming years.
Speaker 4: Concluding, as a closing remark, I am pleased with our financial performance during a very volatile year for the caped-size market. We are consistent to our pledge to deliver strong shareholder returns by executing significant distributions and creating significant accretion. Synergy remains in an excellent position.
Speaker 4: to capitalize on the expected strong markets in the next years. On that note, I would like to turn the call over to the operator and answer any questions you may have. Operator, please take the call. Thank you.
Speaker 2: and wait for your name to be announced. We are now taking the first question.
Speaker 2: Please stand by.
Speaker 2: And the first question is on page Sullivan from Maxine Group. Please go ahead.
Speaker 5: Hello, thank you. Good day. You commented on supporting good shareholder returns through the cycles, and I think, correct me if I'm wrong, I think you'll have a gain on a sale of about $8 million in this current quarter from selling to vessels. I mean, how do you consider that gain when you evaluate your quarterly dividends?
Speaker 4: far has been trading at around $10,000 a day. So we have to see what's going to be the final impact on that at the end of the quarter and then we will decide but it's not going to be a static approach. If obviously the market has turned to where we want it to go and where it appears that it is going then obviously we will try and reward our shareholders more generously to put it this way.
Speaker 4: Right now the reduction of the dividend has been in order to reflect to the very bad market that we experienced in Q1 or we're experiencing so far and we're trying to preserve cash and liquidity as much as we can. Obviously as things change in the future and as things improve.
Speaker 4: we have had an excellent track record in paying out to our shareholders to the best of our capacity.
Speaker 5: Thank you. Yes, you mentioned the repurchases and I mean, the China PMI reading a couple weeks ago was the highest since what, 2012. But then, I mean, since that PMI reading, have you seen or even before that China booking more voyages? Are there any other tangible data points that you can point to in terms of China demand?
Speaker 4: for the dry box sector please? Demand is not only China driven. I mean we keep saying China and China, but I think China contributed more to the negative market of 2022 and we believe it's going to contribute a lot in the upside.
Speaker 4: But have in mind that China and the PMI were so weak in 2022 because they had the third consecutive year of almost a full year lockdown. As you can understand, this had a severe impact in industrial production. You know, things started to turn very ugly. At the same time, it's not only...
Speaker 4: the vast infrastructure projects that we expect to happen in the Far East area. We also see that there's going to be 1.5 trillion dollars of new infrastructure investments in the UAE area together with Saudi Arabia that have already started. So this is going to absorb a lot of steel and a lot of iron ore and coaching role demand in our opinion.
Speaker 4: Overall, we feel that the market is getting into a very strong infrastructure phase, combined with the Chinese reopening of the economy. I believe that from a demand perspective, we will see much better numbers compared to last year.
Speaker 5: Thank you and status further than that. I'm looking at the numbers, but can you remind me the fees related related parties? Is that related to United maritime or some gain on bunker fuel or or is the gain on bunker fuel within the lower operating expenses?
Speaker 4: No, this is high-tech. As you very correctly pointed out, these are fees and income from United. So basically, as you may recall, United is managing the operations of Synergy. So Synergy is getting an administrative fee out of United and at the same time the dry bulk waste.
with a small increase that we had in our GNAs, the income from United is there to set of the increase which has incurred as a result of synergy basically managing United's operations.
Thank you very much.
Thank you very much. Thank you, Dave.
Thank you for your question. We are now taking the next question. Please stand by. The next question is from Ms. Maya.
Please go ahead. Your name is open. Okay. Thank you.
Hi, good afternoon gentlemen, thanks for taking my question.
Hello, Jay. Nice to hear from you. Yeah, the first question I had, I'm looking at your results and it's been two and a half months since the end of the year. You had the convertible repurchase. You had two shifts that you sold. I'm wondering if you have a pro forma figure for liquidity, how much cash liquidity you have right now? It's been almost three years. Whoa. What? Whoa, this around that? Yeah? Two. Three. Yeah. Yeah. Yeah.
Right now we are if I recall well in the mid-20s, 20 million, but please have in mind that we have certain refinancings lined up now which are to the benefit of course of the overall capital structure. So this figure is going to change depending on what's going to be the final agreement with that.
behind that and is there a potential to wrap up the rest of those?
Yes there was absolutely no reason it was just the way we wanted to you know get on with the housekeeping effect of whatever it was on the basis of the agreement and we expect for that to close completely.
hopefully within the first half of the year. So, you know, within the next few months, we will most likely, so extinguish the whole thing.
I know last time we talked a little bit back in January , the goal was to maintain sort of the fixed dividend level, which of course would have been 25 cents a share. I see you cut the dividend by 90% today. Can you talk a little bit about what changed your mind there in February and March? Is it just the week rates?
couple of weeks ago the market was literally at $2,000 a day and we wanted to maintain as much cash as possible.
not to have any liquidity concerns, but you know, if there's a right opportunity or there's anything in the horizon, we might need to move. The question is that we're fully committed in providing shareholder returns and we will get back to certain levels that we feel will be more than adequate in the near future. We just wanted the market sentiment to get back to some positive levels.
When again the market is at $2,000 a day that made us a little bit nervous in paying out a whole dividend amount. So, you know, we just wanted to be cautious about it.
Right, yeah, those rates were very scary in February . Of course, right now they're looking a lot better. I know you have higher cash break even levels, but you must be pretty close to turning cash flow positive. You mentioned your liquidity is about $25 to $30 million. Is there sort of a reasonable minimum that you would like to maintain? I'm just curious because...
You have such a great opportunity to repurchase shares, you can buy back those convertibles. Now I'm just wondering what kind of buffer you have at this moment. Well we're very comfortable if we can maintain let's say at a million of a million and a half per ship. I mean this is what we have in mind to be absolutely, but again this is not a static approach. If we see the market and the outlook being very positive and we're able to secure.
at three or five thousand dollars a day we might be a little bit more cautious but overall we feel that the market is now turning into a more sustainable level and we will be able to again start maximizing our shareholder returns to the extent possible
Also, as a final point I want to make is that my strong commitment in the company will be fully fully applied in the near future by me making purchases in the open market. So I'm fully committed in what I've said and I will continue doing so as I have done.
you know, all the way up and down, and most of it down, to be honest. Yeah, looking forward to the stronger rates and stronger returns. Final question, thank you so much for your time this morning. You talked about the related party fees with managing United Maritime's fleet. You mentioned there's some sales and purchase stuff in there as well. United Maritime had a massive gain on sale with some of the tankers there. Is there going to be any proceeds from that going to Synergy or are those only on the new vessels?
Well, no, I mean United's profits are United's profits, so there's no profit selling in whatever we do. However, the company is making 1% on the sales profits and you know when you make such a big profit from the sales of United ships then that is reflected on the Commission that Synergy is making on the sale of the vessels.
So that's as far as it goes, but other than that there's no other profit sharing agreement. You know the two companies are separate and the shareholders in both cases have been very generously rewarded for 2022. Excellent, and I'm looking forward to more details in the filings. Thank you both for your time today. Of course, nice to hear from you. Thank you.
Thank you for your question.
We are now taking the next question.
So please stand by. The next question from Tate Sullivan from Maxine Group. Go ahead.
Thank you for taking a follow up. I was circling back on the vessel operating expenses per day. They did drop 7% year over year and drop quarter over quarter as well. Is some of the 6,651 in 4Q from bunker fuel gains. And what's a reasonable run rate going forward daily optics.
Thanks Dave. No, bankers are not coming to the OPEX calculation. OPEX concerns only operating expenses and no voyage expenses. That is mainly crew expenses. The majority of around 60% of operating expenses has to do with crew. Then you got spares and supplies.
then you have also insurance. The increase in the OPEX can be basically apportioned mainly on the inflationary environment and the fact that stores and supplies have gone up. At the same time forwarding costs due to COVID has also increased and also crew expenses have generally
and especially repatriation, traveling expenses and accommodation have increased a lot. And also please bear in mind that we have expanded the fleet a lot. We have acquired many new ships and basically in order to crew these vessels and have the quality of the crew that CENEGI wants on its ships, we have been paying top dollars for our crews.
That's the reason behind the increase in op-ex. Thank you. And then on the refinancing seems very active. Is it securing new relationships or establishing new relationships with lenders and also decreasing the floating rate?
during a rising interest rate environment for those refinance. Can you talk a little bit more about it? I mean the financing the one that we announced now that concerns the championship that this will be financed through one of our existing lenders Danish finance. The reason behind this financing were mainly commercial. This vessel was financed by through a sale and lease but agreement with Cargill.
whereby the charter had the biggest profit share, the biggest share of the profit from the scrubber. And there was a small discount versus the index due to the financing background of this agreement. Now we are refinancing the ships through a third party lender and the commercial arrangement would be more beneficial.
with the Japanese lenders which are very competitive, both on their overall terms and on their pricing.
Thank you very much. Have a great rest of the day. Thanks, Pete. Thank you for your question. We are now taking the next question. Please stand by. The next question from Kristof Erský from ARTIK. Please go ahead. Please close the Geronimo Challenge on our web page
Hello gentlemen, congrats on the call. Hello, good morning, good afternoon. Nice to hear from you. Good, good. Likewise, good afternoon. So I understand the rationale behind the dividend reduction for the call. It makes perfect sense given...
given how the market has been. But as you pointed out, I mean the supply side, it looks fantastic going forward. I mean it's 24. So the outlook is definitely strong and in connection with that I was...
How are you considering capital allocation going forward in terms of acquiring vessels versus shared buybacks or dividends? That's a great question. I think we will be fully in line and consistent with what we did in 2022. In 2022 we sold three of our older ships and we bought two more modern ships. In 2022 we sold three of our older ships and we bought two more modern ships. I think we will be fully in line and consistent with what we did in 2022. In 2022 we sold three of our older ships and we bought two more modern ships. This is a good question, not a good question.
I must remind you that we paid out approximately $1.28 in today's value, which is more than 20 plus percent dividend yield. And if you count in the value of the distributions from United, that's another $0.30. So it has been a very, very generous distribution we did in 2022. So.
We will continue to have a balanced approach in our capital allocation in 2023. We're going to keep cash for a potential fleet renewal, but our priority remains in generating and paying good shareholder returns. Another point I must say here, we have provided...
sensitivity analysis on the EBITDA in today's call and as you can see with a very modest $20,000 BCI time chartered the company is going to make $75 million of EBITDA. So you know we're talking about the massive potential cash flow generating capacity.
And if we move up to, let's say 2021 figures, then we're talking something in the region of 100 plus $110 million of the beta. Please rest assured that our shareholders will have a very, very generous distribution if we come to these figures.
Thanks a lot. Have a great day. Thank you. Have a great afternoon. Thank you for your question.
As a reminder, if you wish to ask a question, please press star 1 1 on your telephone.
There are no further questions. I will hand back the conference for closing remarks.
Thank you very much for attending today's call and please stand by in the next few weeks for providing additional information about the company's capital structure and business development. So thank you very much for hearing into our call today and have a great day afternoon. Thank you. That concludes the conference for today.
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