Q1 2023 Navios Maritime Partners LP Earnings Call
Speaker 1: Who.
Speaker 2: Thank you for joining us for Navio's Maritime Partners first quarter 2023 earnings conference call. With us today from the company are Chairwoman and CEO , Ms. Angelique Efengo, Chief Operating Officer, Ms. Estrada CdeCipri, Chief Financial Officer, Ms. Arie Cerrone, and Vice Chairman, Mr. Tabbatran.
Speaker 2: and the conference call will also be found there. Now on we'll review the State Power Restatement. This conference call could contain forward-looking statements within the meanings of the private security solicitation reform now to 1995 about Marius Partners, forward-looking statements or statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Navi-Malayson.
Speaker 2: Navios partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows. First, Ms. Fango will offer opening remarks. Next, Mr. DeSieber, who will give an overview of Navios partners' segment data. Next, Ms. Daroney will give an overview of Navios partners' financial results.
Speaker 2: Then Mr. Patron will provide an industry overview. And lastly, we'll open the call to take questions. Now I turn the call over to Navya's partners, Chairwoman and CEO , Ms. Angeliki Fungo. Angeliki? Or maybe New Jersey's willingness to trust Asian American-Americans growing newly.
Speaker 3: Good morning, all of you join us on today's call. I am pleased with the results for the first quarter of 2023. In a week, we reported revenue and net income of $309.5 million and $99.2 million respectively.
We are also pleased to report net earnings per common unit of $3.22 for the quarter. Navios Partners is a leading publicly listed shipping company diversified in 15 asset classes in three sectors.
then average, ventilate of about 9.6 years.
We have 173 vessels split roughly equally in three sectors, based on an adjusted biome.
In addition to the reciprocation, we have been actively managing a portfolio to maintain a younger, more technologically advanced fleet as we believe the newer technologies are competitive-advanced both in terms of operating efficiencies and also for fuel emissions. We have rationalized our fleet.
by selling all vessels and acquiring new vessels.
As I said last quarter, we are also focused on reducing leverage rates. Most recently we reduced our net LTV to about 42% in the first quarter of 2023 from about 45% in the fourth quarter of 2022, measured for vessels in the water.
Our stated goal is to continue to reduce leverage so that our net LTV falls within a range of 20 to 25 percent.
The updated goal is to continue to reduce the error so that our net LTV falls within a range of 20 to 25%. Please turn to slide 7.
We continue to finance a new building program on attractive terms. Since our last earnings we secured $438.6 million of new financing at another edge margin of 1.8%.
343.6 million dollars of which finance six new building vessels. We have also a refining 95 million for eight tanker vessels at the same average margin. We have also taken advantage of market conditions.
to secure 161 million of long term contracted revenue and to sell versus generating $242.2 million in gross sales process.
For sales, we short 8 versions for $160.3 million in the first quarter of 2023, and expected to close on the sale of the remaining 5 versions from an additional $8.9 million in the second quarter of 2023. Arroperating cash flow is strong. For the remaining 9 months of 2023, Arremyon is expected to exceed total cash cost by $70.2 million.
With 15,469 open and indexed days, we would expect to generate significant additional cash in 2023.
Please turn to slide 8. We implemented a diversified strategy in late 2020.
Since then, we have made three significant acquisitions. A container ship company with 29 vessels in the first quarter of 2021, a tanker company with 45 vessels in the third quarter of 2021, and a 36-vessel dry bulk fleet in the third quarter of 2020.
too, as a result of this transformation as financial performance, as strength and material, which this light demonstrate by referring to adjust the bedan.
A $155.4 million of Q1 2020, the adjusted EBDA represents a 23.2% increase of the first quarter of 2022, and 361.1% increase of the first quarter.
of 2021.
Our 2022 adjusted EBITDA of $667.9 million represented a 56.6% increase compared to 2021 and a 569.2% increase compared to 2020.
I now turn the presentation over to Mr. Stratos with the Cyprus Navios Partners Chief Operating Officer. I now turn the presentation over to Mr. Lola Vassa the Chief Operating Officer in Cyprus
Thank you, Angeliki, and good morning all. Please turn to slide 9, which details our strong operating precast flow potential for 2023. Thank you.
We fixed 63% of available there is at an average rate of 27,688 dollars per day.
Our contracted revenue exceeds expected total cash expense for the remaining nine months of 2023 by over 70 million.
We have 15469 open and indexed link days that will provide additional profitability once peace
Slide 10 demonstrates the basic principles of our diversified platform in action.
We aim to benefit from counter-cyclicality which creates the opportunity to redeploy cash flows from well-performing segments into assets in underperforming segments.
We believe that they have justified us with base, mutual volatility or no financial statements.
You can see this day when I'm playing itself out in our Asset Base. As of Q1 2023, container values dropped by 4% while dry bulk and tankage vessel values increased by 9% and 2% respectively.
In some, the net change will be devising an increase of approximately 3%.
Multiple segments also allow us to optimize satiring. In segments with attractive details, we can enter into period chapters. In other segments we can be patient. As you can see from the chart on the bottom of the slide, we have fixed 86% of our 13,602 total available days for the second quarter of 2023.
Our container ships are 100% fixed at $38,613 net per day. Our tankers 90% at $28,033 net per day. And our dry bulk fleet is 79% fixed at $17,458 net per day.
In slide 11 you can see our fluid renewal activities.
We are always renewing the fleet so that we maintain a young profile, benefiting from newer technologies and more carbon efficient vessels.
We have 1.4 billion remaining investment in 21 new building vessels, but we deliver to our fleet through 2026.
In our container ships, we are acquiring fuel vessels for total of 860 million.
We hear it's down investment by entering to long-term credit worth of charges generating about 1.1 billion in contract revenue for about 6.5 years' average duration of the related charges.
In the tanker space, we entered the LR2 Aframax subsector by ordering six vessels for a total price of approximately 380 million. These vessels have been chartered out for five years at an average net rate of $26,580 net per day, generating revenues of approximately $290 million.
We have also ordered two high-speaker Martuvessels for about 80 million.
Finally on the driver fleet, we have one Cape size vessel on order that will be delivered in June 2023, which has been set that out for five years at the net rate of almost $20,000 per day.
We have been also very active and opportunistically selling all their vessels, tailed out segment fundamentals.
Yet today we have solved the total of 15 vessels with an average age of approximately 14.5 years, for 242.2 million.
We sold 7 tanker vessels for a total consideration of about 160 million, taking into advantage a strong tanker market and the corresponding increase in demand for second-hand tonnage.
Also, we sold 6 dry bulk vessels for a total price of 82.4 million.
We continue to secure long-term employment for our fleet. As Angeliki mentioned earlier, in Q4 we have created over €160 million additional contracted revenue.
Approximately $110 million relates to seven container ships chartered for an average of two years at an average net rate of $21,296 net per day.
Also we have contracted two tanker vessels for a Navas duration of 2.7 years at the net rate of 27,000, $18,89 per day, expected to generate over 50 million in revenue.
Our total contract is driving you amounts to 3.4 billion. 0.8 billion relates to our trinket fleet, 0.4 billion to our dry palli fleet, while 2.2 billion of our contract is driving you, comes from our containerships, which centers extending through 2056 with the diverse group of quality counterparties.
About 55% of this contracted revenue from container 6 will be earning the next 2.5 years.
I now pass the call to Erichir on your shafo, which will take you through the financial highlights.
Thank you, Stratos and good morning all. I will briefly review our un audited financial results for the first quarter of 2023. The financial information is included in the press release and summarized in the slide presentation available on the company's website.
Moving to the earnings highlights in slide 13, total revenue for the first quarter of 2023 increased by 31% to $309.5 million compared to $236.6 million for the same period in 2022. Time-charted revenue for the period is understated by $13 million.
because you as guapa rules require the recognition of revenue for a chart as with de-escalating rates on a straight line basis.
Available days increased by 24% to 13,908 compared to 11,228 for the same quarter last year.
Our average time chart equivalent rate increased by 2% to 20,811 per day compared to 20,386 per day for the same period in 2022.
In terms of sector performance, both tankers and containers enjoyed improved rays compared to the same period last year.
PCE rates for our tankers increased by 86% to 28,477, and for our containers by 29% to 34,987. In contrast, our drive lead PCE rate was 45% lower.
compared to the same period last year at 10,998. EBDFQ123 increased by 50% to 188.8 million compared to 126.1 million for the same period last year.
Time charter and voyage expenses increased by 22.7 million as a result of higher bunker expenses as a number of our vessels were employed on freight voyages and high-bere boat and chartering high expenses, following recent vessel acquisitions. Operating expenses and general administrative expenses increased mainly due to the expansion of our fleet.
Net income for Q123 increased by 16% to 99.2 million compared to 87.5.7 million in Q122.
AnxPay unit was $3.22. Net income was now category affected by a 22.3 million increase in interest expense, mainly as a result of the increase in adabres interest rate cost from 3.7% in Q1 2022.
to 7% in Q1 2023. Turning to slide 14, I will briefly discuss some key balance with data. As of March 31, 2023, cash and cash equivalence were 213.2 million.
In Q1 2023, we paid 62.1 million of pre-derivated instruments and other capitalized expenses under a new building program and 51.3 million for vessel acquisitions and improvements. We sold eight vessels for 157.7 million NETs.
adding 100.8 million cash after the repayment of their respective debt. Other current assets decreased mainly due to the decrease in accounts receivable from Chattelj which were settled post year end.
Another kind of liability decreased following the payments made in accordance with the vessel management agreement. Long term borrowings, including the kind portion net of the third fees, amounts to 1.87 billion. Net debt to book updateization decreased to 38.4%.
Slide 15 highlights our debt profile. We continue to diversify our funding sources between bank debt and lease instructors, while 32% of our debt has fixed interest at an average rate of 5.6%.
We also try to mitigate part of the interest rate cause having reduced the average margin for our floating dead by 50 basis points to 2.6% from 3.1% in Q1 2022.
Our maturity profile is staggered with no significant balloons due in any single year.
Slide 16 gives an update of the Q1 2023 debt developments. In terms of our new building program, approximately 75% of our new building debt is already concluded. Or 91% if we include those in documentation phase, at the Navajo margin of 1.8%.
We have used the opportunity to expand our financing resources, adding new banks and resources, while we have also included our first export-credit agency back facilities in China and South Korea.
Finally, we have arranged 95 million of new financings for existing vessels at an average margin of 1.8%, representing an improvement of 171 basis points from the previous financings.
10 to slide 17 you can see a RISG initiative. We aspire to have met zero emissions by 2050. In this process, we have been pioneering by investing in new energy efficient vessels and reducing emissions through energy saving devices and efficient vessel operations. Navigals is a social conscious group whose core values include diversity.
Inclusion and safety, who have very strong corporate governance and clear code of ehics. Our Board is composed by majority independent directors and independent committees that oversee management and operations. I now pass the call to Ted pattron to take you through the industry section. Ted, Thank you, ary.
Please turn the slide 20 for the review of the tanker industry. World GDP is expected to grow at 2.8% in 2023 based on the IMF's April forecast, and it's forecast to be 3% in 2024. There is an 85% correlation of world-level demand to global GDP growth.
In spite of economic uncertainties in the Ukraine crisis, the IEA projects a 2.2 million barrels per day or 2.2% increase in world demand for 2023 to 102 million barrels per day, exceeding 2019 pre-pandemic levels.
China, in particular, counts for 60% of global oil demand growth in 23, rising 1.3 million barrels per day, or 8.8% over 2022, to average at all time high of 60 million barrels per day. After strong Q4, cross-oacet classes from Tangerines continued in 2023 on the back of strong supply and demand fundamentals,
minimum fleet growth and shifting trading patterns resulting in longer haul trade routes, especially for Suez and Affirmax.
Recent declines in US crude exports and OPEC cuts, although less than the headline numbers, have put down repressed on VLCC rates, particularly out of the NET.
Turn to the side, 21. Tank arrayed across the board remains strong. Due to previously mentioned supply and demand fundamentals can be mild with the invasion of Ukraine, which has shifted Russian crude and product exports to long-haul routes out to India and China. Additionally, European refineries are replacing Russian crude with products.
with supply from the US Brazil and the Middle East for the increasing tonn miles and trade in efficiencies.
Product tankers should also be aided by discounted Russian crew exported to the Indian Ocean and far east returning to the Atlantic as clean product. This could add upward pressure on already strong rates.
2023 crude and product tonmile growth is expected to increase 5.6% and 10.9% respectively was continued tonmile growth in 2024.
Turn to the side 22. The OCC net fleet growth has projected at 2.1% for 2023 and negative fleet growth of 1 negative 1.5% for 2024. This decline can be partially attributed to owners' hesitance to order expensive, long-lived assets and light of macroeconomic uncertainty.
and engine technology concerns due to CO2 restrictions enforced since the beginning of this year.
The current record low order book is only 1.4% of the fleet or only 13 vessels to lowest in 30 years. 11 of the LCC is delivered during the balance of this year, 9 in 24 and 9 in 2025 and 26. That's over 20 years of age or 14% of the total fleet.
or 127 vessels, which is about 10 times the order book.
Turn to the side 23 product, tanker net fleet grills is rejected at 1.6% for 2023, and only 0.3% for 2024.
The current product tank order book is 8% of the fleet or 188 vessels, one of the lowest on record. And it compares favorably with the 9.9% of the fleet or 358 vessels with your 20 years of age or older.
including the Tanker sector review tanker rates across the board continue to strong levels. The combination of below average global inventory, oil demand returning to pre-pandemic levels, new longer trade routes to both crude and products, as well as the Lotus autumn book in three decades, and the IMO 2023 regulations should provide for healthy tanker earnings going forward.
Please turn to slide 25 for the review of the dry bulk industry. Normal seasonality in Q1 and slow than expected recovery in the Chinese economy put down in pressure across all asset classes, particularly Cape size.
The Bolteg dry index, the BDI average only 1111, a circa 50% reduction from the same period last year, and the lowest quarterly average is 2,2 of 2022.
Overall, the Chinese reversal of a zero COVID policy and additional fiscal stimulus combined with the week in US dollar point to stronger demand during the second half is indicated by higher import numbers for INR coal as well as higher futures on all asset classes.
Overall, drive both trade in 2023 is projected to increase by about 2%. Going forward, long-term supply and demand fundamentals remain intact. China's reopening economy, the historical auto book, declining net fleet growth, during the lot of part of this year and into 2024.
So, offering US dollar and tightening GHG admission regulations remain positive factors. Please turn to slide 26. With regard to INR, following the reopening of the Chinese economy, China's GDP grew by 4.5% in Q1 of this year. Further, China's fiscal stimulus focus on supporting the real estate sector should boost INR demand in the second half of 23.
Overall global I know, traders expected to increase by 0.6% in 23, with trade increasing by 8.1% in the second half of 23, over the first half of this year.
concerning coal. Global coal consumption reached a record 8.025 billion tons in 2022. And that figure is expected to be surpassed in 2023. The Ukraine crisis continues to impact global coal imports as European supply concerns persist. The EU ban on Russian coal will lead to shifting trading patterns toward longer-home routes.
Overall 2023 C-borne cold trade growth has expected to be supported by an estimated 4.4% growth in ton miles. Additionally, cold trade has expected to increase 5.4% in the second half of 23 over the first half of this year.
2.2% in this year. Trade route adjustments due to the war are shifting trading patterns to the longer-home routes. The global grain trade continues to be driven by heightened food security issues driven initially by the pandemic.
Tonmal growth is expected to increase by 4% in 2023 due to the war and weather-related crop harvest issues.
Please turn to slide 27. The current order book stands at 6.9% of the fleet, one of the lowest since the early 1980s. Netfleet grows for 2023 as expected at 2.4%. And only 0.6% in 2024. As owners remove tons and stat has become unaccommit due to the IML 2023 CO2 rules and force since the beginning of this year, vessels over 20 years of age are about 8.8% of the total fleet, which compares favorably with the historically low order book.
And concluding our dry bulk sector review, continuing demand for natural resources, China's reopening, war and sanction related long-awaited trade combined with slowing pace of new building deliveries, all support freight rates going forward.
Please turn to slide 29 for a review of the container industry.
After three consecutive quarters of falling rates to Shanghai Container freight index, SCFI may have found a floor, at least temporarily as the index bounced off a low of 907 in March, and currently stands at 972, which is still higher.
above the historical pre-COVID averages. This is mainly due to China's reopening. It's 4.5% GDP growth in Q1, and increasing exports and in turn, increasing box and time trial rates recently.
from macroeconomic issues, including inflation, the war in Ukraine, and elevated deliveries.
As you'll not know, in the graph in the lower right, the US retail inventory to sales ratio is off the recent low, but still low below the long-term average.
The graph on the lower left shows a continuing growth in US-consuming purchases of goods, which is still above pre-pandemic levels. In ports of the US have slowed, easing port takeaway bottlenecks and port congestion. Containership rates have tightened recently surprising most analysts as imports continue and newbie deliveries are slow to hit the water.
Overall, 2023 container trade is projected to decrease by 1.1% in 23, but increased by 3.3% in 2024.
Turn of the slide 30, NIDF leak gross is expected to be 6.9% for this year and 5.8% for 2024. The current OTO book stands at 28.4% against 11.4% of the fleet, 20 years and age or older, about 72% of the OTO book.
is for 10,000 T-EU vessels or larger. And concluding the Container Sector Review, although supply and demand fundamentals remain challenged due to economic and geopolitical uncertainties, the combination of China's reversal of a zero COVID policy, additional fiscal stimulus, and the IMF's April revision to world GDP growth to 2.8%.
in 23 and 3.0% in 24, provide a counterpoint to a challenging 23.
This concludes our presentation. I'd like now to turn the call over to Angelique from her final comments. Angelique?
Thank you, Dad. This completes a formal presentation. We'll open the call to questions.
Thank you at this time. We will open the floor for questions. If you would like to ask a question, please press the star and one on your touch tone phone.
You may remove yourself from the cue at any time by pressing star 2.
Once again that is star and one to ask a question. Our first question comes from Omar Nakhda with deffries.
Thank you. Hey guys, good afternoon. First, I just wanted to maybe ask strategically about the business and obviously the balance sheet. You've gotten the net LTV down to 42% from 45 last quarter. Your aim or target is to get it to 20%, 25% threshold. It looks like you're on pace to get there perhaps over the next couple of years.
I wanted to ask, is there something you're looking to do strategically when you get to that point versus not being able to do that now? Or is it just simply you're looking to do that bird to have that added flexibility down the line?
Good morning Omar. I mean, this is...
By the way, I think that you got it well. We are well positioned. We are generating the gas. I mean, our default vehicle model is performing well. Our 4.5 billion assets in the first quarter generated gas at about a meter of three from 42 to 45% into four.
from five years over the two years. And we are seeing, and this is actually performing much better than we thought, on the tankers, the other sector we are in. We see structural changes, strong-term mild demand on crude, strong-term mild demand on products.
Restricted supply and good cash flows and on the dry bulk Second half of the year can be because of China no much here here on the first half
So with that background, and knowing that we cover all our expenses, and we have 40 million of above our expenses for the remaining nine months, you know that we have 16,000 days. We do your own calculation of what the LH will be, that every 10,000 will provide 160 million of free cash.
And this is about the end of the story, about total returns.
We bring in our net LPV down to 2025 and it's about our total returns. By doing we should be able to measure on this total return and we have I think we have done well and I slide on that if you look since 2020 when we started this.
this strategy, this diversify strategy, and we hope that we will do well in the future.
is a patient, but also a very steady strategy. We have articulated over the last
But also very steady strategy, we have articulated over the last quarters.
Thanks, Angeliki. Yeah, no, that's clear. And then just in general in terms of how you are, clearly you have the portfolio approach, you're diversified across three segments, and each market is moving in its own direction, presenting its own opportunities and risks perhaps. Thank you very much, Ari.
I kind of think about where your position now, you've sold some older ships, you've brought in some of that cash, your new buildings you've mostly locked away on longer term charters, so you risk those. In terms of kind of how we think about Navios and strategically with WIP, it's a whether it's use of cash or just how it looks at it, it's a leader manages it.
Should we think, obviously, in the current environment is perhaps one, a seller of older ships and then also a harbester of cash flows and in three, not going to be as a quisitive on the acquisition front as it has been? Is that fair to say? Basically selling older ships.
harvesting cash and not being equisitive.
This is where modernizing our fleet, that is a clear path, getting more efficient vessels, if it makes sense, and your investment, your return on your investment is quite significant. We are actually seeing that as we are there to do an acquisition, depending on the opportunity. So it is not...
I think what we like about the diversified platform is that we can have, if we can be able to capture every opportunity that comes to us without being restricted one way or the other. I mean, you remember when we were doing the right bank? In a...
In 2021, when we did our containers early on, then we did the new sector in the tankers. We expanded again on the tankers. So we can be very – we will see the best, more attractive opportunity. More denising the fleet is something that we will be always ongoing.
I think that creates on every aspect, on being more, you know, one efficient fuel, efficient is a driver in the market. Thank you. And maybe just one final one for me, just about the containers is clearly that's been a nice source of visibility, and you paid off a lot of those shifts,
medium-term charters. Just wanted to ask, you do have a few vessels that roll off contract in the next several quarters. Not a tremendous amount, but you do have some that roll off. What do those contract discussions look like? And maybe are you able to give us a sense of how far in advance of when those ships...
would be scheduled to roll off. Would you be able to secure them on new contracts today?
Actually, Omar, this is a very interesting rule. Of course, it's about the sector, but we show very healthy levels. We have basically fixed everything, and the struggles will take you through, but basically we fixed everything and had very good and attractive grades.
and what we see from the market is, you know, you can actually secure nice cash flows and visibility from that. I mean, no matter the fixing for all of them, the latest transactions are indeed.
which generated over 100 million of contract driving for the next two point seven years. And if you see also you can see it in our presentation, we have nothing left opening in 2023. So okay, we have a vessel that you know, that it will be a very period is between, let's say the end of the year and beginning of next year, but effectively there's not open.
So we have fully covered our position in the next couple. Thanks, Rodgers. And I guess, you know, say, for a vessel that's opening up in six or seven months is now the time that you're having dialogues or that you're become much more of like an August of temper time period.
We have fixed the container sector, basically. We don't have anything open.
So yeah, the ones that are coming next year, I think today it's too early to start thinking about that. I think this is a question that we have to watch going to the end of the next quarter. You know, at the later part of Q3, this is when we start discussing the market and seeing what is the availability.
Okay, well thanks, Stratos and thanks Angelique. Thank you.
Thank you. Our next question comes from Chris, whether we with City Group. Good morning, good afternoon. This is Rob on for Chris.
Good morning. I guess just to piggyback on that last question with regard to the container ship market, could you give us a sense of what your expectations are for the back half of the year with regard to...
to volume kind of across the broader industry. It sounds like we're starting to see a little bit of seasonality return to the container ship trade and how that kind of fits into your time charter approach. You know, be great to get a little bit of color there.
I think the good thing is that we are totally fixed for the container. We have only one vessel at the end of the year, but that will give the container a sector idea. You see the, you know, use the SCFI as a proxy, right? It's a box rate, but use it as a proxy for the industry and it's kind of bounced off the bottom.
Maybe we found the bottom here. You see the U.S. You see the truck we have on one of the slides. The U.S. consumers continues to buy goods at a healthy level. There will be some pressure on the rates, but the good thing, obviously we've already mentioned and yet in the other question was, we're fixed out for the year. But for us, I think the market, the second half could...
shows some pressure on the big rates. Remember, most of our ships are below 13,000 T.E.U. And if you take the audiobook for the entire fleet, it's probably close to 30, but for under 13%, it's probably around 13, 14%. So that holds up well for our sector. And I think that's why you've seen us be able to put out ships.
forward for period at some higher rates. Yeah, no, that certainly has come across and you've been able to secure the vessels over the past several quarters. It's a very good rates that are adding to your contracted revenue as well as.
generating some nice free cash. So I guess, you know, as you look forward with regard to the vessels, you know, kind of looking out a year, some of those container ships come off charter. How do you think about kind of the redeployment? Would you prefer to have those under long-term charters as well?
If we're in a kind of a stronger, demanded environment, would you consider using some of those the way we're using your tanker fleet kind of more on shorter term charters?
The model we have is to put out vessels on a medium to longer term charter according to where we are in the cycle. When we get to the end of the year, if the cycle is different than we think, we may be putting out the ships on longer term. But let's see then where the cycle is for each sector, especially the containers. Maybe it's a surprise that it's like it didn't Q1.
And then you have Kuliev taking advantage of that with regard to some vessel sales as kind of tie a bow on the leverage question. How should we be thinking about kind of the deleverging? Are there more? Are you hoping to kind of do additional vessel sales over the duration of 20%.
I say of the message that we had on our It's about a certain message that we already Sold this year and we're gonna be already delivered in the Q1 and Q2 You know they may be coupled but I think the majority of this has been completed
I think where we see the cut generation is in a very simple thing. We have contracted the revenue that exceeds a total expense by 70 million for the remaining nine months. And we have about almost 16,000 open and indexed days. I mean, if you see...
On page 9, you have the actual type of vessels in the open days. If you go to late, whatever you assume rate, this is your strong cash flow generation. Every $10,000 is about over $150 million. So that's basically how you can deliver quite significantly with...
Thank you, this completes our Q1 result. Thank you.
Thank you.
This concludes today's call. Thank you for your participation. You may disconnect at any time.
For.
That.