Q2 2023 EuroDry Ltd Earnings Call
Thank you for standing by ladies and gentlemen, welcome to the Euro dry conference call on the second quarter's 2023 financial results, we have with US today, Mr. Ari Speedy speed, thus, chairman and Chief Executive Officer, and Mr. Tahoes oddly he's chief financial.
Officer of the company at this time all participants are in a listen only mode. There will be a presentation followed by a question and answer session at which time if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced I must advise you that this conference is being recorded.
Court. It today, please be reminded that the company announced its results with a press release that has been publicly distributed.
Before passing the floor over to Mr. Pete does I would like to remind everyone that in todays presentation and conference call Euro drive 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 extra.
Patients that involves risks and uncertainties that may result, in such expectations not being realized.
I kindly draw your attention to slide number two of the webcast presentation, which has the full forward looking statement and the statement. What was also included in the press release. Please take a moment to go through the whole statement and read it and I now like to pass the floor to Mr. Pizza. Please go ahead Sir.
Good morning, ladies and gentlemen, and thank you all for joining us today for our states installed for the school.
Together with me is Mr thoughts, especially our chief financial Officer.
The purpose of today's call is to discuss our financial results for the six months and quarter ended June 30th.
Great.
Please turn to slide three of the presentation.
Oh financial highlights are shown here.
For the second quarter of 2023, we reported total net revenues of $10.3 million and the net loss of $1 $2 million or 43 cents loss for basic and diluted share.
Adjusted net loss was $1 3 million or 48 cents.
Adjusted loss per basic and diluted share.
Adjusted EBITDA for the quarter was $2 $5 million.
Please refer to the finish of the Leesville conciliation between the adjusted net loss and adjusted EBITDA.
The board of directors approved the extension of it said purchase program, which was recently established enormous strength in 'twenty two for another year.
The program provides the company with us.
Jason to purchase up to $10 million.
Today, we have a defensive 216000 of our.
Homeowners says I E about 80% of our total outstanding shares in the open market for about $3 $75 million since the inception of the program.
The extension of outstanding purchase program was approved by the both of the diabetics dose as the stock has traded against the very large discount to our net asset value.
Thus buying our own stock as an attractive investment opportunity for us.
The Board will review, the pro and get them up to the period of 12 months, who have asked us to $10 million of deployment.
Share repurchases will be made from time to time for gosh in open market transactions with daily market prices or in privately negotiated transactions.
The timing and amount of purchases under the program will be determined by management based upon market conditions and other factors.
The program does not require the company to purchase any specific number or the amount of shares and may be suspended or reinstated at any time at the company's discretion in thousand Oaks.
We are also very pleased to announce that today, we posted the 2022 use of G D Boston have websites.
We are committed towards all three elements of ESG.
Then vitamin a social impact and they'll governance.
We are certain that the commitments benefits all our stakeholders in more ways than one.
That's supposed to really discuss some financial highlights in more detail later I'll need a presentation.
Please turn to slide four has the potential highlights.
I've said it got really ugly in the second quote the dry bulk market stepping down again that he's seen by July 15th benefits have either very low levels last seen in January of this year.
This decline in the market pace also affected our results for the second quarter.
I've been pleased to about the vessels continue to be employed on the index linked charter doesn't cause most of 'twenty 'twenty, four and 50 55, respectively.
Huntington five 5% of the average basket comes to have a mix of index.
Two other vessels are fixed up to meet him time charter this constantly above market rates, while the remaining six vessels are employed.
The other sort themselves.
You can see the specifics of the various chapters was concluded in the accompanying presentation no thing the big developing shot that H since the beginning of the second quarter.
During this call we will have by that too with a fade positions taken in the diet Colas too.
They mitigated the effects of their lowest shots of age that's the.
Could be.
We realized the gain of $2.7 million due to these kids.
Yeah.
So we've got things that I took simply pass on most of the vessels Santa Cruz and most of those vessels because they are indeed being underwent dry bulk.
For almost two full days starting towards the end of the previous calls and the latter for 2022 days during the second quarter.
Furthermore, motor vessel mortgage was lost was commercially off guy here for two days during the quarter.
Yeah.
They should Vince it's got us most to Julien. This score those happens in April 29 to 2020 to be weighted more professionals. Good Scott.
These days the U S coast got the Corpus Christi for certain deficiencies.
It took a long time.
For the deficiencies to be rectified.
As usual I have to provide the critical that we get on the deal.
Half of your own and somebody needs it each of which supposed to the security of $2 million for alleged violations.
The vessel was able to say you know on June 7th after these actions.
At the moment there is a notification of claims and litigations against this all of them all of the manager.
We believe that if at all and the majority of the costs will be covered by the schools.
Nevertheless, we have taken a $500000 provision in the Q2 work hours.
The vessel was technically off hire for about 35 days during this period.
Some flow soon to be resolved and the loss of the vessels laid out and see if he's on the cancellation of a look at these $25000 for the big soft goods.
Thus, forcing us to seek upside unless people employment.
The vessel was finally exhausted at 18 and a half thousand dollars a day.
In August <unk>.
Although she had to incur an additional 15 days with waiting.
After the completion of discarded bouygues shui perceived to have scheduled that either.
Yeah.
Slide five which shows the main particulars of the 10 vessels of compose our fleet, which includes five panamax doing too much to come so much and wants to put amongst that I brought a guy who is with the total cargo capacity of approximately 750000 deadweight tons and then after that Dave's of around 13.
For the half years.
Now please turn to slide six which are graphically shows our fleet employment.
As you can see how Calvin six to eight Chicago This what's been defensive thing Stan.
Stands at around 71%.
This figure excludes ships on index charters.
Which are open to market fluctuations that have secured employment.
We've got them to trade the vessels himself themselves, reflecting the current state of the market.
I shouldn't these debates and kidneys, we will aim to secure longer term sources for some of our vessels.
Turning on to slide seven we'd go over the market highlights for the quarter ended June 30th.
Thank you for me up until last week.
The second quarter, we saw a much weakened dry bulk market that give us those sectors because of age taken that all moved towards the end of the second quarter.
During the second photo slinky 20, so he'd be able to spend them exports Asia was up I understand in the house thousands of dollars a day.
By June 5th Youth sports have each had developed the books with $7900 per day.
And can you spell it would be two.
<unk> 8000 <unk>.
$700 a day.
I mean literally Japanese one year time charter.
For Panamaxes was approximately 14100 Boes a day during the second cool.
Why is it age stuff is there anything lower to about 11090 funds with both day by June 30 is the problem with who's standing at $10755 per day.
We finished the stimulus developers with stupid imax's with declining pace. However, we have not seen the slight uptick in the recent days with governance be doing but I know what it's supposed to look.
Yeah.
Please turn to slide nine.
With its latest update in July 25th C. V. I didn't Miss latest forecast is modestly positive and surprised with addictions.
Yes.
However, still weak by historical standards.
Global growth is projected to fall from a nurse can make it to be in the 5% and 50, 52% to 3% in both 2023 and 'twenty 'twenty four.
From a previous predictions of two 8% from 50 50 as People's thinking 50 54.
The slowdown in global activity is anticipated during the second half of it being the first half of 'twenty 'twenty four but most of obsession.
We will look for a gradual stabilization in the second half of 'twenty 'twenty four.
The latter is supported by the rate cuts in many areas around the world and is the expectation that inflation has continued to fall.
So even if you're opening appears to be uneven and volatile even storm some might say.
Huge softness in the housing market growing concerns of local government government financing.
And then in certain extent of Midlands vitamins for the export sector, where you would be calling on these near term growth path.
Student sizes Goldfarb with forecast of five 2% in Tennessee D C and four 5% and 53.
Before it remains unchanged.
Is it growth in other emerging and developing guns, which is projected to decide the overall global economic slowdown.
There is strong demand from India, which is delivering the biggest upside surprise. So far this year with its high GDP growth in Q1 does that exceeded expectations.
This was driven by strong government capex instead of Suez.
Exports that anything that's out of gate I don't think gamestop the parts of the world.
Despite the general global slowdown they usually call on me spoke us the most definitely grow by one 8%, which compares to the previous item if growth forecast of one 6% seems to suggest the U S can potentially avoid the recession concerns in the circumstances.
Sweet.
However, the IMF seems to have low these growth projections for the U S. We're late for 'twenty 'twenty four down to 1%.
We believe each 141% growth forecast.
Well the other side of the world that are suddenly found him he's having better than expected.
Is the estimate of one 5% for fiscal 'twenty.
Well just one 7%.
They are usually.
Despite the effects of decided it seems with the western financial markets and many export market for vessels competitions commodity disclosed.
You won't be slow and we continue to be slower than earlier predicted with EMEA up 49% of devoting 50, 53, and 145% closing 2054.
Finally, according to the IMF, the Oregon, Boston Babies for shipping, India, China, and ASEAN five we continued to grow with the ache between four and a half to six 3% during both 2023 and 'twenty 'twenty four.
I was suggesting that drybulk cargo demand.
Could hold up with.
This view is reflected in the latest clarksons forecast as despite the slightly slower overall global growth expectations Drybulk demand is expected to ease the Duluth empathetic to both a 323% this year and two 4% in fiscal 'twenty four.
Dry bulk trade growth is improving driven by the five east and digital political medicines, which boosts done my fellow.
Please turn to slide 10.
The order book continues to fuel positive market sentiment.
As it remains one of the lowest in its history.
The order book as a percentage of total fleet as of July 2023 status, just seven 4%.
This suggests minimal fleet growth over the next two to three years potentially leading to cat and mouse gets even worse.
Obviously I have a few months.
No.
Additionally over the next couple of years and environmental regulations could further influenced supply boat usage by forcing some vessels to retire or reducing their operational speed.
So I move to slide 11, let us now look into supply from the Memphis and Mississippi.
These days.
According to Clarksons latest football nuclear leveraged as a percentage of total fleet I'd expect it to be three 8% and 50 50 suite.
He presented at basically full and two 4% and 50 55.
As of July 20 <unk>.
Dry bulk vessel operating fleet was 15350 vessels, but the actual fleet growth is expected to be lower than the aforementioned figures due to scrapping and slippage.
80% of the fleet is older than 20 years old and they are good candidates for scrapping, especially if the market remains at current levels.
We used a slide right.
To summarize our outlook for the Drybulk market.
The dry bulk market drift downwards for most of the benefits that you speak to why geopolitical uncertainties remain.
We've got plans in key regions, such as European coal imports from the Chinese real estate sector sector, coupled with lower port congestion, which saves active supply contributed to this market weakness weakness across the sector.
Aside from the little lower both congestion vo slowest speeds are motivating these tactics like at all because new Orleans reduced emissions regulations will result in slow speeds.
Or some of the macroeconomic environment improved during the quarter as an installation started coming down in many countries.
And if I understand that it's a revised economic outlook forecast upwards.
Nevertheless, uncertainty remains over the scale and timing of potential market movements.
He's a sonata you said I don't think the key factors, including the global and say music called Gnome as discussed and therefore medicine supply impacts from originations.
On balance, though some improvement imagining she is expected to materialize in the coming quarters.
Light demand for them and it does appear more balanced for the remainder of specificity.
Dry bulk trade volumes up, especially for iron Northern cold and the mud the scheduled fleet, but also on the supply side. We would expect that we will have a strong foundation for <unk> to be spud in 2024.
The global economy continues to grow I suppose you sometimes lose focus.
Let us now turn to slide 15.
The left side of the slide.
One year time charter rates of fireworks dry bulk vessels since 2000 and do it.
As of August for the one year time charter rate for Panamax vessels with a capacity of 75000 deadweight ton stood at $10775 a day.
Lower than the median.
On the other hand.
You can see the historical price range for a 10 year old Panamax vessel, which has a carbon price of 21 and a half million dollars.
Over the past year dry bulk prices have been gradually coming down from the previous high levels, yet they are still higher than historical average and median prices.
The different development of vessel prices and market of age has it become a hot topic.
Flex.
The father Murphy means.
These high levels, while charter rates have declined significantly.
As prices have started to be pretty conservatively.
Separately conservatively positioned the company to take advantage of a probable improvement in that age in the following quarters.
Our strong balance sheet will continue to be used for further stock repurchases and but that shouldn't vessel acquisitions.
Let me now pass the floor over to <unk>.
Our CFO to go over vanished fundamentals should highlights in more detail. That's just the floor is yours. Thank you very much and good morning.
For me as well ladies and <unk>.
Andrew.
Over the next four slides I will give you an overview of our financial highlights for the second quarter and first half 'twenty two 'twenty three.
Better than the same periods of last year.
Well, that's a niche turn to slide 15.
For the second quarter of 2023.
We reported total net revenues you'll standpoint.
Representing 57% decrease.
Total net revenues of 1 million during the second quarter of last year.
Would you be could easily was mainly the result of the law.
Time charter rates our vessels during the second quarter of this year compared to last.
And second the increase of criteria of progression would start to see these.
These measures.
The company reported net loss for the period.
One 2 million.
<unk> to net income of $10 6 million for the same period, the second quarter of last year.
You guys and other financing costs for the second quarter of 'twenty three.
The $1 4 million compared.
Compared to <unk> 8 million for the same period.
You too.
You kind of expense during the second quarter of this year was higher mainly due.
The increase in Canada, and they increase.
LIBOR swap rates haven't launched yet.
Over the period compared to last year.
So to speak up for the second quarter of this year to the borrower.
Kind of a $40000 compared to perhaps kind of annoying.
During the same period of time.
Adjusted EBITDA for the second quarter since 2003.
Duane across media compared to $17 7 million during the second quarter.
Basic and diluted loss per share.
The second quarter of 'twenty fantasy sports and <unk> calculated it.
About seven points to 47 6 million weighted average number of shares outstanding compared to earnings per share.
66 cents basic and $3.61 diluted.
It's been about $2 9 million weighted average number of shares outstanding for the second quarter of two after 'twenty two.
Excluding the effects from the loss.
Our lives gain theory of it is yes.
The adjusted loss for the quarter and gene therapies.
Great.
What's your B 48 cents per share basic and diluted.
Going back to this issue.
Second quarter of 2022.
Where we would see.
43 cents.
Basic and it's been doing this 38 diluted income.
So I respect it.
Usually security analysts know keep loops.
A nice part of their.
Their published estimates and that's why we have Josh Congress answers right.
Let's now look at the numbers for the corresponding six month period, ending June 32023 and Crazy.
Well the first half of this year. The company reported total net revenues of $21 7 billion, representing a 44, 8% decrease over total net revenues of 59 four as seen here.
During the first half of 222 and again as I've seen the result of lower time charter rates are versus area. During the first half of this year.
The company reported.
Net loss for the period to sit in the U S compared to a net income of $21 1 million during the first half.
Okay.
In Paris, and other financing costs for the first half a strange thing to see.
All of it.
19 million.
And after one 4 million for the same period of last year.
This increase again is mainly due to being chief among them is that we can.
The increase in the benchmark rates on loans.
It's a pace compared to the same period.
Yeah.
Okay, well this is where we kept interest income which amounted to almost one 4 million compared to perhaps clearly no interest income.
The same theme here to phase two.
Adjusted EBITDA for the first half.
Well this year was 440 Nathan.
Compared to $26 4 million.
The first half of 2022.
Basic and diluted loss per share for the first half of this year was 98 cents calculated on two four we need to meet him.
Basic and diluted weighted average number of shares outstanding compared to <unk>.
<unk> $755 basic and $7005 diluted for this.
The first six months.
You too.
Again, if we exclude the effect on the loss for the first half of this year.
The unrealized loss of EBIT.
Adjusted for the loss.
Common shareholders for the six months.
Yeah.
If anything we see what's there being <unk> basic.
Excellent.
The weight gain.
Boneless, and 77% and 77 cents basis and $6.68 diluted for the first half.
Okay understood.
Let's now move to slide 16 to review our fleet performance.
As usual.
We will start our review by looking at our fleet utilization rate for the.
Second quarter of 2023 compared with <unk>.
Quarter of 2022.
Our fleet utilization rate is broken down to commence shipment of bearish.
During the second quarter of <unk>, our commercial utilization rate was 98, 3% Y O bearish member utilization rate was 95% compared to 99, 4% commercial and 99% operational for the second quarter of last year.
Well my goodness that investors were owned and operated during the second quarter of 2023.
I mean, its time charter equivalent rate was 12000 walk on getting the $79 per day compared to 10 basis points 79 vessels.
We owned and operated during the second quarter of last year and when not when it's almost twice as much bring defeat.
$490 per vessel per day.
Our total daily operating expenses.
<unk> management fees are average 6000 separate foundry I mean, maybe dollars per vessel per day during the second quarter of this year compared to 5000 tons of $67 per vessel per day for the second quarter of 2022.
General and administrative expenses expressed or not.
Per day per vessel basis amounted to <unk> $6 for the second quarter of 2023.
She is kind of $95.
Second quarter of last year.
If we move further down we stayed where we can.
You can see the cash flow breakeven.
11 weeks, we hit too right.
For the second quarter of this year, and which takes into account dark Berry broken expenses.
There is an expense issue on their payments.
And dividends you paid.
Staging cost.
We had no dividends for his period.
Thus for the second quarter of 2023 our daily cash flow breakeven rate divorce booking falls in one frame and $20 per vessel per day compared to 11009 firms and they could go to the store visits per day for the same period of this year or last year.
Now, let's go to that large part of this table.
Looking at the figures for the first Scott.
23 income bedroom with equivalent you took last year.
During the first half was 2023.
Mexico utilization rate was 99%.
Our parish in utilization there as well.
It's 90 799, 7% compared to 97 point for Comercio and 99.3 of finished goods for the same periods of last year.
Well not boots 10 vessels were owned and operated.
In the first half of the year I mean, if.
The time charter equivalent rate of $11696 per vessel per day compared to 10 points you've been keeping vessels.
We operated during the same theory Twenty-twenty do anything from an average $24025 per person per day.
Our vascular beds in expenses again, including management fees were $6424 per vessel per day for the first half of Q3 compared to $5806 per vessel per day for the same period last year.
And G&A expenses again express understand data investment basis were $882 this year compared to $778 for the first six months was 2022.
Similarly, looking at the bottom of this table, we can see the cash flow breakeven rate for the first half was 20 between D C.
Especially I mentioned before it takes you to a commentary about expenses interest expense and loan repayments.
Yeah.
25th we had in $2661 per person per.
Per day compared to 12000.
And $87 per vessel per day for the same period of last year as we face higher up at Hastings dairy going to enter the interest expenses.
We offset by nowhere loan repayments.
Let's now turn to the next slide slide 17.
If you are a big profile.
Thank you and trying to see if we get outstanding bank debt of about 78 million.
We can get the charts on the top of the slide you can see the parent debt repayments. During the first half of this year amounted to about 17 point it to you.
Including balloon payment, which were subsequently refined huh.
$5 7 million scheduled for the second half of 'twenty.
Interest bearing before our debt repayments are expected to decrease to $9 7 million.
Huge antibody repayments followed by the further decrease down to $6 seven 6 million and 2025 26, respectively.
Actual G fast is 'twenty to 'twenty three the average margin in line with that what you said.
About 64%.
We actually we had a shelf raise of about Q4 and 57%.
The ASP for the portion of our debt covered by our interest swaps swap contracts we estimate.
Most of our senior debt.
At the end of the quarter stock stood at about seven 7%.
Yeah.
At the bottom of this and what we can see our projected cash flow breakeven rate for the next 12 months.
Looking down into its various components.
Well if at all we expect the cash flow breakeven level firearms grandfather, it's probably in the $15 per vessel per day.
The same charts in the meeting.
You can see our EBITDA breakeven rate, which includes our therapy expenses G&A expenses and dry docking costs and we'd spend about 8001 kind of an effect of $9 per vessel per day.
Right.
Let's now move to the next slide Slide 18, the last life of my brief.
We'll go into our financial results.
We can see in this slide some highlights from our balance sheet and they seem to be fine.
Actual geofence your strength is going to see gosh, another house foods.
No balance sheet, it's about 48 6 million.
The book value of our vessels was approximately 144 million is that looking at Boston proper.
Total book value of our assets of about 192.6 me.
Well not liability side, our debt actual June 30 is do anything to finish I mentioned that it was.
Well, it's about 78 in the year, representing 54 points to finish out the book value of our assets what other liabilities amounted to $4 1 million or two 7% of the book value of our assets.
Which in turn resulted in several new safety well for both the country and $10 7 million translating to certain $941 per share.
However, based on our own estimation market transactions, we estimate that the market value of our vessels, which are well above their book value and stood at about $173 <unk> million dollars, suggesting if there are any per share.
To be in excess of $49 per se.
Recently, our share price is trading around $4.
I should've presenting at steep discounts to our net asset value.
Which in turn so that she can you just kind of appreciation potentially open for our chaperone existing investors.
And with that I concluded my remarks, and if they stay on the floor and Mexico activities sequencing is appointed.
Thank you <unk>.
I will open up the floor for any questions. We may have.
Thank you.
I'll now be conducting a question and answer session. If you would.
I'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
You May press Star two if you would 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 keys.
Please note that we will accept questions from analysts on priority basis.
One moment, please while we poll for questions.
Thank you. Our first question comes from Keith Sullivan with Maxim Group. Please proceed with your question.
Hello, Thank you and good day, Yes, you mentioned, a strong foundation for higher rates and positioning.
The fleet is that mainly moving off of more FX as are you repositioning ships or what did you like.
By that.
May mainly stays high first of all and mainly we are trading all our ships are spot on.
At this stage because freight rates are low in anticipation of higher freight dates. So we will be able to capture the market of course, we are not.
Taking out the need for face to hedge their positions at these levels we are.
Really preparing ourselves to be ready to capitalize on the strengthening market if that happens.
And you gave a lot of detail on the good heart and the Marpol violation.
Does that did that possibly you were flat more stringent regulations in that specific port Kirk or can you get give details let's start there and.
And was that the first mark call violations here.
Yeah.
Todd.
Yeah.
I spent some time on it because it was a relatively big getting she then the vessel was out of southern used for 48 days for us and we incurred a few expenses as Ed and as it was one of the reasons probably the main reason why we didn't have a profitable quota as we thought.
It would have had despite the two dry dockings that we've had that using the schools with the <unk>.
So.
That's why I spend some more time on that.
There has been no specific allegation of any oh, you're doing but it might come but we are going through the four that I don't think it reflects a any significant changes in anything. It was just you know and then unfolds.
Some of the incidents that are May happen then happened during this instance.
What did the commentary about future.
Potential future 2 million payments reflect and did you say you posted a reserve.
500000 for that and does insurance copper or is.
Is it the amount the $2 million.
Put some context to those numbers.
Sure sure Yeah we've.
We've had two boes to get on the T. S. Four 2 million for you, though Dubai and four 2 million for the for the manager. So it's essentially a guy that has deep for 4 million a.
Which is.
By five is the maximum amount that we may need to pay if we are the E. If we can get the micro violation. If indeed that hazard class then and we saw a good even with the department of Justice.
So this.
This is the maximum that would it be payable in previous instances that we have seen in the past.
The amounts up to one and a half million have been paid.
Four of that fault.
For similar things.
Things and we think that a this will be covered by insurance and there will be some in niche some costs that will not be covered by insurance, which is why we have a I get AIDS to food topic reserved well know accounts that they could blow vision for 500.
Thousands of dollars.
We don't expect that they will need.
This thing.
And in excess of that.
Okay.
And then with the cash breakeven level.
Just my last one on that point, you said around 14000.
Does that number excluding the good heart I mean, what it has been.
Closer to 12, 12, and half or do you have that number handy here, maybe we can take it offline.
I mean, they just talked about for the quarter, but that that the number the the cash breakeven.
It includes a loan repayments are and everything.
Lots of people have elevated expenses from afar.
Okay.
And then on the potential slow steaming I mean, you mentioned energy a fishing existing ship index <unk> Si.
Carbon intensity indicator rating and then maybe some some changes with EU carbon tax going forward.
Has there been any are you preparing for any potential financial situations with any of those regulations or is anybody experienced any any financial implications.
Good day, and the suite, maybe extra abnormal offline discussion as well, but yeah. No. This is at least as a nice topic for the general discussion very briefly Uh huh.
The EU ETS are there delays and that will come into effect as of next year.
Well I think financially decided that was the main lead that wants to bring a good gene to you, though without the view of him. So he won't really affect us, but did you let it will affect you.
And the other legislations the main effects that they will have is that they will resolve the nuts needing to Steve to go at lower speeds.
If ships go with lower speeds is a positive obviously for the market because it effectively.
It uses supply of vessels.
Of close are all companies I've, taking measures to to try and reduce the carbon footprint and the way. We are doing the same and this is done through some modifications that one can do on the vessel.
She's done a slew of technological developments use of digitalization and things like that.
Great. Thank you for all the comments that you have a great rest of day.
State.
Okay.
Thank you.
As a reminder, please press star one to ask a question at this time.
Our next question comes from Christopher <unk> with Arctic Securities. Please proceed with your question.
Hello, gentlemen.
Thank you.
Yeah.
Hello Hello.
Thanks, a lot for them before.
And then crude remark, yes, I'm pretty sure. It's all of the colors on the numbers.
Just wants it.
Uh huh.
Mark.
Yes.
Oh.
Near term catalyst for any improvement in the rate.
It seems like it's a bit sluggish.
I'm not that directional currently do you believe that.
When mark and.
The revival of congestion during second half I mean, you've seen the Panama Canal that restriction there have led to some improvements that means for the container liners and all.
Thanks.
Oh sure.
Sure.
Yeah.
The vessels as well.
I think that.
Congestion has been extremely little during the last couple of months I've been all of them really lead to the.
There are bound to be effects, I think that will and get a seat the increase at all so that is historically eh and increasing the demand for certain Guy who goes Julien. This is called the full quota.
So these these historical linked Denise I think will happen it will happen again.
And we are coming out over the seasonally quiet period.
Thus.
We think that we will see improving at age, but as I said that other than to use you know conflicting.
The views now and possibilities that kind of happens so it's really difficult to call them out as good.
At this stage.
Thank you.
Regardless of that.
Yeah, great all of the yogurt.
One year time charter rate versus.
I think that would use them.
It seems like Oh.
The RMB disconnected now from from rate.
What's your view on that.
I mean, you touched upon that.
Building and that's about it.
Come down or that's great.
Hum.
Our.
That should come off I mean.
Disconnect.
It typically don't.
Mike.
My experience yes.
You are absolutely right.
That's why are what one has to get by the values have dropped significantly south of age to improve out of this.
Colin Lee.
The rates are not improving so we have started to see values are developing a little bit.
Yeah.
We will have to see how this whole thing plays out but.
We will use during this last month.
July didn't see saw some headwinds and they did it all and they are one of the dumping mode.
We will have to see what will happen.
Okay.
There is an expectation by most oh noticed that a because of the very low order book.
At some point when demand picks up and we should see a significant revived wouldn't inside a debate I think this is a valid expectation.
Yeah, I totally agree Oh.
I mean with regards to I mean, you have foreign country five.
So that looks.
Look extremely promising so.
It should broad sort of a backstop in terms of basketball yes.
With that in mind, how how do you see.
Hey, there.
Share buybacks.
Parents here.
Acquisition.
When the vessel acquisition is something that.
We are going to see yes, I'll tell you I think I know, where you're going and vessel acquisitions and we will we are considering at this stage because of the company.
Yeah, I think that if prices drop a little bit we will be able to to see profitable projects in the market.
But still the one of the most profitable projects is to buy back our own.
Stock, which is trading at such a significant discount to do all their navy. So definitely we will continue that.
The purchase of a better purchasing stock.
And we are looking at the possibility of maybe acquiring one more vessel.
Okay.
Okay. That's great. Thank you from me Thanks, a lot.
Thank you.
Thank you as a reminder, press star one to ask a question at this time.
Okay.
There are no further questions at this time I would now like to turn the floor back over to <unk> for closing comments.
Yeah.
Well, thank you all for listening into.
Today's conference call, we will be back to you.
In three months time.
Enjoy the rest of the summer.
So everybody is working.
Okay.
Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.
Okay.
Okay.
Okay.
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Hum.
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Uh huh.
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Yeah.
Hum.