Q3 2023 DHT Holdings Inc Earnings Call
Speaker 1: Good day and thank you for standing by. Welcome to the Q3 2023 DHT Holdings Inc. earnings conference call.
Good day and thank you for standing by welcome to the Q3 2023 DHT Holdings, Inc Earnings Conference call.
Speaker 1: At this time, all participants are in a listen-only mode.
At this time all participants are in a listen only mode.
Speaker 1: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again.
After the speaker's presentation, there will be a question and answer session.
To ask a question during the session you will need to press star one on your telephone.
Then here an automated message advising Johan is raised to withdraw your question. Please press star one one again.
Speaker 1: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Leila Halvorson, CFO . Please go ahead.
Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today Laila Halvorsen CSI. Please go ahead.
Thank you.
Speaker 2: Good morning and good afternoon, everyone. Welcome and thank you for joining DHT Holdings third quarter 2023 earnings.
Good morning, and good afternoon, everyone welcome and thank you for joining DHT Holdings third quarter 2023 earnings call.
Speaker 2: I'm joined by DHT's President and CEO , Zwein Mokznazkal.
I'm joined by H T <unk>, President and CEO.
Oh, Brian looks nice.
Speaker 2: As usual, we will go through financials and some highlights before we open up for your questions.
As usual, we will go through financials and some highlights before we open up for your questions.
Speaker 2: The link to the subject can be found on our website, the hashtag michiganstaps.org
The link to the slide deck can be found on our website th tankers dot com.
Speaker 2: Before we get started with today's call, I would like to make the following remarks.
Before we get started with todays call I would like to make the following remarks.
Speaker 2: A replay of this conference call will be available at our website, DHtankers.com, until November 14th.
A replay of this conference call will be available at our web.
I'm sorry.
<unk> Dot com.
Till November 14th.
Speaker 2: In addition, our earnings press release will be available on our website and on the SSE Adcoin system as an exhibit to our firm SSE
In addition, our earnings press release will be available on our website and on the city and of course as Jim had been to our form 6K.
Speaker 2: As a reminder, on this conference call we will discuss matters that are forward looking in nature.
And just a reminder, on this conference call will discuss matters that are forward looking in nature.
Speaker 2: These forward-looking statements are based on our current expectations about future events as detailed in our financial
Forward looking statements are based on our current expectations about future events that are detailed in our financial reports.
Speaker 2: Actual results may differ materially from the expectations reflected in these board looking.
Actual results may differ materially from the expectations reflected in these forward looking statements.
Speaker 2: We urge you to read our periodic reports available on our website and on the SSE's website.
We urge you to read our reports are available on our website and on the purchase journey.
Speaker 2: including the risk factors in these reports for more information regarding risks that
Including the risk factors in these reports for more information regarding risks that we face.
Speaker 2: We retain a very strong balance sheet represented by low leverage and significant
We retain a very strong balance sheets represented by low leverage and significant liquidity.
Speaker 2: S-port rent financial leverage was about 21% based on market value for the ship and that bet was some 15 million per
At quarter end financial leverage was above 21% based on market values for the ships.
That was some 15 million per vessel.
Speaker 2: Leverage has had a marginal increase compared to the second quarter due to an adjustment in market values for the vessels in addition to a new loan related to the acquisition of the HDF.
Leverage has had a marginal increase compared to the second quarter due to two months in market values for the vessels.
John you know related to the acquisition of GH.
Yeah.
Speaker 2: The quarter ended with total liquidity of $292 million, consisting of 74 million in cash and 218 million available under our evolving credit facility.
The quarter ended with total liquidity of $292 million.
$74 million in cash.
$18 million available under our revolving credit facility.
Now over to the P&L highlights.
Speaker 2: The quarter commenced with rebuts rates for the VMCC, however, with a volatile trend into the quarter driven by all oil production.
Quarter common for better rates.
Rates for the Vlccs.
However, with a volatile trends into the quarter driven by oil.
Production costs.
Speaker 2: In total, it was a good quarter and we achieved revenue from TCE base of 89 million and EBITEA of 67 million.
In total it was a good quarter and we achieved revenues from TCE basis.
$89 million.
Payout of $67 million.
Speaker 2: Next income came in at 31 million equal to 19 cents per...
Net income came in at $31 million equal your line 10 cents per share.
Speaker 2: reported with the operating expenses for the quarter, where 18.6 million MGNA was 4.2.
Reported.
Operating expenses for the quarter were 18 6 million G&A was $4 3 million.
Speaker 2: included in the object number for the quarter or some advanced costs for spare and consumables associated with ships that have been in dry-dark in addition to some non-recurring.
Included in the Opex number for the quarter were somewhat long call.
For spares and consumables.
Associated with chips that have been in dry dock came in addition to some nonrecurring items.
Speaker 2: The vessels in the spot market earned $44,700 per day, and the vessels on time shock room made $35,500.
The vessels in the spot market and $44700 per day.
Sometimes short term at 35 and a half per day.
Speaker 2: The average TFT achieved for the quarter was 42,000 per day.
The average TCE achieved for the quarter was 42 and a half.
Hey.
Speaker 2: For the first nine months of 2023, we achieved revenue on PC basis of 296 million and every day of 229.
For the first nine months of 'twenty to 'twenty, three we achieved revenue.
$296 million.
Okay.
Yeah.
Speaker 2: net income for the first nine months was 200 I'm sorry 126 million equal to 77 cents
Net income for the first nine months.
I'm, sorry, 126 million equal to seven cents per share.
Speaker 2: Average PC for the first nine months was $49,200 per day, where the rest is in the spot market earned $54,300 per day. And the rest is on time, structures made 35,600.
Average TCE for the first nine months 14 months.
$2 per day, where of the vessels in the spot market.
$4300 per day.
On the vessels on time charter.
Thank you.
$600 per day.
Speaker 2: On this slide we present the cash flow highlights. We started the third quarter with 130.6 million in cash, and we generate the 67 million in cash.
On this slide we present the cash flow highlights we started the third quarter of $130 6 million in cash Gen.
Six to 7 million and have it down.
Speaker 2: ordinary district payments, cash interest amounted to 14 million. I'm 57 million was allocated to shareholders through the cash dividend pertaining to the second quarter of 2020.
Ordinary debt repayment cash interest amounted to 14 million.
57 million was allocated to shareholders through the cash dividend pertaining to the second quarter of 'twenty to 'twenty three.
Speaker 2: In addition to the test of them, we also allocated 10 million to shareholders through share bye-bye.
In addition to the cash dividend.
Also allocated 10 million to shareholders through debt.
Through share buybacks during the quarter.
Speaker 2: 93 million was invested in our fleet with 5.5 million in maintenance cuts.
$93 million and listed in our fleet with time, and a half million and maintenance Capex cute.
Speaker 2: $3.1 million for installation of exhaust gas cleaning systems and $85.3 million for the acquired
$2 1 million for installation of exhaust gas cleaning system.
$5 3 million for the quiet.
Speaker 2: The chance of long-term deaths amounted to 54.5 million and 4.9 million was related to changes in work.
Issuance of long term debt amounted to 64.
Million and $4 9 million was related to changes in working capital.
Speaker 2: quarter ended with 73.9 million.
The quarter ended with $73 9 million in cash.
Speaker 2: switching to capital allocation. And line with our dividend policy, we will pay 19 cents per share as a quarterly cash dividend, which is equal to 100% on a income. The dividend will be payable on November 28th. The dividend will be payable on a income.
Switching to capital allocation in line with our dividend policy, we will pay <unk> 19 cents per share.
Cash dividend.
Is equal to 100% done that income.
The dividend will be payable on November 28 to shareholders of record as of November 21st.
Speaker 2: This marks the 55 consecutive court-of-the-clash dividend, and the shares will trade ex-dividend from the...
This marks the fifth.
Consecutive quarterly cash dividend.
The shares will trade ex dividend from November 20th.
Speaker 2: In addition to the cash dividend, we repurchased 1.1 million of the company shares during the quarter for a total consideration of 9.9 million.
In addition to the cash dividend, we repurchased $1 1 million of the company's shares during the quarter for a total consideration of $9 9 million.
Speaker 2: The average price for the shares was 8.72 and the shares were tied upon the...
The average price for the shares well 872.
The shares were retired upon receipt.
Speaker 2: So to summarize with the share repurchase and of course today's test evidence.
So to summarize with the share repurchase.
Fortunately in cash dividend.
Speaker 2: and DHT will return 132% of net income to our shareholders for the third quarter of 2023. With that, I will turn the call...
DHT will return hungrier than 32% of net income to our shareholders for the third quarter of 2023.
With that I will turn the call over to Simon.
Thank you Doug.
Speaker 3: At the dress during the law's quarter, we acquired a 2018 build VCC from 94.5 million.
That's addressed during the last quarter, we acquired a 2018 built VLCC for lack of four in Australia.
Speaker 3: We took the liberal of the vessel in late July . She immediately answered the shipyard to undertake her first special survey on drywall.
We took delivery of the vessel in late July she immediately at the shipyard to undertake your first special survey and dry dock.
Speaker 3: The purchase was funded with a combination of cash, the TAN and a new competitively priced launch facility in line with the DST style finance.
The purchase was funded with a combination of cash return and a new competitively priced drawn facility in line with the DSP started collapsing.
Speaker 3: She's named DSC Apollosa and is now trying in this part.
She is named DHT Appaloosa and is now trading in the spot market.
Speaker 3: The priest to this acquisition, both from a value and quality perspective, an acquisition that's expected to be accreted to our earnings and to further improve our fleet's acquisition.
Please for this acquisition, both from a value and a quality perspective and acquisition of expect it to be accretive to our earnings and to further improve our fleet's efficiency.
Yeah.
Speaker 3: As for normal, we maintain our focus on robust brake even levels and here we'll see you in updates on the levels for 2024.
It's been normal we maintain our focus on robust breakeven levels and handle fuel ups based on the levels for 2024.
Speaker 3: The estimated PNL break even for the air for the fleet as a whole is 27,500 per day.
The estimate the P&L breakeven for the year for the fleet as a whole is touring several of our passengers per day.
Speaker 3: When adjusted for the fixed income that we have, the PNL brake even for the Sport Freed is 25,000 per day.
Yes.
But adjusted for the fixed income that we have.
The P&L breakeven for the spot fleet is $25 per day.
Speaker 3: Further, the estimated cash break even for the fleet as a whole to be 21,400 per day with the split shifts required to make 17,300 per day for the company to be cash neutral.
Further we estimate the cash breakeven for the fleet as a whole to be 21 costs were 400 per day with a spot chips requiring them to make 17300 per day for the company to be cash neutral.
Speaker 3: Repeating our earlier messaging and issues set out to compare these numbers to our peers. You should keep in mind that our cash break even numbers include all true cash costs, i.e. the OPEX, GNA, cash interest, debt amortization and maintenance cap.
Repeating our earlier messaging and if you set out to compare these numbers with our peers.
Keep in mind that our cash breakeven numbers include all true cash cost Opex G&A cash interest debt amortization and maintenance capex.
Speaker 3: We will not go through the fourth quarter outlook. The expects 420 days to be covered by our term contracts of an average rate of 36,000 per day.
He will not walk through the fourth quarter uptick.
We expect 420 base to be covered by our term contracts at an average rate of 36000 per day.
Speaker 3: The expects to have a total of 1790 spot points for the quarter, which 1280 days equal to 71% have been booked at an average rate of 41.000 per day.
We expect to have a total of 17 under the knife is Paul thanks for the quarter, which drove an 80 basis equal to 71% have been booked at an average rate of 41.
Perfect.
Speaker 3: As of today, this suggests combined bookings of 77% of the total days at weighted average earnings of 40,200 per day.
As of today. This suggests combined bookings of 77% of the total base at the weighted average earnings or 40200 per day.
Speaker 3: You can compare these spot booking numbers with your own estimated spot with our estimated spot P Nel break even rate of 24,700 per day for the fourth quarter, allowing you to model a netting contribution based on your own assumptions for the fixed spot day.
If you compare this.
Talking numbers with your own estimates at spot.
Escalate the spoke P&L breakeven rate of 34700 per day for the fourth quarter.
Allowing it to mobile and net income contribution based on your own assumptions.
Spot base.
Speaker 3: During the third quarter, we put 4 vessels through the drive-up.
During the third quarter, we put four vessels to dry dock.
Speaker 3: So this was one which was brought earlier than the schedule. Tu were on schedule and one was related to these three appalus that we acquired during the quarter.
This was well say broke earlier than scheduled or.
We're on schedule and one was related to the DST Appaloosa, that's the acquired during the quarter.
Speaker 3: but here is also a brief update on our dry dock schedule for the next couple of years.
But there is also a brief update a lot of Drydocks scheduled for the next couple of years.
Speaker 3: The demographics of our fleet is such that we are very live from maintenance capics in both 2024 and 2025.
The demographics of our fleet is such that we are very light on maintenance capex in both the 2024 and 2025.
Speaker 3: This also means we will have a high number of operating days during this period A period for which we have a very constructed market outlook In short, we are tuned for
Importantly, this also means we will have a higher number of operating days during this period.
Period for which we have a very constructive market outlook.
In short we are tuned for rewarding times.
Speaker 3: This slide illustrates the VSSC market over the past four quarters.
This slide illustrates the VLCC market over the past four quarters.
Speaker 3: The blue line is the earnings of the reference ship used by most analysts.
The Blue line is to earnings or the reference ship used by most analysts.
Speaker 3: The earnings are an average of the 3 key transportation routes.
The earnings are an average of the three key transportation for us <unk> being in the Middle East to China, <unk> being West Africa, China, and TV 22, being U S Gulf to China.
Speaker 3: TD3C being the Middle East to China, TD15 being West Africa to China, and TD22 being U.S. Gulf to China.
Speaker 3: The orange line shows you the average of these routes with a number of 45,600 per day over the period.
The Orange line shows you the average Oh these routes with a number of 46.
45600 per day over the period.
Speaker 3: We then compare this with our own average earnings per day of 67,000 over the same period.
We then compare this with our own average earnings per day a 57.
Over the same periods.
Speaker 3: These see clearly outperforms this most commonly used reference in the markets. But this is however not...
DSD clearly outperforms is most commonly used referenced in the markets.
This is however, not comparing apples with apples.
Speaker 3: Our fleet is in general more efficient than this commonly used reference.
Our fleet is in general more efficient that is commonly used preference.
Speaker 3: This reflects our qualitative leaderships with excellent resting statistics operated by highly skilled sea fairs and a very competent shoreside organization.
This reflects our quality fleet of ships with excellent vesting statistics operated by highly skilled seafarers and they're very competent shoreside organization.
Speaker 3: The uptime we are at the early innings of is supported by historical law order books with visibility for the next three years at least.
We are at the early innings is supported by historically low order books with visibility for the next three years at least.
Speaker 3: Adding to this picture, fleet efficiency regulations will start to bite, reducing productivity of the mature and the fleet.
Adding to this picture fleet efficiency regulations will start to bite, reducing productivity or the mature end of their fleets.
Speaker 3: The order book for these deceased is now at 2.6% of the ships in the water.
The order book for Vlccs is now at three 6% of the ships in the water.
Speaker 3: A marginal increase from a quarter ago, but still insignificant.
And Mark can increase from a quarter ago, but still insignificant.
Speaker 3: Six restless have been contracted since he lost reported, taking the order book to 17th
Six vessels have been contracted since we last reported taking the order book to 17 ships.
Speaker 3: Think of this number in comparison to a sailing fleet of some 900
Think of this number in comparison to a sailing fleet of some 900 ships.
Speaker 3: We have again not seen any scrapping, resulting in 30% of the current fleet being older and 15 years of age and 14% being older and 20 years of age.
We have again not seen any scrapping, resulting in 30% of the current fleet being older than 15 years of age 14% being older than 20 years of age.
Speaker 3: If one assumes no ships will be scrapped over the next two years, about 20% of the fleet will be older than 20 years of age by the end of 2025.
If one assumes low ships will be scrapped over the next two years about 20% of the fleet will be older than 20 years of age by the end of 2025.
Speaker 3: In the second unmarket, the apt-to-toe to acquire older ships seems to be fading a bit.
In the secondary market the appetite to acquire older ships seems to be fading a bit.
Speaker 3: You think the key reason for this is that the shadow markets and sanctioned markets to possibly be satisfied?
We think the key reason for this is that the shadow market and sanction markets to possibly be satisfied.
Speaker 3: If this is correct, the older part of the fleet not engaged in these markets will increasingly find it hard to identify commercial opportunities.
If this is correct the older part of the fleet not engaged in these markets will increasingly find it hard to identify a commercial opportunities.
Speaker 3: A small event, but another point in the shadow fleet discussion, is that when the Sueiland crew takes boards to China has come to a role.
A small event, but another point and this other fleet discussion.
He is the Venezuelan crude exports to China has come to a halt.
Speaker 3: We now have small production basically only going to the US.
Now, it's small production basically only going to the U S.
Speaker 3: This trade used to employ a number of older industries in very inefficient trade, involving at least one is not two transsemitments.
This trade used to employ a number of older vlccs in very inefficient trade involving at least one gets about two trans shipments to cover off the origin of the crude and crude and typically well for China.
Speaker 3: to cover up the origin of the crude. And this crude then typically went to China and actually sucked up a lot of all the shapes. This story is...
Actually sucks up a lot of older ships. These.
This story is typically continued we think.
Yes.
Speaker 3: In an increasingly complex geopolitical environment that on balance should both well for our business, we are staying focused on what is within our reach and control.
In an increasingly complex geopolitical environment.
This should bode well for our business. We are staying focused on what is within our reach and control.
Speaker 3: We repeat the gospel and again outline the dst dna
We will repeat the Gulf spill again outline the DHT DLA.
Speaker 3: This includes concentrating on discipline, execution or strategy and maintaining what we have been told with a highly regarded level of corporate governance.
This includes concentrating on disciplined execution of our strategy of maintaining what we have been told is a highly regarded level of corporate governance.
Speaker 3: We believe our company is structured for cyclical and volatile markets with our solid balance heat and strong liquidity at its foundation.
We believe our company is structured for cyclical and volatile markets with our solid balance sheet strong liquidity at its foundation.
Speaker 3: As always, we keep our eyes from maintaining robust brake even levels, while still having meaningful market exposure and operating leverage, being as profitable as we can.
As always we keep our eyes on maintaining a robust breakeven levels, while still having meaningful and market exposure and operating leverage being as profitable as we can.
Speaker 3: all the bull with a defined and share all the friendly capital allocation policy or paying out 100% from the income as quarterly cash dividends. And with that operator...
All of the bowl with a defined and shareholder friendly capital allocation policy are paying all tens of percent from net income as quarterly cash dividends.
And with that operator over to you to receive your questions.
Speaker 1: Thank you. As a reminder to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile.
Thank you as a reminder to ask a question you will need to press star one on one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one on one again.
Please standby, while we compile the Q&A queue.
Speaker 1: Our first question comes from the line of Omar Noctur from Jeffries, please go ahead.
Our first question comes from the line of Oman Doctor from Jefferies. Please go ahead.
Speaker 4: Thank you. Hi guys. Good morning. Good afternoon.
Thank you hi, guys. Good morning, good afternoon.
Speaker 4: Just one of the first up things for the update and you know what to ask about, you know, the DHT footprint today, you just discussed kind of your outlook and at least for the next three years, things are looking pretty solid. And you know, DHT overall, you've got a pretty solid track record, I would say over the past 10 years of effectively buying at the right time of the cycle and also selling at the right time. But where do you think we are at the moment in terms of the DHT platform itself? Are you encouraged to put
Just wanted to get your first off thanks for the update and I wanted to ask about the.
<unk> footprint today.
Discuss kind of your outlook at least for the next few years things are looking pretty solid and DHT overall, you've got a pretty solid track record I would say over the past 10 years are effectively buying at the right time of the cycle.
And also selling at the right time, where do you think we are at the moment.
In terms of the DHT platform itself are you encouraged to put capital to work you obviously bought the Appaloosa recently, how do you think about where DHT is now given your liquidity flexibility you have the outlook you have and.
Speaker 4: Capital to work, you obviously bought the Appalooster recently. How do you think about where GHG is now, given your liquidity, the flexibility you have, the outlook you have, and just, any color you can sort of give a big picture on that.
Yes.
Just any color you can sort of give big picture on that.
Speaker 5: Thank you, Omar. You know, we do think we are at the early innings of what can be a very exciting cycle and longer than what we have seen for quite some time. And that part of this, of course, is given the non-existing order book, basically. And then...
Thank you Omar.
We do think we are at the early innings of what can be a very exciting cycle longer than what we have seen for quite some time.
Part of this of course is given then the non existing order book basically.
And then AC fleet.
Speaker 3: When it comes to investments, the Afro-Lusano was, we think, a very attractive opportunity. And as you saw then, our balance in liquidity allows us to capture these opportunities from very short notice when they appear.
When it comes to investments.
So as we.
We think a very attractive opportunity.
As you saw them.
Relative to liquidity allows us to capture these opportunities.
I am very short notice when they appear.
Speaker 5: This does not mean that in general we are trying to do with the market for any ship that's for sale, far from it. But we are very constructive on the next few years. If the right opportunities come so long, we will try to capture them.
Does not mean that in general we are sort of trying to whoever the market for any ship that for say far from it.
We are very constructive on the.
Over the next few years, if the right opportunity comes along we will we will try to capture.
Speaker 5: But I don't think you should expect to sort of follow any market development in terms of asset prices. So we think investors should focus on stocks and we will focus on making as much money as we possibly can.
But I don't think you should expect that to sort of follow.
Our market development in terms of asset prices. So we think investors should focus on stocks.
We were focused on making us much slowly as we possibly can.
Speaker 5: But of course you should not exclude us taking our passage if the right sort of deal comes along. But it's harder to find now than what it was just a couple of years ago.
Of course, you should don't exclude us picking up assets, if the right sort of deal comes along.
It's harder to find now than what it was.
Just a couple of years to go.
Speaker 4: Yep, thanks, fine. And then maybe just a follow up. Obviously, leverage has been very low for quite some time. New roughly, I would say maybe 20% or below on a net LTV basis. Is that basically where you want to have it long-term? DGC bumping that up to the 30 range 40? What do you think about sort of the leverage ratio going forward?
Yep, Thanks, Brian and then maybe just a follow up obviously leverage has been very low for quite some time now roughly I would say, maybe 20% or below on a net LTV basis.
Is that basically kind of where you want to have it long term do you see bumping that up to the 30% range 40.
What do you think about sort of the.
The leverage ratio going forward.
Speaker 5: Well, the current leverage ratio is also, you know, by design enabling us to, you know, pick up as if we want to, without really distorting what you think is sort of sustainable leverage over time. So if that means we increase leverage, you know, a bit, we don't really have a six number on that, but this goes to 25 or 30%.
Well the current leverage ratio is.
Also you know by design, enabling us to.
Pickoff assets, if we want without really distorting, what we think is sort of a sustainable level over time. So if that means we are in.
Increased leverage.
We don't really have a fixed number on that but if it goes to 25% or 30%.
Speaker 5: in combination with some very meaningful and attractive opportunities. We think that's okay. But beyond that, I don't think you should add any expectation. Data.
In combination with some very meaningful and attractive opportunities we think that's okay.
Beyond that I don't think you should have any expectation.
Got it okay. Thank you I'll turn it over.
Thank you.
Speaker 1: Once again, if you'd like to register a question, please press star one and one on your telephone. And to withdraw your question, please press star one and one again. We'll now move on to our next question.
Once again.
To Register a question. Please press star one on one on your telephone.
To withdraw your question. Please press star one again.
We'll now move onto our next question.
Speaker 1: Our next question comes from the line of Frode, more Cadill from Clarkson's, please go ahead.
Our next question comes from the line of <unk> <unk> from Clarksons. Please go ahead.
Thank you.
I'm sorry.
Okay.
Speaker 6: I had noticed the brokers recently have marked up time-chartor race ideas.
My first question.
I have noticed the brokers recently.
Mark the time charter rate idea.
Speaker 6: Well, I just wanted to know what do you think our realistic time travel rates now for, let's say, two, three year contracts?
Well I just wanted to know what do you think are realistic time charter rates now or let's say two three year contracts.
Speaker 6: and at this point what's your preference for spot versus
Sure.
At this point, what's the profile.
For our spot versus.
Thanks.
Speaker 3: I think there is a bit of a spread between the bidas on shorters, but I think today you will have customers potentially willing to pay 50-43 years and 45, maybe 46 for five years.
But if there is a bit of a spread between the bid ask on charters that I think today.
You will have customers potentially willing to pay say 54 three years.
And 45, maybe 46 four or five years.
Speaker 3: And I think for one year it's you know the bit of a challenge given the spot market but it's they will at least start with the six satellite
And I.
I think for woman Gareth.
It's a bit of a challenge given the spot market.
At least start with 600, I think but again it also depends on the ship.
Speaker 3: But again, it also depends on the ship. So at some point, we will start to build more visibility on earnings, but we think it's a bit early in the cycle to do this. We might pick up the right deal at the right time. And for the right ship, for the lack of a better explanation. But it will not be like we did in 2020, when we pushed out 2, 3rd of the fleet in a very short time frame and capturing fantastic earnings.
Some point, we will start to build a more visibility on earnings, but we think it's a bit early in the cycle to do this.
When might we might pick up.
The right deal at the right time for the right chip.
That goes a little bit further explanation.
But it looked like the deal in 2020.
Pushed out too.
Two thirds of the fleet in a very short timeframe capturing fantastic earnings.
Speaker 5: over a period of 12 to 18 months when the market fell apart. So I think now there is going to be a very rewarding time also in the small park. But it also means that there will be opportunities to build true long-term cash flow at some point. So it will see that gradually taking place over the next two to three years.
Over a period of 12 to 18 months when the market sort of fell apart. So we think.
There is going to be a very rewarding time also in the spot market, but it also means that there will be opportunities to build true long term cash flow at some point. So you will see that gradually taking place over the next two to three years.
Yes, Thanks, Dan.
Just a follow up on one last question on the <unk>.
Okay.
Speaker 6: I agree you have navigated quite well. And I also know that you have that the action plan of what to do at a different faces of the cycling.
I agree you have navigated quite well.
And I also noticed that you have this action plan of what to do at the different phases of the cycle.
Yes, I guess the dividend policy you have.
Speaker 6: speaks a lot to where you think we are in the faculty, but maybe you could just talk a little more about all your positions this day to
Thanks.
I'll, let bill where do you think we are in the cycle, but maybe you could just talk about it more tomorrow.
Ali you're positioned.
To capitalize on this.
Strong markets ahead of us.
Speaker 3: Oh, we do have the vast majority of our fleet on the dance floor as we said last quarter, right? So, so available to capture these rates that expect will be available going forward. And that, of course, going to be a massive evaluator. And the majority of these monies will be paid out to the shareholders. So this is, I think, it's a clear message to where we think we are to the owners of the company.
While we do have the vast majority of our fleet on the dance floor as we said last quarter right. So so available to capture these rates that we expect it will be available going forward and that's a key.
It's going to be MSA value creator.
The majority of these smaller so it will be paid out to shareholders. So this is I think it's clear message too.
Where do we think we are.
So the company.
Speaker 5: But we do generate some additional cash flow after nothing comes. So that will be allocated to, you know, general corporate purposes, as one would say. But as you've seen in the past, now, you know, we've picked up a shift. We've been buying back some stock, you know, all of these things are just to try to, you know, further tune the business and make it even more rewarding for owners. I, you know, primarily to increase earnings per share for the owners.
But we did generate some additional cash flow.
After net income so that will be allocated to.
General corporate purposes, that's what I would say that as you've seen in the past.
We've picked up a shift we've been buying back some stock all of these things that is to try to.
Further to the business and make it even more rewarding for our owners.
Primarily to increase earnings per share for the owners.
Sounds good thank you very much.
Thank you.
Speaker 1: There are no further questions at this time, so I'll hand the call back to Sven for his closing remarks.
There are no further questions at this time, so I'll hand, the call participants for his closing remarks.
Speaker 5: Okay, thank you to all for being interested in DST and for attending. So we see you a good day ahead.
Okay. Thank you to all for being interested in DHT and for attending so wishing you a good day ahead.
All the best Bye.
Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect. Speak as please stand by.
This concludes today's conference call. Thank you for participating you may now disconnect speakers. Please standby.
Okay.
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Okay.
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