Q3 2023 StealthGas Inc Earnings Call
Okay.
Speaker 1: Good day and thank you for standing by. Welcome to the Steve's Cast Q3 2020 Free Results Conference call-in webcast. This time, all participants are in listen-only mode with no question and answer session. Please note that today's conference is being recorded. I would now like to hand the conference over to your speaker, Michael Jolief, chairman of the board of directors. Please go ahead. Thank you very much.
Good day and thank you for standing by welcome to the <unk> Q3, 'twenty 'twenty results conference call and webcast. This time all participants are in listen only mode with no question and answer session. Please note that today's conference is being recorded I would now like to turn the conference over to your speaker.
Michael Jolliffe Chairman of the board of Directors. Please go ahead.
Thank you very much.
Speaker 2: And welcome to our third quarter 2023 earnings conference call and webcast. I'm Michael Jolliffe, Chairman of the Board of Directors, and joining me on our call today is Harry Varfias, our CEO , to discuss market and company outlook, and Konstantinos Sistovaris, handling investor relations to discuss the financial aspects.
Good morning, everyone.
Welcome to our third quarter 2023 earnings conference call and webcast I'm, Michael Jolliffe, Chairman of the board of Directors and joining me on our call. Today is how are your best guess I C E O to discuss market and company outlook and Konstantinos sister bodies handling Investor Relations.
Discuss the financial aspects.
Speaker 2: Before we commence our presentation, I would like to remind you that we will be discussing forward-looking statements.
Before we commence our presentation I would like to remind you that we will be discussing forward looking statements.
Speaker 2: which reflect current views with respect to future events and financial performance.
Reflect current views with respect to future events and financial performance.
Speaker 2: At this stage, if you could all take a moment to read our disclaimer on slide two of this presentation.
At this stage, if you could or would take a moment to read our disclaimer on slide two of this presentation.
Speaker 2: Risks are further disclosed in stealth gas filing with the Securities and Exchange
Risks are further disclosed in south gas filing with the Securities and Exchange Commission.
Speaker 2: I would also like to point out that all amounts quoted, unless otherwise clarified, are implicitly stated in US dollars.
I would also like to point out that all amounts quoted unless otherwise clarified are implicit they stated in U S dollars.
Speaker 2: Today we released our results for the third quarter 2023, announcing the second best quarterly profit ever and best ever nine month results till today.
Today, we released our results for the third quarter 2023.
<unk> seen the second best quarterly profit ever.
Best ever nine month results till today.
Speaker 2: So let's proceed to discuss these results and update you on the company's strategy and the market in general.
So let's proceed to discuss these results and update you on the Companys strategy and the market in general.
Speaker 2: Turning to slide 3, we summarise some highlights, starting with Fleet and Operations Updates.
Turning to slide three.
We summarize some highlights starting with fleet and operations update.
Speaker 2: first concluded the previously announced sale of two vessels, delivering those in early July .
We first concluded the previously announced sale of two vessels delivering in early July.
Speaker 2: As discussed in the previous quarter, we still have two more vessels to deliver to buyers and we expect these to be delivered in the first quarter of next year.
As discussed in the previous quarter, we still have two more vessels to deliver to bias and we expect we used to be delivered in the first quarter of next year.
Speaker 2: During the current quarter in October , our joint venture took delivery of one new building medium gas carrier, the Echo Sorcerer, that was deployed immediately on a period charter.
During the current quarter in October at our joint venture took delivery of one new building medium gas carriers.
So Sarah that was deployed immediately on a period charter.
Speaker 2: In terms of chartering we were very active and concluded over nine new period charters securing over 50% of our fleet days for 2024.
In terms of chartering, we were very active and concluded over nine new period charters securing over 50% of athlete days for 2024.
Speaker 2: Most of these charters were of longer than usual tenors of one to three years.
Most of these choices for a longer than usual tennis at one to three years.
Speaker 2: We have thus contracted revenues of $195 million for all subsequent periods.
We have vast contracted revenues of $195 million for all subsequent periods.
Speaker 2: Moving to our financial highlights, with an average 7 fewer vessels compared to last year, net voyage revenues, that is net of voyage costs
Moving to our financial highlights with an average seven fewer vessels compared to last year net right revenues that is net of voyage costs came in at a very strong $34 $7 million.
Speaker 2: came in at a very strong $34.7 million.
Speaker 2: Compared to $34.9 million last year, just a 1% decrease in spite of the smaller fleet.
Compared to 34 $9 million last year, just a 1% increase decrease excuse me in.
Why does this rule of fleet.
Speaker 2: Net income for the second quarter was 15.7 million.
Net income for the second quarter was 15 7 billion.
Speaker 2: compared to 6.7 million last year, a 134%...
Compared to $6 7 million last year, a 154% increase.
Speaker 2: While for the nine months period net income was $43 million compared to $26.6 million last year, a 62% increase.
While for the nine months period, net income was $43 million compared to $26 6 million last year, a 62% increase which is the highest profit recorded by the company since its inception.
Speaker 2: which is the highest profit recorded by the company since its inception.
Speaker 2: Earnings per share for the nine months were $1.12.
Earnings per share for the nine months $1 1.1 too.
Speaker 2: Also worth pointing out that during that period we have halved our debt by paying down facilities of £150 million in just nine months and still maintaining
Also worth pointing out that during that period, we have hopped out debt by paying down facilities about 150 million in just nine months and still maintaining strong liquidity.
Speaker 2: In October , we also authorised a $10 million increase in the share repurchase programme that began in May, making it $25 million in total.
In October we also authorized a tepid and dollar increase in the share repurchase program that began in may making it 25 million in total.
Speaker 2: The company has repurchased over 3.9 million shares, spending over $19 million so far, and buying back a substantial 10% of the outstanding shares over a short period of time.
The company has repack, she said with three 9 million shares spending over $19 billion, so far and buying back a substantial 10% of the outstanding shares over a short period of time.
Speaker 2: Let us move on to slide 4 for our fully owned fleet employment update as of November .
Let us move on to slide four for our fully owned fleet employment update as of November <unk>.
Speaker 2: In contrast to the previous call, this time we announced quite a number of new period charters.
Contrast to the previous call at this time, we announced quite a number of new period charters.
Speaker 2: During the last couple of months we saw increased interest from charters to cover their commitments with enquiries for charters of longer than usual duration.
During the last couple of months, we saw increased interest from charterers to cover their commitments with inquiries for charters are longer than usual.
Speaker 2: He took advantage as the rates have been climbing and fixed a number of vessels in one to three year charges.
Ration.
We took advantage as the rates have been climbing and fixed the number of vessels at one to three year charters.
Speaker 2: As a result, we have significantly increased our contracted days for next year to 50%.
As a result, we have significantly increased our contracted days for next year to 50%.
Speaker 2: We have also managed to secure contracted revenues for all periods up to 2027 up to $195 million, more than double what we reported in the previous quarter.
We have also managed to secure a contracted revenues for all periods up to 2027.
$295 million more than double what we reported in the previous quarter.
Speaker 2: Only two of our vessels currently operate in the spot market, one of which already fixed for December .
Only two of our vessels currently operating in the spot market, one of which already fixed for December.
Speaker 2: Lastly, in terms of dry docks, we completed the dry dock of three of the larger handy-sized vessels in the previous quarters, and have none left for the remainder of the year.
Lastly in terms of dry docks, we completed the dry docks with three of the larger handy size vessels in the previous quarters and have none left for the remainder of the year.
Speaker 2: For next year there are seven small LPG vessels scheduled for draining.
So next year, there are seven small LPG vessels scheduled for dry dock.
Speaker 2: slide 5, I would like now to provide an update on our two joint ventures comprising of six vessels.
In slide five I would like now to provide an update on our two joint ventures comprising of six vessels.
Speaker 2: first joint venture we own four small LPG vessels two of which are trading in the spot market.
In the first joint venture we are in for small LPG vessels, two of which are trading in the spot market.
Speaker 2: Two of the vessels completed their dry dock this year in quarter two and quarter three.
Two of the vessels completed their dry dock this year in quarter, two and quarter three.
Speaker 2: The remaining dry dock for the gas shuriken should take place in January of next year.
Aiding dry dock for the gas shuriken should take place in January.
Next year.
Speaker 2: The second joint venture currently comprises of two medium-sized gas carriers.
The second joint venture currently comprises of two medium sized gas carriers Harris you may recall, one vessel was sold in the first quarter.
Speaker 2: Here as you may recall, one vessel was sold in the first quarter and the proceeds were distributed to the partners.
The premises were distributed to the partners.
Speaker 2: In the current quarter, the joint venture took delivery of one new building, a medium-sized gas carrier, the Echo Sorcerer, and the vessel was immediately deployed on a period charter and is currently loading in Houston.
In the current quarter the joint venture took delivery of one new building <unk>.
Medium sized gas carriers, the echo so Sara and the vessel was immediately deployed on a period Chaucer and he is currently loading in Houston.
Speaker 2: As previously discussed, the remaining vessel, the Echo Ethereal, is on a very profitable time charter for one year, with a charterer's option to extend one more year, and a sale or purchase option, all at profitable levels, whilst the vessel is mortgage-free as its debt was repaid in June .
As previously discussed the remaining vessel or the echo ethereal he's on a very profitable time charter for one year with the charterer has options to extend one more yeah and the sale of apache's option all at profitable levels, whilst the rest of these mortgage free as its debt was repaid in June.
Speaker 2: In terms of our fleet geography, presented in slide 6, our company mainly focuses on regional trade and local distribution of gas rather than long distance.
In terms of our fleet geography presented in slide six our company mainly focuses on regional trade and local distribution of gas rather than a long distance.
Speaker 2: This graph is a snapshot of the positioning of the fleet, including the joint venture vessels, as of mid-November.
This graph is a snapshot of the positioning of the fleet, including the joint venture vessels as of November mid November the majority about 819 vessels currently trading in Europe, particularly in the northwest and in the Mediterranean.
Speaker 2: The majority of our fleet, 19 vessels, currently trade in Europe , particularly in the Northwest and in the Mediterranean.
Speaker 2: We have focused on this area as the freight rates west of Suez continue to command a premium over east of Suez in order to enjoy better rates, although the larger the vessels, the smaller this gap has become.
We have focused on this area as the freight rates Western series continue to command a premium over Easter series.
In order to enjoy better rates without the.
The larger the vessels the smaller this gap has become recently.
Speaker 2: seven vessels are trading in the middle to far east and four vessels trading in the u.s. and caribbean and three and a half
Seven vessels are trading in the middle to far east and four vessels trading in the U S and Caribbean and three in Africa.
Speaker 2: And while our main fleet is focused on local distribution, the larger vessels in our fleet perform more transatlantic voyages. As an example, this year all but one of these vessels have loaded cargo in Texas to cross the Atlantic and unload in Europe and Africa.
And while our main focus on local distribution the larger vessels in our fleet performed both Trans Atlantic voyages.
As an example, this year all but one of these vessels have loaded cargo in Texas to cross the Atlantic or not allowed in Europe and Africa.
Speaker 2: I will now turn the call over to Konstantinos Systouvaris for our financial performance.
I will now turn the call over to Constantino system, whereas for our financial performance.
Yeah.
Yes.
Thank you Michael and good morning to everyone.
Speaker 3: I will discuss our financial performance for the third quarter of 2023.
I will discuss our financial performance for the third quarter of 2023.
Speaker 3: Let us turn to slide 7, where we see the income statement for the third quarter and nine months of 2023 against the same periods of 2021.
Let us turn to slide seven where we see the income statement for the third quarter and nine months of 2023 against the same periods of 2022.
Speaker 3: Even though calendar days were reduced by 19% and we had 7 fewer vessels, net revenues after voyage expenses came in at $32.3 million.
Even though calendar rate days were reduced by 19% and we had seven fewer vessels net revenues. After voyage expenses came in at $32 3 million for the quarter and $99 5 million for the nine months, an increase of 15% for the quarter and five <unk>.
Speaker 3: quarter and $99.5 million for the nine months.
Speaker 3: An increase of 15% for the quarter and 5% for the nine months compared to last year.
<unk> for the nine months compared to last year.
Speaker 3: So our fewer vessels generated more revenues comparatively.
So our fewer vessels generated more revenues comparatively.
Speaker 3: Total revenues were flat and had reduced voyage expenses.
Total net revenues were flat.
And had reduced voyage expenses.
Speaker 3: Operating expenses were $12.3 million for the quarter, down 13%, and flat at $40.2 million.
Operating expenses were $12 3 million for the quarter down, 13% and flat at four 2.2 million for the nine months.
Speaker 3: As previously stated, we did face inflationary pressures and had cost overruns, particularly during the first quarter of the year.
As previously stated we did face inflationary pressures and had cost overruns, particularly during the first quarter of this year.
Speaker 3: In the third quarter, we see a normalization of expenses that are coming down in line with the fleet reduction.
In the third quarter, we see a normalization of expenses that are coming down in line with our fleet reduction.
Speaker 3: We also note depreciation costs being reduced significantly as a result of the fleet reduction.
We also note depreciation costs being reduced significantly as a result of the fleet reduction.
Speaker 3: $5.6 million and $18.1 million respectively for the quarter and nine months.
Two $5 6 million and $18 1 million, respectively for the quarter and nine months.
Speaker 3: During the third quarter, the company also recognized a non-cash gain on the sale of two vessels that were delivered in July of $4.7 million.
During the third quarter. The company also recognized a noncash gain on the sale of two vessels that were delivered in July of $4 7 million.
Speaker 3: As a result, income from operations quadrupled to $16.4 million for the quarter and increased by 60% compared to last year to $36.2 million for the nine months.
As a result income from operations quadrupled to $16 4 million for the quarter.
And increased by 60% compared to last year to $36 2 million for the nine months.
Speaker 3: Interest and finance costs were significantly reduced by 30% over the quarterly period and 12% over the 9-month period, even though rates have more than tripled during those periods.
Interest and finance costs were significantly reduced by 30% over the quarterly period.
And 12% over the nine months period.
Even though rates have more than tripled during those periods.
Speaker 3: This is a result of the aggressive debt repayments the company engaged in order to control interest costs and will result in significant savings.
This is a result of the aggressive debt repayment the company engaged in Ontario in order to control interest costs and will result in significant savings.
Speaker 3: For the nine-month period, there was also a considerable increase in the equity income in joint ventures.
For the nine months period. There was also a considerable increase in the equity income in joint ventures, which is our shares in the profits of our JV structures.
Speaker 4: our shares in the profits of our JV Structures.
Speaker 4: and our circa $40 million investment there.
And ours are circa $40 million investment there.
Speaker 4: This income came in at $11.4 million and was mainly attributed to the profits from the sale of one joint venture vessel in the first quarter.
Those are lease income came in at $11 4 million and was mainly attributed to the profits from the sale of one joint venture vessel in the first quarter.
Speaker 3: As a result of all of the above, we ended the third quarter of 2023 with a net income of 15.7 million compared to 6.7 million for the same quarter of last year, a 134% increase.
As a result of all of the above we ended the third quarter of 2023 with net income of $15 7 million compared to $6 7 million for the same quarter of last year.
134% increase.
Speaker 4: And for the nine-month period, 43 million compared to 26.6 million last year, a 62 percent
And for the nine months period $43 million compared to $26 6 million last year.
62% increase.
Speaker 4: Profits for so far this year were the highest these companies have ever seen.
Profits for four so far this year were the highest this company has ever seen.
Moving on at our balance sheet in the next slide eight.
Speaker 4: Our liquidity, including restricted cash and short-term investments, was at the end of the quarter $80 million.
Our liquidity, including restricted cash and short term investments was at the end of the quarter 80 million reduced from $95 7 million at the end of last year.
Speaker 3: reduced from $95.7 million at the end of last year, mainly due to debt repayment.
Mainly due to debt repayments.
Speaker 4: Vessels held for sale were 38.7 million as of September 30th, and it refers to the two vessels under agreement to sell, with deliveries in the beginning of next year.
Vessels held for sale or $38 7 million as of September 30th and it refers to the two vessels under agreement to sell with deliveries in the beginning of next year.
Speaker 4: These vessels are debt-free, so all of the proceeds on delivery will improve further our liquidity.
These vessels are debt free so all of the proceeds on delivery we improve further.
Liquidity position.
Speaker 4: Advances of $23.4 million remain unchanged and relate to the advance payments made on the medium gas carrier vessels under construction.
Advances of $23 4 million remain unchanged and related to the advanced payments made on the medium gas carrier vessels under construction.
Speaker 3: Circa similar amount of equity outlay will be needed on the delivery of these vests.
The circus similar amount of equity outlay will be needed on the delivery of these vessels.
Speaker 3: Vessels net book value decreased from $628.5 million to $510 million, mostly due to the sale of vessels.
Vessels net book value decreased from $628 5 million to 510 million, mostly due to the sale of vessels.
Speaker 3: The value of our investments in our JVs was $38.7 million, covering five vessels, while a sixth vessel was added in October .
The value of our investments in our Jv's was $38 7 million.
Covering five vessels, while our six vessel was added in October.
Speaker 3: for which we did not invest more money in the JV.
For which we do not invest more money in the JV.
Moving onto the liability side, the company has significantly reduced our liabilities and particularly their outstanding debt component.
Speaker 3: So total liabilities have been reduced since the beginning of the year by 156 million from 303 million.
So total liabilities have been reduced since the beginning of the year by 156 million from $303.
Speaker 3: 6 million down to 147.5 million.
$6 million down to $147 5 million.
As a result of the solid results being reported.
Holders' equity has increased by 33 million to $550 million.
Speaker 3: Concluding our financial commentary with slide nine, we will briefly have a look at the debt profile.
Concluding our financial commentary with slide nine we briefly have a look at the debt profile.
Over a nine month period, the company has more than halved it its outstanding debt with over $150 million of debt repayment done to $127 7 million as of September 30th.
And continues to maintain a very low leverage.
Speaker 3: During the third quarter, $13 million was repaid.
During the third quarter $13 million was repaid.
Speaker 3: The company has 15 vessels out of the 27 in its current fleet, mortgage-free.
The company has 15 vessels out of the 27 and its current fleet mortgage free.
Speaker 3: About 35% of the remaining debt is hedged with the interest rate swaps at an average of 2.1% that mitigate the effect of the interest rate rise.
About 35% of the remaining debt is hedged with interest rate swaps at an average of two 1% that mitigate the effect of the interest rate rises.
Speaker 3: The refinancing risk is very low as the first balloon payment is in two years' time.
The refinancing risk is very low as the first balloon payment is in two years' time.
Overall, all balloon payments on the remaining debt have become much more manageable as you can see on the right hand picture.
While debt reduction is a strategic move and we expect it to continue there is still the financing of for the delivery of the two new building vessels in the first quarter of 2024.
For these the company has signed the facility agreement with the lender to provide up to $70 million in finance proceeds for the delivery of these vessels.
Subject of course to customary closings.
I will now hand, you over to our CEO, Harry <unk>, who will discuss market and company outlook.
Yes.
Yeah.
Moving on slide 10, our briefing site on the LPG market.
So far the first nine months of the year has been very positive as far as LPG supply is concerned with global exports are estimated to have risen by three 1%.
The U S. The world's largest exporter continue to export record amounts with 13% increases year on year exporting 44 million tonnes of LPG in the first nine months of this year.
In order to continue on that record figures exported like energy transfer continue to invest in future export capacity expansion projects.
On the other hand, the Opex related oil production cuts about sorry, the Arabia led to reduced volumes coming out of the middle East.
While other middle eastern countries have ramped up production to try and fill the gap.
As far as imports we continue to have anemic demand from petrochemical plants in Europe that operate at lower margins in general although the onset of winter when household demand increases have been supportive in terms of regional trade.
And but growth has been from places like India, where inputs rose to 1.8 million tons in October compared to an average of one 5 million tons, this year, and particularly China, where inputs have increased by 30% in the nine months period.
China's economy. Despite all the problem seems to be resilient, so far and even registered a healthy five 2% growth in the first nine months of this year.
Neogen is PTH plants continue to come on stream or China wants to control its propylene production hen.
Major investments have been made for increasing the capacity.
P D edge capacity has increased to over 4 million towards this year alone and while not all planned projects have come on stream and so far have been pushed back to next year, the macro picture points, there continuously increasing demand.
<unk> for these plants is that hit the high of 85% in August, but I say, it's fallen and fallen as production margins have become less profitable.
The other latest developments as you obviously the delays in the Panama Canal you to draw at the first impact is that these delays are leaving some shippers to use alternative routes and tie up the vessel availability leading to increased ton mile demand.
These primarily affects the vlccs, whereas have increased rapidly, but it also has a trickle down effect.
The way to the handy sized vessels, but have seen their rates rising as well the longer term effects. If this issue persists remained to be seen.
Cause rising cost could have an impact on demand on slide 11, we present some of the key fundamentals in our shipping market commencing with time charter rates for our market. We continue to see a year over year basis see significant increases in rates up to 19%, particularly in the larger sizes.
The seven and a half thousand cubic meter and handy size has listed their comp.
Prior to the previous quarter overall rates remain flat.
There's less activity in the summer months.
All of the small LPG trade west of Suez.
What pocket were soft through Q3, but at the time of writing we are starting to see more activity and rates are moving upwards.
There are a number of time charter vessels coming up for renewal and strength of.
The spot market will likely beside these time charter levels remain stable or improve further.
East of Suez The Asia market has for the most part of Q3 being quiet and trade levels were poor.
Significant idle time was experienced by several vessels from the start of Q4, we have seen a slightly more spot activity and expectations are as in the west for a busier winter period on the period side things were relatively quiet for coffee now I've not picked up as much as was expected.
Exception is on the 7.5, K a cubic meter vessels, where there's.
A very tight supply demand balance until she rates have continued to increase.
There remains a gap to tissue that's in the west but for larger the vessel the smaller the gap on the handy size and the M. D C vessels.
The spot market was rather dull and uneventful on the theater side with relatively little activity circa free, but even though the sports side struggled through the quarter, beating expectations in one year rates kept reasonably steady.
The start of Q4, and the strength of the edge M. D. C market, coupled with the expected spillover effect from the Panama Canal drop I was given a boost to the owners' expectations and rates are currently on an upward trajectory.
Rates for empty seats were reasonably strong through the first two months of Q3, but have since experienced a boom and not at the time of wrapping historically shrunk the effect of Panama Canal is expected to cause a significant tightening of an already tight if you have just seen market for quite some time and Vishal Shaw has and will continue to have a significant.
A spillover effect on the smaller ships or the period from friends decision for sure a lot of activity existing time charter vessels were extended and more impulsive in your building list for second half 'twenty three first half 'twenty four.
Which are the start of the third quarter was fairly.
Has that though cause at the time of writing, but it used to only one vessel.
I'd like to reiterate that the fundamentals for our cold feet or small pressurized ships continue to look promising with an aging fleet as almost one third of the fleet is over 20 years of age and although scrapping activity is limited.
Due to the fair markets.
We continue to see only a handful of vessels being ordered not enough to keep the supply demand balance similar picture in the handy size fleet. There are only three vessels to be delivered over the next two years all in the M. D. C market is indeed, the high order book, but demand for these vessels has so far proved resilient and freight rates are near.
Our record 11th.
On slide 12, we're showing the evolution of our LPG fleet and this slide for comparison purposes, we have excluded the tanker vessels that we had after 2021 and focused their pure LPG fleet in terms of cubic capacity, including our JV vessels in.
In a rising market have sold and delivered so far this year eight vessels and two more expected to be delivered around January.
So first that says of mostly older vessels, we have maintained the average age of our fleet to 10 years, which is quite modest for industry standards concurrently we have been investing in modern you're building I'm just see vessels significantly larger than those in our core fleet. We're cautiously expanding in a segment that is hard right now.
Freight rates close to all time highs.
They'd much more volatile one of these vessels will deliver in October and two more we have fixed delivery in January our intention is to keep a diversified fleet.
Please look at slide 13, where we are outlining some of the key variables that may affect our performance in the quarters ahead.
We remain optimistic in the longer term for the reasons, we analyzed area.
This is a fast changing environment.
Uncertainty is mostly relating to the macroeconomic factors.
Related to China's economy and others.
Unseen influences like the Panama Canal, it delays or geopolitical tensions in the middle East.
On the other hand, what he certainly in the short term is that we are entering the winter for the northern hemisphere and period when demand nobody strengthens and we are seeing this in the market.
To sum up.
So far 2023 has turned out to be a tremendous year for gas shipping overall, and especially for test south gas.
So far for the first nine months of 2023, we have reported our strongest performance on record with a basic EPS of 1.1 $2.
For the third quarter, it normally would be a seasonally weak quarter. We reported net income of $15 7 million. The second best quarter on record I only surpassed by the first quarter of this year.
As the market is firming, we took advantage of the momentum and entered into a number of long period charters, some with durations as long as three years, thus securing part of our future revenues.
We have actually extended the duration of our contract coverage to over 50% for 2024.
Oh, so part of our strategy is deleveraging and so far during this year, we have more than half the outstanding debt repaying $151 million and greatly reducing our interest rate expense is in the process.
At the same time keeping 15.
The 27 vessels debt free.
At the same time, we sold it to expand the repurchase of shares with an additional 10 million, making it $25 million in total.
We believe we are well positioned to benefit from strong markets and to continue to generate shareholder value.
And even though <unk> share prices climbed significantly over the past six months. We believe we continue to be astound still very undervalued investment for anyone wishing to invest in our company at this time.
We have now reached the end of our presentation and we would like to thank you for joining us at our conference call today and for your interest and trust in our company.
We look forward to having you with US again at our next conference call for our fourth quarter results in February. Thank you very much.
Thank you ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect your lines. Thank you.
Okay.
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Okay.
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Yeah.