Q3 2024 Tsakos Energy Navigation Ltd Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to the Tsakos Energy Navigation Conference call on the third quarter 2024 financial results, we have with US Mr Talkies or uphold blue chairman of the board Mr. Nikolas Tsakos.
And CEO, Mr. Paul Durham, Chief Financial Officer, Mr. George Cheryl Pate.
I didn't and Chief operating officer, and Mr. Hao Cosmopolis co CFO 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.
Speaker Change: Must advise that this conference is being recorded today.
Speaker Change: And now I pass the floor to Mr. Nicolas <unk> President of capital Link Investor Relations advisor for cyclists Energy Navigation Limited. Please go ahead Sir.
Speaker Change: Thank you very much and good morning to all of our participants I am Nicola Rogers, President Bush and in restaurant and there shouldn't buy shorter cycles and as you know, but yes.
This morning, the company publicly released its financial results for the nine months in the third quarter ended September 32024.
Speaker Change: Yes, if you do not have a copy of today's earnings release, please call us at 212.
Speaker Change: 66175, 66 or email us at 10.
Speaker Change: Capital, Inc. Dot com and we will have a call before you email right away.
Please note that parallel to today's conference call. There's also in live audio and slide webcast.
Speaker Change: Which can be accessed on the company's website on the front page at Www Dot D E F and.
Speaker Change: G R V.
Speaker Change: The conference call will follow the presentation slides. So please we urge you to access the presentation slides on the company's website.
Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call.
Speaker Change: Also please note that the slides of the webcast presentation I give her control.
Speaker Change: That means that by clicking on the proper button you can move to the next or to the previous slide on your own.
At this time I would like to read the Safe Harbor statement. This conference call and also the presentation of the webcast.
Speaker Change: Certain forward looking statements within the meaning of the safe Harbor provision of the private Securities Litigation Reform Act of 1995.
Speaker Change: Those are cautioned that such forward looking statements invoke involve risks and uncertainties, which may affect ten's business prospects and results of operation.
Speaker Change: And before passing the floor over to Mr light up onto the treadmill of chocolate and they didn't have a carefully.
Speaker Change: Like to congratulate the company.
Speaker Change: For being awarded thank corporate over the year. After the inauguration of the first private a naval Academy English that shows the efficiency of the company's operation and also it's a focus on the welfare of the crews.
Speaker Change: And with this I would like to pass the floor to Mr. Hu.
Speaker Change: The chairman of cycles, and that's one that we gave him. Please go ahead sir.
Speaker Change: Sure.
Speaker Change: Thank you Nicolas and good morning, and good afternoon to all and thank you for joining us joining our call today.
Speaker Change: In the market admittedly off it certainly a peak.
Speaker Change: Yet still with certain business and geopolitical fundamentals.
Speaker Change: Dan continues to be sustainably profitable steadily.
<unk> equity mainly.
Speaker Change: Maintaining a healthy cash position.
Increasing its dividend by 50%.
Speaker Change: Offering a substantial dividend yield at todays price.
Speaker Change: Continuously renewing and increasing its fleet with a state of the art vessels.
Speaker Change: The company's industrial model characterized by a nearly $2 billion of forwards contracted accretive revenue and proven operational excellence.
Speaker Change: And shows the continuation of its stable to sustainably profitable performance.
Speaker Change: And they're rewarding its shareholders handling market cyclicality and efficiently.
Speaker Change: So congratulations again once again in order to Nikos tsakos and his management team.
Speaker Change: On this performance and best wishes for more successes going forward.
Speaker Change: And with this thank you and over to Mr. Nikolas Tsakos.
Speaker Change: Thank you chairman.
Good morning, and good afternoon.
Speaker Change: To all our listeners.
Speaker Change: It has been.
Yeah.
Speaker Change: It is nine months and I think it has been in nine months milestone growth period for the company.
We haven't been given the ability go well.
Speaker Change: Im escape some of our older assets are monetized them and move forward with our state of the art new vessels.
Speaker Change: 21, a new vessel program acquiring a five.
Speaker Change: Five vessels company earlier in the year.
Speaker Change: Taken delivery for dual fuel vessels.
Speaker Change: And we're still with the lessors to be taken delivery starting from April.
Speaker Change: April 25.
Speaker Change: We're going to be taking over the city.
Speaker Change: Four four vessels.
Speaker Change: Within that 2025, so it's a.
Speaker Change: Very active period for the company and we've been able to be active.
Speaker Change: Increased liquidity significantly paid down debt.
Speaker Change: Continue.
Speaker Change: And increase our dividend policy both for the homeowner.
Speaker Change: The preferreds.
Speaker Change: We are facing an environment.
Speaker Change: There is a huge appetite for our services.
Speaker Change: By our major clients.
Speaker Change: About 60% of our business is being provided by the six major energy companies and I think action is in the forefront followed by <unk>.
Speaker Change: Ecuador.
Speaker Change: BP and shell all of them are first class names. So we were very proud.
Speaker Change: Yes.
Speaker Change: We have partners in.
That's what station there going forward.
Speaker Change: He's a big appetite for a good quality ships, but we are at the crossroads of.
Speaker Change: Technology changing in our business.
Speaker Change: I mean, the prospects in the medium to long term prospects of the business.
I think that's what we have stated.
Speaker Change: In our press release however.
Speaker Change: The we as a company as the Chairman said, we have been trying to take.
Speaker Change: The edge is out of cyclicality and I think we have been successful for the first for the first 31 years, so far never stopping paying dividends through difficult.
Speaker Change: Second markets and I think I think it's going to take us through all the cycles.
Speaker Change: But always kind of been caught a stronger as a company.
Speaker Change: And then he never to respect.
Speaker Change: However, our share price, which speak to us sometime in the summer.
Speaker Change: There has been quite a lot of profit taking.
Speaker Change: From that which I think we were very positive to see our people because we haven't been a company that back in 2019 and together with the whole industry.
Speaker Change: We're trading in a single single single digits. So we almost tenfold it there's a lot of profit.
But we are trading and not more than two or three times earnings when all of our clients.
Speaker Change: With at present.
Speaker Change: I'm going to jump at least in time happening. So we do not expect to immediately traded up 10 times earnings, but at least double of what we are today I think is a fair valuation and we are aiming to achieve these by <unk>.
Speaker Change: Blaming the different model the industrial model often.
Which are we are actually.
Speaker Change: And in industrial and move out of energy for the major oil companies.
My milestone 'twenty 'twenty four so far a bit but also very exciting prospects going forward the business at least close to $2 billion of new business coming in and we have significantly increased our rates from all of the 30 vessels, we renewed do their chartering department and was that the one that's got president to give us.
Speaker Change: If we go over to you.
Speaker Change: What's going on with the complex things.
Speaker Change: Thank you Nicholas and good morning to all of you joining us for our earnings call today.
Speaker Change: 24 continues to be a good year for tankers and 410 for the same reasons that I played out sort of the last two and a half years.
Speaker Change: We have a we had one of the largest and most established the energy transport worldwide. We have transported 460 million barrels per day in 2023 safely.
Speaker Change: That's the slide number slide number three yes, that's about 23 days of U S consumption.
Or 5% of global oil consumption.
Speaker Change: Consumption.
Speaker Change: We are have celebrated 31 years and are in the public markets and since our listing in 2002 and the New York Stock Exchange, we have paid uninterrupted dividends to our common and several others. We have built a big more than diversified.
Speaker Change: The fleet, we have developed an industrial shipping model and we have.
Speaker Change: One of the highest repeat caliber clients with exxonmobil, leading the way with 22% of the revenue follows by Ecuador shell Chevron total energies BP and all that.
Speaker Change: We have as we have embarked in Oh, the decarbonization journey and stuff that are Green energy program. We have we find ourselves in 2024.
Speaker Change: One of the largest U a fuel operators with vessels in the water we have six L. Lindsey Aframax a battery powered vessels.
Speaker Change: And there being the carrier of choice Oh for energy majors for their transportation requirements.
Speaker Change: We have we continue to.
Speaker Change: Fix our vessels are whose charter expires or book of new business and currently the backlog that we have is 1.8 billion. This is minimum and secure revenues how does that Ah.
Speaker Change: As some.
Speaker Change: The majority of these fixtures will have also some profit sharing element.
Speaker Change: And are these charters have I know that it's a duration of four two years. Thanks.
Speaker Change: Thanks to the fleet to our flip the modality and the efficiency of our technical managers and their purchasing powers the economies of scale.
Speaker Change: We have one of the high very high fleet utilization in excess of 92%.
Speaker Change: And we have a solidly.
Speaker Change: He built with you know very shortly the balance sheet our fleet our fair market value is around 4 billion. We have a low debt of one point to eight and Oh, we have 50 million common shares outstanding and the chocolate family in the management of the company.
Speaker Change: Our strong support terrorists with 70% plus of the shares outstanding.
Speaker Change: And then just.
Speaker Change: <unk> being a top of our class a operator and I.
Speaker Change: We have a devaluation of the company is low.
Speaker Change: Low very low.
Speaker Change: 2023 of the earnings per share returned $9.04.
Speaker Change: And so we trade that are two two times and it would be over two times our earnings when our major clients are trade that are at least 10 times our ethics.
Speaker Change: Moving onto the next slide we have been I understand was created in the aftermath of Oh 519.
Which is a regulation or the W. Hollywood.
Speaker Change: For the that.
Speaker Change: Introduction of established vessels. Since then we have faced the six a major crisis and remind us every time to come out of its crisis, a stronger and bigger.
If we look at our if we look at the fleets that we have built today in slide number five we see you see a very diversified fleet that caters to the needs of our.
Speaker Change: Our clients spanning from crude carriers, two product tankers, LNG and shuttle tankers today, we have a pro forma fleet of 74 vessels 60 to about anything in the water and 12, new buildings under construction there.
Speaker Change: The red and the blue colored vessels in the slides the notes vessels trading in the spot and period market with profit sharing.
Speaker Change: The black colored vessels on fixed time charters.
You can see at the bottom of the slide 31 out of 62 vessels in the water have market exposure. That's 50%. This is supported and vessels with profit sharing arrangements.
In 49 out of the 62 vessels in the water or 79% are adding secured employment that time charters and time charters with profit sharing.
Speaker Change: The next slide basically shows our access through our capital markets.
Speaker Change: We have had grown the company.
Speaker Change: It seems you know you see in Blue the capital of the common capital raising because that's we haven't the read through.
Through the preferred shares we have retired for series a preferred shares for 223 million and we had used the capital markets as a growth engine as a growth engine for our fleet.
Felipe.
We have built an industrial model on slide seven as you can see with the list of our charters as you can see this is a blue chip client base with the biggest clients being excellence followed by if we know shell Chevron and Lasalle.
Speaker Change: We have on slide eight the left to the left side of off of slides.
Speaker Change: It shows you the all in.
Speaker Change: Our breakeven cost for the vessels or on a net income basis.
Speaker Change: Basically the time charter the vessel as a service to cover the expenses the operating expenses the finance expenses and all the other overheads are that we have while Theyre then spot trading vessels are basically server.
For the upside in the dividend distributions to our shareholders for every $1000 increase in spot rates as opposed to these impacts of <unk> 16 cents and non U E. P. S based on the current vessels in the spot market.
Speaker Change: As a friend as well for the nine months of 2023.
Speaker Change: I don't think that is an integral part of our of our company strategy and capital allocation, we have grown the fleet significantly with a larger more specialized vessels the debt levels.
Speaker Change: Have remained more or less at a at a level that is a very minor.
Speaker Change: Net debt to cap currently has 44%.
This is the this shows that the few.
The next slide Slide 10 shows the fleet renewal and grid getting shipped growth since January 1st 2023.
Speaker Change: We have shown the 15 <unk> vessels with an average age of 17, and a half years and 1 million total deadweight ton and have replaced them with 21 vessels with an average age of one year and two 3 million dead weight on that.
Speaker Change: This dabbling in the quality and the size of the fleet will help the company Spring broke board the next growth phase.
Speaker Change: How do you think.
Speaker Change: Translate.
Speaker Change: Financially.
Speaker Change: Hi.
Speaker Change: So I guess a lot tachiol her.
Speaker Change: I find ourselves.
Speaker Change: Thank you George I'll take you on the financials of the nine months three months.
Speaker Change: Results during the first nine months of 'twenty 'twenty 410 operated 62 vessels seemed more than Cleveland tends to be a period of which 11 under one scheduled dry dockings.
Speaker Change: As a result of the corresponding fleet utilization for the 'twenty 'twenty four nine months was up 92, 2% from 95, 6% during the same 'twenty to 'twenty three period.
Speaker Change: Energy majors appetite fulltime employment increased emphasis was placed on attaining such secured revenue contracts to take advantage of the elevated rates offered and as a result, the mix between Q revenue sports related charges. It was revised antiques.
92% and 45% fixed versus spot for the 20th century for nine months as opposed to 77% and 54% for the 'twenty to 'twenty three equivalent period.
Speaker Change: In this backdrop and in Assam, with Wayne and Chinese oil imports environment, something which lately seems to be reversing than in the first nine months of 'twenty 'twenty four generated gross revenues of $660 million and operating income of $236 million, which included about $49 million of capital. Thanks.
Speaker Change: Fleet operating expenses of 117 $147 million increased in line with the larger number and size of vessels in the fleet after the various acquisitions and divestments during the nine months period.
Speaker Change: Operating expenses placebo, however, with three 3% lower from the 'twenty to 'twenty, three and nine months.
Speaker Change: 9306, Thanks again to efficient management performed by 10 technical experts on salt and onboard the vessels.
Speaker Change: Time charter equivalent per seat per day. During this period impacted by the aforementioned dry dockings and less days in market related contracts settled at the steel healthy 73393, six times higher Theyre both daily.
Speaker Change: Vessel operating expense rate.
Speaker Change: Reflecting all of the above and net income of 157 million was recorded for the first nine months of 'twenty seven generating EPS of $4.62.
Speaker Change: Adjusted EBITDA for the 'twenty 'twenty four nine months was up $314 million.
Speaker Change: Interest and finance cost of $87 4 million during the 'twenty 'twenty four nine months reflected the new loans for vessel acquisitions, and new building deliveries as well as continuing elevated global interest rates.
Speaker Change: By the Montreal Chocolate spreads 10 hasn't seen duties due to its pristine track record on its debt obligations.
However, this inevitable and control cost increase was to a large extent mitigated by about 4 million in reduced coupon payments on outstanding preferreds from the amount paid unit equivalents 29 months and 5 million savings in forward bareboat hire from the repurchase of two suezmax season leasing contracts in the summer of 'twenty.
Speaker Change: 24.
Speaker Change: Got some bonds at the end of September 24, with a three.
Speaker Change: 396 million nine and a half million higher from the December 23 level.
And that is after having paid $258 million for common and preferred dividends from growth projects and the exercise of the above leasing repurchase options.
Speaker Change: Now there is also the third quarter of 2010 default what equally attractive considering the three out of the 11 vessels underwent drydocking Hopkins you made this quarter.
Speaker Change: Our fleet of 62 vessels as opposed to 58 in the second quarter of 'twenty, two 'twenty three and generated gross revenues of 200 million and operating income of 57 million compared to $187 million.
Speaker Change: For the third quarter was 23, respectively.
Speaker Change: Neither of these two comparable quarters have gains or losses from vessel sales.
Speaker Change: Operating expenses of 49 million for the third quarter of 294 were $1 6 million lower from the 2023 third quarter level. Despite the dry docks as mentioned above and the larger fleet size both in terms of numbers in that way.
Speaker Change: Operating expenses precede per day were at 9188, almost $1000 or lower the 'twenty to 'twenty three third quarter number.
Time charter equivalent placebo, they closed the quarter, three and a half times support the Opex number up 32539.
Speaker Change: 1200, higher $500 higher compared to last year's third quarter.
Speaker Change: The resulting net income of $26 5 million producing earnings per share of $6.07.
Speaker Change: <unk> 5 million increase in depreciation and amortization costs, a larger fleet and tape.
Speaker Change: Adjusted EBITDA finished the quarter up $100 million 5 million above the level of the 23rd quarter.
Speaker Change: As of September 30 of 'twenty 'twenty four the fleets of fair market value was about $4 billion and total debt 1.8 billion corresponded to the higher fleet size as a result of four dual fuel LNG powered aframax, new buildings and five more in the secondhand vessels entering the fleet.
Speaker Change: At the same time net debt to capital remains at a very comfortable of 44%.
Speaker Change: And then didn't and supported by the aforementioned result, 10, we'll pay our second semi annual common stock dividend of 90 cents on December 20th 'twenty 'twenty four bringing the total distributions for 'twenty 'twenty four operations to $1 50.
Speaker Change: Our common share 50% higher than two independence square Mt.
Speaker Change: Yielding approximately seven 5% onto desk price.
And with this I'll turn it back to Nicolas for the closing remarks.
Thank you and thank you for describing.
Nicolas: A very busy period in a very efficient and timely way.
Nicolas: I think what what is important is that we are maintaining.
Nicolas: Our industrial.
Nicolas: Energy Transportation model.
Nicolas: We try to take a.
Nicolas: Enough advantage of the upside when the market is but we always and I think what is important for our long and continuous dividend payment. If you go back to the expenses side and I think this this gives everybody.
Speaker Change: Very good.
Speaker Change: A description of yes. This.
Speaker Change: This is slide number eight I mean, the way we have been able to go on for the last 31 years, we make sure that our first class charters, who are who are more than.
Speaker Change: Uh Huh, I think 60% or 70% of our income comes from long term employment.
Speaker Change: Selling arrangements.
Speaker Change: They cover all and when I say, all our obligations, including depreciation our interest paying down.
Speaker Change: Depreciation and debt repayment and for US, it's very similar because of the modality of the ships that we have so that's how we have wafer I mean, we might not be the most exciting you know shipping company out there, but we are an industrial company we want to.
Speaker Change: To keep.
Speaker Change: Tim.
Speaker Change: For the next generation a bit like what they're particularly advertisement you know you'll never own one or you can keep it for the next generation.
That's why we're up here, what we're here to do and and that has kept us going for 30 years being able to pay dividends.
Speaker Change: For years, our peer group, which is first first class companies out there, which we were proud.
Speaker Change: She hated them operate in the same environment.
Speaker Change: All of them have it.
Speaker Change: A different strategy.
Speaker Change: We are all for diversity otherwise it would have been a very very boring peer group. If we all do the same.
Speaker Change: You have companies most of the companies out there are they focused in one segment or the energy transportation in there you know and although it's a very fragmented.
Speaker Change: Our industry. They play a significant role companies are in the Vlccs other companies from Suezmax. These other companies are just brought up got it.
Speaker Change: We are for.
Diversity.
Well, we are what the call it sounds corny one stop shipping, but we are I mean, we have everything from Vlccs down too.
Speaker Change: Up to LNG as an up five and hired two shuttle tankers and smaller product that is so we do what our client is.
Once a store base, we have a huge operating capacity I think the biggest from the whole peer group I mean, we actually.
We train them.
Speaker Change: Our own crew.
Speaker Change: We are all hands management or there were all kinds of management.
Speaker Change: Also on the commercial side with offices around the world, we have a card limits in the Philippines.
Speaker Change: We'll take shipping seriously and.
Speaker Change: That's why we're able to have this.
Speaker Change: As a result of sort of through the cycle I was very very happy to see that that operating expenses.
Speaker Change: Inflationary environment with bigger ships had the 10% increase.
Speaker Change: I think.
Speaker Change: That is.
These decreases.
And our income had increased.
That was really a very complementary in difficult in difficult times.
Speaker Change: So I believe we should be looking at closer to industrial or infrastructure company valuations.
Speaker Change: Then just the shipping valuations I mean, we tend to go up and down together with our peer group, whether we have been able to or would try and do and we have been proven to be able to take out the edges or over a cyclical market.
Speaker Change: As much as.
Speaker Change: I suppose.
Speaker Change: I'm sure, there's better or even better to do what we always try to do better every day. So no so with that I would like to.
Speaker Change: The floor and Oh all of US are here to answer any questions that you might have.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: You'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Information tone will indicate your line is in the question queue you.
Speaker Change: You May press star two if you'd 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 star keys.
Speaker Change: Our first question comes from the line Oh Frat with Alliance Global Partners. Please proceed with your question.
Oh Frat: Hi, greetings.
If I could if we can just sort of focus on the macro initially can you just sort of give me an idea of sort of how you're thinking about you know with the U S elections, the potential for tighter sanctions on Russia, Iran and potentially Venezuela.
Oh Frat: Sure.
Speaker Change: Uh huh.
I I have to be chosen a secretary of states to be able to answer it is what it.
Speaker Change: Just a poor Greek shipowner, but I mean as long as it affects us.
Speaker Change: I think we are in them.
Speaker Change: In general shipping wood flour.
Speaker Change: Florida says when we have open borders open seas and there are no sanctions. However, we are in the situation.
Speaker Change: 25.
Speaker Change: But a sense of the World fleet I mean, that's a huge.
Felipe: Thank you Felipe.
Is what we call a good athlete.
Felipe: It means that we have not the remaining of us the 75% but of course do not participate in any sanctioned business.
Felipe: Are they able to take advantage of Oh first the first class business without the competition for older ships undercutting the market sure.
Felipe: I think sanctions Oh right now are working for the benefit of our offer first class companies in our peer group.
Because we do not have I mean, the average age for the average age of a what they call. The great flip is above or close to 20 years. So.
Felipe: We don't want to have those ships again in the mad or in the car industry or or or or in the far east the undercutting boot quality responsibly shipping operators here in this sense.
Felipe: It has a positive if.
Felipe: And on top of that of course, we are not navigating we'd never put our seafarers at risk and our charterers has never never an assisted them in the quality of the charters, we operate never insisted for us to ever crossed that I'd see if we didn't feel over a captain's do not feel safe and they do not to save.
Felipe: And I think I would expect and that's why we're doing business with a top tier clients I know other colleagues of ours that have been that that actually charter ships to lesser.
Felipe: Our concerns are continuously boost to cut corners, and try and put those seafarers and danger and.
And cross the that Aegean, we've had incidents that could do have been environmental disasters I'd also with with human loss, but the this is something 10.
Felipe: It does not do no if no magic stick one day, we can put the world are in piece I think that would be even better for shipping.
Felipe: We would've gotten rid of a big number of older ships that are really run down so they could not do well you know charter to a major oil got manager.
Felipe: The company is again and we will have a more more places to eat.
Felipe: No that'll be huge a construction hopefully of a buffer in the black sea of granting in Russia.
Felipe: And if there is piece in the middle East with two Theres room. There is there will be a huge of construction there so yeah.
Felipe: Yeah.
Speaker Change: Peaceful world is a much better word therefore shipping shortly for the long answer.
Speaker Change: No problem Secretary of state.
Speaker Change: When you look at it Nikos.
Speaker Change: With the potential tighter sanctions.
Speaker Change: They did restrict the flow of oil out of Iran, especially.
It's a dark leak or.
Speaker Change: For the darker gratefully that you're seeing do you think they get pushed into retirement or is there potential for somebody else to get cleaned up and moved into the you know.
Speaker Change: The unsanctioned fleet.
Speaker Change: Well I think a big part of it will not be able to re enter the majority of those ships will not be able to render the competitive a market.
Speaker Change: Market.
Speaker Change: Sure.
Speaker Change: Energy shipping.
Speaker Change: G in tank.
The LPG and of course void.
Speaker Change: Very very.
On the tighter environmental concerns.
From from our clients I mean every ship has to be inspected every six months.
In order to and its if its not in a perfect safety. It will not be touched so I think those ships, who will take a very long time to be in a perfect faith in it won't be what for it because.
Speaker Change: There would not be an issue. So I think we will see the increase of scrapping of older tonnage.
Speaker Change: Okay, Great and then can we just talk about the new build program I think in your 6K.
Speaker Change: You indicated that you had about $110 million to spend in capex for the second half of the year 2000 to 2024.
Speaker Change: Can you give me an idea of how much was spent in the third quarter and then how much will be spent on the Newbuild program in the fourth quarter.
Speaker Change: And I don't know hardest as a spin.
Speaker Change: So [laughter] okay.
Speaker Change: Also so the total programming was up just over or approximately $950 million.
Speaker Change: The remaining four this year set to give you kind of more updated figures because from the 6K things have things have changed.
Speaker Change: Change.
Speaker Change: In terms of new loans acquired then and installments paid so are we still have for the remainder of the year to pay $21 5 million a week.
Speaker Change: So about two thirds of that will be a will be bank debt and the rest.
Speaker Change: Call it $9 million of equity.
Speaker Change: The remaining we're still discussing with various banks and raising commercial financing today now on the <unk>.
All the vessels we will have.
Speaker Change: And we have a kind of a grid signed.
Speaker Change: On the on fleet and we are very close on a on a on sign in debt arrangements for the majority of the others. So as you can imagine the payments that would alter but that gives you kind of a high level answer for us. So as I said approximately $21 5 million remaining for.
And in the fourth quarter.
Speaker Change: And and for 'twenty to 'twenty five we assume we expect and assuming those are bank loans in won 11 will come forth with were very close in our green are approximately just over $100 million of equity payments that we expect assume too long to come from a farm out.
Speaker Change: Own coffers, if you like for off for 2025.
Speaker Change: So it all depends on the various installments.
Speaker Change: We need to pay and sometimes they slip into the next quarter or.
Speaker Change: For the year following yeah.
Speaker Change: Yeah, I wish I was trying to focus on what they did.
Speaker Change: Stomach, we're irrespective, how you finance them so.
Speaker Change: Harry can you how much did you spend in the third quarter.
Speaker Change: Uh huh.
Speaker Change: Yeah.
Speaker Change:
That's okay.
Speaker Change: Yeah, maybe we could do a call later this week that would be helpful. Because it. It's vessel has a different kind of pattern. So one can have it offline to give you a kind of a general and a downturn a dollar a detailed.
Speaker Change: Uh huh.
Speaker Change: Number.
Speaker Change: And then in the second quarter, there was a little bit of a twist on the financials as far as you know you have time deposits.
Speaker Change: Can you do at the time deposit figure for the third quarter.
Speaker Change: Yeah.
Speaker Change: So I think it was $94 million and ultimately their tenants.
Speaker Change: Or something.
Speaker Change: Let me put in the time deposits.
Speaker Change: Right.
Speaker Change: What we try to keep the majority of our cash erosion nothing interest.
Speaker Change: On a daily basis.
Speaker Change: And now well, it's interesting almost more than 4% and.
Speaker Change: 5% of the Florida.
So.
We always from time deposits and our money on their mind.
The 400 million $300 million.
Speaker Change: These are names as a 45% interest on a daily basis, regardless, if it's time deposit or not so the majority of it with you can consider it.
Speaker Change: Deposits.
Speaker Change: Understood Okay, great. Thank you so much.
Speaker Change: Thank you Paul.
Speaker Change: Thank you as a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad.
Speaker Change: Next question comes from the line of climate.
Speaker Change: With value Investor's edge. Please proceed with your question.
Speaker Change: Yeah.
Speaker Change: Hi, Good afternoon. Thank you for taking my question.
Speaker Change: Yes.
Speaker Change: I wanted to start Baskin.
Speaker Change: Just with much new routes, we delivered throughout but anything you face.
Speaker Change: It seems she recently secured a contract for the second one could you talk a bit about the duration in terms of the contracts on these two vessels.
Speaker Change: Yeah.
Speaker Change: Yes, I mean this.
These are.
Speaker Change: Three and five year contracts.
Speaker Change: For those for those ships to the.
Speaker Change: One of our biggest clients.
Speaker Change: So first to speed all of the business here over the phone.
Speaker Change: And Oh, that's a.
Speaker Change: Very very accretive.
Speaker Change: Our creative.
Speaker Change: The minimum if you look on page eight where we we have our all in breakeven.
Speaker Change: I think that our minimum.
Speaker Change: Our minimum rate for the next three to five years is almost.
Speaker Change: Twice our breakeven.
Speaker Change: So that's a very it's going to add a significant amount of net income cash flow and for us what big shareholders D with them going forward.
Speaker Change: Yeah.
Speaker Change: That's helpful. Thank you.
Just wanted to ask about trade working days during the quarter because that weight on utilization, but.
On top of that there was also some commercial off hire.
Speaker Change: Could you talk a bit about your dry docking schedule going forward, both for Q4 and for 2025.
Speaker Change: And secondly, we are now two months into the fourth quarter do you expecting going commercial off hire so while doing the work there.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: So in terms of a dry.
Speaker Change: Dry docking days are I mean, it's.
Speaker Change: We usually assume anywhere between.
Speaker Change: Let's say on average about 30 days 35 days.
Speaker Change: And we expect in the fourth quarter to a to have 343 to four vessels undergoing.
Speaker Change: Scheduled dry dockings.
Speaker Change: Okay.
Speaker Change: That's helpful and for 2035, how many vessels you sorry.
Plus one because one we all have to go on a dry dock for the vessels on bareboat. So we will not incur that cost so a three or four vessels.
Speaker Change: Plus there are special services, we will incur the cost into one.
Speaker Change:
Speaker Change: Any bearing on us.
Speaker Change: Hmm.
Speaker Change: And your next question.
Speaker Change: For next year and 225 70.
Speaker Change: It is estimated approximately.
Speaker Change: 10 vessels will went a lot have to undergo a special survey drydock.
Speaker Change: It makes sense and then on the commercial off hire for Q4.
Speaker Change: Sorry.
Speaker Change: On commercial off hire for Q4, do you expect to including any off hire days on top of the off hire for Drydocking.
Speaker Change:
Speaker Change: I think we will remain the same we will be in the same utilization.
Speaker Change: Period.
Speaker Change: Yeah I mean.
Speaker Change: I'd like 92% because of all we said drydock and so we.
Speaker Change: We would expect that in the fourth quarter utilization will be higher than that so no additional off hire days.
Oh Frat: Because of our Oh.
Oh Frat: [laughter] Rfps and operate.
Oh Frat: Vessel operations, we do not and visits.
Oh Frat: And any surprises.
Speaker Change: Makes sense final question from me. This one is more on the modeling side general administrative expenses increased substantially both quarter over quarter and year over year.
Speaker Change: Could you talk a bit about the drivers behind these and whether we should think about it as a one off or not.
This is a one off because we have a oh. So I think you have seen an incentive and incentive plan share incentive plan for a four hour for personnel. So that's just taking so it's really not the cash it's not really.
Speaker Change: The increase it's a it's just that and increase that we have to take in consideration for the incentive plan. So this is a one off.
Speaker Change: So for Q4, we should expect G&A to Roberto worsen.
Speaker Change: Yes, yes.
Speaker Change: Makes sense that's all for me. Thank you for taking my questions. Thank you.
Speaker Change: Thank you, ladies and gentlemen that concludes our question and answer session I'll turn the floor back to Mr. Tsakos for any final comments.
Speaker Change: Well.
Speaker Change: Thank you for listening and I hope that Oh, a revamp.
Speaker Change: They shouldn't.
Speaker Change: So it gives you a little bit more animated with our with the slides.
And I think that theres like they're going to be on true you can study with more the company.
Speaker Change: <unk>.
Still believe that a we are a very good opportunity by opportunity.
Speaker Change: We are monitoring personally.
Speaker Change: Whenever we're allowed we're buying our shares have never sold one I know that the surprise has moved from single digit slump to Thursday. So many people are taking profits, but I think.
Speaker Change: There is a significant upside and the company is trading at a very I mean, we are actually trading at.
Speaker Change: The.
Speaker Change: Multiple that predicts that we're going to be out of business in the next six months.
Speaker Change: We hope with one $8 billion forward and a lot of new ships coming of this would not be the case so.
Speaker Change: Looking forward to to be able to get the share price make the surprise, great again someone's it and and you know move up forward. The team will be in the United States early in December doing a non deal road show. So we would love to be able to see you.
Speaker Change: The face to face or so called on.
Speaker Change: Your side, Oh, what else is out there.
Speaker Change: In the United States and with that I would like to thank you and wish you a very happy Thanksgiving.
Hi to everybody.
Speaker Change: So far our CFO as president of the Big dividend would help Thanksgiving and would not still a Christmas. Thank you very much. Thank you.
Speaker Change: Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.
Speaker Change: Yeah.