Q4 2025 Dorian LPG Ltd Earnings Call
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Speaker Change: Good morning, and welcome to the Dorian LPG fourth quarter and full year 2025 earnings conference call.
At this time all participants are in a listen only mode.
Speaker Change: A question and answer session will follow the formal presentation.
Speaker Change: As a reminder, this conference is being recorded.
Speaker Change: A live audio webcast of today's conference call you said available on Dorian Lpg's website, which is www dot Dorian LPG dotcom.
Speaker Change: I would now like to turn the conference over to Ted Young Chief Financial Officer.
Speaker Change: Thank you Mr. Young please go ahead.
Ted Young: Thank you Nikki good morning, everyone and thank you all for joining us for our fourth quarter 2025 results conference call.
John: With me today are John how much of a terrorist chairman president and CEO of Dorian LPG limited, John with Coors light of energy transition and Tim Hansen, our Chief commercial officer.
John: As a reminder, this conference call webcast and a replay of this call will be available through May 29 2025.
Ted Young: Many of our remarks today contain forward looking statements based on current expectations.
Ted Young: These statements may often be identified with words, such as expect anticipate believe or similar indications of future expectations.
Ted Young: Although we believe that such forward looking statements are reasonable we cannot assure you that any forward looking statements will prove to be correct.
Ted Young: These forward looking statements are subject to known and unknown risks uncertainties and other factors as well as general economic conditions should one or more of these risks or uncertainties materialize or should underlying assumptions or estimates prove to be incorrect actual results may vary materially from those we express today.
Ted Young: Let me refer you to our unaudited results for the quarterly and annual periods ended March 31, 2025. They were filed this morning on form 8-K. In addition, please refer to our previous filings on forms 10-K, and 10-Q, where you'll find risk factors that could cause actual results to differ materially from those forward looking statements.
Ted Young: Also please note that we expect to file our full 10-K, no later than May 32025.
Ted Young: Finally, I'd encourage you to review the Investor highlight slides posted this morning on our website.
Speaker Change: That I will turn over the call to John Hydro terrorists.
Speaker Change: Good morning, and thank you for joining us Michael.
Speaker Change: My colleagues had drawn that Tim will provide you with detailed comments on our financial results for sustainability of the operational progress and our market outlook.
Ted Young: First I'd like to highlight the following.
Ted Young: Our dividend of 50 cents per share totaling $21 3 million reflects our commitment to returning capital to shareholders in a manner. That's all.
Ted Young: Aligned with market conditions, and our policy of distributing earnings prudently.
Ted Young: This past fiscal year, we paid over $155 million in dividends.
Ted Young: So far in 2025.
Ted Young: Moments have been dramatic Wow traders grappled with the tariff announcements and the fact that fourth time, it became uneconomic to export U S. L P J to China.
Ted Young: The market quickly assess the ability of the middle Eastern Canada to replace U S pause.
Ted Young: Oh This U S exports remained strong.
Ted Young: 300, <unk> loading more than 14 million tons in the last quarter.
Ted Young: U S L. P G specifications.
Ted Young: Attractive, but Chinese P D H class.
Ted Young: As you will hear from Tim and we believe that increased production in the U S.
Ted Young: In the Middle East and U S terminal expansion combined with just nine new buildings for the rest of the year will support a balanced freight market and healthy earnings for 'twenty to 'twenty five.
Ted Young: We are confident in the long term fundamentals of LPG demand, which are underpinned by growing petrochemical and residual residential consumption, particularly in Asia and by infrastructure expansions in the U S, which will support steady growth in NGL output.
Ted Young: Moving to the operational side of our business, we are progressing our investments and quick payback of energy saving devices and performance optimization.
Ted Young: We have eight dry dockings planned for this year.
Speaker Change: Jon Al will provide an update on our initiatives and our decision to convert some of our vlccs to facilitate the carriage of ammonia.
Ted Young: And now I'd like to pass it over to our CFO Ted you all four of our quarterly financial overview.
Ted Young: Thanks, John.
Ted Young: My comments this morning will focus on capital allocation, our financial position liquidity and our unaudited fourth quarter results.
Ted Young: March 31, 2025, we reported $317 million free cash, which was sequentially up from the previous quarter.
Ted Young: Cash flow from operations more than doubled from 24 million to $50 3 million quarter over quarter, and we generated $10 million from the maturity of some bond holdings, all of which gave us enough cash flow to support our dividend a progress payment on our new building made in January and our quarterly debt amortization.
Speaker Change: In spite of significant outflows, we still managed a modest increase in cash.
Speaker Change: As disclosed two weeks ago, we will pay any irregular dividend of <unk> 50 per share or roughly 21 million in total on or about may 32025 to shareholders of record as of May 16th.
Speaker Change: Including this dividend, we have returned approximately 870 million and $875 million in cash through dividends, a self tender offer and open market repurchases since our IPO.
Speaker Change: With a debt balance at quarter end, a $557 4 million our debt to total book capitalization stood at 34, 8% and net debt to total capitalization at 15%, we are well structured and attractively priced debt capital with a current all in cost of about five 1% and Undrawn 50.
Speaker Change: Dollar revolver and one debt free vessels.
Speaker Change: Coupled with our strong free cash balance we have a comfortable measure of financial flexibility.
Speaker Change: Looking ahead, we expect our cash cost per day for the coming year to be approximately 26000 per day, excluding capital expenditures for dry docking and progress payments on our new building.
Speaker Change: For a discussion of our fourth quarter results. You may also find it useful to refer to the investor highlight slides close to this morning on our website.
Speaker Change: I would also remind you that my remarks will include a number of terms such as T. C available days and adjusted EBITDA. Please refer to our filings for the definitions of those terms.
Speaker Change: Looking at our fourth quarter chartering results.
Speaker Change: Given the fact that our entire spot trading program is conducted through the Helios pool, It's reported spot results as the best measure of our spot chartering performance.
Speaker Change: For the March 31 quarter, the Helios pool or the TCE per day for its spot and Coa voyage at $29800.
Speaker Change: Reflecting the more challenging LPG product environment during the quarter, which Tim will get into more in his remarks.
Speaker Change: Our available days were also affected by a relatively heavy dry docking schedule. The overall TCE result for the pool of 33200 per day reflects the strong time charter out portfolio in the pool.
Speaker Change: On page four of our Investor highlights material you can see that we have three dorian vessels on time charter within the pool, indicating spot exposure of just over 89% for the 28 vessels in the Helios pool.
Speaker Change: The Orleans reported TCE revenue per available day was about 35300 per day.
Speaker Change: This rate was marginally lower than the prior quarter's results again, reflecting the challenging LPG product market.
Speaker Change: However for bookings for the quarter, ending June 32025 or more promising.
Speaker Change: We currently estimate that we have fixed 79% of the pools available days in the quarter at a TCE of roughly $42000 per day.
Speaker Change: The rate includes both spot fixtures and time charters in the Helios pool gives.
Speaker Change: Given the difficulty in predicting loading rates, which obviously have a huge effect on revenue recognition. This port options in some charters and the fact that some of our C O as our price on average Baltic rates. The essence, we called during these calls on the rates actually realized can vary.
Speaker Change: Daily Opex for the quarter was $11000 a day, excluding dry docking related expenses, which was up from the prior quarter.
Speaker Change: Crewing crew and sparing stores costs were both up.
Speaker Change: This quarter also saw nearly a thousand dollars a day difference between reported Opex that includes expense drydocking amounts and our preferred measure of our opex that it excludes those costs.
Speaker Change: Those non capitalized dry docking expenses totaled about $3 $2 million and equated to seven cents per share for the quarter.
Speaker Change: Our time charter in expense for the four time charter in vessels came in at about $10 $3 million or about 28600 per time charter in day. Thus those vessels contributed positively to our quarterly profits.
Speaker Change: Total G&A for the quarter was $8 3 million in cash G&A, which is G&A, excluding noncash compensation expense was about $6 8 million.
Speaker Change: This amount contained about $800000 of statutory accruals, which puts our core G&A at around $6 million more in line with our typical levels, but 800000 was worth about two cents per share.
Speaker Change: Our reported adjusted EBITDA for the quarter was $36 $6 million.
Speaker Change: Total cash interest expense for the quarter was $6 7 million, which is down sequentially from the prior prior quarter note that we capitalized approximately 425000 of interest related to our new building during the quarter.
Speaker Change: Principal amortization remained steady at around $13 million.
Speaker Change: For the current fiscal year, ending March 2026, we expect to Drydock eight of our vessels for which we have budgeted approximately $12 million excluding off hire time.
Speaker Change: Days in Drydock should be consistent with our disclosures, namely around 25 days per vessel.
Speaker Change: Also we have to progress payments on our new building in September and December 2025.
Speaker Change: Each of roughly $12 million.
Speaker Change: The regular dividend declared at the beginning of the month or 50 cents per share brings to $15 70 per share in a regular dividends that we've paid since September 21.
Speaker Change: The modest reduction of the dividend versus the prior quarters consistent with our previous discussions around the topic. It reflects a balanced mix between results and the long term needs and prospects of the business.
Speaker Change: Do you see recent rate gyrations underscore the range of the variables that affect our business whether terminalling fees.
Speaker Change: Petrochemical demand and global trade policies just to name a few.
Speaker Change: Including the regular dividend to be paid this month, we paid over $640 million of dividends and have generated.
Speaker Change: Our net income of $641 million over the same time period I eat back to June 32021.
Speaker Change: Our board weighs current earnings our current near term for cash our cash forecast.
Speaker Change: Future investment needs and the overall market environment, among a number of factors and making a determination of the appropriate level if any for our dividends. The 50 per share dividend reflects a constructive market view when considering last quarter's earnings and our heavy drydock schedule. This past year and for the coming year. In addition, the dividend decision was made before the <unk>.
Speaker Change: Inclusion of the most recent U S China trade talks.
Speaker Change: We continue to be on the lookout for fleet renewal opportunities it would be judicious with our free cash flow working to balance shareholder distributions that reduction in fleet investment with that I'll pass it over to Tim Hansen.
Tim Hansen: Thank you Chad and good day everyone.
Speaker Change: Just out of the corner ending March 31st the freight market.
Speaker Change: Momentum from last December and she said she remained strong in the east.
Speaker Change: <unk> issued actually recovery January requirements.
Speaker Change: West childless critical insurance post holidays to secure first half temporary lifting shops in the U S Gulf at rates in the low 100 tons.
Speaker Change: On the <unk> three rules, UCITS, cheetah, which he cause someday.
Mr. Shaw: G India Mr Shaw.
Mr. Shaw: Mid to high voltage to date the rates trended upwards to at the end of 'twenty full and the physical.
Mr. Shaw: Typical would just buy what she had so much year life losses, there was expectations I'll say look age or even the second week of January cold spell in the U S. Gulf Coast, John of course, but what fixing being aware disruptions such as Texas freeze in prior years and recent turmoil delays experienced last summer.
Mr. Shaw: Suddenly.
Mr. Shaw: The tightening in the Panama Canal this auction fees spiking to $500000.
Mr. Shaw: And so the strain on the voyage planning.
Mr. Shaw: The east coast valves in the U S drove up domestic LPG demand leading to a rise in the Mont Belvieu LPG price and meantime, seasonally warm weather and subdued petrochemicals demand in Asia narrowed the arbitrage tightening the turtle beach and freight rates with no spot activity cheap rates began to yourself.
Mr. Shaw: Two minutes.
Mr. Shaw: With February.
Mr. Shaw: It's poached down was about 1 million worldwide with 300000 in the east and about 700000 out of the U S and no U S product series G. So the chicken pox separate distinct.
Mr. Shaw: Lastly, you mentioned uncertain.
Mr. Shaw: Panama transit costs more when they started just Dallas, some Asia towards the Middle East coast, albeit Kate so the U S Gulf putting pressure on the middle East Gulf rates, and increasing base business I mean dependency.
Mr. Shaw: Neutral images U S like Jimmy Choo.
Mr. Shaw: This is something that we would see gradually increased in freight rate continued to decline by mid February earnings on the modern equals a non scrubber vessels have dropped from the high $40000 a day in early January to low 20000.
Mr. Shaw: <unk> dollars a day in both the east and West market activities da Vinci re shoot stabilizing the rage and each levels at these levels before the recovery began in early March.
Mr. Shaw: And fixed just by mid March driven by tightening position.
Mr. Shaw: Led to a sharp rebound and ending the quarter with earnings back in the mid to high 40 days.
Mr. Shaw: He talks with dollars per day range.
Mr. Shaw: On the average spot earnings we said is around $30000 a day, reflecting a balanced market. This was despite the absence of a typical winter demand.
Mr. Shaw: The east as opposed to fall in Q1.
Mr. Shaw: U S. The U S and then cold snaps just mentioned, it's very exposed to innovative fixed feedstock costs waging on PTH in petrochemicals.
Mr. Shaw: And then out of all the Chaucer, plus a high oil and gas market volatility and Miss the tariff announcement by the U S administration.
Mr. Shaw: Supercold salaries by China announced in Q1 25 did not didn't each entity include LPG from the U S. China bus bursts of cautious by charter as <expletive> amazing too far ahead with the ever changing tariff announcements and the possibility of China, including LPG injury Superglue.
Mr. Shaw: Terrorists are getting.
Mr. Shaw: U S.
Mr. Shaw: G production. He does another quarterly record in the first hold off 25, producing half a million tons, surpassing previous caller despite Jewish.
Mr. Shaw: As a G H postponing some $5 6 million tons in January to fault on nine separate.
Mr. Shaw: Quarterly exports.
Mr. Shaw: Has shown to be the highest in rig counts fell two one and then just the third highest on record.
Speaker Change: Oh boy.
Speaker Change: In addition to the first quarter updates.
Speaker Change: Bye Bye early April to Chase a ball.
Speaker Change: We'll continue to escalate China included LPG and ethane in the cyclical tariffs.
Speaker Change: This caused a huge shock to the LPG market, causing freight rates collapsed from approximately $40000 a day down to two <unk>.
Speaker Change: Virtually overnight to trade and relax.
Speaker Change: Sure.
Speaker Change: Some tradeoffs, we let the vessels at roughly $40 per ton below the last on <unk> levels on the Houston cheaper, whose reflecting the expectation obviously you just market disruptions.
Speaker Change: Within a week the market stabilize and freight rates rebound bounded to a more sustainable level, although still below the highest seen at the end of the first quarter.
Speaker Change: While you see ryzen terrorists. It takes you to prevent the direct LPG trade from U S. China the market anticipated a repeat of the 2019 trade volt passion with China sourcing replacement volumes from China shifts or regions, although subsea choosing the entire Chinese to English Chinese U.
Speaker Change: Asia region needed volumes with the deepest difficult and.
Speaker Change: And could cause some demand destruction.
Speaker Change: In trade things happen quickly and lift your inefficiencies and increased ton mile demand.
Speaker Change: That's also seen in the previous table.
Speaker Change: These times fewer losses than each of the last four years you'd be shocked she chooses and the limitations of slots available in China.
Speaker Change: Yes.
Speaker Change: The Mont Belvieu prices declined rapidly along all agency mortgage making U S LPG.
Speaker Change: Your competitor just a synopsis officers choose some.
Speaker Change: Some non Chinese PTH units.
Speaker Change: Yes.
Speaker Change: This just supported demand outside China.
Speaker Change: While the concerns the investment.
Speaker Change: Chinese P G eight demand destruction might lead to rising.
Speaker Change: U S inventories, especially in a post winter period, the improved price competitiveness of U S. G helps you stay in export sales.
Speaker Change: The key question was whether the increase ton mile demand elsewhere would be sufficient to offset the loss in Chinese volume in the short term it did.
Speaker Change: And maybe just quickly on let's say you can buy a development in the U S China trade.
Speaker Change: The policy that we're supposed to temporarily reduce.
Speaker Change: Some of the crazy the levels of 245, and you Wanna twenty-five respectively for a 90 day period.
Speaker Change: It was a 10% Chinese import tax on U S LPG production.
Speaker Change: Notably even this terrorists listen to whats harvests, there was less enough choice of the trade flows in 2019 today, we have a high Saudi CP pricing, a little Belvieu price, which suggests that U S. Cargoes may remain competitive on the landed price basis into China. Despite the tax.
Speaker Change: As negotiations continue as the market has regained balance and has been trending downwards since that Travis reduction.
Speaker Change: While the potential impact of future trade tensions remains uncertain we are positive.
Speaker Change: You know I would look for the market in 2025 U S production on the East Coast are set to increase supported by military passenger expansions scheduled in the second half of the year alongside Asia, continuing to drive growth with new ph plants coming online in China, and sustained competitiveness of propane and butane.
Speaker Change: Grocery snacks, taking both the east and west increasing their own demand.
Speaker Change: The support comes from our Panamax knowledge at the moment are operating at maximum efficiency.
Speaker Change: Let's just downsize and limited new building deliveries as mentioned by John and trying to 25 tons. It does contribute to a favorable supply demand balance.
Speaker Change: Is that the muscle what's your myself John Krish.
Speaker Change: Thank you Tim.
Speaker Change: At Dorian LPG, we are committed to continuously improving energy efficiency and advancing the sustainability of our operations and our vessels.
Speaker Change: We maintain a daily focus on optimizing basketball operational efficiency without away or import while continuously incorporate insights from our crew.
Speaker Change: To ensure a comprehensive performance point right, we leverage both proprietary tools and third party platforms to assess the efficiency of the Hull Man engine auxiliary engine boilers, and the integrity of data quality.
Speaker Change: How performance is assessed by monitoring frictional resistance with careful consideration of trend.
Speaker Change: Okay Macy's.
Speaker Change: We consistently monitor and clean the Hollywood profiler to optimize performance and minimize overall fuel consumption.
Speaker Change: We got Dr. Regular monitoring of their main engine auxiliary engines and boiler focusing on performance metrics, such as utilization power loads and lubrication efficiency.
Speaker Change: Our scrubber vessels savings for the first quarter of 2025 amounted to 1.270 million or about $1174 per calendar day perpetual net overall scrubber operating expenses.
Speaker Change: He will give her interests between high sulfur fuel oil and very low sulfur fuel oil averaged $67 per metric ton.
Speaker Change: While the differential of LPG as fuel versus the very low sulfur fuel oil stood at about $93 per metric ton.
Speaker Change: LPG economically attractive where I do feel that naturally.
Speaker Change: We now operate 16 scrubber fitted vessels and for dual fuel LPG vessels.
Speaker Change: We have now completed the second VLCC vessel upgrade to carry ammonia cargo.
Speaker Change: And I think that's always planned to be upgraded during its dry docking in the fourth quarter of 2025.
Speaker Change: Oh, the OTC naturals, you're not going to help you do your fleet will be able to carry ammonia cargos. In addition to our new building to LTC VLCC vessels delivering in 2026.
Speaker Change: First the ammonia projects developed and with the large ammonia cargo markets or is that.
Speaker Change: Okay.
Speaker Change: So that may be see 83 during April 2025 member states finalized and approved the draft legal tax.
Speaker Change: I am more net zero framework as part of the eye and most midterm greenhouse gas reduction measures to be added as a new chapter five to Marpol annex six.
Speaker Change: Key features include one a mandatory welterweight greenhouse gas purely intense expanded which is called GSI effective first of January 2028.
Speaker Change: Two.
Speaker Change: Two compliance tiers are based in Iraq.
Speaker Change: With annual tightening reduction factor through 'twenty five.
Speaker Change: Great.
Speaker Change: Units.
Speaker Change: Unit at Ust <unk> hundred dollars per tonne for every C O two equivalent.
Speaker Change: Unit and U S. Dollar 300 Navy per tonne or each Goblin C. O two equivalent units T O to O compliance shortfalls payable into the I M O net zero.
Speaker Change: Credits, that's not before credits or cover compliance aiming to accelerate zero zero carbon fuel apathy.
Speaker Change: You can't implementation verification guidelines for the I am on net zero or framework are due to be finalized in mid 2025.
Speaker Change: Oh for my adoption at the extraordinary MTBC session to be scheduled in October 2025.
Speaker Change: Yeah, Michael maybe also adaptive ratio dilution.
Speaker Change: 400, which gets out annual C. I a reduction factors relating to the 2019 referenced line.
Speaker Change: <unk> and 582027, increasing incrementally by two and five 8% each year to reach 21, 5% and 2030.
Speaker Change: Compared to the 2019.
Speaker Change: Okay.
Speaker Change: So on energy and emission savings.
Speaker Change: And that could be leased out of environmental responsibility our lines with long term value creation for our shareholders.
John Hydro: And now I would like to pass it over to John have you got there for final comments.
Speaker Change: Thank you all textured yarn tinman pad.
Nicky: Nicky you can open up for questions.
Speaker Change: And at this time, if you would like to ask a question. Please press the star and one on your telephone keypad.
Speaker Change: Draw your question by pressing star two.
Speaker Change: Once again to ask a question. Please press star one on your telephone keypad.
Speaker Change: Our first question from Omar <unk> with Jefferies. Please go ahead. Your line is open.
Omar: Thank you Hey, guys good morning.
Speaker Change: Wanted to just ask a bit about the volatility that we've been seeing in the VLCC market. Obviously, there's always volatility there just seems to be much more extreme perhaps you know recently, but one thing is clearly the spot rates have exceeded many expectations and right now we're hovering over 50000, a day it seems on the.
Speaker Change: Spot market.
Ted Young: Ted you mentioned, the 79% of the quarter at 42000.
Ted Young: It seems that you know the rates are.
Speaker Change: Basically much stronger than anticipated could you maybe I know Tim you talked about this a little bit but could you talk about what's driving this market strength here recently and it is this sort of are there any kind of trade pattern changes that have evolved out of what happened in April between China and the U S. Could you just give a bit more context as to what's driving this latest upswing.
Speaker Change: Thank you.
Omar: Thank you thanks for the question Omar.
Ted Young: I think Ted I mean, sorry, I think Tim is best positioned to and tell you. This is on the frontline and obviously, it's something on everybody's mind. So Pam can you take it please.
Pam: Yeah, Oh my Gosh, that's a that's just that it has gone up quite a lot of them.
Pam: I mean, we see that tightening instead, we still see.
Pam: These trade flows that that's old said when a when the high terrorists wasn't in place in China put under a.
Pam: So deserves Harris, so we're still seeing a lot of Congo to school and some of the U S to India and South East Asia. So that that of course gives a lot of the ton miles.
Pam: Still a balance between whether it makes sense to disrupt the tonnes ore from.
Pam: But the 10% tax whether it makes sense to use U S origin's into China, or whether it's better to take and supplementing all of AG show, so that doesn't seem to be a demand destruction, but what are some of the Congress is still going.
Pam: The longer route around the Cape to Southeast Asia into two India, particularly and that also means that you have.
Pam: Most of them I saw the a G. When they go to China, which would normally have.
Pam: Gulf of China to India. So on top of that I mean, the reduction is still very strong in N V. A S. R.
Pam: Oh.
Pam: We've always talked about charters are you expected a strong year for 'twenty to 'twenty five in which we should have seemed to be a little bit forgotten are in all the the the noise on the on the tourist trade, but like we have.
Pam: I mean, the 20 to 25 was predicted to be relatively tight.
Pam: Tight compared to 24 with a limited new building deliveries are and you can see the previous little jumping newbuild deliveries have been enough salt and all of them trying to reach when it falls and the adoption is still quite high plus as John mentioned also you do have a lot of dry dog is coming.
Speaker Change: This year and even more next year so.
Speaker Change: So we did have some kind of a fair amount of Oh 25 already and.
Speaker Change: And yet with the change in trade routes that has that has definitely helped us.
Speaker Change: Especially as I said, we haven't seen any.
Speaker Change: Destruction of demand in China.
Speaker Change: Okay. Thank you.
Speaker Change: Yeah. Thanks, Sorry go ahead.
Speaker Change: No I would say when it was going to say even at the best of times, it's very difficult to kind of make a projection on rates, but right now it's even more but we have all of those events.
Speaker Change: Things are staying the way they are which they really do.
Speaker Change: We feel that these rates are sustainable.
Speaker Change:
Speaker Change: Yeah Yeah.
Speaker Change: So I guess, maybe just kind of on that you talked a bit about the kind of the reshuffling, perhaps of a vessel capacity kind of moving into different trade routes do you have a longer ton mile.
Speaker Change: Since this U S China trade deal over the.
Speaker Change: Beginning of last week have you seen kind of like a flood of inquiry or floater fixtures on the part of Chinese buyers again have you seen a noticeable pick up for these trade lanes kind of perhaps becoming more saturated.
Speaker Change: And how they've been developing the past several months.
Speaker Change: Tim.
Speaker Change: Uh huh.
Speaker Change: Yeah, I think we see you seems to have kind of a sudden now I mean, when when you have the high going to 45 225.
Speaker Change: Terrorists definitely we didn't see in the U S going into China now in dollars in Q.
Speaker Change: We do so it's so it's balanced, but it's usually have already shifted and PV.
Speaker Change: <unk>.
Speaker Change: They tend to keep selling to India I guess also the expectation of us things.
Speaker Change: Things could change again, so so as long as it's on Unbalances.
Speaker Change: Yes.
Speaker Change: You can say that universe.
Speaker Change: You can see here, whether you go one of the other place you would probably still tried to place U S tonnes outside China are just too.
Speaker Change: To make sure that no no surprises spring upon just so we have seen a change in the in the trade routes and also the way that the Indians are imported and have taken advantage of all the U S. China.
Speaker Change: Trade trade law.
Speaker Change: Got it Okay, and then final one.
Ted Young: Ted you've met you May had mentioned in your opening comments.
Ted Young: The decision on the dividend.
Ted Young: Was made before the China U S trade talks.
Speaker Change: Is that perhaps maybe a hint that you're more comfortable with something different something higher perhaps especially given the rate of improvement we've seen.
Speaker Change: Okay.
Speaker Change: Ed.
Speaker Change: I wouldn't I wouldn't want to commit the board or anybody.
Speaker Change: I just think that.
Speaker Change: You know obviously it did change things as you just talked about and so.
Speaker Change: The board made the decision with the best information available at the time and I want folks to have the benefit of understanding that and how the board at its discretion decides to evaluate the environment. When the next meeting we'll see but.
Speaker Change: Obviously, it is a better rate outlook as John said, but as John also said things rarely stayed the same so we shall see.
Speaker Change: Yeah.
Speaker Change: Yeah, No that's fair I appreciate that thanks.
Speaker Change: Thanks, guys that's it thanks.
Speaker Change: Our.
Speaker Change: Thank you.
Speaker Change: And we're showing no further questions at this time I will turn the call back to management for closing remarks. Thank you and thank you for running a good show for us and thank you Omar I was wondering where you are.
Speaker Change:
Speaker Change: [laughter].
Speaker Change: And size of the questions and.
Speaker Change: Have a good summer talk to you in late July or early.
Speaker Change: Early August.
Speaker Change: Thank you and this does conclude today's program. Thank you for your participation you may disconnect at any time.
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