Q2 2025 Teekay Corp Earnings Call

Speaker 1: Welcome to the TEEKAY Group's second quarter 2025 Earnings Results Conference call. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session. At that time, if you have a question, participants will be asked to press star one to register for a question. For assistance during the call, please press star zero on your touch-tone phone. As a reminder, this call is being recorded. Now, for opening remarks and introductions, I would like to turn it over to the company. Please go ahead.

Welcome to the Teekay group's second quarter 2025 earnings results conference call. During the call all participants will be in a listen only mode. Afterwards, you will be invited to participate in a question and answer session at that time. If you have a question participants will be asked to.

Thats Star one to register for a question for a question or assistance during the call. Please press star zero on your Touchtone phone as a reminder, this call is being recorded now for opening remarks, and introductions I would like to turn it over to the company. Please go ahead.

Ed: Before we begin, I would like to direct all participants to our website at www.tekey.com, where you will find a copy of the TEEKAY Group's second quarter 2025 earnings presentation. Kenneth will review this presentation during today's conference call. Please allow me to remind you that our discussion today stands for forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the second quarter 2025 TEEKAY Group earnings presentation available on our website. I'll now turn the call over to Kenseth, TEEKAY Corporation and TEEKAY Tankos, President and CEO, to begin.

Before we begin I would like to direct all participants to our website at www Dot dot com, where you'll find a copy of the Teekay group's second quarter 2025 earnings presentation.

Dennis will review this presentation during today's conference call.

Please allow me to remind you that our discussion today.

Actual results may differ materially from results suggested.

Statements additional information concerning factors that could cause actual results to materially differ.

Forward looking statements, especially in the second quarter of 2025 Teekay Group earnings presentation is available on our website.

Now I'll turn the call over to cast that Teekay Corporation to Teekay tankers.

As CEO to begin.

Kenneth Hvid: Thank you, Ed. Hello everyone, and thank you very much for joining us today for the TEEKAY Group's second quarter 2025 earnings conference call. Joining me on the call today for the Q&A session is Brody Spears, TEEKAY Corporation and TEEKAY Tango CFO, Ryan Hamilton, our VP of Finance and Corporate Development, and Christian Waldergrave, our Director of Research. Starting on slide three of the presentation, we will cover TEEKAY Tango's recent highlights. TEEKAY Tango's reported GAAP net income of $62.6 million or $1.81 per share and adjusted net income of $48.7 million or $1.41 per share in the second quarter. Second quarter spot rates were counter-seasonally strong, with rates outperforming the last two quarters and above long-term averages for the second quarter.

Thank you and Hello, everyone and thank you very much for joining us today for Teekay group's second quarter 2025 earnings conference call.

Joining me on the call today for the Q&A session has approached Speers teekay corporations and she can tango CFO, Ryan Hamilton, All VP finance and corporate development and Christian Waldegrave director of research.

Starting on slide three of the presentation, we will cohort cheeky tangos recent highlights you'd get tangos reported GAAP net income of $62 $6 million or $1.81 per share and adjusted net income of $48 7 million or $1.41 per share in the second.

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Second quarter swap rates were counter seasonally strong with race outperforming the last two quarters and above long term averages for second quarter.

Kenneth Hvid: Further, with spot rates well above our free cash flow break-even levels, the company generated approximately $62.8 million in free cash flow from operations, and at the end of the quarter had a cash and short-term investment position of $712 million and no debt. With strong free cash flow generation and cash position, TEEKAY Tangos is well positioned to continue actively executing on our fleet renewal strategy. This includes reducing our exposure to 18 to 19-year-old vessels, as well as opportunistically selling some 2009-built Suez Maxes in today's historically higher asset price environment, as well as making incremental purchases of modern vessels. In July, we acquired one modern Suez Max, and we agreed to acquire the remaining 50% ownership interest in the Hong Kong Spirit VLCC from our joint venture partner.

Although with spot rates, well above our free cash flow breakeven levels. The company generated approximately $62 8 million in free cash flow from operations and at the end of the quarter had a cash and short term investment position of $712 million and no debt.

With strong free cash flow generation and cash position Teekay tankers is well positioned to continue actively executing on our fleet renewal strategy.

This includes reducing our exposure to 18 to 19 year old vessels as well as symmetrically selling some 2009 built suezmax is into base historically at higher asset price environment.

Well as making incremental purchases of modern vessels.

In July we acquired one login Suezmax and we agreed to acquire the remaining 50% ownership interest in Hong Kong Spirit VLCC from all joint venture partner.

Kenneth Hvid: This VLCC acquisition was opportunistic based on relative market values and our belief in the near-term strength of the tanker market. In addition, the company agreed to sell four Suez Maxes and one ALAT2, which will be delivered to the new owners in the third and fourth quarters for a combined total of $158.5 million, which we expect to result in an estimated book gain on sale of approximately $46 million. So far, in 2025, we have sold or agreed to sell 11 vessels for a total gross proceeds of $340 million and estimated book gains on sale of approximately $100 million. Although our sales have outpaced our purchases so far this year, the plan is to gradually change the pace of buying as we remain focused on renewing and growing our fleet in an accretive manner to future earnings.

This leaves the Zee acquisition was opportunistic based on relative market values and a belief in the near term strength of the tanker market.

In addition, the company agreed to sell four Suezmax is one a lot too which will be delivered to their new owners in the third and fourth quarters for a combined total of 158 and a half million dollars, which we expect to resolve an estimate a book gain on sale of approximately $46 million.

So far in 2025, we have sold or agreed to sell 11 vessels for total gross proceeds of $340 million and estimated book gains on sale of approximately $100 million. Although all sales have outpaced all purchases. So far this year. The plan is to gradually change the pace of buying.

We remain focused on renewing and growing our fleet.

Creative manner to future earnings.

Kenneth Hvid: Looking at our third quarter to-date rates, we have secured spot rates of $31,400 per day and $28,200 per day for our Suez Max and Afrimax ALAT2 fleets, respectively, with approximately 43% of our spot days built. We believe there are potential tailwinds for the tanker markets towards the end of the year and that the fundamentals for the medium term remain balanced, but with more uncertainty due to the complex geopolitical landscape. We'll discuss the drivers of the market in the next few slides. Lastly, TEEKAY Tangos has declared its regular quarterly fixed dividend of $0.25 per share. Moving to slide four, we look at recent developments in the spot market. Spot tanker rates improved during the second quarter compared to the last two quarters, and rates were above long-term average levels for a second quarter.

Looking at our third quarter to date rates, we have secured spot rates, all 31004 hundred $1 dollars per day and $28200 per day for Suezmax, and Aframax I loved who beats, respectively with approximately 43% of all stock days booked.

We believe there are potential tailwind for the tanker market towards the end of the year and that the fundamentals for the medium term remain balanced.

[noise] uncertainty juices are complex geopolitical landscape.

We'll discuss the drivers of the market in the next few slides.

Lastly, teekay tankers has declared its regular quarterly fixed dividend of 25 cents per share.

Moving to slide four we look at recent developments in the spot market.

Spot tanker rates improved during the second quarter compared to the last two quarters and rates well above long term average levels for our second quarter. The strength in tanker rates was primarily due to long ago average voyage distances. During April though rates subsequently self softness during the remainder of the quarter in line with normal seasonal trends.

Kenneth Hvid: The strength in tanker rates was primarily due to longer average voyage distances during April, though rates subsequently softened during the remainder of the quarter in line with normal seasonal trends. The market saw a brief period of volatility in the middle of June following the escalation of hostilities between Israel and Iran. However, there was no material disruption to regional oil production, exports, or tanker movements, with several spot charters failing subjects and rates quickly reverting to prior levels once a ceasefire was announced. Turning to slide five, we look at near-term oil fundamentals, which we believe could give support to tanker rates during the second half of the year. Global oil production is expected to increase sharply in the coming months due to the unwinding of OPEC Plus supply cuts and higher production from South America.

The market saw a brief period of volatility in the middle of June following the escalation of all services between Israel and Iran. However, there was no material disruption to regional oil production exports or tanker movements with several spot charters sailings topics and rates quickly reverting to prior levels. Once a cease fire wasn't a house.

Yeah.

Turning to slide five we look at near term oil fundamentals, which we believe could give support to tango rates during the second half of the year.

Global oil production is expected to increase sharply in the coming months due to the unwinding of OPEC plus supply costs and higher production from South America.

Kenneth Hvid: The OPEC Plus group has accelerated their unwind and at the current pace will have fully unwound the 2.2 million barrels per day of voluntary supply cuts by September 2025, a full year ahead of schedule. This should translate into increased tanker ton mile demand, particularly from September onwards, as reduced domestic demand will allow Middle Eastern producers led by Saudi Arabia to increase seaborne exports. New offshore oil production coming online in Brazil and Guyana should also increase volumes and support crude tanker ton mile demand during the second half of the year. As shown by the chart on the left of the slide, global oil supply is expected to exceed demand in the coming quarters, leading to an expected build in global oil inventories. The chart on the right shows that oil inventories outside of China are currently below average levels.

The OPEC plus group has accelerated the unwind and at the current pace, we'll have fully unwind. The two 2 million barrels per day of voluntary supply caused by September 'twenty to 'twenty five a full year ahead of schedule.

This should translate into increased tanker ton mile demand, particularly from September onwards, as reduced domestic demand will allow middle eastern producers led by Saudi Arabia to increase seaborne exports.

New offshore oil production coming online in Brazil, and Ghana should also increase volumes and support crude tanker ton mile demand during the second half of the year.

As shown by the chart on the left off the slide global oil supply is expected to exceed demand in the coming quarters, leading to an expected build in global oil inventories. The chart on the right shows that oil inventories outside of China are currently below average levels. Therefore, we expect that the market will be able to have sole.

Kenneth Hvid: Therefore, we expect that the market will be able to absorb the additional supply that is due to come online. Periods of oil inventory builds have historically been positive for tanker rates, and we believe this could be another tailwind for rates as we move into the seasonally stronger winter months. Turning to slide six, we review the key drivers of the medium-term outlook, but also some of the uncertainties which add a layer of complexity. Global oil demand is projected to increase by 0.7 million barrels per day in both 2025 and 2026, as per the IEA. While this is lower than projections made at the start of the year, it still represents healthy growth and would push total oil demand to a record high of almost 105 million barrels per day.

It's all supply that is due to come on line.

Periods of oil inventory builds have historically been positive for tanker rates and we believe this could be another sale in full rates as we move into the seasonally strong winter months.

Turning to slide six we review the key drivers of the medium to outlook, but also with all the uncertainties, which add a layer of complexity.

Oil demand is projected to increase by one 7 million barrels per day in both 2025 and 'twenty to 'twenty six as per the IEA. While this is lower than our projections made at the start of the year is still represents healthy growth and workforce total oil demand. So a record high of almost 105 million barrels per day.

Kenneth Hvid: As mentioned on the previous slide, growing oil supply from both OPEC Plus and non-OPEC Plus sources will help meet this demand growth and provide positive tanker ton mile demand growth, particularly as we anticipate that a growing portion of new oil supply coming online in the Atlantic Basin will be moved long haul to meet growing demand in Asia. Turning to global fleet supply, the pace of new tanker orders has slowed significantly since the start of the year, with 11 million dead weight of new orders placed in the first six months compared to 42 million dead weight in the same period of 2024. The order book, when measured as a percentage of the global tanker fleet, has stabilized in recent months at approximately 15%.

As mentioned on the previous slide growing oil supply from both OPEC, plus and non OPEC plus sources will help meet this demand growth and provide positive tanker ton mile demand growth, particularly as we anticipate that a growing portion of new supply coming online in the Atlantic Basin will be.

We move long hole to meet growing demand in Asia.

Turning to global fleet supply the pace of new tangled waters has slowed significantly since the start of the year with 11 million deadweight of new orders placed in the first six months compared to four 2 million deadweight in the same period of 'twenty to 'twenty four.

The order book when measured as a percentage of the global tanker fleet has stabilized in recent months at approximately 15%. Meanwhile, lack of tanker scrapping means that the fleet continues to age where the average age of the global tanker fleet at 25 year high of 14 years.

Kenneth Hvid: Meanwhile, a lack of tanker scrapping means that the fleet continues to age, with the average age of the global tanker fleet at a 25-year high of 14 years. To tanker market conditions worsen, there could be increased pressure on the large and growing pool of scrap candidates to leave the market, providing a mechanism to rebalance the global fleet. We believe the combination of the current order book and aging tanker fleet and constraints on available yard space points towards a balanced fleet supply outlook and should result in continued low levels of tanker fleet growth over the medium term. While underlying tanker market fundamentals look positive, a number of geopolitical factors add complexity to the outlook and will likely influence the direction of spot tanker rates.

To changing market conditions worsen that could be increased pressure on the large and growing pool of scrap candidates to lead the market, providing a mechanism to rebalance the global fleet. We believe the combination of the current order book and aging tanker fleet and constraints unavailable yard space points towards a balanced fleet.

Supply outlook and should result in continued low levels of tanker fleet growth over the medium term.

While the underlying tanker market fundamentals look positive and they'll both geopolitical factors add complexity to the outlook and will likely influence the direction of spot tanker rates are not going through each point in detail, but I note that in September alone, we expect that the OPEC plus group will complete the unwinding of the coupon.

Kenneth Hvid: I'll not go into each point in detail, but I note that in September alone, we expect that the OPEC Plus group will complete the unwinding of their 2.2 million barrels per day of voluntary supply cuts. The EU will introduce a new price cap of $47.60 per barrel on Russian crude oil exports. President Trump's 50-day ultimatum to Russia is set to expire, though this timeline could be moved up given Trump's recent comments. And as we saw yesterday, the US just announced sanctions on additional 50 vessels moving Iranian crude oil. As such, we anticipate that the market will continue to exhibit volatility going forward, both in the short and medium term. Turning to slide seven, we highlight how TEEKAY Tangos continues to build value while remaining patient for future fleet renewal.

2 million barrels per day of volunteers Black ops, the EU will introduce a new price cap of $47.60 per barrel on Russian crude oil exports President Trump's 50 day ultimatum to Russia is set to expire. This time line could be moved up given trumps reasons comments and as we saw yesterday the.

U S. Just announce sanctions on additional 50 vessels moving Iranian crude oil assets, we anticipate that the market will continue to exhibit volatility going forward both in the short and medium term.

Turning to slide seven we highlight how teekay tankers continues to build value while remaining patients for future fleet renewal.

Kenneth Hvid: With our operating leverage and low free cash flow break-evens of $13,000 per day, TEEKAY Tangos generated $128 million in free cash flow in the first half of the year. With no debt on our balance sheet, the company continues to build its financial strength and flexibility. Looking ahead, the company is well positioned to continue generating free cash flows. To emphasize, for every $5,000 increase in spot rates above our break-even produces $1.89 per share of annual free cash flow or over 4% on a free cash flow yield basis. In summary, TEEKAY Tangos is an operating company in a cyclical, capital-intensive business. We remain disciplined in our capital allocation as our financial strength positions the company well for future fleet renewal while enabling us to continue to build value in a complex tanker market outlook.

Our operating leverage and low for your cash flow break evens, all $13000 per day, Teekay tankers generated $128 million and free cash flow in the first half of the year.

With no debt on our balance sheet. The company continues to build its financial strength and flexibility.

Looking ahead the company is well positioned to continue generating free cash flows to emphasize for every $5000 increase in spot rates above our breakeven producers $1 89 per share of annual free cash flow over four 4% on a free cash flow yield basis.

In summary, Teekay tankers, as an operating company and a cyclical capital's capital intensive business, we remain disciplined in our capital allocation as all financial strength positions the company well for future fleet renewal, while enabling us to continue to build value in a complex tanker market outlook in the near term.

Kenneth Hvid: In the near term, with a low cash flow break-even, we expect to continue generating strong cash flows and taking incremental steps on fleet renewal while returning capital to shareholders. With that, operator, we're now available to take questions.

Cash flow breakeven, we expect to continue generating strong cash flows and taking incremental steps on fleet renewal, while returning capital to shareholders with that operator, we're now available to take questions.

Speaker 2: Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach the equipment. Again, press star one to ask a question. If you are in the event via web interface and would like to ask a question, simply type your question in the ask a question box and click send. Our first question is going to come from Omar Nakhta from Jeffreys. Please go ahead.

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Our first question. Please go ahead come from Omar.

Jeffrey Please go ahead.

Omar Nokta: Yeah, I get it. Hi, guys. Good after, good morning. thanks for the update. Just wanted to, yeah, just wanted to ask quickly, maybe if you wouldn't mind just expanding on the comments you made early in the presentation. You're referencing the purchasing of the the latest ship and then some of the sales you did. And you mentioned that you would be looking to change the pace given the need to renew. And so I just wanted a bit more clarity. Are you talking about accelerating the pace of acquisitions or maybe right-sizing the ratio between purchasing and selling?

Yeah, I got it Hey, hi, guys. Good after a good morning.

Thanks for the update just wanted to I just wanted to ask quickly maybe if you wouldn't mind just expanding on the comments you made earlier in the presentation you were referencing the purchasing of the.

The latest ship and then some of the sales you did and you mentioned that you would be looking to change the pace given the need to renew.

Wanted.

More clarity are you talking about accelerating the pace of acquisitions or maybe right sizing the ratio between purchasing and sell it.

Kenneth Hvid: Yeah, morning Omar. Thanks for that question. I think what we wanted to point out, as everybody can see, we've been fairly active in selling some of our older ships in the first half of this year. So we sold a total of 11 ships. And then at the same time, we've started picking up a couple of younger ships. Last year, we picked up a couple of Afrimaxes. We did a Suez Max now, and then we simplified the ownership structure around the VLCC that we own 50% of. So the point that we're making here is that I think we've said that the selling is largely done for now. And what we're looking to do is we are going to recycle a lot of the capital that we will be collecting from those sales and gradually start adding newer ships to the fleet again.

Yeah morning, Omar Thanks, Paul Thanks for that question I think what we wanted to point out is as everybody can see we've been fairly fairly active in selling some of our older ships are in the first half of this year. So we sold that at a total of 11 ships.

And then at the same time, we've started picking up at a couple of younger ships with last year. We picked up a couple of Aframax is a suezmax now and then we simplified the the ownership structure around the VLCC that we own 50% off and so the the point that we're making here is that I think we've said this the selling is largely done for now.

The what we're looking to do is we are covering to recycle a lot of the capital that the that we will be collecting from those sales center and gradually stop the ads.

Adding new ships to the fleet again.

Omar Nokta: Okay, thank you. And you mentioned the opportunistic transaction to take the full ownership of the VLCC. You've also got, I guess, the opportunistic stake in Ardmore, given your exposure to MRs and obviously have your bread and butter, Suez Max and Afrimax. How are you thinking about further capital deployments as you renew the fleet? Are you looking within the same, you know, your main asset class, or do you look towards a larger or perhaps a smaller segment?

Okay. Thank you and you mentioned the opportunistic transaction to take the full ownership of the VLCC. You've also got I guess.

The ultimate opportunistic stake in Ardmore, given your exposure to have ours, and obviously you have your bread and butter Suezmax Aframax. How are you thinking about further capital deployment that you renew the fleet or you're looking within the same.

Your your your.

That asset class or do you look at towards the larger or perhaps the smaller segments.

Kenneth Hvid: Yeah, I would say our number one priority is finding good purchase candidates within our core segments of Afrimaxes and Suez Maxes. We are, of course, looking at where we are and trying to square, making sense of selling at what we think are quite strong prices for the older assets and then recycling the capital into younger assets where we can find good value. And there's some relative price movements there, and we think that they're the yard opportunity that allows us to kind of create a positive arbitrage on that. So in the near term, I think that you will see us finding single vessels in our core segments, Afrimaxes and Suez Maxes. And over the medium term, we might be going in a little bit bigger with new buildings if you think that that's the right time, or we may be looking at other asset classes.

Yeah, I'll say all our number one priority is finding good purchase candidates.

Within our core segments of Aframax and Suezmax is and we are of course looking at where we are I'm trying to square.

Making sense of selling at what we think are.

Quite strong prices for the older assets, and then recycling that capital into younger assets, where we can find good value out there some relative price movements, there and we think that there are the YOD opportunity that allows us to calculate a positive arbitrage on that and so in the near term I think that you will see us finding.

Single vessels and in all core segments of Aframax, and Suezmax is and over the medium term.

We might be.

Going into a little bit bigger with when new buildings, if you're thinking that that's the right time or maybe looking at the at all the asset classes, but the priority right now and in and near term areas is really just a reloading on on all core asset classes.

Kenneth Hvid: But the priority right now and in the near term here is really just reloading on our core asset classes.

Omar Nokta: Okay, very good and very clear. Thanks, Kenneth. I'll pass it back.

Okay, very good and very clear thanks, I'll pass it back.

Kenneth Hvid: Appreciate it. Thanks, Omar.

I appreciate it thanks a lot.

Speaker 2: And our next question is going to come from Ken Hoexer from Bank of America. Please go ahead. And Ken, are you there? Do you perhaps have your mute function button on?

And our next question is going to come from Ken.

Bank of America. Please go ahead.

And Ken are you there or do you perhaps have your mute function.

Tim Chang: Hi, this is Tim Chang on for Ken Hexter with DOJ. You mentioned OPEC's plus unwinding production cuts in September, an increase in non-OPEC production in the Atlantic Basin as favorable for demand uplift later in the year. Do you see this lifting rates mainly in four-Q, just given that rate softening due to seasonality in the third quarter?

Hi, This is Tim Chang on for Ken Exterran with DNA.

You mentioned, the OPEC plus unwinding production cuts in September and increase in non OPEC production, the Atlantic Basin and favorable for demand uplift later in the year do you see this lifting rates mainly in <unk>, just given that rates softening due to seasonality in the third quarter.

Kenneth Hvid: Yeah, hi, it's Christian. Yeah, we definitely see more oil volumes coming on the market later in the year with OPEC Plus. It's not just the production increase, but the fact that the Middle Eastern countries have been keeping more oil domestically during the summer months for power generation. So as we get through the summer and probably into September, we should see more Middle East volumes hitting the water. And then we do expect more oil coming from Guyana and Brazil in the second half as well. And we still have the normal seasonality in tanker rates. You know, the summer months, as we've seen in the last couple of months here, tend to be a bit flatter. The winters do tend to be seasonally stronger months.

Yeah, Hi, it's Christian here Yeah, we.

Definitely seen more volumes coming on the market later in the year with OPEC plus is not just the production increase but the fact that.

You know the middle eastern countries have been keeping more oil domestically during the summer months of power generation say as we get through the summer and probably into September we should see more middle east volumes hitting the water and then we do expect more oil coming from.

Guyana and Brazil in the second half as well and we still have the normal seasonality in tanker rates you know the summer months as you've seen in the last couple of months say it tends to be a bit flatter.

And then the winter does do tends to be seasonally stronger months say with more <unk>.

Kenneth Hvid: So with more export volumes coming online in the second half, and also some of the geopolitical complexities as well that Ken has touched on in terms of more sanctions on Russia and Iran, which just makes trade in general less efficient, we certainly think that there will be some more volatility and stronger rates as we go into the latter part of the year.

Volumes coming online in the second half I don't know if that's some of the geopolitical complexities as well that Kenneth touched on in terms of our.

More sanctions on Russia, and Iran, which just makes trade in general less efficient.

He said anything that there'll be some more volatility and stronger rates as we go into the latter part of it.

Tim Chang: Got it. Thank you. And then secondly, other revenue stepped up materially to 42 million from around 33 million last quarter. How should we think about run rate going forward there?

Got it. Thank you and then secondly, other revenue stepped up materially to 42 million from around 33 million last quarter, how should we think about run rate going forward there.

Brody Spears: Yeah, hi, this is Brody. Yeah, the other revenues were a bit higher this quarter because we had a one-time restructuring charge in our Australian business that was funded by one of our customers for an FPSO that the contract had expired on. So it's about 6 million higher this quarter than it otherwise would be because of that. So that was a flow-through cost to TEEKAY.

Yeah, Hi, this is brody yeah. The other revenues were a bit higher this quarter, because we had a one time.

Restructuring charge in our Australian business that was funded by one of our customers are out for an F. P. S O that.

The contract had expired on so it's about 6 million higher this quarter than it otherwise would be because of that so that was that.

Three cost to T K.

Tim Chang: Got it. Very clear. Thank you for taking my question.

Got it very clear thank you for taking my question.

Speaker 2: And there are no further questions in the queue at this moment. I'll turn the conference back over to the company for any additional or closing remarks.

And there are no questions.

Amit I'll turn the conference back over to the company.

Closing remarks.

Kenneth Hvid: Well, thank you very much for tuning into our call this morning. We look forward to reporting back to you next quarter. Have a great day.

Well. Thank you very much maturing into I'll call. This morning, we look forward to reporting back to the next for a great day.

Speaker 2: And this concludes today's call. Thank you for your participation. You may now disconnect.

And this concludes today's call. Thank you for your participation you may now disconnect.

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