Q3 2025 SFL Corp Ltd Earnings Call
My name is <unk>, and I'm, Vice President of Investor Relations and SSL or.
Our CEO <unk> will start the call with an overview of the third quarter highlights that our chief operating officer surely will comment on vessel performance matters, followed by our CFO <unk> <unk>, who will walk us through the financials.
The conference call will be concluded by opening up for questions and I will explain the procedure to do so prior to the Q&A session.
Before we begin our presentation I would like to note that this conference call will contain forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act of 1095.
Speaker #1: I'm at $2.9 billion to shareholders over 87 consecutive quarters. This represents a dividend yield of over 10% based on yesterday's share price.
Words, such as expects anticipates intends estimates or similar expressions are intended to identify these forward looking statements.
Please note that forward looking statements are not guarantees of future performance. These statements are based on our current plasma expectations and are inherently subject to risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward looking statements importer.
Important factors that could cause actual results to differ include but are not limited to conditions in the shipping offshore and credit markets.
Therefore, not place undue reliance on these forward looking statements. Please refer to our filings within the Securities and Exchange Commission for a more detailed discussion of risks and uncertainties, which may have a direct bearing on operating results and our financial condition.
Ill leave the word over to our CEO ULE ethical with highlights for the third quarter.
Thank you.
We are pleased to announced our 87th consecutive dividend as we continue to build SSL maritime infrastructure company with a diversified and high quality fleet.
For the third quarter, we reported revenues of $178 million, and then EBITDA equivalent cash flow of $113 million over the past 12 months EBITDA amounts to $473 million, reflecting the continued strength and stability of our operations.
In recent quarters, we have taken decisive steps to strengthen our charter backlog securing long term agreements with strong counterparties and deploying high quality assets at the same time, we have made substantial investments in cargo handling and a fuel efficiency upgrades to the crusher fleet, while divesting older and less sufficient vessels.
Our chief operating officer trim surely will elaborate on this later.
As part of our fleet renewal strategy 557000 deadweight ton dry bulk vessels built between 2009 and 2012 have been sold with a final vessels delivered in the third quarter. In addition, eight older Capesize brokers were redelivered to gold notion and seven 2002.
To build container ships were redelivered to MSC during the second and third quarters.
These actions combined with our efficiency upgrades have materially improved the operational and fuel efficiency profile over fleet delivering tangible benefits to both asset fell on their customers.
<unk> also advanced our commitment to cleaner technology with 11 vessels no capable of operating on LNG fuel, including five new buildings currently under construction.
During the third quarter, we announced new five year charters for 390, 500, Teu container vessels on charter to Maersk, adding approximately $225 million to our charter backlog from 2026 onwards.
These vessels will be upgraded with advanced cargo handling and fuel efficiency features in line with our larger containership fleet.
Turning to the offshore segment the drilling rig Hercules remained idle also in the third quarter.
While we continue to evolve.
The strategic alternatives for Hercules, we remain optimistic about securing new employment for the rig in due course Hercules remains warm stacked and can be mobilized on relatively short notice. So it is difficult to provide timing guidance at this stage.
With the announced 20 some dividend <unk> has now returned approximately $2 $9 billion to shareholder over 87 consecutive quarters. This represents a dividend yield of over 10% based on yesterday's share price.
Our charter backlog stands at $4 billion with two thirds contracted to investment grade counterparties, providing strong cash flow visibility and resilience amid current market volatility.
Over time, we have consistently demonstrated our ability to renew and diversify their asset base supporting a sustainable long term capacity for shareholder returns.
Our solid liquidity position, including Undrawn credit lines Unlevered vessels at quarter end and sure. So it'd be remained well positioned to continue investing in accretive growth opportunities.
And with that I will now hand, the call over to our Chief operating Officer, Tim Shirley.
Thank you.
Our current fleet is made up of 59 maritime assets, including vessels rigs and contracted new buildings.
Over the last 12 months, we have sold 22 of our older vessels at an average age of more than 18 years.
It tends to reduce the fleet average by about two years to a new average age of less than 10 years per vessel.
We have a.
Diversified treat of Ashford chartered out to first class customers on mostly long term charters and the majority of our customer base large industrial end users.
Our backlog from owned and money shipping assets stands at approximately $4 billion.
On the feed following Q3 is made up of two drybulk vessels.
Containership 16, large tankers, two chemical tankers, seven bulk carriers and two drilling rigs our backlog is mainly derived from time charter contracts and from Q3 onwards, we have for container ships left on bareboat leases.
Our solid liquidity position, including undrawn credit lines and unlevered vessels at quarter-end, ensures that we remain well-positioned to continue investing in accretive growth opportunities.
Risked on time charter.
And with that, I will now hand the call over to our Chief Operating Officer, Trym Shirley.
The charter revenue from our fleet was about $178 million and we.
Thank you. A
We added a total of 4748 operating days in the quarter.
Our current Fleet is made up of 59 Maritime assets, including vessels, Griggs, and contracted new buildings.
Operating days as defined as calendar date, less technical off hire and dry dockings for stacking for the rigs.
Over the last 12 months, we have sold 22 of our older vessels at an average age of more than 18 years.
Following several quarters with high number of ships in Drydock. This quarter, we had two vessels in dry dock at a cost of around $3 8 million.
This has reduced the fleet average by about 2 years to a new average age of less than 10 years per vessel.
The two vessels in Drydock or one car carrier one tanker.
Our overall utilization across the shipping fleet in Q3 was about 98, 7%.
We have a diversified Fleet of assets, charted out to First Class customers on mostly long-term charges and the majority of our customer base is large industrial and users.
Adjusted for unscheduled off hire Omi Digitization of the shipping fleet was 99, 9% at very high availability.
In August our core carrier <unk> and Pulsar had a commission in Denmark, when approaching Gordon's penetration going in for a special survey Drydocking.
Art.
The collection will happen when an overtaking container vessel struck the fourth quarter on the compulsory.
And 2 drilling rigs. Our backlog is mainly derived from time charter contracts, and from Q3 onwards we have 4 container ships left on bareboat leases, the rest on time charter.
There were no injuries personnel, nor pollution as a result of the incident.
And Furthermore, on the vessels MTM cargo and pray in preparation for upcoming dry dockings.
The charter revenue from our fleet was about 178 million and we had a total of 4,748 operating days in the quarter.
She went straight into after.
After the instruments and completed a dry docking as well as the damage repairs in a total of 34.
Operating days is to find this calendar day less technical or fire and dry dockings for stacking for the rigs.
We are fully covered for the extra time required for repairs by a low from our insurers as well as the damage repairs less.
Following several quarters with a high number of ships in dry dock, this quarter we had 2 vessels in dry dock at a cost of around $3.8 million.
200000 U S dollars in deductible.
The two vessels in dry dock were one car carrier and one tanker.
By our hull and machinery insurance.
It is likely we will recover part of the deductible following the outcome of court proceedings, Alternatively, a settlement with owners of the vessel.
The current commercial and regulatory environment means that energy efficiency and emissions reduction is fundamental to <unk> ability to attract and retain first class charterers.
Adjusted for unscheduled technical or fire. Only the seishin of the shipping fleet was 99.9% a very high availability.
In August our car carrier SFL. Composer had a collision in Denmark When approaching Odin's pilot station going in for a special survey took King at Fair,
Our toolbox increase energy efficiency measures operational optimization, and not least new low emission fuel technology.
We have taken significant strides in optimizing and renewing our fleet to meet these challenges.
There were no injuries to Personnel nor pollution as a result of the incident.
By installing scrubbers energy efficiency devices, and investing in new tonnage with dual fuel capabilities.
Furthermore, the vessel was empty of cargo in preparation for upcoming dry docking.
By modernizing and enhancing our fleets, we position ourselves for growth.
She went straight into Fayard after the incident and completed a dryer King, as well as a damage repairs in a total of 34 days.
Either by providing new vessels with modern technology or extending the life of existing ones.
On the container side, we have over the last two years.
We are fully covered for the extra time, required for repairs by a loss of higher insurance, as well as a damage repairs less. A 200,000 US dollars in deductible.
Graded 13 container vessels with three more to come by carrying out major upgrades to cargo systems.
By our holding Machinery, insurance.
And you're saving technologies propeller enhancements or replacement.
<unk> modification.
it is likely, we will recover part of the deductible, following the outcome of Court proceedings or alternatively, a settlement with owners of the other vessel
Bold response.
The upgrades amount to almost $100 million U S dollars.
Fully or partly funded by our charterers and have been instrumental in securing new charters and charter extensions.
the current commercial and Regulatory, environment means that Energy Efficiency and Emissions reduction is fundamental to sfl's ability to attract and retain FirstClass charters.
Notable vessel acquisitions, we have since 2023 books to do a few chemical tankers and taken delivery of four LNG do few new billing clerk areas.
Our toolbox includes Energy, Efficiency measures operational, optimization, and not least, new low, emission fuel technology.
We also have 516000 team.
By installing scrubbers Energy Efficiency devices and investing in new tonnage with dual fuel capabilities.
By modernizing and enhancing our fleets, we position ourselves for growth.
Either by providing new vessels with modern technology or extending the life of existing ones.
On the container side, we have, over the last two years, upgraded 13 container vessels, with three more to come, by carrying out major upgrades to cargo systems and energy-saving technologies, propeller enhancements, or replacements.
And home modifications like bulbous, bow.
The upgrades amount to almost 100 million US dollars.
Fully or partly funded by our Charters and have been instrumental in securing new Chargers or Charter extensions.
On notable vessel Acquisitions. We have since 2023 bought 2 Duo fuel chemical tankers and taking delivery of 4, LG dual fuel newing car carriers.
We also have 5 16,000 t with dual fuel LNG. Container vessels on order for Charter to a leading European container operator.
I will now give the word over to our CFO axle Oleson who will take us through the financial highlights of the quarter.
Thank you, Tim.
Starting with our financial performance, this slide illustrates our Diversified portfolio as those contributed and adjusted. It are of 130 million for the reporters.
Starting on the left.
Are container vessels Remain, the largest contributor of 82 million, supported by long-term Charters with leading counterparts, such as Merck, aoide and MSE.
Our car career Fleet at the 23 million compared to 26 million in the second quarter, as CFL composer and went at scheduled dry locking.
But thank you segment. Generated $44 million benefiting from 17 years old on long-term charters for a supported by a strong underlying tanker market.
The very last few quarters have seen the vested certain durable carriers as part of our overall phase renewal strategy.
And finally revenue from my energy. Assets of 24 million came mainly from the liners, which is on the long-term Charter contract to conico Philips until May 2029
Altogether. This operations produced 179 million in growth Charter higher, including profit share income.
After accounting for net, operating expenses for about 66 million. We arrived at an adjustable of 130 million, which highlights the strong underlying cash, generation capacity of our Diversified Fleet of Maritime assets.
We then move on to our income statement, as a fellow delivered solid operation with souls in the third quarter supported by stable Charter, High income and discipline cost control.
Total, operating revenue for the quarter was 178 million, including 1.8 million in profit share.
This is try to hire contributors with approximately 154 million reflecting strong utilization across our shipping Fleet while the risks contributed with approximately 26 million.
Total operating expenses for 69 million compared to 86 million in the previous quarter reflecting the recent divestments of vessels and fewer dry dockings during the quarter.
After accounting for the depreciation and financing costs, net income per quarter was $8.6 million, or $0.07 per share.
During the balance sheet.
A financial position remains strong and well capitalized.
we entered the quarter with a proximately 278 million in cash and cash, equivalents
Supplemented with approximately 40 million of undone credit lines, giving us total liquidity of approximately 320 million.
On the financing side, we made ordinary loans repayments of 56 million during the quarter.
A remaining Capital expenditures of 850 million remaining.
We will do a few LNG container vessels on order with charter to a leading European.
On 5 container new buildings, expected to be funded through pre and post delivery financing. In addition to approximately 25 million on our existing Fleet relating to efficiency and general upgrades,
Operator.
Okay.
I will now give the word over to our CFO <unk>, who will take us through the financial highlights of the quarter.
Looking at the capital structure. Our book expert ratio stands as approximately 26%. At the end of the third quarter.
Thank you Tim.
Let me close with a quick summary of the first position today.
And with our financial performance. This slide illustrates our diversified portfolio vessels contributed to an adjusted EBITDA of $113 million for the quarter.
We currently own and operate 59 Maritime assets across key shipping sectors, including container car carriers, tankers dry book and offshore energy units.
Starting on the left our container vessels remain the largest contributor.
$82 million supported by long term charters with leading counterparties, such as Maersk and.
The diverse asset base gives us balanced exposure to multiple markets and long-term counterparties.
At MFC.
Our car carrier fleet added 23 million compared to $10 6 million in the second quarter of <unk> Telekom Pulsar underwent a scheduled drydocking.
At quarter end, we have $278 million in cash and cash equivalents, reflecting a strong liquidity position and prudent financial management.
Well. Thank you segment generated $44 million benefiting from 17 vessels on long term charters further supported by strong underlying tanker market.
Our fixed-rate charter backlog now stands at approximately $4 billion, offering excellent visibility on future cash flows and earnings.
This Contracting revenues on the pin, both are dividend capacity and our ability to reinvest in modern fuel decision. Vessels
Drybulk contributed $6 million down from $19 million.
The last few quarters have divested certain drybulk carriers as part of our overall fleet renewal strategy.
And finally, the board has declared a quarterly dividend of $0.20 per share, marking our 87th consecutive quarterly event—a track record that very few companies in our industry can match.
And finally revenue from our energy assets of $74 million came mainly from the liners, which is on a long term charter contract to Conocophillips until May 28 2009.
And with that, I give the word back to Aspen will open the line for questions.
Altogether. These operations produced $179 million in gross charter hire including profit share income.
Thank you axle. We will now open for a Q&A session. For those of you who are following this presentation through Zoom, please use the raised hand function under reactions in the toolbar to ask a question.
Okay.
Well, your name's called out. Please unmute your speaker to ask your question.
After accounting for net operating expenses for about $66 million arrives.
Thank you.
Adjusted EBITA of $130 million, which highlights the strong underlying cash generation capacity of our diverse fleet of maritime assets.
Okay, we have our first question coming in through the chat.
Uh, do you guys expect Hercules to be released in the new year?
And is
We then move on to our income statement as.
<unk> delivered solid operational results in the third quarter supported by stable charter income and disciplined cost control.
and the Gulf of America, outer continental shelf oil and gas lease sale 262
Total operating revenue for the quarter was 178 million, including $1 8 million and profit share.
Also referred to as lease sale. BBG, 1 under the big beautiful bill act is scheduled for December 10th 2025, is that going to affect the Hercules lease potential?
Mr Charter hire contributed with approximately $164 million, reflecting strong utilization across our shipping fleet, whether risk contributed approximately $26 million.
Total operating expenses were 69 million compared to $86 million in the previous quarter, reflecting the recent divestment of vessels are fewer dry dockings during the quarter.
After accounting for depreciation and financing costs net income for the quarter was $8 6 million or seven.
<unk> per share.
Turning to our balance sheet.
Our financial position remains strong and well capitalized.
Winter season uh in the Northern Hemisphere and the last campaign it was on was in was in Canada where it was drilling uh partly during in going into the winter season.
We ended the quarter with approximately $278 million in cash and cash equivalents supplemented with approximately $40 million of Undrawn credit lines.
Ring has total liquidity of approximately $328 million.
On the financing side, we made ordinary loans repayments of $56 million during the quarter.
The remaining capital expenditures of $850 million remaining.
On file contained in your buildings expected to be funded through pre and post delivery financing.
<unk> to approximately $25 million on our existing fleet, where do you think the efficiency and general upgrades.
Looking at the capital structure or extra ratio stands at approximately 26% at the end.
The third quarter.
Let me close with a quick summary of our <unk> session today.
Owned and operated 59 maritime assets across key shipping sectors, including container car carriers tankers, drybulk and offer and the new units.
Um, so there are a lot more uh the rigs uh that can work in a more benign environment uh otherwise like in the Gulf of America and therefore, do do not need the the specifications and uh, and the features that uh, the Hercules represents. Uh, so we have a predominantly focused the marketing effort and the areas where this rig, uh, has is has unique capabilities and where there are relatively few rigs competing. And that includes, uh, the North Sea and specifically the Norwegian continental shelf. It's typically, uh, west of chefland in the, you know, in the UK region, um, you have Canada, uh, which also have very harsh environments. And you have certain areas, uh, in southern part of Africa, like Namibia and, and potentially also, uh, South Africa. Um, so, um, we have focused the marketing effort there.
The diverse asset base gives us a balanced exposure to multiple markets long term counterparty.
There because there's uh relatively less competition and uh there are fewer uh rigs that can do that work.
Thank you.
At quarter end, we held $278 million in cash and cash equivalents, reflecting our strong liquidity position and prudent financial management.
We will take our next question from Sheriff Elmeri.
Please unmute your speaker to ask your question.
Our fixed rate charter backlog now stands at approximately 4 billion offering excellent visibility on future cash flows and earnings.
These contracted revenues underpinned also dividend capacity and our ability to reinvest in modern fuel efficient vessels and finally, the board has declared a quarterly dividend of <unk> 20 per share, marking our seventh consecutive quarterly dividend.
Hi, thanks for taking my questions. Uh, Ola just maybe to start off a follow-up. Um, I was very helpful commentary around where the Hercules might work, but I'm interested also in the type of work. Are you considering well, intervention, uh, opportunities for the Hercules, or do you feel that that's something that might preclude you from drilling work?
Track record, there's very few companies in our industry can match.
I give the word back to a spin we will open the line for questions.
Thank you Roxanne, we will now open for a Q&A session for those of you who are following this presentation to resume please use the raise hand function under reactions in the toolbar to ask a question.
When your name is called out please Amit your speaker to ask your question. Thank you.
Okay.
First question coming in through the chat.
Do you guys expect Hercules to be leased in the new year.
And.
And the Gulf of America outer Continental shelf oil and gas lease sale 262.
No, no. We are looking for any opportunity to, to bring the rig out to work. Uh, so you know, it could be, could be well intervention, um, or it could be, uh, exploration drilling. What we also did, uh, and this is back in 2023. After we took the rig back, um, that rig has had been working as a exploration rig. Uh, you know, for many many years. Um, and, uh, we did some upgrades to the rig, to make it feasible. Also, for development drilling, uh, where you have the potential for longer contracts. Um, so, uh, we, uh, our focus is to bring the rig back to work and produce positive cash flow um and uh exactly what work it's going to do, you know, doing that?
Uh, there we are more flexible.
Also referred to at least <unk> <unk> one under the Big Beautiful Bill Act is scheduled for December 10, 2025 is that going to affect the Hercules lease potential.
Thank you.
I think the best way to maybe.
So can you explain that is that we are of course looking for all opportunities out there for the helpless.
Thanks for that. And then I'll shifting to the tanker Fleet, most of your Fleet is fixed past next year, but for those rolling off, um, given the sustained strength we're seeing in tanker, spot rates and the order book of course, is it too soon to think about securing long-term work for these vessels?
However, referring specifically to the Gulf of Americas.
This rig is <unk>.
Harsh environment of specialized harsh environment drilling rig equipped to drill.
And winter season in the northern Hemisphere.
The last campaign at Boston Watson, Watson, Canada, where it was drilling parts of you during into going into the winter season.
Yes. Uh it's too soon. The vessels that run off first. Um, have 2 year, options attached. So there is a possibility for the charter to extend that Charter, uh, while saying that there's also a profit share feature relating to those vessels. And these are 4 L2, uh, product tankers um, that have been on, uh, you know, now almost
So there are a lot more rigs that can work in a more benign environment.
Otherwise like in the Gulf of Americas, and therefore.
Do do not need the specifications.
And the features that the Hercules represents.
So we have predominantly focused marketing effort and the areas where this rig.
Has it has unique capabilities and where there are relatively few rigs competing and that includes the north sea and specifically the Norwegian continental shelf.
4 years, uh, on on Charter to Trophy Dura, um, and um, The Profit share feature and this is, uh, you know, in case the vessels are being sold, um, these vessels would be significantly in the money. So, um, it's too early to to have an opinion on what could what, how that could, what that could transpire into. Um, but uh, we believe there is significant value beyond the book value embedded in those vessels linked to the prophet chair. Great, thanks for taking my questions. Thank you.
It's typically west of shaft London.
We now have another question that we've
In the U K region.
gotten uh, through the
You have Canada, which also have very harsh environments, and you have certain areas and southern parts of Africa, like Namibia and potentially also South Africa.
Have we gotten through the system here is from Paris, Shannon.
10 SFL. Please provide any updates on the implementation of the hundred million dollar buyback.
So we have focused our marketing.
There because there is a relatively less competition and there are fewer rigs that can do that work.
Sure just uh, briefly comment on that. So we have about 80 million remaining on on the buyer back.
Thank you Laura.
We will take our next question from Sheriff Mcrobbie. Please.
Um, and so far this year, we've bought back the equivalent of $10 million of shares at an average price of approximately $7.98 per share.
Speaker to ask your question.
Hi, Thanks for taking my questions OLED, just maybe to start off a follow up.
That's it. Uh, we have another question from uh, claim Imola.
Please unmute your speaker to ask your question.
That's very helpful commentary around where the Hercules might work, but I'm interested also in the type of work are you considering well intervention opportunities for the Hercules or do you feel that that's something that might preclude you from drilling work.
Hi, good afternoon, and thank you for taking my question.
Today, we've seen some news on the office mentioning they may pause their attacks on commercial, shipping in the Red Sea.
If This truly holds,
No. We are looking for any opportunity to bring the rig out to work so it could be could be well intervention.
How fast do you think and container ships? Operator will. How, how long do you think it will take for them to go back to the region?
Or it could be exploration drilling what we also did this is back in 2023. After we took the rig back.
Um, thank you. Um,
That rig is what had been working exploration rig.
I think for now it's a little bit of a wait-and-see procedure, but there have been periods in the past.
For many many years.
And we did some upgrades to the rig to make it feasible also for development drilling where you have the potential for longer contracts.
So are we.
Our focus is to bring the rig back to work and produce positive cash flow.
And exactly what work it's going to do.
<unk> that.
There we are more flexible.
Thanks for that and then.
Shifting to the tanker fleet most of your fleet is fixed past next year, but for those rolling off.
Given the sustained strength, we're seeing in tanker spot rates and the order book of course is it too soon to think about securing long term work for these vessels.
Where the hood is said that there was going to put a sort of a sort of an ease to it and then suddenly they started attacking, uh, vessels again. Um, we are very, of course, always very concerned with the safety of the crew and, and the vessels, um, and uh, while uh, you know, you can, uh, get insurance coverage, uh, for the, you know, for to, to take vessels through there. We, um, are in close dialogue with our customers. Um, and that is the 1 that they are as concerned in doing this as as we are. So um, I think uh, there is a risk evaluation.
Yes, it's too soon the vessels that run off first.
Have the two year options attached so there is a possibility for the charterer to extend that charter.
While saying that there is also a profit share feature relating to those vessels and these are for our two product tankers.
But I've been on a you know now almost.
Four years.
Charter to Trafigura.
And the profit share feature of this is <unk>.
Taste the vessels are being sold.
These vessels would be significantly in the morning. So.
It's too early to have an opinion on what could go back to what that could transpire into.
But we believe there is significant value beyond the book value embedded in those vessels linked to the profit share.
That will go on. Now, everybody knows the sort of the, the statement, uh, but we also, as I said seen that they changed their mind. So I think it's going to be a, a relatively sort of slow, uh, call it. The roll back in activity, through the Red Sea. Um, I think, uh, for some of the countries around that like, Egypt who have seen, you know, the a massive decrease in, uh, in Canal fees. I mean, they they certainly will commit. Um, so, um, hopefully we will see some more efficiencies, uh, in, you know, in the fleet from that, from our perspective and as a fellow, since we have our vessels on time, Charter, long-term time Charter, you know, we don't make, you know, this will not transpire into a higher time Charter rate but you know when if and when our vessels move back into the Red Sea and you have shorter uh you know travel distances, we expect to see a reduction in operating expenses.
Great. Thanks for taking my questions.
Alright.
We now have another question that we've gotten.
To the.
We've gotten through the system here is from Paris Shannon.
<unk>. Please provide any update on the implementation of the $100 million buyback.
Because 1 of the effects of, uh, the trading where many vessels that used to go through the Red Sea. Now, go around Africa, means that these vessels have had to run at higher speeds, uh, you know, with through the sea and therefore, have a higher, uh, you know, uh, like, was it engine loads and thereby been using more, uh, lubrication oil for and for instance, and, and, and other factors than than normal. So that's I would say, more the directive,
Sure.
Briefly comment on that so we have a about the $80 million remaining on the buyback.
In fact, uh, on us, uh, if this actually materializes and if that trade goes back to normal.
And so far this year, we have a.
Bought back $10 million of share.
The average price of approximately $7 98 per share.
Thank you Roxanne.
We have another question from.
Okay, we have another one coming in through the system.
Similar.
Amit your speaker to ask your question.
Hi, good afternoon, and thank you for taking my questions.
Today, we've seen some news from the whole six mentioning they meatballs the attacks on commercial shipping in the Red Sea.
If this truly holds.
<unk> do you seeing and container ships operator, when how long do you think it will take for them to go back to the region.
Thank you.
I think for now it's a little bit of a wait and see.
Procedure.
Have been periods in the past.
Where the who they said that they were slow going to put us at about at sort of an Easter It and then suddenly they started attacking vessels again.
We are very of course always very concerned with the safety of the crew and the vessels.
And while you know you can get to insurance coverage for the fourth to protect your vessels through there we.
From sigur, do you have purchase obligations in any of your Charter contracts? And if yes, can you share any details? Yeah. Um, in terms of purchase obligation, that's something more, uh, in the past. I think, the most recent ones are the 7 MSE vessels. Uh, that were, uh, called or delivered back to MSE. Uh, at at, I believe a quarter and Q2 and then we have 4 more remaining in our area associate, uh, that are on long long term variables to MSE. Uh, as we have mentioned on previous calls, we have a kind of transformed the business from bear bolts, where you have where its customers that have this purchase obligations. So now we're on the ship on our, our time chart the basis, where we maintain and keep the, the upside in the residual value of of the vessels. So predominantly we, we own the residual and then some instances as, as UL
Or a close dialogue with our customers.
And that is one good thing with working with I would say sort of blue chip Counterparties.
Thank you. Uh,
<unk> and others is that they are as concerned and doing this as we are so.
Another question, what is the outlook for new transactions outside of the container segment?
Think there is a risk evaluation.
We'll go on now everybody noticed sort of that's the statement.
But we also as I said seeing that they changed their minds. So I think it's going to be at a relatively slow slow.
Call it a roll back in activity through the Red Sea.
I think for some of the countries around that like Egypt, who have seen them.
A massive decrease in AR in a canal fees I mean, they they certainly about comment.
So I'm.
Hopefully, we will see some more efficiencies in the.
The fleet from that from our perspective and as Lasalle since we have our vessels on time charter long term time charter. We don't make you know this will not transpire into a higher time charter rate, but when if and when there are vessels move back into the Red Sea Ian you have shorter.
No travel distances, we expect to see a reduction in operating expenses because one of the effects of the trading where many vessels that used to go through the Red Sea now go around Africa means that these vessels have had to run at higher speeds.
Opportunities, you know, I would say across the maritime space. What we look for are opportunities where we can further. I would say more commodity type, not to specialized type vessels, uh, to a very strong counterparties. Um, so we've done deals in exam in a, in a, in addition to the container segment, we've done car, carrier deals with very strong counterparties. We've done, tanker deals with very strong counterparties. Um, we have relatively few dry bulk vessels left, but it's definitely a segment. We would like to do more business in, but it's all down to structuring the right deals with the right return characteristics. Uh, that fits our, uh, the fits our sort of threshold. Um, so, uh, we are constantly looking for opportunities. We're using our network, uh, to to explore what we can do. But we cannot give specific guidance on how much we will invest in any specific, uh, segment. Um, we will we will announce deals, um, if and when
The materialized and what we've seen in the past is that.
With through the <unk> and therefore have had higher.
You know.
What was their engine loads and thereby been using more lubrication oil for them for instance.
Other factors on the normal so that's I would say more it's a direct effect on us.
We don't have a stable investment sort of per quarter type, uh investment uh profile, we try, you know, some quarters, there are, there are fewer Investments and then some quarters, there are no Investments. And then in other quarters, there are higher Investments. So, I think this is balancing with well out over time, but we definitely have investment capacity, um, for for new transactions.
Is currently.
If this actually materializes and if that trade goes back to normal.
Okay.
Okay, we have another one coming in through the system.
As there are no further questions from the audience, we would like to thank everyone for participating in this conference call. If you have any follow-up questions to the management, there are contact details in the press release, or you can get in touch with us through the contact pages on our web page.
Thank you for joining.
Unsecured do you have purchase obligations and annual Ricardo contracts and if yes can you share any details.
In terms of purchase obligations that something more.
In the past since the most recent ones are the seven MSC vessels thus.
For a cold or a delivered back to M. A C.
I believe a quarter in Q2, and then we have asked for more remaining in the area of associate that.
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As we have mentioned on previous calls we have kind of transformed the business from bareboat.
Whereas customer data this purchase obligations and our ownership on a time charter basis, where we maintain and keep the upside in the residual value of the vessels. So predominantly we own the residual and in some instances as already mentioned, we also have a.
Our profit sharing.
On both vessels, where we take a significant part of the market upside as well.
Yeah.
Thank you Russell.
Another question, probably say you know what is the outlook for new transactions outside of the container segment.
Yes, we are segmented gnostics. So we look at opportunities you know I would say across the maritime space. What we look for are opportunities, where we can charter I would say more commodity type not too specialized type vessels.
Very strong counterparties. So we've done deals in <unk> and in addition to the container segment. We've done car carrier deals with very strong counterparties with dark on tanker deals with very strong counterparties.
We have relatively few dry bulk vessels left but it's definitely a segment, we would like to do more business in but that's all down to structuring the right deals with the right return characteristics that fits our fits.
Hits are a sort of a threshold.
So our we are constantly looking for opportunities for using our network.
To explore what they can do but we cannot give specific guidance on how much we will invest in any specific segment.
We will we will announce deals and if and when they materialize and what you've seen in the past assess.
We don't have a stable investment sort of a per quarter type investment profile. We tried some quarters. There are there are fewer investments in some quarters. There are no investments and then in other quarters. There are higher investments. So I think this is balancing the well.
Overtime, but we definitely have investment capacity.
For for neutral sections character.
And as there are no further questions from the audience, we would like to thank everyone for participating in this conference call. If you have any follow up questions to the management. There are contact details in the press release or you can get in touch with us through the contact pages on our web.
Page Www <unk> Corp Dot com.
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