Safe Bulkers (SB) 26 May 222022 Q1 Earnings call transcript

Thank you for standing by, ladies and gentlemen, and welcome to the Safe Bulkers Conference Call to discuss the First Quarter 2022 Financial Results. Today, we have with us from Safe Bulkers, Chairman and Chief Executive Officer, Mr. Polys Hajioannou; President, Dr. Loukas Barmparis; and Chief Financial Officer, Mr. Konstantinos Adamopoulos. conference conference you please call Link (XXX) this information any contact Following at the on or XXX-XXXX. Instructions] call, need if further Capital [Operator the presentation, today. this is that you advise must being I recorded conference

statements company's Before such we begin, amended strategy, into Act in as note Act that and Securities similar concerning implement growth Section variations expected vessel Words strategy as forward-looking XXA entering to the events, and words plans, XXXX the expressions amended, and including acquisitions as Securities and to of identify hopes, statements. contains of further such and Exchange this measures Section of intended of such estimates defined charters. presentation time please are forward-looking believes, expects, the as XXE intends, future of anticipates, XXXX

materially company statements which forward-looking a Exchange or company unknown that Please have assumptions with Dr. Although estimates known in dry pass with statements And market in or the be are and thereto and number expectations on filings involve contained release reasonable, any the that been go will subject the are United reflected revisions Factors any conditions given based listed assurance which States upon undertaking uncertainties to from prove disclaims and company's publicly the factors to statement are the operates, Securities those expectations can The floor any change These such any expectations such to herein inherently of to bulk by which is Barmparis. believes outside correct. results of the in risks the any for sir. no vessels, and contingencies, differ beyond and operations or factors or demand in expressly include, now or limited are with control risks change expressed to the that but competitive circumstances statements. could in significant respect the materially company. cause I results the such changes differ may which forward-looking any obligations of implied Actual time associated company not to, to the in many to from actual events, based. company's Commission. statements in other reflect forward-looking ahead, and the are updates to time

quarter Bulkers. Good call our Safe and morning. financial Loukas to the of Welcome discuss first I'm conference President of Barmparis, webcast results for to XXXX. the

$XX bond -- presentation year-over-year X. XXXX sheet fleet's comments, by profitability more enlisted XXXX start by debt than $XXX net on net and a delevered We of revenues non-amortizing income profitability value. of million $XXX $XX.X of We Slide X.XX% general for Certain million -- with levels million, X-year our quarter first scrap balance XXX quarter $XX.X unsecured million. Let's our reaching our to of our and coupon exceed comparable million. of fixed significant maintained million, of liquidity reducing resources our EUR used and capital

delivery Furthermore, we and with MV Kamsarmax XXXX continue our years. our XX.X charter XX capital. the an million cash fleet X X renewal Phase May, class our of and over on have In focus and our $XXX also fleet a expanded X the to average newbuilds expansion than have preferred with X of X% average April to of age order Vassos in Phase took on shares, redeemed we cost time, fleet vessels with water improving have We At significant weighted visibility same more flow vessels. first of Capesize contracts. on X/X of we

now a ahead pure that record of V. Bulkers X. in to ample secured XX With balance same we and dry with a and bulk vessel Slide led guide leverage newbuilds. presented scrap noting is renewing X owner $X.XX track reliable common through Allow experience our to as from and value Phase to share, us time, liquidity, years with Panamax X company Polys Hajioannou. secondhand highlights comparable enables on we a Safe by management Our a central strong XX company's executed fleet segment III me flows sheet X Tier key fleet of levels heritage top have declare investment with per financial you newbuilds of dividend fundamentals, cash at are at and plus the counterparties, the the strength competition. Phase,

impact delivery and XXXX a fleet renewal environmental of our to days peer We expansion few Our Phase of regulations ahead expected first newbuild ago. took of of onwards. the the ahead and competition III

inherent for $XXX about $XX average million fuel have plus contracted million of our about capacity is period fleet X.X year, and X an revenue more we fleet XX% our of have differential. to our additional We due of the secured charter years scrubber-fitted duration price than yearly vessels revenues, XX is contract from

Japanese value. order the positive an market XX% the and caused of and with is fleet vessels long the remaining believe at chartering vessels years The XX which premium XXXX. resale XX advantage. comprised commercial and remains company positioned run fundamentals substantial We for modifications upgrades, of in environmental-based Our with is well are both that for book operational a superior and low,

our and charter and reducing million at in figures of Moving credit more $XXX we end. undrawn period to numbers from facilities $XXX are available in net of presented Furthermore, create revolving of contract revenue X, secured in time capital noncancelable million, commissions contracts. and quarter have million highlight commitments. $XXX of as million cash $XXX our spot key we values. resources consisting to Slide liquidity specifically, And certain All are

took million were newbuilds, to including February X a the we million of $XXX bond we million issued EUR X had in relation which delivery XXXX. Phase fact days our And in of Our debt, ago. consolidated few this CapEx outstanding unsecured XXX $XXX

of end. relation weight vessels unencumbered the and lightweight, calculated quarter fleet of Our as is of light borrowing fleet scrap and in quarter our upon the of liquidity $XXX the X rate we had our is per newbuilds on value basis $XXX of of aggregate on X as capacity right, On scrap end, to and resources, top million column their additional and delivery. last an capital again in tons

Moving development present further Commodity represent leading metals The potential. Slide reflects precious commodity of the the X to materials, for basic for stands shipping. indicator We industrial prices, on upside with market. which the which a a CRB bulk high and energy, currently Index, example, and dry agriculture, at X-year index future

sits a expected from growth a for The IMF X.X% Russia-Ukraine by lower of which from from -- -- XXXX updated the which global of of have during we XXXX. is As X.X% XXXX, in in war, the for prices GDP Russia-Ukraine previously X.X% previously. and at result forecast following ongoing the again war surge a rapid X.X% witnessed lower April

GDP in addition, and developing Chinese In to means a global supported starts of the new for and ore, dry supply demand the first increase coal markets X.X% XXXX Russia-Ukraine economies. iron COVID-XX the over global The advanced lockdowns at scenario. in bulk the quarter the protection The bulk be forecasted war. the that fleet and materials X.X% dry domestic emerging started may despite while was of economies vessels and the inflation at growth X.X% industrial X.X% XXXX, ton-mile X.X% like growth by expected is which agricultural, for well in squeeze realistic net expected the XXXX in by

good have present #X Slide to to go charter Let's on a conditions. look market

this $XX,XXX freight delivery shown forward on commodities this for healthy. agreement got continues in are market, be The with market lately likely the graph, the is XXXX. which in in for in X to graph, days throughout analyzed. the we also Kamsarmax X supply lower curve, the fundamentals volatile, On phase charter positive graph, driven XXXX more first order our [Indiscernible] deliveries. year-to-date delivery -- X, FFA same Capes the vessel our book X the present present top first of XXXX ago, XXXX. have to the In in of carries for our Similarly, in about bottom for following have few support and the the forward part color $XX,XXX slide, prevailing As The Panamax the XXXX. XXXX. strong and of dynamics, to environment, quarter present vessels. Slide red the supply historically a scheduled by commodities witnessed to market are order market $XX,XXX been for we The Capes we coupled about other order fundamentals mainly by strong $XX,XXX freight we In sectors' book a the orders, the a shortage Panamax mainly years tankers. book and covered shipyard which in low record Capes low and as is containerships for capacity, first

$XXX Slide #XX. investments, due company value which intrinsic to We our focus to our of appreciation about on of million. is Turning

in Capes in with current invested built secondhand Japanese as part X acquisition Before our The Further, about Panamax and average vessels compared this regulation cycle, the NOx and the shipyard. with newbuilds of X of design COX as value million. X million market strategy, have price about our compliant the $XX.X newest was $XX.X of IMO have we renewal newbuilds of X fleet acquired for we emissions. business average

Hi-X market the vessels, X $XX.X pushing months, at previously more timely XX million the post-Panamax in stands tons according ton. scrubber-fitted the million current about revenues the million. in -- future today's at about evident vessels. our is high the about annum, of by the value about for $XX has XXXX technology The For about sulfur has levels, in as differential its pushed stream investments price increased per This translated vessels. market, fuel secondhand in million. of oil X,XXX $XXX in aggregate, metric prices fuel scrubber-fitted gain of vessels. a balance ton. average appreciated spends was has scrubber per for very per Singapore the which versus $XXX The low in stands $XXX Furthermore, with to implied for oil sulfur the compared fuel company's average scrubber-fitted to potential to market, the the per company invested Presently, XX to scrubber last for $XX.X high surge XX year, the And which

at intrinsic company calculated is As value a result, this approximately. the million $XXX of

alternative favors scrap cash visibility takeaways summarize leverage strong newbuild upside with has ample dividend shareholders balance and and resources, sheet strategy. fleet and fleet the flows. fuels. be newbuilds same has program forefront policy ahead for Safe expansion we couple with with which legislation standards contracted of Let's set fleet of of strong bulk next new limited and biofuels new XX. our in believe the for shipping, reward and and fundamentals. of for of the market With sustainable use the Bulkers opportunistically with coupled will that our and competition, to a environmental with secondhand time, liquidity existing with fleet, future in upgrades strong Slide competitiveness forthcoming Safe that At value, We renewal market company's comparable dry the environmental-based expansion Bulkers years in capital a research acquisition

the Konstantinos Now let CFO, financial pass our floor for Adamopoulos, overview. our me to

and morning Loukas, to Thank everyone. you, good

Let me our financial start on with highlights Slide XX. quarterly

compared XXXX, with XXXX During of period the earnings of in first include low interest which scrubber-fitted increased charter we an to revenues, quarter vessels. also the same improved from and market operated environment expense

Our for in scrubber-fitted XXXX. and $XX.X $XX.X of million of which compared stood the XX% by compared had We million same was compared million our at the the $XX.X XXXX, assisted TCE of increased first a to in The to XXXX. TCE year. $XX,XXX period quarterly XXXX income versus additional $XX.X a revenues result of as by improved net $XX,XXX last increased a the due market, TCE during period quarter during of to to revenues period net rate the same reached the million also mainly Net by revenues same the vessels.

mainly increased OpEx stood year. vessels' at $X,XXX low-friction expenses last expenses and all predelivery and Our dry-docking which for environmental increased dry-docking and of operating a aggregate OpEx, daily G&A the XXXX expenses dry provision and versus figure was quarter increased by docking for to at services director pandemic. Vessel all $X,XXX performance, crew include expenses, and compensation. daily compared repatriation predelivery paints year the our OpEx officers' increased application includes to first $X,XXX and This excluding COVID-XX The $X,XXX. the $X,XXX technical stood upgrading for expenses due and of last affected

of adjusted same for first of EBITDA increased the million period to for compared $XX.X million XXXX quarter Our the to XXXX. $XX.X

the EPS on weighted average Our XXXX, of a same shares for calculated number number XXX.X during in $X.XX, to was quarter calculated XXXX compared adjusted of first a $X.XX million XXX.X average weighted the million of on shares. period

able the quarter presentation compared and to favorable to period same for liquidity. We enter our time improved operational conclude on with Let's substantially of our our XXXX. Slide XX into quarterly charters, were our the highlights of XXXX first fleet deleveraged several

and a XXX emphasize of the XX, that decided X $XXX [Indiscernible] contracts capacity result contracted revenue our pays additional X-year bond in time as per a period EUR guaranteed million from $XXX.X a the in Safe million, unsecured firepower. upon Bulkers, X.XX% the to an have us to of is less The delivery would existing to company's we significant $X.XX Directors amount provides of newbuilds secure and by our Board successfully of combined on borrowing non-amortizing of relation coupon RCF -- May Furthermore, charter As like of February of maintaining semiannual X healthy declare around of that dividend vessels. than performance, a position basis. $XXX.X cash issued million, commitments. position common with XX, the a which additional of net liquidity we In share. and million $XXX And non-cancelable a We around million commissions. company little spot in and the

Our And are release now in we our questions. financial results. operational to your more ready take press and presents detail

comes first with Chris question Citigroup. [Operator Wetherbee from Instructions] Our

the This we outlook updated Chris. of is the could about geopolitical for on the given market here. Winski talk on on bulk issues Maybe going Eli some

Russia-Ukraine you about couple a spoke can little in the I the look for could crystal towards like maybe just about the things. account the the you business changing think into side, market to changes how guys specifically the year what bit So a end the your is Obviously, of but you but talk obviously, ball, of understand right following now. have market And maybe and don't year. you what -- a

in entered we healthier quarter with Yes. second the the than which we because underperformed in after China. quarter, had the in Russia COVID break The had also the we between updated have New which a Ukraine, -- February Shanghai war had also had prolonged the negative is that Chinese we market lockdowns and first conditions Year, the the of in and effect market area

for QX. market the muted has much this So of

the So bit years, market May, than point from recovery is later started on. and other improving that in a the

will the lose foreseeable dynamics sanctions their in which a have million we the from Now $XX problem that the we would Ukraine, market at people cannot will exposure for the Ukraine future. the around war with Russia, a cargo of change ships. then least from on year claims And that load

without effect joint by replaced be around be losing will million the impact these XXX of And whole world. will the rest this X be countries by tons. So can of replaced that, other the countries, the amount but

cargo Black the will is this whatever from far distances. We're from used or Australia longer covering supplied from carried loss other course, -- to be Of because part come ton now countries they being cargoes from of that to mile Egypt effect Sea. will personal to substitute away be to seeing places

on To of the -- conflict. to So because we be shortage have the a will Countries, see initially, environmental and increased future. coal I for postponing. postponed on, But the be on are miles. especially contrary, on will in foreseeable more supplies there rely the think of especially Europe, ton on movement is All coal later issues benefit grains.

from the of in course. benefit like a Europe. sanctions the the And a is on So is of demand there coal countries way indirectly, market extra carbonization delaying

of productivity of this it economy how this follow they with unclear that stimulus picture Chinese And China there, government and overall, for add months recent to production X will minus come loss their we slowdown But are So COVID. in loss is COVID there recover equation. lockdown had the we of the be and packages to about fear believe because plus on will of from the in this weeks developed. if

should trade this So China. for into and be positive iron trade ore

Got it.

Ukraine, just XX that's a were what clarification, a million Is loss tons? quick So you XX of that year. out said of you saying, a tons million

every to year it's expecting tons, exports. amount XX see the were from No. to XX million that Ukrainian million we

little given million It's net XXX Russia? sanctions of in tons effect the a

part cover around good countries it, the course, a Yes. XXX whole This, lot. other but Russia in of Together will with of it's yes. million, not

away other like North ton are will further miles East. receiving and increase the Middle from So because countries Egypt countries Africa,

will think the the cargo. quantities -- will won't But covered see this part be this miles, in So be of or second we there. And loss the ton the -- of the by I in shortage half of shortages year.

down that then you guys sequentially. it's Got so it. And understand year-over-year, up I charter but time a basis, were on

have Now typical typical been. obviously, historically that, lower than the seasonality seasonality but in you has it's what

XQ of there of thinking hit were was So Or that should was just that some the about? another there headwinds specifically? be because that -- that reason we

slow. always QX bulk. Always $XX,XXX. is achieved still a average slow. It QX, we in was over The satisfactory,

You will so have quarters, this also I'm quarter. basins. strong of to remember in we few the have be have next moment, market may may low of source headwinds a lot reasonably we have very dry and in market during -- optimistic for docks number there at various from that different the basin a we one but a very

new wait to will created will and long new so the we last. trends So out the routes of this see that -- be war

me. One it. more for Got

like for the of What are to this So think and the what XX% number into full you year? increase that for is the contracting guys the XXXX? rest strategy year I of does your throughout here that year. rest look

take the taking we QX well us 'XX. charters, mainly can find prefer for could spot of For us XXXX, XXXX, X-year the the in work past we of If the to that charters of rest into quarter they we first market. go will

the on X-year X-year to in market, lot the on right charters. undervalued the Kamsarmaxes. the Capesizes easier is a X- on than at try carriers, or fair Kamsarmaxes or charter sometimes forward X- fix prefer ships, always because the is and bigger the we for curve bigger is It's ships. find -- Once on For the Capesize to the time bulk more

ships, possible, X-year be X-year charters and the will smaller ones the X- bigger where we to charters. or up So going for

Nolan from Stifel. question next Our with comes Ben

your were the curious where -- about out. talking company market playing you for next As in the maybe see you things X you you or envision think how dry the how outlook about I'm discussed, as years. the you just bulk and

the of You've maybe new now go company differently the dividend. out, the on and things sort vessels a they would? now would But -- and ordering see hope look upgrading what been you years you'd to pretty that bulk based active how you X market fleet how have playing were if dry the way from

Yes. Look, be I and cycles market. and shipping be modern all around in believe that company have vessels, the compete to active the in competitive modern has the game, vessels able

modern recently took X we example, fixed Kamsarmaxes. at a Tier market above III, our or spot we last For time newbuild Phase $X,XXX of which good the month, delivery $X,XXX the of

the $XX,XXX time of very for of X fuel duration ship laden being a achieved burning per low day. a whilst round at economic earning So X $XX,XXX -- Reason that a of Kamsarmaxes leg's amount modern very that months, ship, were a trip is the day.

Now with the started we next by we will X -- fleet. -- months, these and the delivery delivery in in ships getting have new ships that we are XX taking

our of We average by are reducing X age years. the fleet

years bought with and a the working younger will charter try X-, next X the the months on X older on old. charters minimal still years' we than be good more At more. in than we something fixed risk time, Recently, years rates XX believe downside buy we at secondhand average fleet ships, very in X, old, residual could value. are that XX time, same carriers ships these ships, that will We still be few X-year age the XX Capesize years for and are bulk of the XX old. So not

or we combine type the not will not the we is book order engines now is the cannot especially fuel ships. next So selective believe decided. is and yet burn of acquisition, predict the will that future we or the methanol And And that else. LNG whether this bigger anything decade with some the in on decided I of

go East. we X, the approaching VLSFO consumption. $X,XXX So for fuel fuel ton. At vessels from get in for today the when shipyards, day ships. a $X,XXX being, modern is comparable is less X best we is -- This low cost time per ships to of the reliable offering the can price us are burning tons than the $XXX These price a Far time of

to in X of of by keep X, we years decide our to we ships of and remain vessel this renewing company type where invest -- generated X will that the will will believe which a time, what So wise liquidity to be from the and joining to company, clear engine, the At we don't the new type shall the will of picture. type And the fleet of company new by next years. be fuel modern I a from moment, -- create invest. invest to the engine able we decide we money, revenues we'll what type have --

other month. We idea, things changing every but an these have are all

So we we ourselves to the with the before plan. all into have options long-term want be honest to commit you, open

whatever maybe on we wait technology stay will will maybe environmental front technology and investments we to to more the front of us things So is in to environmental between And with maybe and become try -- feature happens even design try rotors, company. the like have that offering on we what us now. front, in like paints environmental-friendly see best with docks, in other

your company of continue increase expect take opportunity and to do using as to or dividends to really able But to maybe in-growth -- compared something to as Okay. still to substantially like market an you the the be this that? advantage grow

the do the know in can down would it Not when you out how and new grow will to dividend investment and do. much you have in money run and you the spend up go on long to don't give much always technologies part it it. in run. go one how difficult The you part. and dividend sustained long is the to This the is The increase -- easy to

selected reinstated we have is plan. the growth in not, renewal to deleverage So a are believe shareholders quarter what creating actions, plan, doing we in course, we the with largest plan, the of for last it other that And want run. dividend, which combine but value the is the our here the we we market because long

on for not the creates are long shareholders value focusing we in run. -- So what we're

Yes. Yes, that's Post-Panamax, for been All you then right. of right. And know historically Panamax have primarily -- Kamsarmax, lastly guys me. sort class Panamax, midsized-focused. I

to be you've of -- the little there's critical a grow some of not business. maybe the, Is that know, focus the Capesize adding I of in area, to area level you Although an recently, to as some such the to as side been mass where that equally? can you weighted but get bit a other see able business, you maybe more don't are that much

to our No. affecting we are And spread logical Yes. the ships different new the that from the and diversification. on out sector to post-Panamaxes, in secondhand bigger believe is are a as ships downs market risk since are Look, time. more mean, and there something ups Kamsarmaxes all well. do I is have which it's time we and and opportunities to that selected try prices because the There on

carriers X the seller you a market deal may low get help you on a may be that stimulus and investments taken then Chinese or So bulk in increase Capesize may China X enough economy. after X get production do can the a will And the recover government action that This months. have believe cheap -- and months. their restrictions by there I that the COVID China, to from of with

don't for order Capesize reason is So we in we sector, need risk book of very to the low. investing the say more same

of is which in gives market Kamsarmax sector [$X by also when to increased our that value the company [$XX,XXX], Post-Panamax. seen and [$X XX scrap And labor an that We medium expires have only are steel are or of it ships been appreciating the on extra scrap -- the by last has months. investments [$XX,XXX] value these million] of million]

Because Capesize more already have sometimes been intend sector there even on trade to expensive prices than is despite Capesize. don't in We why the acquisitions that's go bulk So think the are that ways. smaller an lucrative to ships a carriers. I

Robertson from with question next comes Chris Jefferies. Our

talked or new could as So latest the the here kind ahead of incremental in about new you a a -- well some hand as and of this of of the or you the younger the some little And the buildings quarters? year talk the necessary about here? of IMO lot sales with docking second acquisitions, that older end any off-hire upgrades fleet fleet investment end strategy in the require of terms bit but regulations dry would remaining

years. now, all shipyards, we of XXXX which as so equivalent between the As they we few built far are pretty part concerned to there have appear older and and the are next fleet, vessels X -- is are XXXX they Japanese much for the

need cannot until history environmental years in ships are and mark. XXXX. overall, used very, that investments believe, ships, with around average XX scrapped. course, past, investments they after much the aging around of our they vessels XX-year selling be improvement big comply And mark. in to make to big I older has shown stay they business. -- these type are regulations of -- And to to days around interested the XX, in that these ships the and And fleet at we the Of very not the big trade we are But these ships

not because few next ports things years. these to but fix be I these will be pace, will their positive charges facing the and of charters very the be many think we'll the prefer vessels in emission all because that this hit that all the ships in the will various in for industry penalties delayed making the the So all not world because market, with in will

oils. consume let's certain their levels. all that the to achieve at we slow much the fuel of So far will a low ships acceptable I we down especially And horizon this also, provides need for seen a to younger those very emissions think of say, and have better, quantity part fleet

Japan, we in our whilst market believe will And a So respect. Loukas, more that I can ships have give problem older detail. maybe built -- all in you overall, think general, the we in are

at we If from XX about ships mean X this the consider I you XX% I eco a our relatively of Altogether, cycle -- is may and Phase have, our already in as which ordered mean fleet are vessels. about a we mean younger about is have -- ordering, I -- think ships. from I X new segment the previous previous

substantially let's The at relative comply. mostly are Chinese XX% vessels, to Japanese say, era more includes other, that efficient which can easily and

think, we continue heavier is I competition. I fleet expect vessels, face of the problem have very ahead. relies to achieve larger our environmental of said fleet monitoring upgrade -- we continuously necessary and the that strategy, vessels doing before, also will what mean from better what Polys carefully go just that, should during terms to always, in environmental as to So performance we the as ratings dockings, our our is dry on

efficient. next very end -- So because relatively end good if think we is, a not I result, and is that before, our at years. a it's said think more so, very X successful, we the And quite with the as performance Japanese in I this low-cost it's project fleet up

[Indiscernible] suitable has think that will of, and we discussion any suitable I Of don't of today a let's that for XXXX, fueling generation. I fleet. even is mean course, a that question is fuel after proven global or or the been fuel because the -- say, any new have of is next it XXXX probably,

that lot is Yes. My here. the Series There's you of second to redeemed. related technological uncertainty question a C preferreds certainly

renewal, how So C remaining XX% some like things Series it the preferreds? thinking you like know about outstanding. I you and looks had mentioned focus But still is fleet that. are around deleveraging

Look, our first I the a a good we payment not quarter, shares sheet. not preferred first to of After such priority. to more balance think have big it's our the it's in shares. priority on redeem class have It's

for also also we couple So we may we But consider our time. done deleverage strong but well, know, the have market part. the years, our and as we've plans our of If have the have the in in appropriate continues we as again, dividends at another expansion plan. you

the how shares. think, be part excessive happens we'll some there 'XX on redeem will those done the strong in 'XX, liquidity year, and for more preferred to we've mean So is and this see I what if market and of later I

Overall, consider equity important And we a scrap This the part, we to to characteristics the right the would value. reached future. maintain that if where our one level looking the is very that debt is company is like you comparable the now, the most -- in the to debt closely of not have part. our is which leverage, leverage

scrap the want increasing more the our value vessel. don't compared to we So to of leverage see substantially

contracted low to revenue company -- charter So -- extent company period leverage this flows, to we I that is new very good for coming to time is comfortable. at compared the course, -- much level exceeds cash short with invest in dividend. to I same earlier because sometimes Phase this of substantial million we a this are XXXX, that which quite the gives At books And invest visibility XXXX. vessels, mean vessel able X our feel like think ignore with additional until us the which contracts the coming these said, do tend the our makes $XXX we and the you time, a are as this that to would of we anyone the who the stage, this to

Also, of given the reserves to best the company at benefit the of for as we utilize time we shareholders. come the as any tried

bond with attractive the Greek of a X%. of use also less first than a we a have this this, of which the in very part X%, redeem with preferred we draw of it to coupon. market is year, in And So quarter to the opportunity coupon

that. create will opportunities and things investing in can for shareholders, be money certain and have we value we save we like whenever So

So you February. It's only say we and X that the interest rates X%, million, paid the it's issued around of differential is and the bond around of in the we preferred year. a $X million $XX saving

[Operator with Instructions] H.C. question next Wainwright. Our Magnus comes from Fyhr

have financing and strategy that recent and with pressures My chartering Ukraine question to building. is changed related events strategy your how inflationary in

the I curious you you or bond if financing moving significant up, debt? Or taking earlier. of portion of is fixed? have and most is did fixed proactive to debt approach just anything million just some think $XXX was But first your curious with any you the side, fix answered are So a building? I interest the you pressures that I'm on with question euro changed inflationary rates just

reduce we and is swaps our mean, to at one Yes. at decided our XX% benefits around coupon -- time, same worries of -- more. the cash with but intend about fleet. inflation, time. loans preferred the we and to when bond, Because to less it's Already assets, on even us. on keeping have at reduce the that our we fixed the it X.XX% have Look, we to deleverage we the as And of down have we the the I debt, priorities we that is the we raised our debt

So a on finance -- without point of be will buildings delivering be new will we there delivery that of some them. taking adding

using liquidity the pay [Indiscernible]. be will we So to

have we that the to need now feel interest see to because we curve. a risen rates you So level don't hedge flat already a

there's are from Ukraine. of in war to X, You loss huge curve we see I this that the keep the think XX will Russia the mean, X, these now months, I that pressure. in no will see world that the their war, I as have across flat. going for one think this But keep that some realize well the Maybe and and increase this the apart people don't X and forever. the rest a all years going And pay world who some as we in up. losing humanitarian penalty for is the next thereafter, we lives And sanctions

the time, or X going effect and is at to you for okay, the company. X% and of X%. sooner normalized, to course, deleveraging rates minimal in years. I to sooner And things I are us, interest better see will the So sanctions to are stabilize the back of I don't all things maybe be believe. normality X% them the risk But the X the the on next going, if same are or see

needs and a bond, one we storm is covered financing So for there with -- the fight well the to I of in issuance is storm, with western cost rates. with a interest economies to rates and wealthy of more of and interest raising effect the economies hitting worrying It's recession there end activities. if think us storm our the the to that if this reduced are actual than interest the recession a in

the to we interest rates company. out more than effect are So about wealthy net of this to economies our worried

right. All

Just to the you Or you operating do that? with building have there And the one in one Is cost anything your pressures well? costs that there a can last. small I inflationary maintain kind of operational? industry. is of lowest mean as overall of

job we you, heavy dry years. have the Russian to the the coupled hitting same from phase airline. only XX I cost of because small company is No, that we but us some were it's fuel, for rise of very aircraft that time. the inflation, war of and to last so I'm don't using we shipowners, cost. them have -- many East carry increasing we of it the the a war liners it's big Whether that to Far said, with spare in you've And transporting as parts the mainly like not launches usually things happy most and something, air at spare the honest cost And of last with mostly years, at the do it and especially -- parts -- the not remember of energy, that have I me, we this the numbers been with cost lift dockings, be side effects fleet, for Europe a the the with all do not are last the XX lift the heavy producing would belonging it's

them paints that the of revenues on by but by which increased an on pay fuel, benefit of this But it huge as other these extra paints, in cost time effect we reduced restriction from -- ships At we rates the all ports itself. costs, -- now effect. with have Chinese dry making also cost charter be or keeping the the environmental China, our tripled quarters. expanded ships the of ships, other doubled we And us which the are on same on from because So will appears to transportation which type benefit All ships. effect a ports, been on this is if hit low-friction crew because will be and older means lot is in OpEx. the hand, docking the apply things has are have using the a saving paint also changes in get huge revenue the it COVID all so the later, the is time, improvements we this parts. of with will and to following that we in costing now using you low-friction or of spare receive cost even paints a the we has shown on increased OpEx consumption painting of of are And the which

But and it I of cost. I bit [Indiscernible] the investment we So it's a the can detail at to moment. rough assure every looking the know little monitor adds you that

expect all the investments place. to a to be but by next taking quarter, I not in come these because our huge indeed, OpEx will So continue down margin

upgrades been basically certain environmental -- certain we appreciated. have -- mean expensed investments, I not expense we upgrades

increase will has operating increased this -- the expense. So

to would And not like I'm questions further the any now call showing over at to turn further any I back for this time. management remarks.

happy would much, this results. nice day. thank to and attending very with We in again Thank and call, you like a for next Yes. be you quarter to we'll you have discuss our conference financial

participating. today's for call. Thank concludes you Thank This you. conference

may now disconnect. You