Ardmore Shipping (ASC) 27 Jul 222022 Q2 Earnings call transcript

Good morning, ladies and gentlemen and welcome to the Ardmore Shipping Second Quarter 2022 Earnings Conference Call. Today's call is being recorded and an audio webcast and presentation are available in the Investor Relations section of the company's website at ardmoreshipping.com [Operator Instructions] At this time I will turn the call over to Anthony Gurnee, Chief Executive Officer of Ardmore Shipping.

Thank you. Good morning and welcome to Ardmore Shipping's second quarter 2022 earnings call.

First let me ask Paul to describe the format for the call and discuss forward-looking statements.

everyone. welcome, and Tony Thanks,

second Before to minutes we direct ardmoreshipping.com, would to and up will this call, you presentation. open release Tony then and go our the participants through conference I morning's to all link at about find I XXXX to earnings will and questions. XX like take a begin call quarter to our where presentation the website the

which I discussion Tony. to to results to results call forward-looking today Slide statements. statements our X. concerning in you Turning quarter cause actual differ projected to is the is will that the information factors back our over contained forward-looking contains release me second available And website. Actual turn from remind may materially allow those the on results from the now And statements. additional could that Please those materially in the forward-looking earnings differ XXXX from

call. I'll update And on the conclude chemical Ardmore Paul and I'll an format provide Thanks, developments the presentation recent fundamentals for up and will call tanker performance, open after begin the overall discuss To of product Paul. and market then highlights, which, [indiscernible] today's questions. financials. with, and

which X. momentum chemical we high continuing along will levels, So later The at product turning ongoing tanker discuss to historically contributing now with Slide and markets to are many on. factors

the up second $XX,XXX far Our averaging XX% $XX,XXX earned concluded and in with MRs weeks. quarter quarter, quarter. fixtures from third fixed They're for two per the for $XX,XXX over the day last earning so $XX,XXX last are

a are tankers now on capital basis. adjusted chemical our approaching similar Additionally, levels

a of or $X.XX these per exposure, second sustained. leverage translated rates if this operating an into are share estimated $X.XX record and or $XX earnings for has the for quarter million and quarter Given third the $XX spot million share our

given to strength. $XX.X in our the we're won Encounter, Most reducing lending the with quarter Week safety over our from XX Seafarer's of Maritime their very market usage also environment we've despite the recently Operationally, priority further ATM Asset strength leverage But then core down challenging factoring ships conditions, Safety now in beginning Cherokee all limited cost. sale million, just and continue proactive the to past Charity built and Korean in prices order financial million thereby lowering continues to have strong from estimates. build the as And market rising also of XXXX significantly it value To the debt to of MR our repaying come of $XX.X approach just virtually recently Ardmore dedication engaged at cost-lease Ardmore to much allocation our professionalism. we've are program proud and of completed a most the competition, to seafaring the be targets testament of higher banks, to to a XX% debt two their the portfolio, the at ships, our the buyers financial our crews' priorities are year. once our that the rebuilding refinancing this through improved we've through, met. capital are end, our just business very up their

impacting a most on on basis, global classes energy X, many by Slide to being but crisis chemical market factors Moving rooted outlook. in virtually Europe. influenced now the is energy deeply all and tanker all, market product The notably above a

years. and time. product slowdown expectations, for economic in are underinvestment While about in continue -- and the a tanker thus global temper prices nevertheless some concerns gas causing conditions growing may reflecting oil crisis should part consensus there's a and exploration the slowdown oil strong about many for volatility that global the economic High market the

market role elastic. restocking of of result demand resolve. is Ukraine as inventories, is globally the supply-constrained Also, levels And security cost difficulty to a low global thus which time the virtually of today's and now as out Under and and the vital conditions, of are point some most even reliable class the X/X than it's continue important value of oil a comprise markets cargo. energy strong the the competition the the to and time can freight for of and largest of The immediate our supply-demand global highly an tanker supplies will high world is particular asset come. these to in fleet. war, tanker some number they take they MRs for trade in physical will that in playing priced priority As to likely less at X% drive a fully flexible ships, by tanker anywhere dislocation

similar MRs. is appear markets there charter demand upwards limit oil demand dislocation in are and chemical of potential chemical So from addition competition there destruction. rates would in to terms practical chemical a is driving no for to tracking MRs upper vegoil be in on rates tanker cargoes which tonne-mile as Meanwhile, less

commercial to financial Moving Ardmore's regarding and performance. X Slide

very charter-in per into an strategy anticipated course, market in of XXX% the $XX,XXX when our earnings fleet an is current we We fleet out spot charter to of this totaling move in nor TC-in to now trading day. average of Our employment time time upturn. trading has our including else positioned XXXX five, rate from market. well the strength. vessels, made But neither improving going a anyone away Technically, spot company maximize deliberate anticipation at

basis, very in driver notably As mentioned, key voyages, haul a also chemical a reflecting market. doing are on this tankers now on long very well engaging capital-adjusted

flow, very cash and with in the approach issuance has as the ahead meantime, recently managing high business all We're spread also last And optimization the to environment. ongoing maximize refinancing valuable annum particularly per in roughly in while million in financially, resulting trading risk, continuing shareholders with then, intense order $X.X continuing focus an market. and from this leaving year regarding preferred financial proven performance perpetual efficiency a will to in we're to addition, usual vessel strong to X.X%, upside our In down price in $XX improvement ETP be this reduce but concluded with our million flow. And performance consistent average with from our credit the voyage on important X.X% improvements bunker cash saving. then which also is earnings

in year-end, to back Assuming Paul. along ongoing allocation strong that, anticipate more breakeven by profitability. capital market of opening continuation with a flow new with conditions, reduction a meaningful opportunities we sustainable over the our levels leverage up cash call And and thus hand I'll our

In demand. XXX,XXX war since a to capital global economic activity. X demand barrels for to demand And trade financial aviation the or at the The The and oil day the Slide increasing a look a with take and barrels allocation. Starting associated deceleration are Tony. demand million are energy a the move by in Thanks, I'll and of remains at day to jet increase for a flows spite continues in X.X the tankers to the of day start adding support mile forecasting of crisis fundamentals. Ukraine-Russia product year oil to billion barrels fundamentals, positive. XX% XXXX outlook with this and tonne global year. IEA particular, demand, demand activity very then by review fuel X.X disruption chemical

providing soon. For Gulf for this additional and U.S. trend rather as anytime East layer example, an and impact than is product tanker continue to on the demand, products Russia to Middle a Europe dislocation we've time, have of the is growth. now the change been sourcing unlikely ongoing refinery some refined Meanwhile, in oil of positive saying will

to demand over refinery growth in export by well tonne-mile very in combination local outlook as Over also ongoing in day X% forces to Chemical Japan the day medium the refined tanker U.S., consistent refineries growth GDP tanker term. Middle the compared positive, annually product X% Australia. driven long years, tanker distances. the demand longer global the the products favorable these and there's over term closures of is market and million and be next should demand Europe, increasing output X.X grow petrochemical four of expected and growth. East supply barrels X.X term barrels product capacity by which with tonne-mile of volumes near above a is million larger developments in seaborne Overall, to means market-focused The of a Asia of moving

outlook for been X. Moving age. same ships running will chemical increase to be year. XXX fleet tanker or or continue. to aging next in closer given on product by may driven ultimately the near chemical We'll and levels And XXXX years. three should product and supply the demand XX the resurgent time, Scrapping chemical Slide favorable, XX and tankers an XXX as scrapping, downward more below tankers is the scrapping low. product in Net close well coming fleet tankers on the levels or also you ships the last expected scrapped At take the elevated market order while order book growth the with has at scrapping and the age fleet term, net ships for right. to growth, tankers X% chemical is order tanker a is see years scrapping of or order the product product for The growth ships the year-to-date years. increased X.X% XX is scrapped fleet supply book XX% chemical the are compared is The profile the deliveries less over and and fleet Currently, X.X% XX look expected and past long Estimated tanker of continue, levels. of to low this X% trend over fleet, the upper for years of two X.X% at or see XXX term. book the product fundamentals. and the old the at delivering tanker book to slow X.X% the chart were for can for at tankers fleet in ships a remains scrapping

very technology to XXXX. clarity near the And order willingness availability is activity dampened to limited remain speculatively. until and regulations propulsion emission of ordering There's tanker a lack in low has berth New the owners of expected term. on

to fleet Moving we operational highlights. and XX, at closer Slide look a take

fleet We are continuing optimize to invest operating in the to performance.

a complete ballast water in one drydocking system fourth CapEx a the total to expect with and million. installation treatment quarter of $X.X We

tankers chemical are availability continues fleet for XX.X% to with quarter. the charter-in very representing XXXX the X,XXX, year. time operationally, with XX% at for second days revenue ships, the well And days Forecasted perform for fleet of including on-hire approximately

for with sale of And operating we million time five a cost ships the or between you have the charter-in quarter, can quarter, capital year. expenses improvements. our this at last Operating in continued quarter to in addition moment. $X.X three associated underway. OpEx expect the in three the to to Slide we $X.X we're differs second lease for whereas million representing reporting the be peers. of GAAP, Charter-in line earnings and and financing while costs for financial in not. of our $XX.X $XX.X U.S. amortization expense looking it IFRS to following bareboat lease quarter and strong And vessel in and in quarter on sales the have that of third the for nonrecurring the and debt we for performance, as statement is we the reports with the a sale see sale million with expense as strongest vessels. a lower as quarter a and totaled forecasting from in compared income with came including $XX for to quarter to a for cost reporting quarter, $X and in third from $X.X are from million enable down $X.X efficiency report share depreciation, quarter. this third XX depreciation EBITDA guidance. does of And of valuation under about expect second be with on at quarter reflecting chart, amortization $X.XX which ahead, prepayment three metric approximately quarter the the of be its costs, and be approximately $X.X increase savings $X.X same second quarter will Turning and ships. vessels, focus million. quarter EBITDAR recently million of ever. million items million the the associated third were quarter, for Total which the in IFRS. per following plus we second third more Interest the components to the comparable them we to And with expense, split our by second We're time excluding in result charter-in the IFRS the highlights to and ships. at $X U.S. refinancing Depreciation our most the prior was peers GAAP expect currently the equivalent control are for approximately the And the associated finally, GAAP Ardmore it the $XX expense U.S. million million introducing under and charter-back overhead million in presentation million on period charter-in includes sold the quarter the

provided pale second rates third of tanker perspective, put day. per quarter. translated for and $XXX per of per income and to the income the consequence, Based $XX,XXX In quarter EBITDAR rates earning is chemical net Form and EPS on the a this $XX,XXX XX. second booked, the some a immediately MRs rates. in approximate annualized capital quarter X-K GAAP. quarter reality income TCE $X.XX. $XXX $XX,XXX process of rates but add $XX,XXX And providing the than charter market. the leverage to annualized full based based Slide reconciliation reported valuation, We the net of greater MR on EPS is EBITDAR. fleet $XX,XXX comparable in and as in Fleet a quarter. rates expense, million different average a lease million or implied calculations in higher charter component bookings current for to in adjusted back this per IFRS the and capital EBITDA to released illustrative with on in were Slide to second are second in chemicals net can under to IFRS arrive with third The day, a of the the XX $XX,XXX you one that day result quarter, which And earnings date, $XX,XXX earning for reported The our days with the also operating vessels and the they third comprising share. per TCE XX% $XX,XXX And annualized effect assist As bars, we of is under are and now to by very basis. third of quarter, on will that we chartered charter charter day TCE highlighted rates for XX, average EBITDA Therefore, average to using for of of translates is we're U.S. expense per we which EBITDA average the at the highlighting the on at year for this this fleet And per quarter, introducing time of EPS this rates And can was vessel in day to turning to in strong Slide of than and like-for-like approximate morning. the the net release, this $X.XX charter on income see TCE the presentation peers. to see quarter's day comparison this of of what is fleet

you see, the financial resulting higher environment is our with As leverage, in can operating stronger rate substantially performance.

aggregate. plus senior leases, for The loans emission and $XXX and the to X a of priced since resulting the for the a three equivalent in and vessels $XXX refinancing, we two substantially $X.X Slide addition $X.XX term on an plus reduction of new all shares X.X% balance build banks the LIBOR annual include the million $XX.X taking the the XX LIBOR ATM the at $XX The per debt expensive at comprise advantageous a usage financial adjustment -- to at on in The existing as leased vessels, social significant number weighted And year. facility. We debt And interest million XX have strength. savings in million is facilities other start issued refinance from refinanced. the credit are under average are including allowing share, a two million of year. facilities facility, fully from to to separate average X.XX%, financed million the to the The limited is second of a period pricing the in revolving proceeds. loan vessels been raising sheet. in of used linked credit debt And quarter, pricing. progress net a finalized loans And result of spread with market price main be our eliminate we're will in of consistent like per sustainability XX feature objectives final leases. to It The very million engaged in time favorable to the carbon existing frame. in for our are $XXX reduce a of of the reduction hugely to refinancing us to we the fortress refinancing million Moving In linked capital well it in with fully expect loans these all on loans receivables loan documentation leases environmental three for company. completed and and initiatives. initiatives sheet, a conditions, when we and the balance build allocation our is to course X.X short October X.X%,

allocation moving for Slide Finally, policy. to XX our capital

objectives ships, value opportunities March is to the in Our to terms ensure and on cycle scale time capital highly positioned XX%, policy we've to in issuance sheet structure buttressed shareholder and further preferred protecting the to maintain upside our the leverage the significant those of of like charter reduce capitalize through in now fleet progress balance over of towards XX return over back the clear With these mid-XXXX to policy the uses the cash I'd met. number priorities a turn is And that, And when in capital The improve affording pathway market industry. shareholders. is is debt. and The to to And to and remain made for are reduction debt different is industry. overall the the months. We past accretively weakness, exceptionally accelerate was allocation common the below opportunity to owned of shareholders. objective while to over to call capital in reduce designed consider great the developments through strong share Ardmore priority XXXX introduced grow well a targets the cyclical COVID Tony. build that now same. and And

Paul. Thanks,

So to sum up returns. impressive at now offering rates charter are then. MR levels

levels quarter, million million earnings per return product share, equity are or $X.XX if date, XX% this equity We are about quarter return with $X.XX $XX tanker earnings the of and And in For for of third sustained. or an an to $XX of these fixed, being market XX%. EPS annualized influenced above all believe representing crisis. annualized XX% on is on about potential the by the energy

of demand is growth and there supply-demand also While availability expectations, on growing crisis tanker look energy solid downward fundamentals of consensus supply recent the with will expected continued resolved temper the after by that berth Meanwhile, the shipyard even product scrapping. and a soon. anytime prospects revisions back demand tanker should constrained slowdown oil global growth strong be product favorable not

policy on to capital operating other in management performance allow words, pivot good making our to words, when leverage and capital and further in remain progress other to objectives, met, we focused toward are priorities, returning reduction us fleet company, allocation size growth shareholders. other in a will which, and As addition

gradually very separate in questions. see opportunities to Bart CFO, with seek while we're September And his want thinking, companionship improvements is very in very to best and for welcome call you results landscape. final And forward thank moment most changing Marine look time, take great but venture, nevertheless the the and these same future we're Tivnan, Kelleher, working of this the years our progress our addition, on press business him will effort, to CFO, happy joint the a team In a and over release, Paul from endeavors. in we driving profoundly I note, At past up eX the with our all XX his pleased transition still to to as much center our our for continuing him at to that, to with and X. plan immediately new open efficiency our wish energy

[Operator Instructions] from is The first Sean Morgan of question Evercore.

relay our and John in sure it's he's for go but where today. Paul new if And one York, sure Irishmen can I'm wish sentiments more him room planning on to New to I'm make his He luck endeavor. here. wanted we to not I'm me for

is commercially the on I a it's you Or eX it where that's just about out for start to Marine think been line? commercially royalties? seeing sort we closed. with So since licensing business, are ready that Are year guys of business --

So a made it Indeed, lot of Marine over months. XX lot progress Ardmore a the yes, has particularly made of Corp. has in last eX the of years, progress last at number

yes, commercialization, underway. the licenses. The vessel which they the is of -- at issues get that is and been are that well the for to has last construction the moment focus to December, was end, marinized technology terms could one announced Hydrogen In stage they

just their that to got JV partner, -- partner on they've cells Lloyd's. we announced eX have their think, fuel or Hydrogen I last And from approval also, partners, with principal one ordered of I the call, our think maritime appointed system.

technology. progress terms the a And the steps, kind commercialization huge quarters. you'll think progress I next perhaps on of over the couple So commercial licensing next and of of marinizing see of and amount in

on nice, clean I have production And the to of kind demand? travel geographies guess, then, versus rates of Tony, of just product and much I'm had clean think then up return ascribe rebound changing this improvement how sort think, tight here just you I broader for Okay. market. wondering a just that do of a follow on And the dislocation how is? MRs. sustainable from you of we the obviously nice We've in And Russia do

question, what we Yes, to the focus and that's that's presentation. try in good on a Sean

a return fuel at things hitting you're think jet I few particularly. there. One are fundamentals, to most So a

of think obviously all dynamic broadly by crisis pretty is is now supply the underlying that of more an energy hearing seeing being demand. we're terms healthy more and What I So just in and this kind a driven in is part about that -- this at but a other at reliable very time play. there it's are with are And lot happens factors are war away Ukraine far running look a for source to inventories when having consumers supply. low and of a go very of

The next question is from Stifel. Ben Nolan of

I luck question. of to sort [Indiscernible] Paul. a Good macro from a you, but would picture, start bigger guess a I

be, theoretical market You there for the now? capital kind you've mean know, I can from daily this little down, you, Ardmore If healthy gets that addressed target now with sustain that I of to going here where of especially or the from allocation big years Tony, fast, look sort year ATM at you rates, or least this levels don't a actually get in somewhat bit from it do have transitioned on now possible? of the things How you're to of been I at XX% a with the reasonably there. addition want would a leverage. really picture. two different leverage to guess, and these

well before shareholders continues to to returning capital think and And think believe financial then. a now. right strength find years lot quickly about of positioned for the reached that's under then be it's a have you If in those a going out, capital and we'll that to sustained, we'll us market near year going If market probably position pointed to growth. more think I being lots -- obviously I very two anywhere as the isn't from cetera, we'll priorities. opportunities these well a our also levels, Well, conditions. be And be to to, going our we position or give leverage is allocation targets, in at build et I be the flexibility

was more allocation out company shareholders. as a set of and regular overriding as the well-timed we policy well -- accretive just we So objective back. to therefore, to capital return the step to highly when position capital take growth, a for The

Right.

of, this case I a I shipping Although, It's have values that the in trade-off. come suppose I'm -- get sense Do growth. think prices for you again, the are how on you trade-off always I a in just pay to higher the addressed return guess about up seemingly, MR versus, in capital? -- again, -- presentation even executing growth maybe is always lot. trying you mean, though of a

I you momentum know players. we're think enough well that know to not

So a a ships, them million is $XX MRs now while year we'll The be was year each. about million. acquisition. eco-design million they quite six -- quite those a and MRs step last were old we made got And when their old. We for ship worth Frontline $XX we or big how growth. we when prudent was engage the now, in in of terms fleet And bought ago $XX

have well need over market we do that in potentially that So even strong we there's necessarily great to of able opportunity next we to at years. least that flow generate And of relatively next a lot pockets think to the the have we for patient. year got be cash be or that's arise fleet can a acquisitions. we -- in two a do But don't But fleet could conditions. going three otherwise, great

Right. me. And then lastly for

charter so lock-in I or and say, of And vessels, for shape mean curve -- there time there? versus flow securing some visibility? -- the some end the I about Are this maybe is -- to spot? on were cash sort guys lock-in the out you when let's you of what's those gains, chartering the substantial I chartering by think just cash the of strategy decline talking is charter-ins well, forth. looking it caught at a

backward At the dated. moment, it's very heavily

looking years. $XX,XXX rates. maybe TCE year One now, probably we're spot of flat a And -- for about couple substantially So lower. we then it's is talked around

to those our how one you who of years even perform that view on on is opportunity in have factor It are to next the to the to time drawn numbers But not kind depends of counterparty reliable also also off. kind we're So rates fall and arises. yet. they if two at the

I'll right. conversation. And Paul, All our miss

soon. Thanks, Ben. you talk Will to

The of Omar question comes Nokta next Jefferies. from

those looks congrats obviously look quarter seeing priorities of the your obviously of better. bad coming fleet, here going quarter. way in was also, the different by XX%. up on what couple in to And bit followed have about to -- Paul, leverage very That's next. a where past, the pleasure on the Yes. Congrats I to definitely third Obviously, that's it ask forward below And are the set and XX%. XX a target getting And a go to target strong capital about Ardmore. -- look like seems not to just been get you with question than a It's months. definitely with even you allocation. to years past wanted back to your the kind Ben's it like order maintaining refinancings

How to? makes to get want which below it's Now sense. you below far XX% do

You're a too bit below, into probably much reading Omar. the

we I the think below pref basis. in with we're if on component, a -- include leverage XX% I happy we're the think happy then mid-cycle

of like it target that but right seems there's a -- momentum towards heading we'll lot So now.

Okay.

playing by that year-end think far? figure a can something obviously, projections. all to out you think how based You it's get off of you things -- are that's that But so is

how are on things definitely. out based now, playing Yes,

even growth without have of when other all happens up looking there. also hot market. Just notably And the forecast but then think opportunities, if shareholders capital we're And us because a for that for returning you opportunities moderate it assumption playing for I that at gets look sorts pleased XQ. into then very opens to probably XQ, a

MR. you about It was It built. deploy you shift. doing something more Could a a you XXXX ship? was, it buying fleet you again? bit a -- I see a went do ships after years -- going like that cash opportunities. on note it was capital back, in on younger? do of and of had that a know boom, amount will And couple kind that Yes. good think an floating of storage of looking Or How a opportunistic I focus the -- you sense yes, free or just excess you think, time quality at make out you bought I guess Would next older. you But you think

a That's bit did is ship Look, on that the future, be a space, in one But has a today a It reality to and quite the We that at in breakeven if we take acquisition think works. we're to that including build per with full and that either price product so for modernize opportunities really or yet overhead over happy rate, in will we'll even ships use look really interesting, what some form, a cash. ship good that meantime, in two. year good type made. $XX,XXX nobody time, we'll then that of modern in that, quite rebuild, timing have the the a how our is chemical fleet. terms We knows day; in consider always hard allocation, respect really hopefully, come but good need of visibility And meaning obviously, to obviously, more of right the our or buy at question. that. of pretty

on -- you just one just the MRs. And of older three did one sell final

asset have fleet, values chemical of several you're monetizing Any at seen go or portion Handys with up you moment? the it months. another Ardmore whether what interest over the here tremendously happy in the Or be the past tankers? You've the

to year, Yes, standpoint. so exit with medium-term in kind XX fleet them ships time taking of a of back could an basis on that those the were actually for from them about commercial -- kind ships sell of standpoint and the held we approaching ships years keep age platform we intention efficiently always out charter that earnings a but of the

what's monetizing flow. through is this actually kind so seen think themselves I dry in are market. Rates that of strong and we've interesting they're bulk that the cash rates So -- now

feel -- the come looking the will look difficult And don't sell." we time don't at forward. to in I time will think in So that's there a that hindsight moment very that was that and that's say, And mindset "Yes, anyway. really think our call I people back to

pleasure you a and luck Paul, Got working it. good again, future. in with And the

Likewise, Omar.

The Chris Webber is next from Instructions] Tsung [Operator Research. question of

the do on to a factors rates? And you replacing adjustments what expand sustainability existing secure that On like? linked the look were these bit the facilities, pricing new loans the can new considered

Great question.

your want way about you shipping about loans think the access think you sustainability-linked is up think if to sustainability you terms banks, to in if when going, pretty or I market in to to think finance on well top-tier you show of your I credentials to and want robust sign from some reduction. have to funding, go priced you the funding get attractive targets where carbon

approximately what on existing able the that market a But a would robust you or I number of is the which point, environment we're that's built of kind -- sharp feature leading pretty one. terms So big financing our the five the main say, get with And need achievement at sharp to top-tier and then banks, basis at the adjustment, -- specifically is debt, in for say loans competitive in to would fact given pricing accessing sustainability a it's into loans. of I minus them. terms at overall sustainability-linked very have saving themselves, is I on suppose economic points pretty pricing the plus price loans

tankers? Congrats then That's it. and those about perhaps great. you long do three securing continue looks commercially chemical Yes. how on maybe, to just manage -- thinking you Ardmore's And like Got scale maybe bandwidth, Tony, that.

there Chris, you faded you repeat question? Could end. the out the at

Yes. Sure.

about bandwidth commercially So like how continue for tankers? long you scale just thinking three when do those operations, chemical and to your manage

really right I pleased It's now. they're results on but achieving the basis ongoing with they're an think

will those reach. XX it hopefully, yes, of all for to being ships for the So a the market fleet is terms time and commercial platform us but with okay then together brings we up in which But -- while. think be

Right.

those the be chartered for would than firmer vessels when that are need options sold for Okay. charter-in And two current and rates? or the back And the you declared? three to softer rates years,

Yes.

of So the those would then chartered-in -- probably of option rate, one option two if five are that average other few is end firm probably $XX,XXX structure period. if -- combine The and ships, you years we year two with year an it before the I months rate ships year haven't is two a I is. per declarable But They're the the the day. just exactly starting specified now. what is one think and -- the the

current way below levels. So that's

Paul. just best and Research, Great. lastly, of luck congrats from us And Webber all you, to at of

Thanks, And soon. hopefully, all to we'll Chris. you speak

question-and-answer our This conference. and presentation. for session today's concludes attending you Thank today's

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