International Seaways (INSW) 12 Mar 212020 Q4 Earnings call transcript

Good morning. And welcome to the International Seaways Fourth Quarter 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. turn and over General to Chief James like Officer Administrative Counsel. now the to conference Small, I’d Please go ahead.

ended Thank you. conference year earnings to International XX, Good morning, everyone. call And for welcome Seaways December XXXX. the

on would I of start advising us begin, we the like with Before call following. off to by everyone the today

and conditions, in historical current a appropriate to based Any are factors, world. trends, assumptions factors company’s the financing and and the may changing ongoing or and various regulatory and including investments; rates expectations transactions; XXXX forward-looking periods; to economic, topics: capital revenues regarding other Coronavirus and perception such and Those estimated without trading that the of circumstances. anticipated following the forward-looking other and petroleum and statements may estimated the of company’s company’s regarding and around this of alternatives; regional number or statements other or of the vessel on developments During world address, of charter TCE believes experience and expenses, the markets; make expenses; effects its of economic account vessels by strategy; objectives; G&A management political purchases call, days; XXXX company in of consideration for strategic product the the future take quarter patterns; the scheduled forecast achieve constructions production hire activity other consider the crude periods; outlooks made management management into management’s of oil the pandemic, operate. expenditures off-hire and bookings projected statements tanker vessels, industry we other other first drydock and and and sales financing for products; developments, demand oil and of limitation, including ability other for the expected newbuild on and

other company’s many beyond differ those Factors, cause for on control, Lois? include results in actual Executive may report Securities the Form and like and those statements. expectations and those XX-K turn of with in have which I Ms. to subject risks Commission. in which to statements out and our from or that would of to differ by uncertainties XXXX the the cause Chief to uncertainties are that make to expressed risks, the made results materially from could are actual we and our President assumptions, filings Forward-looking Lois Exchange the could future With that Zabrocky. call over or described Seaways’ way, annual Officer, International implied U.S.

We Seaways earnings morning, Seaways. our in you the full year. year from Thank International thank call the for fourth very pivotal XXXX James. timely was decisions power discuss year much, joining you for quarter International our and and earnings And XXXX Good our everyone. results. our chartering to benefited early

capital structure a During dividend our that started fixed we We volatile We venture balance sheet. transformed and for our $We in FSO we became period delivered our XXXX. in joint through and challenging X% our the shares locked cash employment of extending strong significant tankers, flows our by during on out XXXX. implemented outstanding very repurchase XXXX. significantly and

a strength total to This in the specific you XX-year million and locked weakening support value. the FO million extension during for signed bullet, FSO over our Africa. first fourth XXXX and in The of North even increased generated ASIA custom-built contract significant contract tanker This contract are and a direct quarter, produced FSOs, the of specification market. the the revenue cash the it turn We Company slide continuation of extension Total. both flow a Oil current a XX-year is These the I units. we the on continuing approximately annually crystallized high four, five-year the to $XX through review extension is in developments. year-to-date Petroleum with If commercial financial and Starting in quarter our fourth highlights deal to look venture more on of field. revenues their XXXX Seaways to life $XXX We than joint extension. forward Qatar the and our

This older During fleet generated million one sale the proceeds This our VLCCs with our cash. excess age includes of included which vessels, our We including XX Seaways ended us the $XX profile. undrawn. unencumbered we cash fleet. fourth leaves quarter, and improving million These ships $XX revolver, further in -- the of in million in unencumbered three sales with from Aframax. unrestricted is older quarter in our $XXX two and

million, was million more unrestricted $XXX total liquidity than a representing of quarter-over-quarter quarter. in increase the Our fourth $XX

further our evidence the lowest the in of still financial As strength our XX% flexibility, loan-to-value of our and of one net is sector. shipping

our agreement LNG This on this three to from a build you our second us DSME fuel contract objectives. number excited to enables puts so future delivery to If XXXX. are move Korean fueled achieve early Seaways please week announce in bullet, critical the project VLCCs top to tier strategic to of It shipyard we dual for path.

upside. customer added flows First, fleet charters to adding Shell on vessels with provides these seven-year cash to our strong leading time market stable

payment further fleet competitive We a combined at and accept to the to Jeff the which financing, again on very our once cyclical will call. are pleased schedule, favorable with renew low detail

efficient than more these and ECO modern old VLCCs XX-year water most efficient XX% on the today. more a vessel VLCCs XX% being the than Second,

their We will expect regulations adhere to life. remain they to suited well throughout environmental future

our XXXX Design not The also Efficiency environmental efficient these ships substantially Energy reduces the highly and just EEDI footprint of surpass keeping our focused Importantly, benefits corporate ships carbon three these in ESG substantially outperform but commitment targets. Index, today’s IMO citizenship. to will are that are with

the sustainability-linked at to proud of This the the industry. in last be of in initiatives maritime refinancing sector. our We’re builds sustainability forefront signing the to continue on year’s first

disciplined continue next strategy. the bullet, and our to capital Moving to implement allocation we accretive

shares, repurchase nearly outstanding dividend quarter per our we while including in fourth During share paying $X.XX of X% dividends, $X.XX. quarterly a of XXXX,

$XX of share cash intention buyback XXXX. has shareholders our program mentioned to quarter, is to in return the continue we authorized As to million. to last our It increase Seaways Board

turn last per the to million or bullet, $X.XX had share. $X.X net XXXX, in of a we you’ll loss If

when we items, FSO record our generated tanker charges in non-cash demand. later executing non-cash million. account million the impacted repairmen profit note inventory $XX fourth one-time destocking net adversely It’s million to vessel quarter was $XX million. loss in income us to VLCCs in rate Excluding helped year in our and very important a weakening revenue $XX XXXX, favorable related environment, of a Taking into success $XXX net to earlier four time optimize charters extensions. that oil the In

during our of these XXXX. well charters extensions generating addition drydocking Further, FSO the on latter for the XXXX venture In our into concentrated ahead, XXXX, contracted to fourth from flows ability the of the cash XXXX strong early year many to the we coming and during period. This joint flows of as into our time tanker of recovery. half capitalize bolsters two bodes in contracts challenging through our market market cash quarter the

XXXX. barrels forecast, million million five, day the The slide fourth X X.X to and of Based a supply XX a demand further -- EIA increase IEA an oil barrels demand. the we of barrels expects XXXX. to million a about day per recovering per day in increase oil in Turning demand XXXX. volumes February that update IEA on growth on to the XX% by quarter lost million expects The X.X provide were will estimates of

according rising, and recovering is XXXX peak oil are oil below demand While barrels XX.X stocks -- the to IEA. million the May global

believe to stage We stock set to continue market are drawdowns that needed recovery. for the tanker

production by While storage know inventory this pressure has levels. Floating decision decreased pre-pandemic to quotas, that putting on significantly is the OPEC+ already to we not levels. increase crude

ship you’ll If six, talk about we to slide supply. turn

overall increasing the As regarding and We regulations, uncertainty XX is lows. on as ordered we at market, in in recently. prices were XX the higher book cancelled ordering. and well remains steel historic already mentioned that orders Vs Only have were decarbonisation the XX costs newbuilding believe input tanker order the former tempering as XXXX, ordered XXXX calls,

the exceeds to aging for the in candidates book on deadweight by Moving regarding half recycling, the bottom fleet order years. potential slide, the VLCC the coming based of the the global of number

right-hand at order XX least now can you chart slide, the is in and at XX existing is over, see the VLCC the a least already on of years X% the is quarter As entire book. fleet old of VLCC the over representing

old Another will XX reach XX XXXX. in Vs years

consistently, highlighted to that’s age XX, expensive to have once of to As investment requirements they have they’re significant trade. the operate, reached continue we more

Vs four Recycling dynamics, the reach increasing recycled their building. to trading. is investment likely even for Based increase and recycling been Only has ‘XX. deadlines, ships spot ballast capital environment XXXX water required both prices. them in keep to given these recycle rate treatment greater particularly potential the on As of low is current and were

I to our before adhere to call take the hand global levels to would Amidst Lastly, like of standards. the thank to crews seafarers. continue I moment our Jeff, pandemic, to a ships off this highest

for crews, we things efforts. it’s Crew prevent Declaration have flights COVID-XX. taken on is their possible, crew an call where to In deviating playing the ship to implementing responsibility like The We’re their unprecedented and convenient to by worldwide remarkable for and role arranging in health essential private to the our the Neptune January signed of very safety. for important steps ports end the change spread to action. the our Seafarer and trade we crisis shared have repatriate measures extra grateful Seaways, seafarers we in a With more Change global necessary. making virus seafarers, to Wellbeing goal charter caused At

essential vaccines who to and seafarers’ over and on to provide workers turn recognized production details to critical the results. access our of medicines. these the fourth contribution I’m the as look call distribution Jeff, priority forward going we globally, to being quarter increases call them giving additional -- will As

good Lois, and everyone. morning, Thanks,

quarter Let’s and move fourth the more full directly detail. to year results reviewing in

our to turning the deck, results. quickly Before me summarize let consolidated

our we was the $XX of Both of the EBITDA a non-cash XXXX, related $X year on record. to I’ve fourth FSO our numbers loss year charge contract In million. had adjusted an million after and just quarter effect one-time quarter, $XXX.X EBITDA cited million, adjusted full of EBITDA highest extension. XXXX the full the are the For fourth

Net $XX quarter $XXX.X $X.XX account loss want or in into may diluted quarter net per income the or the So that modeling. your was fourth you million diluted take for to XXXX. share, in share compared $X.XX of fourth million per to of

of excluding million per again, FSO share. impairment diluted cents or and net impact loss $X.XX the However, the the to $XX extensions, charge million related million was $XX.X $XX

The will TCEs the Crude segment discuss Crude year. in with the business beginning last primarily slide $XX of quarter first to million for fourth segment. average turn lower resulted of the please in the the Tanker eight. blended Tanker from Suezmax, decrease segments the the Now, rates sectors. million Aframax $XX I to our VLCCs compared of results quarter, impact for were Panamax and

MRs rates driven July XXXX. of $XX TCE four to last the XXXX time for million, the revenues lower in to and of consolidated third reflected and compared were in a earned to top to average chart period-over-period the Product and quarter their as as million left, were between MR is XXXX fourth owners quarter by $XX the TCE quarter, segment. revenue the quarter Turning revenues blended XXXX. the for Overall, the quarter. primarily the in by Carriers earned the LRX, $X days year. result last due daily fourth The for to decrease compared in the chartered substantially this compared to principally fleets This quarter, quarter lower in fleet decrease a fourth delivery rates also quarter of across LRX million of average fourth was fourth year’s MR in new million crude the daily $XXX

the $X the rates quarter, Looking again, XXXX. the adjusted daily the of EBITDA to of $XX EBITDA by And compared $XX and average increase was of of a million loss million of in effect adjusted one-time includes the charge the the right at the top at page, million. driven quarter lowers was fourth for non-cash chart principally

respectively. look we EBITDA adjusted XXXX and results page year-over-year year, TCE the by our revenues on full and million of year basis. increasing $XX Consolidated half up from at bottom the million, On a $XX last were for

right-hand the highlight we EBITDA of latest $XXX our On adjusted XX-month side, million.

XXXX first Now as earnings a to fourth nine, review quarter provide updated and point. this quarter slide turning of we

of available have far, of VLCCs available our a For bookings days an Suezmax days and XX% days thus average day, QX days average for per approximately and of we QX LRX day Panamax per an XX% spot $XX,XXX spot average of $XX,XXX available of day, our Aframax day. per our available and in $XX,XXX and booked and average at $XX,XXX approximately an per spot of XX% of an spot of X%

quarter at XX% an we $X,XXX our the approximately average spot first On side, of day. of booked MR a days

the as benefits time As into a of entered charters of year. concrete example Lois last mentioned

you time charter top right-hand If at $XX,XXX number on the rates and VLCCs combined the page, side with spot for. are see for days QX that XX% look of you’ll the of the accounted for

expense. daily into FSO note, These costs, which Taking XXXX. time are overall vessel drydocking time expense $XX,XXX service We’ve charter Now chart slide XXXX, Of and scheduled from days… months to rate per cash the the hand TCE amortization, rate consideration, costs, are XX, rate must XX all-in charters, into dropped last the XX. turn interest this revenue our spot per the breakeven overall JV earn per if to the breakeven December the I costs, revenue day. means JV breakeven $XX,XXX the consideration, the months was breakeven ask rates rates revenue, daily distributions that our cover on for from XX fixed the in the well forward to operating the $X,XXX bar vessels is and far of all for cash for the ending XX-month our debt day XX, $XX,XXX period. December taking could XX owned you right to overall illustrated side, slide. months International included contracted Seaways FSO breakeven principal cost ended -- day for rates as on G&A The as and to

According to rate [ph]. our

during have for XX to year the like we At point, I’d next … cost for guidance purposes. months. this the provide modeling

for which all and OpEx, For MRs insurance, for XXXX VLCCs per impacts for similar classes case, be to day, per any various Panamax Suezmax management related day, in for day, and daily $X,XXX costs, fees attributable $X,XXX $X,XXX follows: we COVID-XX. excluding $X,XXX per regular Aframax as $X,XXX, includes our running to expect for each for expenses and other

and for CapEx drydock $X.X million million, the and expect We expenses $XX.X be to year. respectively,

For details quarter. I off-hire in and drydock CapEx by projected expect days

cash $XX.X refer update. XXXX actual slide guidance of interest compared the we expense $XX.X can with expect for to interest in cost to about in Continuing which will cash XX appendix an million, an expense You be XXXX. million

of G&A cash to be expect $XX.X the we year in region million. the For

and amortization, about about in we expect year. million is below million $XX.X last and Finally, $X $XX.X income equity for which depreciation million

if of for fourth go to XX and bridge, left right. Now our total million. cash you liquidity with from quarter to slide the moving $XXX We cash began

capital $XX was our the $X distributions from JVs adjusted million $X of loss income $XX JVs million the the in $XX a net million the the on and was dividend quarterly million other with result $X -- The positive approximately the million. and yielding turn revolver, $XXX we million slide the $XX $XX impact changes charges cash of quarter million of ended about $XXX FSO interest account $XX $X During equity were on added from of expended cash briefly We’ve quarter, Please repayment, EBITDA into a million, total million. million. principal scheduled million I’d other principal our and cash and sales balance We from XX. drydocking talk of to CapEx, and liquidity were that of debt and payments our was sheet. JV. to proceeds finally like undrawn working vessel of taking million,

XXst, long-term compared December debt. to billion of $XXX we assets, As $X.X of had of million

remained had as revolving facility In of credit December $XX XXst. addition, we million that undrawn

to at to see, stands loan conventional our of As right-hand the our XX%, total the XX%. fleet net you slide, stands our value of capital at can debt on side net

FSO. value of our is As it footnote not tells taking account one the you

If to adjusted Further, debt X.X FSO’s XX million, you net book net XX%. value to and the $XXX include number -- was strong debt our X.XX last drops was XX just EBITDA value times. months very months to times that EBITDA our last a therefore,

week’s to fuel discuss LNG agreement Before briefly I’d turning like Lois, to call this purchase three to the VLCCs. back dual

at vessels which and upside we seven-year a and fleet in provides a as us structured financing stable flows. attractive rated mentioned, on access allows provide charter rate leading market levels added strengthening a these our to The time time competitive renew Shell, to Lois strong favorable share, environment. are counterparty base in rate charters with that cash is profit very As AA a

is the highly lot back favorable Additionally, a toward questions had payment the heavily the already since with about announcement. payments weighted end. I’ve of this

can, detail to much bear I mind to TNC let I’d So give try [ph]. the like in that as contract of me -- exact as the terms of you

back are favorable payment I -- way. the are of ended newbuilding terms the As that mentioned, contract

XXXX, for modeling $XX CapEx should year. in million your this you for So payments assume

of to to myriad of seven-year time the Shell. terms are and evaluating. that opportunities There’s finance we’ve rate given financing, shown higher charter In to been a

very this can expect a will advanced course, interest quite have until is ratio, you start not numbers component. enhancing equity. project high us. thereby anyone sure, a yet, XXXX modeling of Also this that For for very but there comfortable expect rate return we’re you that that on return double-digit a I’m be doesn’t project for we Revenue, will a low telling sure we XXXX.

interest comments, and As sustainability-linked our my I enable refinancing, like and we annual this rate our capital interest capital our to reduced us year, disciplined our expense accretive by highlight returning which million, enhanced capital strategy in successfully conclude begin implementing percentage shareholders. completed points to to and Earlier XXXX. progress allocation by our our $XX I’d structure X.X average

one mentioned tanker net earlier. remains peers. loan liquidity debt, further we’ve on been $X total the and utilizing our able as execute of At value of grown quarterly share our XX.X% our among repurchase time, Lois lowest to pay the and to our same addition In program to strong per to flow our we’ve share cash dividends, prepay of

like Regarding these our closing attractive for That say comments. to share repurchases, at future value. share, concludes our valuations price call now I’d a share has back relative value I’d Lois asset we to to per highly simply that, like remarks. net to turn view the my

results, achieved unlock steps very you Thank balance structure net took value. we significant Jeff. through capital assets. our solid generating weak sheet. the approximately and financial our strengthened extensions XX-year and XXXX during to much, year XXXX, We important contract Seaways a from In further EBITDA We will FSOs, million record shareholder these on our With strength generate our ended by We annually increasing market. the income. $XX

we $XX asset by cash. liquidity to values total our unencumbered LNG million with in still commence we elevated and build to time quarter, respectively. the three captured Yesterday charters increased $XXX seven-year fuel selling During that $XXX million, This ships cash announced dual VLCCs three agreement for million total Shell. position our and will

pleased carbon maritime footprint. to significantly support to the leading Shell’s We’re reduce industry’s efforts

We’re than XX% to that customer our on partner modern will old excited be efficient efficient ECO Vs. XX% XX-year with state-of-the-art long-term than the ship more vessels close and more

our remain Thank Going charters, positive fundamentals remaining for into very shareholders questions. is venture tanker future. open contracted revenues favorable to well forward, continue decade to will and you the value believe contracts now the that for create outlook the from on and for joint two the to will the And Seaways with we we much, long-term our combined Operator, time extensions well-positioned market. continue for We fleet then VLCC bolster and beyond. the our FSO strong of drive cash the earnings, flows the next

go Riley B. [Operator ahead. Instructions] from Burke Please The FBR. first Liam question is from

morning, Lois. Good

morning. Good

new the would When change get the I how of you management looking managing the view returns. you the competed you’re viewing dramatic market? a this fleet? three in major a the of the the is the they away. long-term how get acquisition mean, from fleet at Typically spot change orders from we or away double-digit is are this VLCCS, But for

that, breakthroughs charter you, to Thank to we somewhat No. as I we the time that go benefit and decarbonisation more and through. going this of And and next -- with what is think time cycles being where in collaborating with of and now dual technology not. charter flows be coming owners highlights the this by cooperation will opportunistic, but will seven-year approach and Absolutely deal our in important those underwritten forward, customers come forward benefit strategic somewhat mean, and in love try is step by No. fuel working Liam. advantage take efficiency on will sort of we the the also cash walking and what our is as sense together about it’s Shell. I go our technological

does like it you and change on the And crude product wait to Fair between vessels? how fleet view enough. your would

more where years. an crude It’s still And forward. noted, Product VLCC. last I substantively think just It’s we as you mean, [inaudible]. and in We going appreciate It is still the big the No. is be It have efficient. will invested much strong recent fundamentals year product like that have No. bought we in Carriers will the LRX. do We -- we suite.

you, Great. Lois. Thank

you, Thank Liam.

question next The from is Clarksons Platou Securities. from Omar ahead. go Please Nokta

Lois. newbuildings. Congratulations on Thank Jeff. the Hi, you. VLCC Hi,

Thank you, Omar.

Thanks.

Yeah. Yeah.

of So filing out total about the million, the $XXX is comes which This I in like cost a say, just I’d ships your million seems considering million, the $XX $XX good LNG just to noticed deal, apiece. wanted fairly capability. three to I -- XX-K

piece that were much obviously say $XXX $XX should than the kind million Now closer you’ve of to done that of handful of costs LNG last that. million, orders million with and to would around rolled LNG the component? the small paying you there like to being less spring, a construction How $XX be

Omar, I we the say, well. would credit that is what I as give to customer and have guess to

for has I absolutely and LNG think very -- captured the you down much. so additional into to think the changed that that don’t take point have the consideration. vessels that in the I lowest ordering cycle cost of the these

is the LNG you $XX range that somewhere to that million it were for in $XX noting capability. think still I million

-- the when cost covers the just years? this you Lois, seven LNG the you contract the minutes mentioned we -- during few entire contract, capability. That talking that do when ago, the it those the sort about of component And of we underwriting seven-year a think bit a little feel Okay. LNG does about

really say efficiency well will substantive having I What time projected as incredible a by also very there, the charter having holistic is, sense, in produced Omar, the the engines. upside, as

think, I and at this. happy purchase, going a been look as have we’re to holistically VLCC back very

see with conventional build. easily could $XXX regular LNG-- just engines You costing to VLCCs regular over million

about just I gets spot of Thank it know, the calculate more, bunker are? And you off you we fuel? can guess, about based spread the there’s or of you there? and maybe can we and profit that where just it give you. I the how think calculated? rate mentioned, speaking, component ships. Yeah. Any it’s LNG Is contract How Yeah. going generally an one that Jeff, LNG on it stuff split lot disclose. between Is TNC Yeah. those have can’t when think fuel versus But a and color rates price do being you or to think

that That’s in under that have water lot interesting, I elements will team, XXXX. think, our Jeff, early they the to and there come are here are a of very wraps and I because with on confer

So you’ll low per to what day. are But like improvement a at typical something have say is Omar. them, time that, consumption would looking V I is over and very we of that equating the $X,XXX efficiency to model

so the flavor I And just you possibilities, these gives think, ships. it a of with

and the rest times Lois, many I’ve that Yeah. Can just you mean, used team of add the the I is and phrase I win-win.

their is strategy. Shell very LNG, bunker customer Our is to fueling committed

come very for charter -- going these But able have the attractive this years. together in seven be attractive make sure we that those a in I’m for utilize the to collaborative it as to very is charter us they’ll well. ships way So way we’ve

on have we win-win said, help And to Lois So little sides. both net it’s with detail going to more income EBITDA really on you your work time some XXXX to as will be a numbers.

Yeah. appreciate that. Yeah. I

Thank Some time. Well, congrats you. again.

Omar. Thank you,

Thanks a lot.

go question from is Randy Jefferies. from Please next ahead. Giveans The

Jeff. Hi, Lois it gone? and How’s

Hey, Randy. good. Very Thanks.

right. All

Sounds yeah. right. like All it

how this million repurchases So, so, $XX equity for right? about do view this didn’t does $XX? forward for shares sounds ability a you little maybe and or like they year, any $XX, XX impact million newbuildings, $XXX the in So, $XX, appetite considering million you’ll when share the you share VLCC were three purchase repurchases need how less going or

Okay.

So, start started the Randy, to come going to Randy on I’m that the… I you way want but back that, to Jeff,

Yeah.

…assuming how the…

Lois. will I

Okay.

I don’t will. I forget.

we in the were first doing often crystallize where FSO, in really able about have to asset million, two said the FSO. very value was Randy, So, be third quarter, what including material we on what we we thing And probably, $XXX than to the right, $XXX believe million contracts. more that

that So size quite the in fourth Seaways. International material that quarter we was were doing of to the

dual the in were the we well VLCC Omar Shell midst vessels. As which, the of of those fuel cost project, noted, total

buybacks it were then material midst in the go Jeff. to involved two makes of you’re material we So do transactions, challenging and to which ahead when very it in transactions and I’ll turn

Randy. Hey, Yeah.

this. million a myriad to ability the you Among in look we not options mentioned than much have of required we normal $XXX ratio assume will a should that’s would have, for of financing advanced the higher equity that’s You that, at acquisition. I that

of million of this of want discussed to which cash, returning you would me a point to in the us in a cycle renewal is the of view to most which to is, we fleet way newbuilding returning shareholders, starting pursue there’s leaves year equally a is numbers to have in thing would contract should million segues no range, cash, in this this cash fleet million that lot form that to us gets other of accomplish And is in I about the part liquidity allocation $XX earmarking be think long from So with more I that these capital we any we form capital which the find which the likely for $XXX this be and share allocation, only of $XX renewal other $XX benefits, like million repurchase. attractive, all year. the a other focusing like a

we renewal. down So, it got the on, said, But We’ve that’s just as liquidity. is what working we’ve fleet we’re Lois stuff nailed is. had

weak though So we market. have balance even a sheet strong

remain committed to we shareholders. So returning to cash

All it. right. Got

for reducing this for then sales step Sounds is age of charter ins? good. of any candidates appetite your a things. big and and the And I expanding rest the other coming possible fleet, obviously, then, average Any additional in sales fleet maybe with your some replacing guess, or fleet these your

Yeah.

her I remaining mean, and to in the charter in we our April -- VLCC, conclude day I fleet she’s Tanabe, per she say, So, monetize time one that have would then older will look ship. $XX,XXX

Yeah.

rates the this market -- indeed And the is are -- low really during quite today.

balance we and able why potentially blend today’s strong our I charters indeed have in into be at we levels that then. think it’s to -- then or and fleet them put will sheet at time them bringing in a lower is look

Got Tanabe. guess, drilling current almost I on it. then, XX with compare years And old, does market How It’s value the XX.X value? years. scrap down XX, briefly

value recycling current than the higher the -- is It market levels. substantively believe we to be

Although, again, that, feel. the will end and rise what I say think, price increase a underlying I the recycle bit demand on are is prices reflecting of

recycle? That’s it. Got All The right. right.

so you much. Thank Sorry.

Okay.

weekend. great a Have

Thank Randy. you,

Randy. Thanks,

from Stifel. is next The ahead. Ben Please from go Nolan question

Jeff. Yeah. Good morning, Lois and

morning. Good

are the or we you equity give sort return any on that, how disclosed, said you that color contract details that just are -- Jeff, there? a a on are that you on can comfortable appreciating again, what like, behind that, be to just double-digit. -- be When So, said, meant a, that you to of lot would not to wanted talking the clarify very I something this able of asset, return you return

both. Ben Yeah.

Yeah.

Okay. Perfect.

for you? enough Is that color

Yes. great. Thanks. That’s

a the about, obviously, regulations. to next generally comply have with new to How few are the XX I fuel you basis does be all, a or the The XX a want they’ll ask of a with regulations respect of in the towards here. in questions also moving to the guys, comply tenure is runs I XXXX, commissions out first on for fit certainly -- to with LNG. roll mentioned But, would little of also Well, sets out. it contract certainly, there So it when industry departure and that of set you this bit dual bit big that?

things at about have VLCC years. you at -- tankers fleet. and -- And the plus age and of you recycling the we one So, that on XX a look Ben, thinking strong are average of an an XXX are ways

XX% the entire in many So, the XX% generic I some when the fleet the consuming basically are are averages. double Vs these and we’re we that ships on at when cases, give efficiency you water numbers, of using be consuming. mean, and will what look

we VLCCs can thought perspective bit asset of Bill, kind -- an from of of planet. lowest little you look we will it on give at be So the a emitting gases the what perspective a these total hit I is also emissions a discuss just on bit then just about want kind Bill around little and the greenhouse from regulations? Ben of profile to talking --

could, Thanks, that the I’ll Lois, I’m Well, to do if going first. I regulations flip around, Ben.

let Just doing on they’re clarity, what in agreed for IMO XXXX, alone yet XXXX. hasn’t

burning ships, less very emerging and happening emissions Although, are so the regulations. I that oils think will hit everyone expects is for fuels sulfur vessels And CoX anticipate we harder, impacted time producing more be knows going will by become regulations what that that be low burning stringent. right? with over newer to lower fuel the fuel Really, higher regulations

low that As propeller, highly the plus that move and of and tall lowest a that IMO of globe advanced the burning very LNG a VLSFO form CoX XX% altogether kind and ‘XX, lower with numbers in will incentivize have X% than enormous past this that is And towards target, of a to efficient new, We when developed or very you that VLCC then fuels. say, whistles ship combine let’s delivering produces and and difficulty very, sulfur, XX% tries as bells with meeting actually when Design ‘XX sulfur that, engine, producing mark, and where go ship a highly, quoted. is Index you we’d XXXX amount we get very low standard. below XX% that get that is the anticipate that carbon to that

fuel then coming well and coupled a I that that decades results in follows. So, and with the trade we’re to lower think, continue two highly the a at ways, carbon highly, this to into low then this decade ship through efficient design, -- opportunity

that the maybe as Are Okay. or contract? here, a all on any curious, I a that know, saw moment? appreciate could combining maybe Shell one, maybe in Equinor Total I hey, dual in things you the two-fold, with Is were thing? we appetite say, with just saying little would at conversation at if come maybe there don’t we That’s that for use strategic we of that want open sort other if already well. a And that very I without fuel, do Suezmax, the you we Or plan helpful. -- even looking fleet to we’d some number to deal, and at it. few to maybe maybe then more we’re do and am sort bit of like

at mean, like Seaways you keep in think, business for open because -- this to business. I in moving have have are listen, be we a I and to shark, Ben, we

listen we’re respond to going our that. So to to customers and

our would and capital we say in we from undervalued what a this back point. allocation said, go that, that feel shares However, to perspective, also are from I Jeff still perspective at

-- maybe second relative if or of I equation. And don’t the part allocation of the to capital of that, shares know the sort the to remove Okay. of let’s is there part sort

Okay.

Okay.

Would doing idea an contract at open had of years? is, anything for you be the -- you would only consider to the to you of guess cushion possibly if long-term way dual fuel of I a the doing give however protection would entertaining question next you least what without many maybe sort extra only basis, that the that -- contract? you is Or a the on it is -- even

order any just and the is the to I not think that question dual our customers, it maybe bodes that direction to working that closely fact will think and reluctance guess without contracts? if that go fundamentals order would spoken going it that they’re dual previously the world’s for that bigger and be more there you to of I say do do in engines that, of, fuel fuel with the contract. for goes really no think And would with well we Jeff also the support. I make market I a I publicly willing whole kind to and have about

it. Got

I helpful. appreciate Lois. That’s Okay. it,

Thank you. No.

from Lewis Please BTIG. Greg from go question The ahead. is next

I I Thanks. and name you guess, Thank Lois, afternoon Yeah. I and gentleman’s would that apologize, Jeff just… other good I chimed missed morning but everybody. good the in, and

Yeah.

through were both there give to about we to would $XXX and to Marshall don’t the has Thanks. now him this I Islands around tanks us those conventional? of but we the it’s if XXX -- versus talking I about just say, those. ask interesting, it been I What Trapgor need like, like very to between tanks? to just talking hey, Islands per But push XXX. and savings are LNG more $XXX versus LNG calculations the new per Maybe Great. out an guess, think out any go the Marshall is way ton forward -- kind loosely the of ton

did morning is going What he a the -- Technical little Bill I the at his a might on and it observations bit and closely. carbon ton have feel on days watching -- I that premature. that you He this division also runs and per this he’s Nugent. gentleman is Bill, very early regulatory be you the cost is to And on architect developments But Islands. naval be? its our or what team Marshall all saw on do point any

to whether a Islands what’s of proposal at it target trading still of or like the will two look for There’s discussions like the and that’s like, Marshall is developments and decade what around that not IMO. half out market to Islands IMO is second being proposals tabled days. decided in Marshall -- It lots but early EU. that’s decide dozen gone set one of disgusted the be the is discussed, based about measures, And schemes

have too say what and will think wait see and early how impact to this I think it’s to to real evolves we’re going So the I be.

Bill. you, Thank

Okay.

Okay.

Thank it Great. this Thanks. is at In LNG about established are you regarding we fuel is at just way, guess point? the then market that. other fleet. just, for guess, is larger as I shell And think of kind for a a market fuel? I’ll there Shell -- Okay. there this of oil ask for for I the -- evolution other or current companies words, looking beyond contracts contracts dual long-term this beyond

the I that I that, seen investments are these Shell. would two out majors you’ve the and be And guess that really make Total and oil step respond way would to

be these then some I but little bit, been others remain majors. these. oil quite that And Total contracted frankly. of fuel a two thins seen with dual So AET has out a couple and going on of from that’s couple a Aframaxes it’s There’s to think to some

the go be. market decide forward their every in is As really participant -- each what to going strategy

just… then And Okay.

hey, Greg. Yeah. -- And Lois one thing

Yeah.

they’re that -- Take itself Shell will XXXX XX% contractually this that of at for the on ours. their using satisfies Greg, look press a a fuel. beyond charters LNGs time mentioned release They LNG take them goal that in be

So business. it’s this their strategy key their part of to in

that’s worth So a I think look.

point think other million think we what it’s a LNG than impact Thank year about I Is an and you. water it’s what tonnage? ves on this tonnage, because -- adding that to whether it, less we it that’s that’s, maybe a guess, you that as that’s a about as the million is vessel hey, cost the… the thinks just today. inflection think. asking maybe Okay. about, it’s happening? evolves about the old. that And as where then for newbuild we’re knew way, But of $XX the what obviously, INSW, that’s -- $XX whether hits If does comfortable ask I’ll guess market that. sometimes buying And is, the I’m words, that interesting you in talk I think know a a Thank when we than And just quicker we how fleet INSW or about we

Yeah.

Yeah. Like, almost mean, I it’s like…

Okay. I got your…

one might … that… argue

I look to owner handle mean, regulations -- newbuildings. they as have have all think we and point, Yeah, that you’re the -- look -- our has really assess oversee for the as that our to part you’re efficient our you fleet. because ship existing And -- company I to putting new has International to that scraping XX an for Bill -- paint, -- course, foot secondhand of a major has Every of you’ll over doing we to owner oversee we you newbuilding. at make do change. by these have bottoms I are ongoing getting absolutely, this secondhand the over carefully I tonnage, every these mean, on is, as mean, owner earlier, buying and at which we’re the that programs and think has buying built And Seaways, the possible. mentioned efficiency what ships your at Bill in -- previous on stuffs

department So the back no bought modern of think the embracing have purchase. have weigh well, step the all pivot secondhand other But hydrogen a do you all to bit you the serendipitous this or we And efficient solution vessels in him that but secondhand owners, modern and been for invest and move we lot is new also as to ammonia, it’s be Technical today. have you want world, project. conversation, is the -- make about, to we there’s a that there’s a running that in the to to tonnage most today’s going want change. that But practical fact

No. Yeah. It’s challenging. definitely

of decisions lot challenging here. a facing are definitely guys You

thank for a time much weekend. your hey, you great very anyway, and So, have

more you and I’m be definitive sorry, there. can’t Thank

That’ fair.

our concludes session. to like turn conference the to Zabrocky This back remarks. for would I question-and-answer over closing Lois any

joining for everyone on thank International to call. want I Seaways our

the in very are midst challenging of environment. tanker market a We

we very to we for you super today and and again. strength financial with recent XXXX that, forward excited some to is have recovery, going to we a our -- attain believe look interesting we share you However, of and thank achievements be as year we’re

concluded. Thank now attending today’s The has for conference presentation. you

now disconnect. may You