Ardmore Shipping Corp (ASC) 2022 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Ardmore shipping Third Quarter 2022 Earnings Conference Call. Today's call is being recorded and another webcast and presentation are available on the Investor Relations section of the company's website, marching.com. -- will come back to question-and-answer session after the opening remarks. Instructions will follow at that time. A replay of the conference call will be accessible and time during the next 2 weeks by dialing 18-773447529 or 11 317-0088 and entering Passcode 7977-87. At this time, I will turn the call over to Anthony Gurnee, Chief Executive Officer of Armor Shaping. Please go ahead.

女士們、先生們，早安，歡迎參加阿德莫爾航運 2022 年第三季財報電話會議。今天的電話會議已被錄音，您可以在公司網站marching.com的投資者關係部分查看另一個網路廣播和簡報。 ——開幕詞結束後將回到問答環節。屆時將會有相關指示。未來兩週內，撥打 18-773447529 或 11 317-0088 並輸入密碼 7977-87 即可收聽電話會議重播。現在，我將把電話轉給 Armor Shaping 執行長 Anthony Gurnee。請繼續。

Thank you. Good morning, and welcome to Ardmore Shipping's Third Quarter 2022 Earnings Call. First, let me welcome our new CFO, Bart Kelleher, to the Ardmore team and wish him all the best on this first earnings call and, of course, ask them to describe the format for the call and discuss forward-looking statements.

謝謝。早上好，歡迎參加 Ardmore Shipping 2022 年第三季財報電話會議。首先，我歡迎我們的新任財務長 Bart Kelleher 加入 Ardmore 團隊，並祝他在首次財報電話會議上一切順利，當然，也請他們描述一下電話會議的形式並討論前瞻性陳述。

Thanks, Tony, and welcome, everyone. It's great to be here. Before we begin our conference call, I'd like to direct all participants to our website, ardmoreshipping.com, where you'll find a link to this morning's third quarter 2022 earnings release and presentation. Tony and I will take about 15 minutes to go through the presentation and open up the call to questions. Turning to Slide 2. Please allow me to remind you that our discussion today contains forward-looking statements.

謝謝，托尼，歡迎大家。很高興來到這裡。在我們開始電話會議之前，我想請所有參與者訪問我們的網站 ardmoreshipping.com，您可以在其中找到今天上午發布的 2022 年第三季度收益報告和演示文稿的連結。托尼和我將花大約 15 分鐘的時間完成簡報並開始提問。翻到幻燈片 2。請容許我提醒您，我們今天的討論包含前瞻性陳述。

Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause the actual results to differ materially from those in the forward-looking statements is contained in the third quarter 2022 earnings release, which is available on our website. And now I'd like to turn the call back over to Tony.

實際結果可能與前瞻性陳述中的預測有重大差異。有關可能導致實際結果與前瞻性陳述中的結果大不相同的因素的更多信息，包含在 2022 年第三季度收益報告中，該報告可在我們的網站上查閱。現在我想把電話轉回給東尼。

Thank you, Bart. So in terms of the format of today's call, I will discuss highlights for the quarter, market outlook and changes to our capital allocation policy. After which Bart will provide an update on fundamentals and financial performance, and then I'll conclude the presentation and open up the call for questions. So turning first to Slide 4. Product and chemical tanker markets remain at elevated levels, driving Ardmore's adjusted earnings to $61.6 million or $1.59 per share for the third quarter, which represents an annualized book ROE of 59%. Our MRs earned $47,000 per day for the third quarter, up from 31,000 last quarter and are running at $45,000 per day for the fourth quarter so far with 40% booked. Our chemical tankers on a capital adjusted basis earned $35,000 per day for the third quarter, up from $22,000 last quarter and are running at $36,000 per day for the fourth quarter with now 50% booked. These rates suggest that our strong earnings in the third quarter are continuing well into the fourth quarter, and we believe could strengthen further this winter as the market tightens.

謝謝你，巴特。因此，就今天電話會議的形式而言，我將討論本季的亮點、市場前景以及我們的資本配置政策的變化。之後，巴特將提供有關基本面和財務表現的最新信息，然後我將結束演講並開始提問。首先看投影片 4。產品和化學品油輪市場仍處於高位，推動阿德莫爾第三季調整後收益達到 6,160 萬美元或每股 1.59 美元，年化帳面 ROE 達到 59%。我們的 MR 在第三季每天的收入為 47,000 美元，高於上一季的 31,000 美元，而第四季迄今為止每天的收入為 45,000 美元，預訂率為 40%。我們的化學品油輪以資本調整後計算，第三季的日收入為 35,000 美元，高於上一季的 22,000 美元，第四季的日收入為 36,000 美元，目前預訂率為 50%。這些比率表明，我們第三季度的強勁盈利將持續到第四季度，我們相信，隨著市場收緊，今年冬季盈利可能會進一步增強。

Consistent with the company's capital allocation policy, we're pleased to announce the initiation of a quarterly cash dividend with effect from the fourth quarter. The dividend payment will be 1/3 of adjusted earnings, so that if the fourth quarter continues at similar levels to what we so far based on our stock price in recent days. these volatile but elevated market conditions, Ardmore is benefiting from strategic focus and optimization of its spot trading performance, including taking advantage of the overlap between products and chemicals. We're also seeing very clearly the result of the operating leverage embedded in our business, where every $10,000 a day increase in rates resulted in another $2.40 in earnings per share.

根據公司的資本配置政策，我們很高興地宣布從第四季開始派發季度現金股利。股息支付將佔調整後收益的 1/3，因此，如果第四季度繼續保持與我們迄今為止基於最近幾天的股價相似的水平。在這些動盪但高漲的市場條件下，阿德莫爾受益於策略重點和現貨交易表現的優化，包括利用產品和化學品之間的重疊。我們也非常清楚地看到了我們業務中蘊含的經營槓桿的結果，費率每天每增加 10,000 美元，每股收益就會增加 2.40 美元。

Moving to Slide 5. The outlook for product and chemical tankers remains positive in a tightly balanced market. The Russia Ukraine war continues to cause dislocation and upside volatility as well as what we believe is a more persistent reordering of global product trade. As the most recent example of this reordering, Europe plans to replace a further 1 million barrels a day of Russian refined product imports prior to February 5 of next year as part of the EU oil embargo. This is in addition to the ban on crude, which takes effect just 1 month from now. Industry analysts estimate that this could equate to a potential 7% to 8% increase in global product tanker demand, which, in our view, would be a game changer for our markets.

移至投影片 5。在緊密平衡的市場中，產品和化學品油輪的前景仍然樂觀。俄羅斯烏克蘭戰爭持續造成混亂和上行波動，以及我們認為的全球產品貿易更持久的重新排序。作為重新排序的最新例子，歐洲計畫在明年2月5日之前，作為歐盟石油禁運的一部分，每天再進口100萬桶俄羅斯成品油。這是對原油禁令的補充，該禁令將於一個月後生效。產業分析師估計，這可能意味著全球成品油油輪需求可能成長 7% 至 8%，我們認為，這將改變我們的市場格局。

The next point to make is that the seasonally strong winter market typically commences in late November when weather delays and increased refined product consumption adds another layer to underlying demand this year in addition to an already tight market. On top of this, global refined product inventory levels are currently very low, most notably U.S. and European diesel stocks, which will require Europe to import from regions further away, thus extending voyage durations and increasing ton mile demand.

接下來要說的是，季節性強勁的冬季市場通常始於 11 月下旬，屆時天氣延誤和成品油消費增加將為今​​年本已緊張的市場帶來另一層潛在需求。除此之外，目前全球成品油庫存水準非常低，尤其是美國和歐洲的柴油庫存，這將要求歐洲從更遠的地區進口，從而延長航程並增加噸英里需求。

Chemical tankers have naturally lagged MRs as is typical in a rising market, but are now catching up, and demand is expected to remain similarly robust for the rest of the fourth quarter and into 2023. We -- so although there are macro headwinds and recessionary concerns for next year, we believe they're currently being outweighed by these positive demand factors. And a final but important note, even at today's elevated freight levels, shipping costs remain well under 10% of the underlying cargo value that we transport, creating substantial headroom for further rate increases without the risk of demand destruction.

在市場上漲的時期，化學品船的需求自然落後於 MR 型船，但目前它們正在迎頭趕上，預計在第四季度剩餘時間和 2023 年，需求將保持同樣強勁。因此，儘管明年存在宏觀逆風和經濟衰退的擔憂，但我們認為，目前這些積極的需求因素已經抵消了這些不利因素的影響。最後要注意的是，即使在當今貨運水準高漲的情況下，運輸成本仍然遠低於我們運輸貨物價值的 10%，這為進一步提高運費創造了巨大的空間，而且不會有需求被破壞的風險。

Moving on to Slide 6. Our capital allocation policy was introduced in March 2020 with the objective of building long-term shareholder value through the cycle. As a consequence of improved market conditions, we can now pursue our objective simultaneously, which were previously considered ranked priorities. These objectives being maintaining the fleet over time, reducing and now sustaining our leverage below 40%, growing accretively and returning capital to shareholders. In terms of growth prospects, we continue to develop and evaluate potential transactions, but we remain committed to approaching this in a patient and disciplined manner. And as mentioned at the beginning, we're pleased to announce the initiation of a cash dividend with the fourth quarter, consistent with our capital allocation policy. And on that note, I'll hand the call back over to Bart.

繼續第 6 張投影片。我們的資本配置政策於 2020 年 3 月推出，目標是在整個週期中建立長期股東價值。由於市場條件的改善，我們現在可以同時追求我們的目標，而這些目標以前被認為是優先考慮的。這些目標是長期維持船隊，降低並維持我們的槓桿率在 40% 以下，實現增值成長並向股東返還資本。在成長前景方面，我們將繼續開發和評估潛在交易，但我們仍致力於以耐心和嚴謹的方式處理此事。如同開頭所提到的，我們很高興地宣布從第四季開始派發現金股息，這符合我們的資本配置政策。就此而言，我將把電話轉回給巴特。

Thanks, Tony. Building upon Tony's comments on the market outlook, we will examine the industry fundamentals. Overall, the supply-demand dynamics remain highly favorable. On Slide 8, we highlight the strong demand outlook for product and chemical tankers. On the oil consumption front, the IEA forecasts an overall increase of 1.7 million barrels a day for next year. And the supportive trend for ton miles is anticipated to remain strong with continued growth in export-oriented refinery capacity in both the Middle East and Asia, along with refinery closures in the West.

謝謝，托尼。根據托尼對市場前景的評論，我們將研究行業基本面。整體而言，供需情勢仍十分有利。在第 8 張投影片中，我們強調了產品和化學品油輪的強勁需求前景。在石油消費方面，國際能源總署預測明年石油消費總量將增加170萬桶/日。隨著中東和亞洲出口導向煉油廠能力的持續成長以及西方煉油廠的關閉，預計噸英里的支撐趨勢將保持強勁。

As discussed, the additional demand as a result of the dislocation of trade caused by the Russian-Ukraine war is unlikely to change in the near term. And in addition, chemical tanker demand is also accelerating, similarly bolstered by new plants opening in Asia as well as expanding edible oil trade flows and the recovery of Chinese economy. While historically, product tanker demand has grown 3% to 4% annually over the long term, demand is estimated to have grown approximately 7% in 2022 compared to the pre-COVID levels in 2019. -- but on top of this 7% growth, an incremental 7% to 8% ton-mile growth is possible as a result of the EU oil embargo. We should start experiencing this uptick at the end of this year and is likely to be persistent.

如上所述，俄烏戰爭造成的貿易混亂所帶來的額外需求在短期內不太可能改變。此外，由於亞洲新工廠的開幕、食用油貿易流量的擴大以及中國經濟的復甦，化學品船需求也在加速成長。雖然從歷史上看，成品油油輪需求長期每年增長 3% 至 4%，但預計 2022 年的需求將比 2019 年新冠疫情之前的水平增長約 7%。 ——但除了這 7% 的增長之外，由於歐盟石油禁運，噸英里數還可能增加 7% 至 8%。我們應該會在今年年底開始經歷這種上升趨勢，而這種趨勢可能會持續下去。

Turning to the supply side on Slide 9. The supply outlook remains very favorable and the robust demand levels we have discussed are expected to exceed supply for the coming years. Estimated average net fleet growth for the next 2 years is very low for both product tankers and chemical tankers. And order books remain at record low levels of 5% of the existing fleet. New ordering activity is expected to be subdued due to the very limited birth availability until at least 2025 and the continued lack clarity on emissions regulations and propulsion technology as dampening speculative ordering.

轉向投影片 9 上的供應面。供應前景仍然非常有利，我們討論過的強勁需求水準預計未來幾年將超過供應。預計未來兩年成品油輪和化學品油輪的平均淨船隊成長率都很低。訂單量仍處於歷史低位，僅佔現有船隊的 5%。由於至少在 2025 年之前出生人數非常有限，且排放法規和推進技術持續不明確，從而抑制了投機性訂購，預計新訂購活動將受到抑制。

While a resurgent market is slowing scrapping in the near term, an aging fleet will ultimately drive scrapping levels to increase. With this, it is important to point out that currently 9% of the product tanker fleet and 13% of the chemical tanker fleet are over 20 years of age.

雖然復甦的市場在短期內會減緩報廢速度，但老化的船隊最終將導致報廢水準上升。值得指出的是，目前 9% 的成品油輪船隊和 13% 的化學品油輪船隊船齡超過 20 年。

Moving to Slide 11. We continue to invest in the fleet and optimize performance. On the one hand, we've been buying back leased vessels. And on the other hand, we've been selling older tonnage to take advantage of the strong S&P market, while at the same time chartering the ships back at favorable rates. And here, you can see our statutory dry dock schedule for the fourth quarter and next year, which also gives Ardmore the opportunity to engage in retrofits to increase operating performance and fuel efficiency.

轉到投影片 11。我們繼續投資車隊並優化性能。一方面，我們一直在回購租賃的船隻。另一方面，我們一直在出售老舊船舶，以利用強勁的標準普爾市場，同時以優惠的價格租回這些船舶。在這裡，您可以看到我們第四季度和明年的法定乾船塢時間表，這也為阿德莫爾提供了進行改造以提高營運性能和燃油效率的機會。

Turning to Slide 12 for financial highlights. As you can see again on this page, the company is really pleased with the results this quarter, obviously, a function of the high market, but also all the hard work that has gone into building durable performance, which we believe will continue to pay off as this market gathers momentum through the winter and into next year. As noted on the slide, we are reporting strong EBITDA in the quarter and continue framing EBITDA as an important metric to compare our results to IFRS peers. I would encourage everyone to review the full reconciliation presented in the appendix on Slide 19.

請翻到投影片 12 查看財務亮點。正如您在本頁再次看到的，公司對本季度的業績非常滿意，顯然，這是高市場表現的結果，也是為打造持久業績所付出的所有努力的結果，我們相信，隨著市場在冬季和明年積聚動力，這些努力將繼續帶來回報。如幻燈片所述，我們報告本季的 EBITDA 表現強勁，並繼續將 EBITDA 作為與 IFRS 同行進行比較的重要指標。我鼓勵大家查看投影片 19 附錄中提供的完整對帳。

We Other notable items from this quarter include the previously mentioned sale and time charter back of our older 3 vessels has led to reduction in vessel operating expenses and favorable time charter-in levels at about $13,000 a day. On the back of our previously announced refinancings, we had a one-off reduction in interest expense during the quarter from unrealized gains in interest rate hedging. For indicative guidance for the fourth quarter, we've included a detailed slide in the appendix on Page 22. And just emphasizing the benefits of the recent refinancing, guidance for interest expense is expected to come in at $3 million in the fourth quarter.

本季度其他值得注意的項目包括前面提到的出售和定期租回我們的 3 艘舊船，這導致船舶運營費用減少，並且定期租船水平有利，約為每天 13,000 美元。在我們先前宣布的再融資的支持下，我們在本季因利率對沖的未實現收益而一次性減少了利息支出。對於第四季的指導性指引，我們在第 22 頁的附錄中提供了詳細的投影片。並且僅僅強調最近再融資的好處，第四季的利息支出預計將達到 300 萬美元。

As a result of the improved terms from our refinancings, flexibility provided by our large revolving credit facility and the benefit gained from our interest rate swaps. -- and turning now to Slide 13. This highlights the robust markets that we're in. As we continue to see strength in the fourth quarter already in advance of the typical winter uptick and the forthcoming EU oil embargo. In addition, as discussed earlier, TCEs from chemical tankers are also improving.

由於我們的再融資條款得到改善、我們的大額循環信貸額度提供了靈活性以及從我們的利率互換中獲得的收益。 ——現在翻到第 13 張投影片。這突顯了我們所處的強勁市場。在典型的冬季上漲和即將到來的歐盟石油禁運之前，我們繼續看到第四季的強勁表現。此外，如前所述，化學品船的TCE也在改善。

On Slide 14, we're highlighting our significant operating leverage, and this slide intentionally looks different than it has in the past, but it is reflective of the robust markets we are experiencing today, particularly as we enter the seasonally strong winter market and also anticipate the large uptick is the EU oil embargo takes effect. Similar to other industry participants, we've already seen a number of fixtures in excess of $100,000 per day over the past few months.

在投影片 14 上，我們強調了我們顯著的營運槓桿，這張投影片故意看起來與過去不同，但它反映了我們今天所經歷的強勁市場，特別是當我們進入季節性強勁的冬季市場時，並且預計歐盟石油禁運生效後將出現大幅上漲。與其他行業參與者類似，過去幾個月我們已經看到許多固定裝置的價格超過每天 10 萬美元。

Moving to Slide 15. Ardmore continues to build upon its strong financial position. Net leverage at the end of September stood at 34%. And we have a very strong liquidity position of over $190 million, $50 million of cash and $140 million of undrawn revolving facilities. All refinancings are now completed and have supported a reduction of cash breakeven levels to around $14,500 per day.

移至投影片 15。阿德莫爾繼續鞏固其強大的財務狀況。 9月底淨槓桿率為34%。我們的流動資金狀況非常強勁，包括超過 1.9 億美元的資金、5,000 萬美元的現金和 1.4 億美元的未提取循環信貸額度。所有再融資現已完成，並支持將現金損益平衡水準降低至每天約 14,500 美元。

We utilized our ATM selling 2.3 million shares and raising $21 million in net proceeds during the third quarter to build further financial strength, thus completing our ATM issuance for the foreseeable future. Among other things, raising these funds when we did was instrumental in accelerating the refinancing process in getting favorable terms, which substantially lowers our interest expense and breakevens going forward. As always, the Arbor team is focused on optimizing performance on a relative as well as absolute basis and driving results in these elevated markets. We are also closely managing costs in this inflationary environment. And with this, I'd like to hand the call back over to Tony.

我們利用 ATM 出售了 230 萬股股票，並在第三季籌集了 2,100 萬美元的淨收益，以進一步增強財務實力，從而在可預見的未來完成 ATM 發行。除此之外，我們當時籌集這些資金有助於加速再融資過程並獲得優惠條款，從而大幅降低我們未來的利息支出和損益平衡點。與往常一樣，Arbor 團隊專注於優化相對和絕對的性能，並在這些高端市場中推動業績。在這種通膨環境下，我們也在密切管理成本。現在，我想把電話轉回給東尼。

Thank you, Bart. So to sum up, product and chemical tanker rates continue at elevated levels, resulting in very strong operating returns. In the fourth quarter, earnings of $61.6 million and EPS of $159 million, equating to an annualized book ROE of 59%. And based on our stock price in recent days and annualized current earnings yield of about 47%. And so far, the fourth quarter is looking at same or even stronger levels. The unfolding energy crisis, including the incremental ton mile impact of the forthcoming EU oil embargo has the potential to continue boosting demand in an already tight market, which we expect will persist into 2023, essentially until geopolitical circumstances change.

謝謝你，巴特。總而言之，成品油和化學品油輪運價持續處於高位，帶來非常強勁的營運回報。第四季獲利 6,160 萬美元，每股收益 1.59 億美元，相當於年化帳面淨資產收益率 59%。並且根據我們最近幾天的股價和年化當前收益率約為47％。到目前為止，第四季的業績與去年同期持平，甚至更強勁。不斷演變的能源危機，包括即將實施的歐盟石油禁運對噸英里數的增量影響，有可能繼續刺激本已緊張的市場需求，我們預計這種狀況將持續到 2023 年，基本上直到地緣政治環境發生變化。

Meanwhile, underlying supply/demand fundamentals continue to look favorable given the strong demand drivers against a very low order book and limited birth availability for the next few years. In line with our capital allocation policy, we're announcing the initiation of a quarterly cash dividend commencing with the fourth quarter, representing 1/3 of adjusted income and expected to provide an initial annualized dividend yield of about 15%.

同時，鑑於未來幾年訂單量極低且出生率有限的情況下強勁的需求驅動，潛在的供需基本面繼續保持良好態勢。根據我們的資本配置政策，我們宣布從第四季開始派發季度現金股息，佔調整後收入的 1/3，預計初始年化股息殖利率約為 15%。

So in summary then, after several tough years in which we've worked hard to preserve cash, control costs and maintain and even improve earnings upside for our shareholders, we're very pleased to now deliver significant value through our operating results, a return of capital in the form of cash dividends and strong total returns from a rising share price. And with that, we're pleased to open up the call for questions.

總而言之，在經歷了幾年的艱難時期後，我們努力保存現金、控製成本、維持甚至提高股東的盈利空間，現在我們非常高興能夠透過我們的經營業績、以現金股息形式實現的資本回報以及股價上漲帶來的強勁總回報，實現重大價值。現在，我們很高興開始回答問題。

(Operator Instructions).

（操作員指令）。

Thank you. Tony, I think as people trying to understand the duration of what's been happening so far. And you've been trying to maybe poke holes in the sustainability of it. As we approach February 5 for the refined product sanctions, I think there's some views that there could be just a peer shortage of ships, which we've talked about the ton-mile benefits of it, but could potentially kind of crimp total exports and also potentially worse in a global diesel shortage. I know it's still several months away, and it's an evolving issue. But as you look to February and the ability of the product tanker fleet to move what needs to be moved at a very vital time for the economy, how do you kind of foresee shortages in the pros and maybe even a couple of potential cons to your business from that?

謝謝。東尼，我認為人們試圖了解迄今為止發生的事情的持續時間。您可能一直在嘗試找出其可持續性方面的漏洞。隨著 2 月 5 日成品油製裁的臨近，我認為有一些觀點認為，可能只是同行船舶短缺，我們已經討論過它的噸英里效益，但可能會在一定程度上抑制總出口，並且全球柴油短缺也可能惡化。我知道這還需要幾個月的時間，而且這是一個不斷發展的問題。但是，當您展望二月份，以及成品油油輪船隊在經濟非常關鍵的時刻運輸所需貨物的能力時，您如何預見到由此帶來的利弊，甚至可能對您的業務造成一些潛在的負面影響？

As always John a deep question. I guess, I haven't thought about it this way, but I'm a big believer in the overall efficiency of markets in this market as well. And I think pricing will allocate the resources appropriately to get product where it needs to go. So honestly, I can't imagine a situation where there's just simply a shortage of ship and you can't move cargo, but it might price out certain trades to allocate resources elsewhere. So I don't know if that's a proper answer.

一如既往，約翰提出了一個深刻的問題。我想，我還沒有這樣想過，但我也非常相信這個市場的整體效率。我認為定價將合理分配資源，讓產品到達需要的地方。所以說實話，我無法想像僅僅因為船舶短缺而無法運輸貨物的情況，但這可能會導致某些行業的價格上漲，從而將資源分配到其他地方。所以我不知道這是否是一個正確的答案。

Yes. I mean I don't think anybody...

是的。我的意思是我不認為有人...

So to me, those conditions sell sky high rates. And again, I just -- I think we've not had to think about these kind of scenarios for a long time in our business. But to me, it's where the elasticity of shipping rates to demand comes into play. I think rates could go very, very high.

所以對我來說，這些條件可以帶來高昂的利率。再說一次，我只是——我認為在我們的業務中我們很久沒有考慮過這種情況了。但對我來說，這就是運費對需求的彈性發揮作用的地方。我認為利率可能會變得非常非常高。

Okay. That's helpful. Second question, maybe not as deep, but for Bart to pull you in here, Ardmore has gone through a lot of defensive capital structure initiatives over the last couple of years and put the company in this place now where you can introduce something like the dividend policy you just rolled out. 1/3 of the earnings is certainly generous given the yield that we laid out. But that means there's 2/3 of record earnings still left and you're already at a situation where the leverage seems pretty sustainable through cycles. Is this the time where Ardmore maybe shifts to more of the aggressor and starts to add tonnage? Or because asset values have run so exceptionally strong, and there's really no new building clock available for the next couple of years, you look outside of that silo growth and look to do other things with the remaining cash flow.

好的。這很有幫助。第二個問題，也許不是那麼深奧，但巴特想讓你回答這個問題，阿德莫爾在過去幾年中經歷了許多防禦性資本結構舉措，現在公司處於這樣的境地，你可以引入一些類似於你剛剛推出的股息政策。考慮到我們設定的收益率，1/3 的收益肯定是相當慷慨的。但這意味著仍有 2/3 的創紀錄收益，而且你已經處於槓桿在整個週期中看起來相當可持續的境地。現在是不是阿德莫爾號可能會轉向更具侵略性並開始增加噸位的時候了？或者因為資產價值成長如此強勁，而未來幾年實際上沒有新的建築時鐘，所以您將目光投向孤島增長之外，並希望用剩餘的現金流做其他事情。

Thanks, John. I think I'll kick this one off, and I'm sure Tony will add in color. Looking at the M&A or the vessel front, I think we always have been and will continue to be patient and take a disciplined approach. And we turn over a lot of stones. And frankly, there are a lot of deals that don't look so attractive today, and it has to be accretive and meet our requirements. But coming back to your initial part of the question on the dividend, we see it as one that's sustainable. We wanted it to be sustainable through the cycle, but also maintain resources so that we could meet our other capital allocation priorities simultaneously. And we always have room to further pay down debt. If we're in a really strong market for a prolonged period of time, we can also look at returning more capital. But I think we have the benefit that we can look at all of these capital allocation priorities simultaneously now. Tony, anything else?

謝謝，約翰。我想我會開始這個，我相信託尼會添加顏色。從併購或船舶方面來看，我認為我們一直並將繼續保持耐心並採取嚴謹的態度。我們翻開了很多石頭。坦白說，今天有很多交易看起來不那麼有吸引力，它必須具有增值性並滿足我們的要求。但回到您關於股息問題的最初部分，我們認為股息是可持續的。我們希望它在整個週期中都是可持續的，同時也保持資源，以便我們能夠同時滿足其他資本配置優先事項。而我們總是有進一步償還債務的空間。如果我們長期處於一個非常強勁的市場中，我們也可以考慮返還更多的資本。但我認為我們的好處是，我們現在可以同時考慮所有這些資本配置優先事項。東尼，還有什麼嗎？

No, I think that's good. I think we do have a substantial amount of further debt we could pay down. If we were to do that to a degree, we'd have capacity for significant growth. And then it's a matter of just being patient, getting the timing and right and finding the right opportunity. But to underscore Bart's point, I think we'd be very happy under these circumstances to return a lot more capital to shareholders.

不，我認為那很好。我認為我們確實有大量債務需要償還。如果我們在某種程度上做到這一點，我們就有能力實現顯著的成長。接下來，只需要耐心等待，把握時機，找到適合的機會。但為了強調巴特的觀點，我認為在這種情況下我們會非常樂意向股東返還更多的資本。

The next question is from Omar Nokta with Clarksons.

下一個問題來自克拉克森的奧馬爾諾克塔 (Omar Nokta)。

I wanted to ask about the 5 ships that you have taken in on time charter. Obviously, you managed to secure those in a very well-timed manner. But how long do those charters run? And how do you see the charter in position developing as we move into next year? Yes, I'll just answer that briefly. So out of the 5, 3 are the vessels we sold and chartered back for 3 years at $13,000 a day. and that started 6 months ago. The other 2 are 1-year TCs that we've extended through options, and I think they're an average of like 15,000. So they have about a year ago. Okay. And then just turning back to the sort of the fleet perspective. I guess asset values have now moved over eval parity, which is certainly understandable given where the rates are and the strong outlook. Is new builds? Is that something that you all would consider and given that you still -- I guess, as you've indicated, you're going to be distributing a lot of cash for dividends, but you'll have quite a lot left over. And how do you consider newbuilds at this point?

我想詢問一下你們按期租來的 5 艘船的情況。顯然，您以非常及時的方式成功實現了這些目標。但這些憲章的有效期限是多長呢？進入明年，您認為章程將如何發展？是的，我會簡短地回答這個問題。因此，在這 5 艘船中，有 3 艘是我們賣掉後以每天 13,000 美元的價格租回的，租期為 3 年。這一切從六個月前就開始了。另外 2 個是我們透過選擇權延長的 1 年期 TC，我認為它們的平均數量約為 15,000。大約一年前他們就已經這麼做了。好的。然後回到艦隊的視角。我猜資產價值現在已經超過了估值平價，考慮到目前的利率和強勁的前景，這當然是可以理解的。是新建的嗎？這是你們都會考慮的事情嗎？考慮到你們仍然——我想，正如你們所指出的，你們將分配大量現金用於股息，但你們還會剩下很多。您現在如何看待新建築？

I don't want to state anything categorically because we do look at projects, for example, that might be a 10-year time charter business for vessel that's got a renewable type of fuel, feature to it, et cetera. But beyond that kind of thing, which so far hasn't materialized, it might be still pretty far away in the future. Just looking at the delivery dates and the pricing for new builds, it doesn't look right. And I think that's the broad consensus in the sector. So I think there's probably a bias against ordering what you order, when do they deliver very, very high price right now pushed up by other sectors.

我不想明確地說任何事情，因為我們確實在考慮一些項目，例如，這可能是一項為期 10 年的定期租船業務，適用於使用可再生燃料的船舶等。但除此之外，目前還沒有實現的事情，它可能還在未來相當遙遠。僅查看新建築的交付日期和定價，看起來就不對。我認為這是該領域的廣泛共識。所以我認為，可能存在對訂購商品的偏見，他們什麼時候送貨，現在價格非常非常高，這是由其他行業推高的。

Next question is from Benjamin Nolan with Stifel.

下一個問題來自 Stifel 的 Benjamin Nolan。

Good morning, afternoon. This is Michele Rogers on for Ben today. I know you guys have given a lot of clarity on the capital allocation policy. So we just wanted to kind of just get just a little more color given the activity under the ATM program. Just maybe would you provide some insights on the capital needs using those proceeds for? I know you mentioned you stopped the issuance for the foreseeable future, but just maybe just a little extra color there, and that would be great.

早安，下午好。今天由 Michele Rogers 代替 Ben 主持。我知道你們已經對資本配置政策給了非常清楚的解釋。因此，我們只是想對 ATM 計劃下的活動有更多的了解。您能否就使用這些收益的資本需求提供一些見解？我知道您曾提到在可預見的未來您將停止發行，但也許只要有一點額外的色彩，那就太好了。

Sure. Yes. So we've completed our program, as we said, for the foreseeable future. Our balance sheet is in excellent shape. One of the reasons why we decided to initiate the ATM for that period of time to raise about $40 million was because it allowed us to really accelerate the discussion with the banks and take out all of our lease debt. And I think we arguably got a head start of maybe 6 months.

當然。是的。因此，正如我們所說，在可預見的未來，我們已經完成了我們的計劃。我們的資產負債表狀況極佳。我們決定在那段時間啟動 ATM 並籌集約 4000 萬美元的原因之一是，它使我們能夠真正加快與銀行的談判並消除所有租賃債務。我認為我們可能已經領先了 6 個月。

We had it all lined up, for example, in June, but it's actually taken just until last week to execute on the refinancing of the final sale leasebacks. And so arguably, in that period alone, we saved several million dollars and gotten very favorable rates at a time when I think the banks were particularly keen. So that -- I think that's just one facet to the value of doing what we did with the ATM, understanding that there are more shares in the share count now. But even looking at our returns on equity and yields compared to our peers, even with that additional issuance, we think we compare very favorably. So I think the final point I would make is that I think it's -- the move we made there is part and parcel of the larger -- kind of a broader approach to financial strategy, which you could argue is kind of put the company in the position it is today to generate the kind of returns that it has.

例如，我們在六月就已安排好了一切，但實際上直到上週才開始執行最終售後回租的再融資。因此可以說，僅在那段時期，我們就節省了數百萬美元，並且獲得了非常優惠的利率，而我認為當時銀行對此特別熱衷。所以——我認為這只是我們對 ATM 所做舉措的價值的一個方面，了解到現在股票數量有所增加。但即使將我們的股本回報率和收益率與同行進行比較，即使進行了額外發行，我們也認為我們的比較結果非常有利。所以我認為我要說的最後一點是，我們採取的舉措是更大範圍的財務策略方針的重要組成部分，你可以說，這在某種程度上使公司處於今天的地位，能夠產生現在的回報。

That's very helpful. And if we could just ask one more, given your strong liquidity position, we kind of wanted to ask about call rights for the preferreds. And if that is something you would consider down the line.

這非常有幫助。如果我們可以再問一個問題，鑑於您強大的流動性狀況，我們想詢問有關優先股的贖回權。如果您以後會考慮這一點的話。

Yes. It's not no call for 3 years and then at par, I believe. So we're not quite there yet. That's a possibility. Of course, in a rising interest rate environment, the dividend rate there begins to look more and more attractive and it's very flexible capital. So I think there -- the headline rate looks a little bit expensive compared to everything else right now, but we still like it. But we do have rights to call in. It's perpetual, the rate remains the same, but we do have rights to call it in after 3 years.

是的。我相信，這不是三年內沒有通話然後達到平價的情況。所以我們還沒有到達那裡。這是有可能的。當然，在利率上升的環境下，那裡的股息率開始變得越來越有吸引力，而且資本非常靈活。所以我認為——與目前的其他利率相比，整體利率看起來有點高，但我們仍然喜歡它。但我們確實有權利收回。它是永久性的，利率保持不變，但我們確實有權在 3 年後收回。

Great. Thank you guys for the time

偉大的。感謝大家的時間

If you want to ask a question at present -- the next question is from Omar Rota with Jefferies.

如果您現在想提問——下一個問題來自 Jefferies 的 Omar Rota。

Tony, Hey Bart, nice to have you, Bart on the call today. I wanted to follow up on John's question about the next steps with the potential -- or potential next steps with your free cash flow, the remaining 2/3 that you have. And I think you guys are pretty clear. Tony, you mentioned looking -- I guess, effectively, it's pay down debt, even though your debt's gotten down to a nice low threshold. Looking to pay down debt is obviously very good. And as you think then about the potential for acquisitions, I wanted to ask with the platform as it is now, when it is time to deploy that capital, what do you want to do? Do you look to further extend the MRs? Or do you try to now look to scale up the chemical business?

東尼，嘿，巴特，很高興你今天來接電話。我想跟進約翰關於下一步行動的問題，利用你的自由現金流，即剩下的 2/3，你的潛在下一步是什麼。我想你們都很清楚。東尼，你提到了尋找——我想，實際上，這就是償還債務，即使你的債務已經降到一個很低的門檻。尋求償還債務顯然是件好事。當您考慮收購的可能性時，我想問一下，以現在的平台來說，當需要部署資本時，您想做什麼？您是否希望進一步延長 MR？還是您現在想嘗試擴大化工業務？

Let me start, and then I'll ask Mark to join in after I make a couple of points. So I think the first thing is that -- as we continue to build liquidity, pay down debt, reduce our breakevens, build more substance in the company, I think it actually does improve the quality of the dividend, prospective dividends going forward. So I think there's a lot of benefit to that alone from a dividend policy standpoint. -- we do -- we've been very patient in terms of looking for opportunities. But we're very clear about what our strategy is, which is MR products and chemicals. And in accordance with our energy transition plan, over time, we'll be doing more and more non-CPP cargo, which is code for chemicals and veg oils and things like that, whether that's M&A or single ship acquisitions or block acquisitions will remain to be seen. But we're constantly looking at opportunities and keeping abreast of what's out there and what that could do for us. So probably as much as I can say right now, Bart, do you want to...

讓我先開始，然後我會講幾點，然後請馬克加入。因此，我認為第一件事是——隨著我們繼續建立流動性，償還債務，降低盈虧平衡點，在公司中建立更多實質內容，我認為這確實會提高股息的質量，以及未來的預期股息。因此我認為從股利政策的角度來看，這一點就有很多好處。 ——我們確實——我們在尋找機會方面一直非常有耐心。但我們非常清楚我們的策略是什麼，那就是 MR 產品和化學品。根據我們的能源轉型計劃，隨著時間的推移，我們將運輸越來越多的非 CPP 貨物，即化學品、植物油等，至於是否進行併購、單船收購或整體收購還有待觀察。但我們一直在尋找機會，了解外面的情況以及這些情況能為我們帶來什麼。所以我現在只能說這麼多了，巴特，你想…

No. And I'd just say it's also a natural extension to the fleet today and the fleet that we trade where we see our chartering team being able to trade the spectrum of refined products through to chemicals and switch in and out and see that, that does optimize our results. And then when the time is right to layer in additional assets from an M&A perspective or the vessel S&P market will follow the strategy, Tony outlined.

不。我只想說，這也是今天船隊的自然延伸，也是我們交易的船隊的自然延伸，我們看到我們的租船團隊能夠交易從精煉產品到化學品的各種產品，並且可以隨意切換，這確實優化了我們的業績。然後，當時機成熟時，從併購的角度來增加資產，或者船舶標準普爾市場將遵循這一策略，托尼概述道。

Yes. And I'll just finish by saying that, look, when the conditions are right, we'll be very happy to return a lot more capital to shareholders.

是的。最後，我想說的是，當條件合適時，我們會非常樂意向股東返還更多的資本。

Yes, makes sense. And then just a follow-up, and apologies if you addressed this already. But just in terms of what we're seeing in the time charter market, obviously, there's been a good amount of volume we've been seeing. You guys have been predominantly spot and look to be here in the fourth quarter, which is paying off clearly. But how do you guys -- how do you guys think about that? What's the appetite today on the part of charters for some medium- to long-term contracts? And then also, what's your appetite to enter into those?

是的，有道理。然後只是後續問題，如果您已經解決了這個問題，請原諒。但就我們在定期租船市場看到的情況而言，顯然，我們看到了相當大的交易量。你們主要在現場，並且希望在第四季度取得成果，這顯然是有回報的。但是你們怎麼看──你們怎麼看待這個問題？目前租船方對於中長期合約的興趣如何？那麼，您對這些有什麼興趣呢？

Yes. Look, I mean, this is something that Gernot focuses on every day. We talk about it constantly, and it's a topic of discussion at the Board level as well. I think the real liquidity in our market in time charters is usually out to 1 year. After that, it tends to get pretty thin. When we think about charters beyond a year, we think about a kind of a term structure and think about, okay, what are we really buying if we put a ship on, let's say, a 2- or 3-year TC beyond the 1-year period. And so far, to us, those rates seem to be fairly low compared to what we think we should be able to earn in the spot market or on a TC basis later on.

是的。你看，我的意思是，這是 Gernot 每天關注的事情。我們經常談論這個問題，這也是董事會層級討論的話題。我認為我們市場上定期租船的實際流動性通常為 1 年。此後，它會變得非常薄。當我們考慮一年以上的租船時，我們會考慮一種期限結構，並思考，如果我們將一艘船放在一年期之後的 2 年或 3 年的 TC 上，我們真正購買的是什麼。到目前為止，對我們來說，與我們認為以後在現貨市場或 TC 基礎上能夠賺取的利潤相比，這些利潤似乎相當低。

I think in particular, the winter market is potentially so robust that we just are very reluctant to leave any money on the table at this point in time. But we've had a lot of success in the past in chartering out. In the end, it's a fairly intuitive trading decision rather than a strategic policy type of approach.

我認為，尤其是冬季市場潛力如此強勁，我們此時非常不願意放棄任何資金。但我們過去在租賃方面取得了許多成功。最終，這是一個相當直觀的交易決策，而不是戰略政策類型的方法。

Okay. Tony, that's clear, and it makes sense. I'll turn it over.

好的。東尼，這很清楚，而且很有道理。我把它翻過來。

Your next question is the follow-up from Tsung with Clarksons...

您的下一個問題是 Tsung 與 Clarksons 的後續問題…

Just to follow up a little bit on Omar's questions around time charters. I mean, I guess, if you look into what analyst estimates are for next year, there seems to be a pretty big disconnect with what the time charter market is? I mean just looking at the analyst consensus on EVS for all of 2023, it's less than what you just reported in the third quarter. So how do we think about our models going into 2023? I mean is your market do consistent with the time charter market? Is that the kind of the best metric for us as analysts to look at as we think about 2022?

只是想稍微回答一下奧馬爾關於定期租船的問題。我的意思是，如果你看分析師對明年的預測，你會發現它與定期租船市場的情況似乎有很大脫節？我的意思是，僅看一下分析師對 2023 年全年 EVS 的共識，它就低於您剛剛報告的第三季度的數據。那我們如何看待我們的模型進入 2023 年呢？我的意思是你們的市場與定期租船市場一致嗎？對我們分析師來說，當我們思考 2022 年時，這是否是最佳指標？

I think the 1-year rate now is arguably 30,000 a day. But we're currently running at 40,000, 45,000 a day. So that -- so if you have the visibility for a few months or even 6 months at that level, then the back half of even the 1-year rate doesn't look all that great, and you can extend that logic for future periods. Our view is that look, there's obviously a lot of uncertainty around the bulk of 2023, the winter. We seem to have pretty good visibility on the winter now, which does run until March, usually. So -- and then it's really a tug-of-war between economic macro headwinds impacting oil demand versus oil market dynamics and disruption and reordering of trade driving up ton-mile demand.

我認為現在一年的利率可以說是每天 30,000。但我們目前的日產量是 40,000 到 45,000 輛。因此 — — 如果您能夠預見該水平下幾個月甚至六個月的利率，那麼即使是 1 年期利率的後半部分看起來也不會那麼好，您可以將該邏輯延伸到未來時期。我們的觀點是，2023 年的大部分時間，也就是冬季，顯然存在著許多不確定性。我們現在似乎對冬季有了相當好的了解，冬季通常會持續到三月。所以 — — 這實際上是一場拉鋸戰，一方面是影響石油需求的經濟宏觀逆風，另一方面是石油市場動態，以及貿易中斷和重新排序推高了噸英里需求。

This Concludes conference call. You may now disconnect.

電話會議到此結束。您現在可以斷開連線。