Capital Clean Energy Carriers Corp (CCEC) 2014 Q4 法說會逐字稿

Thank you for standing by and welcome to the Capital Product Partners' fourth-quarter 2014 financial results conference call. We have with us Mr. Petros Christodoulou, Chief Executive Officer and Chief Financial Officer; Mr. Jerry Kalogiratos, Chief Operating Officer. (Operator Instructions) I must advise you this conference is being recorded today.

The statements in today's conference call that are not historical facts, including our expectations regarding developments in the markets, our expected charter coverage ratio for 2014 and 2015, and expectations regarding our quarterly distribution may be forward-looking statements as such as defined in Section 21E of the Securities Exchange Act of 1934 as amended.

These forward-looking statements involve risk and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. Unless required by law, we expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views, or expectations to conform to actual results or otherwise.

We assume no responsibility for the accuracy and completeness of the forward-looking statements. We make no prediction or statement about the performance of our common units.

I would now like to hand over to your speaker today. Please go ahead, sir.

Thank you, Liz, and thank you all for joining us today. As a reminder, we will be referring to the supporting slides available on our website as we go through today's presentation.

On January 23, 2015, our Board of Directors declared a cash distribution of $0.2325 cents per common unit for the fourth quarter of 2014 in line with management's annual distribution guidance. The fourth-quarter common unit cash distribution will be paid on February 13, 2015, to unitholders of record on February 6, 2015.

The Partnership's operating surplus for the quarter amounted to $32.1 million, which is $2.9 million higher than a total $9.2 million over the fourth quarter of 2013. Common unit coverage for the fourth quarter 2014 improved to 1.2 times.

During the quarter, the M/T Aias generated $0.6 million in profit share as a result of a strong spot rate environment for Suezmax tankers, making -- marking the reemergence of profit sharing in our trading operations. We are also pleased to announce that the Partnership has secured long-term employment for a number of its vessels at increased rates compared to their previous employment.

As previously announced, we have agreed to charter out the M/T Aias to Repsol Trading for a period of three years at $26,500 per day and the M/T Arionas to our sponsor Capital Maritime for 14 months at $15,000 per day, up from a previous charter with, again, CMTC at $14,250 per day.

Earlier this month, we also secured long-term employment for an additional four product tankers. Namely, we have [fixed] the M/T Assos and M/T Axios to Petrobras for 3 years at $15,400 per day, up from previous charters of $14,750, and the M/T Akeraios and M/T Apostolos to CMTC for 2 years at $15,600 per day. These vessels come off previous charters of $14,950 and $14,850 per day, respectively.

As a result and as of the end of the month -- of the fourth quarter 2014, the average remaining charter duration of our charters stood at 7.9 years, with approximate charter coverage of 83% for 2015 and 64% for 2016. As most of our remaining charter expirations in 2015 relate to product and crude tankers, we are uniquely positioned to take advantage of the improving market fundamentals in these segments.

Let's turn to slide 2. Revenues for the quarter -- for the fourth quarter of 2014 were $49.7 million compared to $47 million in the fourth quarter of 2013. The increase is mainly a result of improving employment pay rate and utilization for certain of the Partnership's vessels and the profit share earned by the NTS.

Total expenses for the fourth quarter of 2014 were $32.3 million compared to $32.7 million in the fourth quarter of 2013, excluding a $7.1 million loss from the sale of M/T Agamemnon II. General and administrative expenses for the fourth quarter of 2014 amounted to $1.6 million compared to $1.4 million in the fourth quarter of 2013.

The Partnership's net income for the fourth quarter of 2014 was $13.7 million or $10.4 million after taking into account the preferred interest in net income attributable to the Class B unitholders and the GP interests. That is $0.10 per common unit.

Moving onto slide 3, you can see the details of our operating surplus calculations that determine the distributions to our unitholders compared to the previous quarter. Operating surplus is a non-GAAP financial measure, which is defined fully in our press release.

We have generated approximately $32.1 million in cash from operations before accounting for the Class B preferred units distribution. After adjusting for the Class B units distribution, the adjusted operating surplus amounted to $29 million, which translates into a strong unit coverage of 1.2 times. This is after taking into account the net 11.3 million units issued in the third quarter of 2014.

One slide 4, you can see the details of our balance sheet. As of the end of 2014, the partners' capital amounted to $872.6 million, which is $91.2 million higher than the partners' capital as of December 31, 2013.

This increase primarily reflects five items. First, the issuance of 17.3 million common units in the third quarter, which raised gross proceeds of about $181.6 million. Second, the repurchase and cancelation of approximately 6 million common units from the Partnership's sponsor, Capital Maritime, in the third quarter of 2014.

Third, the difference of $36.4 million between the average fair market value of the five vessels that the Partnership agreed in September 2014 to acquire from Capital Maritime and the agreed price for these vessels. Fourth, the payment of $102.8 million in distributions since December 31 of last year.

And lastly, paid the net income of $44 million for the full year of 2014. We need to highlight here the conversion of all the sponsors approximately 4.7 million Class B units into common units right after the follow-on offering of Q3.

As of the end of the fourth quarter of 2014, the Partnership's total debt has decreased by $5.4 million to $577.9 million compared to a total debt of $583.3 million as of the end of 2013 as a result of the loan amortization in one of our credit facilities. Overall, our balance sheet remains strong, with a net debt to capitalization of 26.7% and with partners' capital representing 58.4% of our total assets.

Turning to slide 5, in line with our stated intention to take advantage of the current favorable rate environment in the product and crude tanker markets in order to provide better cash flow visibility to our unitholders, we are pleased to have secured employment for a total of seven of our vessels at increased rates since the end of Q3.

Starting with a fresh fixtures, the Partnership has chartered the two 47,000 deadweight MR product tankers to Petrobras for 3 years at $15,400 gross per day. We have the right to nominate any of our 47,000 deadweight Hyundai and Mipo-built MR product tankers under these charter parties and we currently intend to nominate M/T Assos and M/T Axios.

Both charters are subject to final vetting approval by their nominated vessels -- all their nominated vessels. The M/T Assos and M/T Axios come off charters with CMTC at a rate of $14,750 per day. CMTC has agreed to deliver both vessels earlier if required in order for these vessels to commence their employment with Petrabras.

Also, CMTC has also agreed to charter the M/T Akeraios and M/T Apostolos for 2 years at a gross rate of $15,600. Currently, the M/T Akeraios and M/T Apostolos are employed with CMTC at rates of $14,950 and $14,850 per day, respectively.

Moreover, as we previously announced, one of our Suezmaxes, M/T Aias, was fixed on December to Repsol Trading for 3 years at a gross daily rate of $26,500 per day. Delivery under the new charter party is expected in early February.

The M/T Arionas has also secured deployment with CMTC for 14 months at an increased rate of $15,000 gross per day. We believe that these new charters increase the Partnership's cash flow visibility, add further charter coverage, and further diversify our client portfolio with the addition of Repsol and Petrobras.

Let's now moved to slide 6. And taking into account the new charters, the average remaining charter duration is 7.9 years. That is not taking into account the existing charters' option to extend.

More specifically, we have several product tankers, of which four have options to renew at higher rates and three Suezmaxes that will see their charters expire within 2015. There are also two container vessels, Archimidis and Agamemnon, which you see on the slide as coming off charter this year, but Maersk Line has the option to extend.

On the progress in crude tankers, we expect to continue to take advantage of the attractive fundamentals of the market to secure favorable period employment for our vessels.

Let's now moved to slide 7. You can see the composition of our fleet, which is built at first-year yards and at high specification and has more than tripled since our IPO in 2007.At the bottom right, you can see the average fleet age standing at 6.8 years compared to the industry average of 9.6 years.

Let's now move to slide 8. We review the product tanker market development in Q4 2014.

Product tanker spot rates registered strong gains in the fourth quarter, rising to the highest level since the third quarter of 2008. The dramatic drop in prices gave refiners a marginal boost that saw them raising [ones] sharply, resulting in increased petroleum products production and exports.

According to the IEA, global refinery crude throughputs surged to a new record high of 78.9 million barrels per day in December, lifting the Q4 2014 estimate to 78.2 million barrels per day. At the same time, strong [visual] arbitrage stemming from the steep downturn in oil, bad weather, and the subsequent upheaval to [balanced items] were also helpful for rates.

In the East, the market was also buoyant on the back of arbitrage opportunities and higher exports from the Middle East, resulting from the new increased refinery capacity, while strong LR product tanker rates further boosted demand for MRs.

The three-year tanker period market remained active during the fourth quarter, with rates moving upwards by more than 10% on the back of the improvement in the spot freight rates. The buoyant spot product tanker is expected to -- the market is expected to further support period rate and activity going forward.

On the supply side, the MR product tanker orderbook has stabilized over the last months, currently standing at 18.4% as a percentage of the fleet as the ordering activity for MR tankers has slowed significantly. Highlighting this year's positive development, 66 orders were placed in 2014 compared to 261 in 2013, as most quality shipyards have exhausted their capacity through 2016. Slippage for full year 2014 remained material, as approximately 29% of the expected MR product tanker [new buildings] were not delivered as scheduled.

Turning to slide 9, we will talk about the Suezmax spot market, which continued improving in the fourth quarter, as average spot earnings climbed to the highest level since the fourth quarter of 2008. Favorable supply and demand dynamics drove a positive sentiment in the market in 2014.

The Suezmax fleet contracted by 0.5%, while at the same time the market enjoyed stronger ton-mile demand on the back of long-haul businesses, as Indian charters continue to diversify supplies away from the Middle East, securing crude from further afield, such as West Africa, Libya, and Venezuela.

Highlighting the positive shift in trading patterns, the number of Suezmax fixtures from West Africa to the East reached an all-time high in 2014. In the meantime, the steep decline in oil prices during the last months of last year further boosted demand for crude tonnage as it resulted in EBITDA building and stronger charter in volumes.

As a result of a substantial improvement in the spot market compared to earlier in the year, the Suezmax period market sold more activity, with period deals been fixed at 25% to 30% higher compared to the end of the previous quarter. According to the IEA, world oil demand is set to grow by 49 million barrels per day in 2015, while overall industry experts expect Suezmax tanker deadweight demand to expand by 4.6% in 2015 compared to a projected fleet growth of only 1%.

Finally, given a [mostly] backlog over the last couple years, only limited new Suezmax orders have been placed, which should help improve the demand supply picture going forward. The total Suezmax orderbook now stands at a mere 14%.

In conclusion, I'm very pleased to see the improved operating surplus of the Partnership for the fourth quarter of 2014, which reflects the employment of the Partnership's fleet at higher daily rates. In addition, we are pleased that the strong fundamentals of the product and crude tanker markets are increasingly reflected in their respective period markets.

Another positive development is the emergence of profit sharing in our trading operations. A number of our product and Suezmax tanker charters expire throughout 2015 and we expect to take advantage of the improving market conditions going forward. This should provide us with the opportunity to employ these vessels at higher rates and for longer periods.

In the previous quarter, we agreed and secured both debt and equity financing for the addition of three eco wide beam container vessels and two eco MR product tankers in 2015. Given the improving backdrop of the underlying markets, we remain convinced that the Partnership has entered into a new growth phase.

We expect that this will provide the basis for reviewing the Partnership's annual distribution guidance with an eye for the upward revision in the first quarter of 2015. [In turn], we expect the timing of the delivery of the first of five agreed vessel acquisitions from Capital Maritime.

And with that, I'm happy to answer any questions you may have.

(Operator Instructions) Ben Nolan, Stifel.

My first question relates really to the three Suezmaxes that you guys have coming off charter in the very near term. And then there was the one that you put on a three-year contract in December.

Is the thinking pretty similar with respect to those other three vessels? Should we -- do you feel that the long-term market is strong enough at the moment such that you can put those vessels into the market on a long-term basis and get a rate that meets your threshold levels?

Well indeed, we see the continued spot strength in the Suezmax market and we are expecting to get the right period charters with the right counterparties. And then obviously, we're trying to secure the best rates going forward. That's a developing story which we would expect to fix in the first quarter.

Okay, perfect. And then my next question relates to the distributions, but also to the debt. You guys have yet -- or did not so far increase the level of the distributions, but I know that there is a credit facility that is up for renewal in 2016.

First of all, are you -- maybe what is the status or how are you thinking about financing and refinancing debt? And does that at all impact how you were thinking about the potential of increasing distribution?

Okay. As you correctly said, we have a -- some of our facilities start to amortize steeply in Q1 2016, one year from now. And as we have communicated already to the market, we are way in advance trying to refinance these facilities.

We are in advanced stages of this planning. I would expect -- I can only tell you that you should see us addressing this the first quarter for ahead of time.

I see. And is there maybe any color that you can maybe provide with respect to what we should be thinking about in terms of annual amortization of debt? What number should we assume? Or are you guys assuming that you allocate towards the repayment of debt, just in terms of thinking of how much cash flow's available.

Yes, we have, at the moment, 4 facilities that start to amortize in Q1 2016. These are -- we expect about [$5.4 million] in 2015. At the moment, we have [$98.5 million] in 2016 and a much bigger number in 2017 if we do nothing.

But like -- as I have said, we are addressing this way ahead of time, one year in advance, and we would expect to have the repayment in 2016 and 2017 not cut off from the 2015 number.

Okay. So a pretty substantial reduction, then, relative to what it currently is, okay. Well, that's very helpful. Then my last question relates to the two container ships that you guys have on contract with AP Moller, which come off contract later this year, although I know that they have options at a little over $30,000 a day.

When do they need to give you information or inform you that they intend to -- whether or not they're going to exercise those options? And do you have any expectation as to whether they would or not at this point?

Thank you. I will ask Jerry Kalogiratos take that.

The firm period of the Archimidis ends in mid-November of this year and for the Agamemnon in end of August of this year. Maersk Line on the charter has options to -- had two years of flexible options at $31,500, then at $3,500 and then another one plus-one years at $32,000. So total of 4 years, if you wanted optionality.

They will have to give us notice 70 days in advance before the end of the firm period. That market has been improving as of late and we have seen 12-month fixtures taking place at just below the numbers that Maersk Line has options at.

And given also the very flexible structure that they offer, I think we will only know much closer to the actual due date, the notice date, if they are going to persist. But it is a very attractive structure for the charter, what we have on offer here.

Okay, great. That's very helpful, Jerry. I really appreciate and that does it for my questions. Thanks guys; nice quarter.

Amit Mehrotra, Deutsche Bank.

So my first question is on the distribution, not surprisingly. You guys have been clear that there's an upward revision coming in April, but I'm just trying to get a sense in what type of magnitude the revision can be.

Because it looks like your next three rollovers will actually be a little more accretive than the previous seven. So the question is will the distribution take into account this prospective growth or do you envision a relatively modest increase, followed by maybe additional increases in subsequent quarters as the cash flow is realized?

Thank you, Amit. You are arriving a little bit ahead of your time. This is a -- an announcement and discussion we will be having in few months' time.

I would like you to appreciate that we do not want to add to it to this discussion at this stage. We have given you all the metrics that you should have at the back of your mind in terms of what we can deliver. And what we will deliver, we'll announce in three months' time.

Okay, all right, thought I would try anyways. Just a second question with respect to the dropdown opportunities and when you expect to make the decision on those rights of first refusals and how you're thinking about financing. Should we think of those additional dropdown opportunities, a mix of additional debt and equity through the course of the year or next year?

We start from -- first things first. We have good options ahead of us, but our first concern is to fix our currency, our common unit price, which, at the moment, what we're doing, we are acknowledging and derisking the operation by telling you -- entering into new period charters at significantly better rates than before.

And also addressing the issue of refinancing our debt, which is -- these are the two key items for us to fully derisk our operation and provide more transparency and visibility to our investors. And then we believe that this is going to do wonders to our common unit price. After that, then -- after we fix our currency, we'll talk about growth.

Okay. Just last question, pro forma for the rollovers for this year. Can you just give us some indication on where you think the average remaining life of your contracts is going to go to?

Obviously, we did see some contraction this quarter, which is perfectly explainable, but once you are through with these explorations, do you think you would get back to the 9-, 10-year range?

I think we're going to get somewhere in the region between eight years and nine years. We are revenue adjusted. This is going to be very much depending on how many of the charters exercise their options and how much freedom we have to go further out to cost of just three years in the period markets. So -- as a ballpark, we should be in the 8% to 9% -- 8- to 9-year range.

Okay. Okay, great. Thank you very much. Congrats on the good results.

Dean Brownlow, Raymond James.

Hey, good morning. Ben Brownlow. Thanks for taking the question and congrats on a good quarter.

Just to ask one of the previous questions in a different way, is it fair with the charters that are coming up in 2015, is it fair to think of those as being on average a 5% below market rate, as in the last few that have come up for -- on the market?

Let me have Jerry answer you that.

Do you mean compared to the spot market?

Yes.

Well, the period market is -- it does reflect at a certain extent the current spot market, but those reflect expectations going forward. And so while, for example, you have seen the one-year period rate for MR product tankers moved from below $14,000 at the end of the third quarter to more than $15,000 by, say, end of January this year.

At the same time, spot earnings were averaging in excess of $25,000 per day. So it takes awhile for a strong spot market performance to be reflected on period rates, especially for longer period rates. What we fixed with Petrobras and CMTC for three and two years, respectively, these are quite strong rates that we haven't seen for awhile.

That's helpful. And just a broader, longer-term question. Obviously, the fundamentals were strong in the fourth quarter and to 2015. As you think about where oil is now in the $45 to $50 range, what -- just your color or thoughts on the medium-term outlook through -- over the next 12 to 18 months on -- if oil stays in that range, what does that do to the tanker market?

Well, there are two aspects to the product tanker market. One is what you described, which is what lower oil prices did for the product tanker market mostly had boosted refining margins, so you had very high refining margins -- refining utilization in the fourth quarter and especially in December and January. A lot of products being moved around.

It also helps with the trading as the [containers] on the products means more storage -- more inventory building and -- that indirectly boosts demand for product tankers. It also means that traders can use their credit lines to move almost double the product -- the volume that they moved before and gives them more arbitrage opportunities. And all this was reflected in demand for product tankers.

But at the same time, the underlying demand fundamentals remain. A big part of what you saw in terms of the performance of the product tanker market over the last few months was also driven by the refineries' location.

You have -- many of the new refineries in India and Middle East and Gulf opening up right now as we speak and we have seen the boost in demand for LR2s. We've seen it then drives demand for product tankers. Also, some of the LR2s have been attracted to the crude tank market, which in turn made the product tanker market more tight.

And secondly, you have increasing demand out of mostly Latin America. There, demand growth is very strong and it hasn't been only dependent on product price. And I think most analysts expect that this year is also going to be driven by -- a lot by demand out of [biggest] Gulf to Latin America currently is Mexico, Chile, Brazil.

So I think the falling oil price is definitely helpful and helps the trading and the arbitrage opportunities and more volumes being traded. But of course at the same time, you have now -- 2015 and 2016, you have -- if you want the full impact of the positive product tanker fundamentals.

Great. Thank you for the color.

Ari Rosa, Bank of America.

Hi, guys. Congrats on the strong quarter. I wanted to ask about the supply picture. Just -- you noted that currently, the orderbook is a bit low, but I wanted to understand little better what's really driving that and what's causing that? Is there a backlog in production there?

Hi, this is Jerry. Do you mean the orderbook on the product side?

No, on the vessel side.

Sorry, on the product sides or the Suezmaxes?

On the Suezmax.

On the Suezmax, right. The reason that the orderbook is -- the expected net fleet growth for Suezmax is very small. I think you'll find that analysts expect from negative growth to up to 1% for 2015 is that -- firstly, because the Suezmax market was at very low levels for a couple of years. Very few new orders were placed.

Secondly, it was a segment that many wrote off in a way, because it was mostly driven in the past by the West Africa, US East Coast trade. And not many expected that the West Africa, India, the continent meant for the Atlantic to China trades. We pick up so much that will also boost the Suezmax market.

And finally, it's also because of the fact that many Suezmaxes orders were placed at a couple of yards that never delivered. And I think even at the orderbook that you -- the nominal order book that you'll find today in many reports, I think many analysts would expect that only 40%, 50% of that will be delivered. [Split ups] for Suezmaxes for 2014 was quite strong. It was more than 73%.

So it was a very bad market. It was a time period not perform and also because the Pacific segment was not popular. So the orderbook is really small.

Okay, great. That's helpful. And then the other question I had was just on global growth, seeing some of the weakness in some of these developing markets. Is there any risk that that carries through at some point into where rates are?

It sounds like you guys are pretty optimistic on the future for rates -- at least the short- to medium-term future. But it seems like there's this divergence, obviously, in how developing market countries are doing. Is that a threat at all?

Well, the perceived slowdown, and if you like, the low price of oil simply transfers well over time from energy producing nations to energy importing nations. So that's going to be a tremendous boost for these economies and overall for global economic growth. The low oil is tantamount to a big cut in interest rates globally.

So it's fair to say that as long as oil prices stay low, you guys are expecting rates to continue to improve?

Yes, but that's not an infinite process. At some point, we will -- it will start tapering off. But it's -- we believe that the economic boost from such -- from the impact of oil -- lower oil has not been fully discounted in the market and it's not going to be fully seen before the next two years.

Okay, great. That's helpful to hear. Thank you.

(Operator Instructions) Sunil Sibal, Global Hunter Securities.

Hi, guys. Congratulations on a good quarter and thanks for taking my question. I'm just curious if you could address on the distribution coverage side, now that the rate of good visibility into the strong re-contracting market, if you could talk a little bit about how should we think about what level of distribution coverage that you guys are comfortable with going forward?

Look, we have seen some consistency on our side in the past. We've talked about possibly being about 1.1 times. I cannot talk more about distribution. Like I said to Amit earlier, this is a discussion we'll elaborate on in three months' time.

In the meantime, we're doing everything we can to totally derisk our operation with entering into period rates where we had openings and also refinancing our bank facilities and doing that way ahead of time.

So we aim to -- we respect the quality of [sleep] of our investors. We want to make sure that we do not raise eyebrows on the negative side and we are providing as much transparency and visibility as possible with our earnings. How that is translating into distribution, we will talk about in the next call.

Okay, no, that's helpful. And just one quick clarification on that timing. I think you guys had said previously that once you start receiving those new builds, that's when you will take a call on the distribution timing.

I think the first one of those gets delivered in March this year, so we would expect to see more clarity on the distribution strategy by the first quarter call. Is that fair?

That is exactly what we have said. We have been saying and we say it once again now. Yes.

Okay, that's all for me. Thanks, guys.

Jon Chappell, Evercore ISI.

Just two quick questions. One on the crude -- did the VLCCs -- the Suezmaxes and their rechartering optionality. You talked earlier in the Q&A session about thinking that charter rates are going to come up. They definitely have so far.

Have you thought at all about the optionality of employing those vessels on the spot market? You already have 83% time charter coverage for this year, pretty much full coverage of the distribution and product distribution increase. Those markets are very strong and a lot more volatile than the MR market.

So have you thought about more of a diversified portfolio for the crude ships and putting them on shorter term employment in the immediate term?

Thank you for the question. This gives us the opportunity to highlight one of our core attributes being an MLP. We are not here to actively trade the market and we are not operating in the spot market.

We are here to provide clear charter rate charters to -- for our vessels, provide visibility. And as I said before, we value our investors [for their sleep].

We have an excellent relationship with our sponsor, which is a traditional, if you like, spot operator. So a spot player in the market and have been doing that for the past their history of 75 years.

And they are there to -- in a very complementary function to provide time charter rates -- period rates for us, for the MLP, and they take the spot rates. As you see, the sponsor is very supportive.

We are doing every effort we can at the moment to reduce the number of vessels that we have with the sponsor from 2013 at the end of Q3 to 10 now. And as we have communicated in the past, we aim to go down to single digits.

Ultimately, we want to keep our powder -- the sponsor's powder dry so that eventually, we can look and lean on the sponsor when we need period rates, if the time -- when the time comes that, let's say, the period market is very solid. So this is -- the spot market that's [products folder] is not an exposure, although it may be tempting, as you said, but it's not an exposure. We are structured and we are geared to play.

Okay. Understood. Then the last one, just briefly. The two ships to Petrobras, just curious are the issues specific to that company tying up the vettings at all? Are there potential delays because of some of the things going on at Petrobras? And if so -- or if not -- what's the timing that you think that those contracts would actually begin?

Hi, Jon. These are new contracts. They were just completed and these are normal contracts with deliveries [with a late can that cart] from February down to the end of April. I think we will deliver those -- the ships to Petrobras in April.

As you know, it was have some flexibility as to which vessels we will nominate. And the names that we gave you today are the most probably candidates. But no, otherwise, it was quite a straightforward deal.

Okay. Thanks, Jerry. Thanks, Petros.

(Operator Instructions) We do not have any further requests. Gentlemen, please continue. We do not have any further questions.

Okay. I would like to take this opportunity to thank you all for listening to our earnings call. And I will wish you good day and a good weekend coming up. Thank you.

Ladies and gentlemen, that does conclude this conference for today. Thank you for participating. You may all disconnect.