Frontline Plc (FRO) 2020 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2020 Frontline Ltd. Earnings conference call. (Operator Instructions) We are also taking questions from the web. I must advise you that this conference is being recorded today. I'd now like to hand the conference over to your speaker, Mr. Lars Barstad. Please go ahead, sir.

女士們、先生們，感謝大家的支持，歡迎參加 Frontline Ltd. 2020 年第三季財報電話會議。 （操作員說明）我們也接受網路上的提問。我必須告訴你，今天的會議正在錄製。現在我想將會議交給您的發言人拉爾斯·巴斯塔德先生。請繼續，先生。

Hi. Good morning, and good afternoon. Welcome to Frontline's third quarter earnings call. This is my first call in the hot seat, and I'm both excited and honored to serve our company in this capacity.

你好。早安，下午好。歡迎參加 Frontline 第三季財報電話會議。這是我第一次接到緊急電話，我很興奮也很榮幸能夠以這個身分為我們公司服務。

Frontline's long-term strategies are well cemented by the Board, and we're running a very professional organization that has easily adapted to this management transition. This has been a volatile quarter and an extraordinary year-to-date. I'm tempted to bring in black swans, but they seem to have become common to the shipping industry.

Frontline 的長期策略得到了董事會的充分鞏固，我們正在經營一個非常專業的組織，可以輕鬆適應這一管理層過渡。這是一個動盪的季度，也是今年迄今非凡的一個季度。我很想引進黑天鵝，但它們似乎在航運業已經變得很常見。

The global COVID-19 pandemic has affected us all. And even though we still need to endure the situation a bit longer, there is no glimmer of hope in the horizon. Let's have a look at the highlights on Slide 3.

全球新冠肺炎 (COVID-19) 大流行影響了我們所有人。儘管我們還需要再忍受一段時間，但地平線上看不到一絲希望。讓我們看一下幻燈片 3 上的亮點。

Frontline came into Q3 2020 on a high note, but as the quarter progressed, freight rates started to correct. We are still -- we still landed the quarter at good returns on a low to discharge basis, earning $49,200 per day on our VLCCs, $25,100 per day on our Suezmaxes and $12,800 per day on our LR2s/Aframaxes. This yielded a net income of $57.1 million or $0.29 per diluted share. Our adjusted net income came in at $56.4 million, rounded to $0.29 per diluted share.

Frontline 在 2020 年第三季表現出色，但隨著季度的進展，運費開始調整。我們仍然在低排放量的基礎上獲得了本季度的良好回報，我們的 VLCC 每天賺取 49,200 美元，蘇伊士型油輪每天賺取 25,100 美元，LR2/阿芙拉型油輪每天賺取 12,800 美元。這產生了 5,710 萬美元的淨利潤，即稀釋後每股收益 0.29 美元。我們調整後的淨利潤為 5,640 萬美元，四捨五入為稀釋後每股 0.29 美元。

We are very happy to report that Frontline has entered into 3 term loan facilities of up to $485.2 million, Inger is with me here today, will elaborate more on our financing activities later in this presentation.

我們非常高興地報告，Frontline 已簽訂了高達 4.852 億美元的 3 期貸款融資，Inger 今天和我在一起，稍後將在本次演講中詳細介紹我們的融資活動。

So far, in the fourth quarter, we have booked 74% of our available VLCC days at $22,600 per day. 61% of our available Suezmax days at $12,600 per day and 65% of our LR2/Aframax days at $13,800 per day. The booked earnings are a reflection of the challenges this market faces. And although we want to be upbeat on the future, there are uncertainties going forward. Frontline has, therefore, decided to refrain from paying dividend this quarter to preserve the company's cash position.

到目前為止，第四季度我們已經以每天 22,600 美元的價格預訂了 74% 的 VLCC 可用天數。 61% 的蘇伊士型船天數為每天 12,600 美元，65% 的 LR2/阿芙拉型船天數為每天 13,800 美元。預定收益反映了該市場面臨的挑戰。儘管我們希望對未來保持樂觀，但未來仍存在不確定性。因此，Frontline 決定本季不支付股息，以維持公司的現金狀況。

I'll now let Inger take you through Frontline financial highlights.

現在我將讓英格帶您了解 Frontline 的財務亮點。

Thanks, Lars, and good morning and good afternoon, ladies and gentlemen. Let's then turn to Slide 4 and look at the income statement. Frontline achieved total operating revenues, less overage expenses of $178 million in the third quarter and also an adjusted EBITDA of $108 million in the third quarter. Frontline reported a net income of $57 million or $0.29 per share and adjusted net income of $56.4 million or also $0.29 per share in the third quarter.

謝謝拉爾斯，女士們先生們早安，下午好。然後我們翻到投影片 4，看看損益表。 Frontline 第三季實現總營業收入（減去超額費用）1.78 億美元，調整後 EBITDA 為 1.08 億美元。 Frontline 第三季淨利為 5,700 萬美元，即每股 0.29 美元，調整後淨利為 5,640 萬美元，即每股 0.29 美元。

The adjusted net income this quarter decreased about $150 million compared to the previous quarter. And that was primarily driven by a decrease in our time charter equivalents earnings due to the lower reported TCE rates, that Lars went through, in the third quarter, but also more of [hired] days in this quarter due to dry dock of 4 vessels.

本季調整後淨利較上季減少約1.5億美元。這主要是由於 Lars 在第三季度經歷的 TCE 費率較低，導致我們的定期租船等值收入下降，而且由於 4 艘船的乾船塢，本季度的[僱用]天數增加。

We also recorded a $13.9 million increase in ship operating expenses. That was mainly due to increase in dry docking costs of $4.3 million, also increase in repairs and maintenance of $2.1 million, and we also had $4.8 million additional crew costs due to COVID-19. In addition, we also had a reduction of $12.4 million as a result of that 3 in the second quarter. So (inaudible).

我們還記錄了船舶營運費用增加了 1,390 萬美元。這主要是由於乾塢成本增加了 430 萬美元，維修和保養成本也增加了 210 萬美元，而且由於 COVID-19，我們還增加了 480 萬美元的船員成本。此外，第二季我們也因這 3 件事而減少了 1,240 萬美元。所以（聽不清楚）。

Let's then take a look at Slide 5. We have completed loan facilities in a total amount of approximately $920 million during 2020. Whereas $725 million after that was done to refinance 4 existing loan facilities, which were due in December 2020 and the first half of 2021. But also, we have completed 2 financings of $196 million to finance new vessels. All these loan facilities were done at very attractive terms, with LIBOR plus 190 basis points or even better, maintaining our competitive cost structure.

然後讓我們看一下投影片5。於2020 年12 月和2020 年上半年到期。所有這些貸款便利均以非常有吸引力的條款進行，LIBOR 加 190 個基點甚至更好，保持了我們具有競爭力的成本結構。

In November 2020, the company entered into 3 new term loan facilities in a total amount of $485 million, where 2 of these facilities were to refinance 2 existing term loan facilities maturing in the second quarter of 2021. And then the third facility was in the amount of $133 million to partially finance the 4 LR2 tankers under construction.

2020 年11 月，該公司簽訂了3 項新的定期貸款融資，總金額為4.85 億美元，其中2 項融資是為2 項將於2021 年第二季到期的現有定期貸款融資進行再融資。

The details on the refinancing of the 2 facilities were, first, that we had one senior secured term loan facility done with a strong banking group, consisting of the largest logo shipping banks in the amount of up to $250.7 million to refinance the $466.5 million facility, which maturing in April 2021. The new facility maturing in May 2025 and has an amortization profile of 18 years. This facility was fully drawn down in November 2020 and $236.8 million of the refinance facility has been recorded as long-term debt as of September 30, 2020.

兩項融資再融資的細節是，首先，我們與強大的銀行集團（包括最大的標誌運輸銀行）完成了一項高級擔保定期貸款融資，金額高達 2.507 億美元，為 4.665 億美元的融資進行再融資，將於2021 年4 月到期。該融資已於 2020 年 11 月全部提取，截至 2020 年 9 月 30 日，再融資融資中的 2.368 億美元已記錄為長期債務。

Further, we entered into one senior secure term loan facility with ING and Crédit Suisse in an amount of up to $108 million (sic) [$100.8 million] to refinance the $109.2 million facility which matured in June 2021. This new facility matures now in November 2025 and has an amortization profile of 17 years. The facility was also fully drawn down in November 2020 and $78.6 million of the refinanced facility has been recorded as long-term debt as of September 30, 2020.

此外，我們與ING 和瑞士信貸銀行簽訂了一項金額高達1.08 億美元（原文如此）[1.008 億美元]的高級擔保定期貸款融資，為2021 年6 月到期的1.092 億美元融資進行再融資。這項新融資現已於11 月到期。該貸款也於 2020 年 11 月全額支用，截至 2020 年 9 月 30 日，再融資貸款中的 7,860 萬美元已記錄為長期債務。

The slide shows debt maturities prior to refinancing in the gray columns and following the refinancing in the blue column. You will notice that following the refinancing, we have no material debt maturities until 2023. And the debt maturities from 2025 onwards have increased substantially.

這張投影片在灰色欄中顯示了再融資之前的債務到期日，在藍色欄中顯示了再融資之後的債務到期日。你會注意到，再融資之後，我們在2023年之前沒有重大債務到期。

Lastly, we also entered into a senior secured term loan facility with CEXIM and Sinosure in an amount of $133.7 million to partially finance the remaining costs of $142.3 million for the 4 LR2 tankers under construction. The facility will have a tenor of 12 years and amortization profile of 17 years. And following that, the newbuilding program is fully funded.

最後，我們也與中國進出口銀行和中國信保簽訂了金額為 1.337 億美元的優先擔保定期貸款，為 4 艘在建 LR2 油輪的剩餘成本 1.423 億美元提供部分融資。該設施的期限為 12 年，攤銷期限為 17 年。此後，新造船計劃就獲得全額資助。

Let's then take a look at the balance sheet on Slide 6. The main happenings in the third quarter affecting the balance sheet were that we entered into the 2 new loan facilities, which I went through to refinance the 2 term loan facilities with total balloon payments of $324.4 million, which were due in April 2021 and June 2021. This has led to that short-term debt and current portion of long-term debt, decreased with $311 million and long-term debt increased with $293 million. Further, we paid $97 million in dividends, and we earned adjusted net income of $56.4 million.

然後讓我們看一下投影片6 上的資產負債表。融資，並支付了巨額付款3.244 億美元，於 2021 年 4 月和 2021 年 6 月到期。此外，我們支付了 9,700 萬美元的股息，調整後的淨利潤為 5,640 萬美元。

At the end of September 30, 2020, Frontline has $432 million in cash and cash equivalent including the undrawn amounts under our senior secured loan facility, marketable securities and minimum cash requirements.

截至 2020 年 9 月 30 日，Frontline 擁有 4.32 億美元的現金和現金等價物，包括我們的優先擔保貸款安排、有價證券和最低現金要求下的未提取金額。

Then let's then take a closer look at the cash breakeven rate and the OpEx on Slide 7. We estimate that the average cash cost breakeven rate for the fourth quarter of 2020 will be approximately $21,900 per day for the VLCCs, $20,400 per day for the Suezmax tankers and $15,700 per day for the LR2 tankers. The fleet average estimate is about $19,500 per day. These rates are the all-in daily rates that our vessels must earn to cover the budgeted operating costs and dry dock, the estimated interest expenses, TCE and bareboat hire, installments on loans and G&A expenses.

然後，讓我們仔細看看幻燈片 7 上的現金損益平衡率和營運支出。和LR2 油輪每天15,700 美元。機隊平均估計約為每天 19,500 美元。這些費率是我們的船舶必須賺取的每日總費率，用於支付預算營運成本和乾船塢、估計利息費用、TCE 和光船租金、貸款分期付款以及一般行政費用。

The Suezmax tanker cash cost breakeven rate in the fourth quarter 2020 is impacted by that we would dry dock 4 Suezmax tankers in the fourth quarter. We will also dry dock one LR2 tanker in the fourth quarter.

2020 年第四季蘇伊士型油輪現金成本損益平衡率受到我們將在第四季將 4 艘蘇伊士型油輪進乾船塢的影響。我們也將在第四季將一艘 LR2 油輪進塢。

As already discussed, the Q3 OpEx was affected by increase in dry docking costs, increase in repairs and maintenance and additional crew costs due to COVID-19.

正如已經討論過的，第三季度的營運支出受到乾塢成本增加、維修和維護增加以及因 COVID-19 導致的額外船員成本的影響。

As usual, we would like to draw your attention to Frontline cash flow generation potential. In the graph, on the right-hand side of the slide, we have shown incremental cash flow after debt service per year and per share assuming $10,000, $20,000, $30,000 or $40,000 per day in achieved rates in excess of our cash breakeven rate. These numbers include vessels on time charter out, and we are looking at a period of 365 days from October 1, 2020. As an example, with a fleet average cash cost breakeven rate of $19,500 per day and assuming $30,000 on top of the average rate TCE, then the benefit TCE would be $49,500 per day. And [Frontline] we generated cash growth per share at the debt service of $3.42.

像往常一樣，我們想提請您注意第一線現金流產生潛力。在投影片右側的圖表中，我們顯示了每年和每股償債後的增量現金流，假設每天的實現率超過我們的現金損益平衡率 10,000 美元、20,000 美元、30,000 美元或 40,000 美元。這些數字包括定期租船的船舶，我們考慮的是自 2020 年 10 月 1 日起的 365 天。 TCE 福利將為每天49,500 美元。 [Frontline] 我們以 3.42 美元的償債額實現了每股現金成長。

With this, I leave the word to Lars again.

說到這裡，我再次向拉斯轉告。

Thank you, Inger. So let's move over to Slide 8 and recap the third quarter in the tanker market. So global oil demand bottomed in May. And in June, we were already in recovery and demand surpassed supply amidst deep cuts by OPEC and other key producers. The oil market switched from inventory build to inventory draws. This can be seen on the slide at the bottom left with the yellow bars.

謝謝你，英格。讓我們轉到幻燈片 8，回顧一下油輪市場的第三季。因此全球石油需求在五月觸底。六月，我們已經處於復甦階段，在歐佩克和其他主要產油國大幅減產的情況下，需求超過了供應。石油市場從庫存增加轉向庫存減少。這可以在左下角帶有黃色條的幻燈片上看到。

Subsequently, OPEC+ increased production slightly, but kept the cap significantly below Jan 20 levels, and the draw cycle continues. When in draw mode, it's normally the expensive barrel that draws first, and this is typically floating storage.

隨後，OPEC+小幅增產，但將產量上限保持在遠低於 1 月 20 日的水平，抽油週期仍在繼續。當處於抽取模式時，通常首先抽取的是昂貴的桶，並且這通常是浮動儲存。

The majority of OPEC cuts have been geographically centered around the Middle East Gulf. This has led to recovering economies, in particularly in Asia, sourcing their oil from further afar. This incurs longer turn miles. In the end, this has favored the VLCC market as these vessels offer the best economies of scale.

歐佩克的大部分減產在地理上都集中在中東海灣地區。這導致經濟復甦，尤其是亞洲經濟，從更遠的地方採購石油。這會導致更長的轉彎里程。最終，這對 VLCC 市場有利，因為這些船舶提供了最佳的規模經濟。

We also saw continued demand for product storage during the quarter and specifically jet fuel storage, keeping LR2 markets relatively firm. This development is well reflected in our results for the quarter.

我們也看到本季對產品儲存（特別是噴射燃料儲存）的持續需求，使 LR2 市場保持相對強勁。這一發展充分反映在我們本季的業績上。

Let's move to the next slide, Slide 9, and look at the fleet and order books. Tankers have continued to enter the market during the quarter, but many have been engaged directly from yard in product storage. This has limited the impact on crude spot markets. There was reports -- or there has been reports of significant delivery backlog due to the COVID-19-related disruption, but this backlog seems to have been cleared. There are recent speculations of mammoth orders in clips of 5 and 10 vessels being placed in Asia. These are yet to be confirmed and not a part of this data set. However, as the chart indicates, there is room for fleet growth in both 2022 and more so in 2023, assuming 20 year-old ships leave the competitive spot market and oil demand develops on trend in that time horizon.

讓我們轉到下一張投影片（投影片 9），看看機隊和訂單簿。本季度，油輪繼續進入市場，但許多油輪直接從堆場進行產品儲存。這限制了對原油現貨市場的影響。有報道稱，或有報導稱，由於與 COVID-19 相關的中斷，導致大量交付積壓，但這種積壓似乎已被清除。最近有猜測稱，亞洲將收到 5 艘和 10 艘船的巨額訂單。這些尚未得到確認，並且不屬於該資料集的一部分。然而，如圖所示，假設 20 年船齡的船舶離開競爭激烈的現貨市場，並且石油需求在這段時間內按趨勢發展，那麼 2022 年和 2023 年船隊都有成長空間。

One of the big X factors for shipping going forward is obviously propulsion technology. Frontline follows these developments closely. Leveraging on our extensive business platform, but there is also -- there is still a way to go to reach any conclusions.

推動航運發展的一大因素顯然是推動技術。 Frontline 密切關注這些進展。充分利用我們廣泛的業務平台，但要得出任何結論還有很長的路要走。

Let's move to Slide 10, where we try to explain one of this market's mysteries. We have a record number of vessels literally in all asset classes, reaching or passing the 20-year mark. Average recycling age for tankers is very close to this age, sometimes depending on the underlying freight rates. We are now in the market with relatively high volumes of inventory still in addition to a high amount of sanctioned oil volume. This seemed to have supported the demand for tankers in the tail end of their effective lifespan.

讓我們轉到幻燈片 10，我們試著解釋這個市場的一個謎團。我們在所有資產類別中擁有創紀錄的船舶數量，達到或超過了 20 年大關。油輪的平均回收年齡非常接近這個年齡，有時取決於基本運費。目前，除了大量受制裁的石油量外，市場上的庫存量仍然相對較高。這似乎支持了對油輪有效壽命末期的需求。

In the chart below, we illustrate this by comparing the average price achieved on tonnage transacted, age close to 20 years and the reported price achieved for researching. The disconnect is pronounced and likely explains the muted recycling activity. Selling for alternative use is currently the preferred option for the owners.

在下圖中，我們透過比較交易噸位、船齡接近 20 年的平均價格和研究報告的價格來說明這一點。這種脫節很明顯，這可能解釋了回收活動的冷淡。目前，出售替代用途是業主的首選。

I think it's important to note that for the competitive spot market where we operate, we are under strict scrutiny from wetting policies and these vessels play an insignificant part of those balances.

我認為值得注意的是，對於我們經營的競爭激烈的現貨市場，我們受到潤濕政策的嚴格審查，而這些船舶在這些平衡中所佔的比例微不足道。

Let's move on to Frontline and our approach to ESG. Efficient sales and transparent operations have been Frontline's core values for years. Efficiency in order to save costs but also fuel costs. Safe in order to safeguard our seafarers, the environment and our physical assets. Transparent in order for the investing community like yourselves to easily understand our business model.

讓我們繼續討論 Frontline 和我們的 ESG 方法。高效的銷售和透明的營運多年來一直是Frontline 的核心價值。提高效率才能節省成本還要節省燃油成本。安全，以保護我們的海員、環境和我們的有形資產。透明，以便像你們這樣的投資界能夠輕鬆了解我們的商業模式。

What we have found, as we have familiarized ourselves with the relevant ESG framework for our industry the last couple of years, is that for us, it's more about how we structure our communication on policies and routines we already have in place rather than enforcing completely new routines or altering the way we conduct ourselves.

隨著過去幾年我們對產業相關 ESG 框架的熟悉，我們發現，對我們來說，更多的是如何根據我們已經制定的政策和慣例來建立我們的溝通，而不是完全執行新的慣例或改變我們的行為方式。

A central part of our business model is for technical management to be clustered or shared, if you wish, with other listed companies we are familiar with. In this, we gain economies of scale as we share knowledge and practices for more than 230 vessels. This collaboration gives us an impressive leverage to shape and influence the standards we expect to be met, both on social aspects and on governance. But we also share synergies when it comes to applying technology to optimize performance, both in the traditional manner, [also] speed and consumption, but also with respect to our environmental footprint.

我們商業模式的核心部分是技術管理可以群聚或共享（如果您願意的話）與我們熟悉的其他上市公司。在此過程中，我們透過分享 230 多艘船舶的知識和實踐來獲得規模經濟。這種合作為我們提供了令人印象深刻的影響力，以塑造和影響我們期望在社會方面和治理方面達到的標準。但在應用技術優化效能方面，我們也分享協同效應，無論是傳統方式、速度和消耗，或是我們的環境足跡。

Frontline is, although potentially a bit under communicated, very well positioned to comply with the stricter environmental, social and governance framework the shipping industry has to get comfortable with going forward.

儘管可能溝通不足，但 Frontline 處於非常有利的位置，可以遵守航運業未來必須適應的更嚴格的環境、社會和治理框架。

So let's move to Slide 12 and the tanker market outlook. Increased oil supply is now key in order for the tanker market to balance. We were shielded for a period as tankers were employed by storage. Now we're dependent on volumes to come to the market and normal trading patterns resuming. The demand for tankers is still capped by the OPEC cuts, but we find it extremely encouraging to see oil prices perform strongly as the volumes offered increased significantly, particularly by the Libyan exports that resumed in October. This in isolation suggests oil demand might actually be firmer than the market in general aspects.

讓我們轉到幻燈片 12 和油輪市場前景。現在增加石油供應是油輪市場平衡的關鍵。我們被屏蔽了一段時間，因為油輪被用來儲存。現在我們依賴進入市場的交易量和正常交易模式的恢復。對油輪的需求仍受到歐佩克減產的限制，但我們發現，隨著供應量大幅增加，特別是利比亞 10 月恢復出口，油價表現強勁，這非常令人鼓舞。單獨來看，這表明石油需求實際上可能比整體市場更為堅挺。

Looking at the benchmark Brent oil curve, we see the same tightness expressed in a dramatic move from contango or carry, if you like, to a near flattening of the curve. This signals inventory draws to accelerate and oil markets potentially finding a balance at an earlier stage. It's obviously a bit early to call, but just to explain how these mechanisms work. If we are drawing in a territory of 3 million to 4 million barrels per day from inventories now, that's the volume needed from producers once inventory levels normalize, which, in turn, can be translated into increased tanker demand.

看看基準布倫特石油曲線，我們看到同樣的緊縮程度，表現為從期貨溢價或利差（如果你願意的話）到曲線近乎平坦的戲劇性轉變。這表明庫存加速增加，石油市場可能在早期階段找到平衡。現在打電話顯然有點早，但只是為了解釋這些機制是如何運作的。如果我們現在每天從庫存中提取 300 萬至 400 萬桶，那麼一旦庫存水準正常化，這就是生產商所需的數量，而這反過來又可以轉化為油輪需求的增加。

Finally, let me sum up on Slide 13. So Frontline is financially strong. We have no material debt maturities until 2023. The company is very well positioned towards ESG-related expectations. Despite extended regional lockdowns, oil demand continues to recover. Crude oil price action indicates a change in oil market sentiment, and we expect freight market volatility to increase going forward. Thank you.

最後，讓我總結一下投影片 13。我們在 2023 年之前沒有重大債務到期。儘管地區封鎖延長，石油需求仍持續復甦。原油價格走勢顯示石油市場情緒變化，我們預期未來貨運市場波動性將增加。謝謝。

And then we can move on to the Q&A.

然後我們可以繼續問答。

(Operator Instructions) And your first question comes from the line of Randy Giveans from Jefferies.

（操作員說明）您的第一個問題來自 Jefferies 的 Randy Giveans。

Howdy team Frontline, and congrats again on your promotion, Lars.

前線團隊您好，再次恭喜您的晉升，拉斯。

Thank you very much, Randy.

非常感謝你，蘭迪。

So first question around the dividend. You bought it back last year, paid a $0.10 dividend despite a loss following 3Q '19 results. You increased this to 40% -- or sorry, 70% of net income following the first quarter, fell in the second quarter and now you cut it to 0 despite a $0.29 gain. So I guess, why has the dividend payment bounced around so much over the last year? And what will cause you to reintroduce the dividend? Clearly, it's not just positive net income.

第一個問題是關於股息的。儘管 19 年第 3 季業績出現虧損，您還是去年買回了它，並支付了 0.10 美元的股息。您將其增加到 40%，或者抱歉，第一季之後淨利潤的 70% 在第二季度下降，現在您將其削減到 0，儘管收益為 0.29 美元。所以我想，為什麼去年股息支付會出現如此大的波動？什麼會導致您重新引入股息？顯然，這不僅僅是正的淨利潤。

No. You're absolutely right. It's not only positive net income. We work in an extremely volatile market and we also normally have quite a good visibility on our earnings going forward. For Q3, the earnings were good, but our visibility or when we look into Q4, it doesn't look too great. And we are in the middle of a global pandemic and the uncertainties are quite great going forward. So we decided to keep the cash and -- but we'll obviously return paying dividends the minute we see that the market has stabilized and potentially is ready to return to levels where we see that suited.

不，你說得完全正確。這不僅僅是正的淨利潤。我們在一個極度波動的市場中工作，通常我們對未來的收益也有很好的了解。對於第三季度，收益不錯，但我們的能見度或當我們研究第四季度時，看起來不太好。我們正處於全球大流行之中，未來的不確定性相當大。因此，我們決定保留現金，但當我們看到市場已經穩定並可能準備好回到我們認為合適的水平時，我們顯然會返回支付股息。

Got it. Okay. So more of just a subjective outlook for the market regardless of the...

知道了。好的。因此，更多的是對市場的主觀展望，無論...

Our dividend policy is stated in such a manner that we like to use our discretion when we deem it needed. And in this particular case, we found that to be prudent.

我們的股利政策的表述方式是我們希望在我們認為需要時使用我們的酌情權。在這種特殊情況下，我們發現這是謹慎的做法。

Got it. All right. And then I guess one more question for your quarter-to-date rates. The VLCCs, Suezmaxes down from the third quarter for the fourth quarter, which makes sense. However, your LR2 rates are ticking up, they're higher. So maybe what caused this? And how many of your LR2 product tankers are operating in the crude trade?

知道了。好的。然後我想還有一個關於您的季度至今匯率的問題。 VLCC、蘇伊士型油輪從第三季度下降到第四季度，這是有道理的。然而，你的 LR2 率正在上升，更高。那麼也許是什麼原因導致了這一點呢？您有多少艘 LR2 成品油輪在原油貿易中運作？

Well, we have 8 of our LR2s are operating in the crude trade. We have 10 operating in the clean, of which one is on time charter. The estimated kind of time charter return for Q4 is probably in this instance, more colored by the returns we've seen on the clean side.

嗯，我們有 8 艘 LR2 正在原油貿易中運作。我們有 10 架飛機在乾淨的狀態下運營，其中一架是定期租船。在這種情況下，第四季度定期租船回報的估計類型可能會因我們在乾淨的一面看到的回報而更加色彩化。

Okay. And then do you have an outlook for crude versus products here in the next 6 to 12 months, which kind of sector do you see most -- or more attractive? I know I think you mentioned neither are very attractive.

好的。那麼，您對未來 6 到 12 個月內原油與產品的前景有何看法？我知道我認為你提到的兩者都不是很有吸引力。

Well, it's a very good question. The thing is that we've come through 7 quarters where kind of the crude part of that equation has outperformed the clean trade. It's only the last 1.5 quarter where the clean product tankers have actually outperformed significantly. So it's really difficult to call. The Aframaxes are obviously now being penalized by the fact that Russia has cut quite severely together with OPEC. And that's hurt the North Sea barrel or the Baltic barrels coming out of Russia. I think I would wait to make that call until the [phase] flows have normalized.

嗯，這是一個非常好的問題。問題是，我們已經經歷了 7 個季度，而等式的粗略部分的表現優於清潔交易。直到最近 1.5 個季度，清潔產品油輪的表現才真正顯著優於大盤。所以打電話真的很難。由於俄羅斯與歐佩克一起大幅減產，阿芙拉型油輪現在顯然受到了懲罰。這損害了來自俄羅斯的北海石油桶或波羅的海石油桶。我想我會等到[階段]流程正常化後再進行呼叫。

And the next question comes from the line of Chris Tsung from Webber Research.

下一個問題來自韋伯研究中心的 Chris Tsung。

I wanted to ask about the decision to sell Sea Team. Could you expand on that a little bit more? And would you guys also look to divest other JVs like your position in Clean Marine?

我想問一下關於出售 Sea Team 的決定。能再詳細說明一下嗎？你們是否也會考慮剝離其他合資企業，例如你們在 Clean Marine 的職位？

Well first of all, to take the Sea Team to look at that, kind of Sea Team has been a really kind of good company for us to have more or less in-house for a period of time. It's obviously not core business. Our business model is outsourcing services like Sea Team we're offering. But it's obviously given us great knowledge. And it's also made us understand the market or the technical management market quite well. Us deciding to divest from that was more related to an opportunity that came rather than something that we strategically wanted to do quickly. So an opportunity arised, and we found a solution where OSM will actually continue to run Sea Team almost in its original form and take care of our vessels kind of -- that are under management with them, with the same mindset that they were already inside Sea Team. So it's more like kind of keeping to our strategies or keeping to our original strategy.

首先，讓 Sea Team 來看看，Sea Team 對我們來說確實是一家很好的公司，或多或少在內部已經有一段時間了。這顯然不是核心業務。我們的商業模式是外包服務，例如我們提供的 Sea Team。但它顯然給了我們豐富的知識。這也讓我們對市場或技術管理市場有了很好的了解。我們決定撤資更多的是與即將到來的機會有關，而不是我們戰略上想要迅速做的事情。因此，機會出現了，我們找到了一個解決方案，OSM實際上將繼續以幾乎原來的形式運營海洋團隊，並以某種方式照顧我們的船隻——這些船隻在他們的管理下，與他們已經在裡面的心態相同海隊。所以這更像是堅持我們的策略或堅持我們原來的策略。

With regards to Clean Marine, Clean marine is an investment we're still holding. We are not kind of an active owner in that. We were more like having a listening post. So I think I will leave that. The scrubber market or ETFC market is a little bit dormant, as you probably understand. But the company is still working, and we're just basically looking at it more as a passive investment.

關於清潔海洋，清潔海洋是我們仍然持有的一項投資。我們並不是這方面的積極所有者。我們更像是有一個監聽站。所以我想我會離開它。正如您可能了解的那樣，洗滌器市場或 ETFC 市場有點休眠。但該公司仍在運營，我們基本上只是將其視為被動投資。

Okay. Yes, that makes sense. And just looking at the -- not so much guidance but fixtures to date from Q4. The LR2s are a little bit higher than Suezmax -- hasn't typically ended -- happened this way. And I guess, how much of it is driven by the number of clean tankers versus dirty? Or I guess, what factors are allowing the Suezmaxes to trade below LR2 or LR2 to trade above the Suezmaxes for Q4?

好的。是的，這是有道理的。只是看看——不是太多指導，而是第四季度迄今為止的賽程。 LR2 比蘇伊士型油輪稍高一點——通常不會結束——就是這樣發生的。我猜，其中有多少是由清潔油輪與骯髒油輪的數量所驅動的？或者我猜，是什麼因素導致蘇伊士型油輪在第四季度的交易價格低於 LR2 或 LR2 的交易價格高於蘇伊士型油輪？

Well, in the -- as I indicated, when I summed up Q3, Q3 was a bit of an atypical quarter when it comes to how freight rates develop. Because in a normal market, Suezmaxes will perform a little bit kind of below VLCCs. And then luxury Afras will follow suit a little bit below that. But this year or this quarter, Suezmaxes have actually underperformed VLCCs by more than 50%. And this is a market kind of look, it's not -- for us, in particular. With the OPEC cuts, we've seen that the longer-term miles have been prioritized or grown.

嗯，正如我所指出的，當我總結第三季時，就運費的發展而言，第三季有點不典型。因為在正常市場中，蘇伊士型油輪的表現會略低於超大型油輪。然後豪華的 Afras 也會效仿，價格略低於這個水平。但今年或本季度，蘇伊士型油輪的表現實際上比 VLCC 低了 50% 以上。這是一種市場觀，但對我們來說尤其如此。隨著歐佩克的減產，我們看到長期里程已被優先考慮或增加。

And this has put the VLCCs in a much greater position due to their economies of scale. And this has penalized Suezmaxes in particular. So I think the rate is a reflection of how severe the situation has been in the Suezmax market where kind of little opportunity to trade during the quarter and quite kind of harshly hit the markets. The LR2s have, throughout the quarter, outperformed literally all the other segments apart from the VLCCs. And this is obviously due to their ability to store clean products and, in particular, (inaudible)

由於規模經濟，VLCC 處於更有利的地位。這對蘇伊士型油輪尤其不利。因此，我認為該利率反映了蘇伊士型油輪市場的情況有多嚴重，該季度幾乎沒有交易機會，對市場造成了相當嚴重的打擊。整個季度，LR2 的表現實際上優於 VLCC 之外的所有其他細分市場。這顯然是由於他們儲存清潔產品的能力，特別是（聽不清楚）

Okay. So storage clean trade. Okay. And just one last quick question on dry docking. I know in your prepared remarks, you talked about the dry dock schedule for Suez and one for LR2 in Q4. Can you tell me the number of Suezmaxes in Q4 that are currently dry docked?

好的。所以儲存清潔貿易。好的。最後一個關於乾船塢的快速問題。我知道在您準備好的發言中，您談到了蘇伊士運河的乾船塢時間表和第四季度 LR2 的乾船塢時間表。能告訴我第四季目前進乾塢的蘇伊士型油輪數量嗎？

The number in Q4?

Q4 的數字？

That's 4 Suezmaxes.

那是 4 艘蘇伊士型油輪。

Yes it's 4.

是的，是 4。

And one LR2.

還有一架 LR2。

And 1 LR2, yes.

還有 1 個 LR2，是的。

Great. Okay. 4 Suez, 1 LR2 in Q4.

偉大的。好的。第四季有 4 架蘇伊士運河、1 架 LR2。

And your next question comes from the line of Jon Chappell from Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Jon Chappell。

Inger, first question for you, just quickly on the dividend. So completely prudent, given your fourth quarter rates to date, but you guys are also able to refinance a lot of debt at very good terms at a very difficult time in the market. Were there any restrictions on dividend payouts or payout ratios as part of those new facilities that may have played a role in the decision to suspend this quarter?

英格，第一個問題是關於股息。考慮到迄今為止你們第四季的利率，這是完全謹慎的，但你們也能夠在市場非常困難的時期以非常優惠的條件為大量債務進行再融資。作為可能在本季度暫停決定中發揮作用的新設施的一部分，是否對股息支付或支付比率有任何限制？

No. We don't have any dividend resections in our loan facility. So that's not made any difference.

不會。所以這沒有什麼區別。

Great. Okay. And then Lars, you're joining at an interesting time, and Frontline has a legacy of being aggressive when others can't be. So you're retaining cash through no dividend. You've -- Inger's done a great job shoring up the balance sheet. But you've mentioned the uncertainty, and obviously, the pandemic. Asset values dropping pretty aggressively. How do you kind of view 2021 in your role and in Frontline's role in the industry as far as acquiring assets, chartering in assets, just adding more leverage when others are just worried about survival?

偉大的。好的。然後 Lars，你在一個有趣的時刻加入，Frontline 的傳統是在其他人無法做到的時候積極進取。因此，您無需分紅即可保留現金。英格在鞏固資產負債表方面做得非常出色。但你提到了不確定性，顯然還有疫情。資產價值大幅下跌。您如何看待 2021 年您的角色以及 Frontline 在行業中的角色，包括收購資產、租用資產、在其他人只擔心生存時增加更多槓桿？

Well, as you said, it's in our kind of DNA to be aggressive when others can't. We also have a very strong shareholder in our backs. So it's obviously -- we're looking -- it's obviously something we're very excited looking forward. Kind of right now, I think the uncertainties are a little bit too great, to be quite honest. Although we are a bit, there are some risks kind of looking into the next couple of quarters. We think opportunities will probably arise as we churn and we have these levels, particularly on the freight side. And I think people will find that the Frontline DNA hasn't really changed, even if I'm in the hot seat to pull it up by.

嗯，正如你所說，當別人無法做到時，我們就會表現出侵略性，這是我們的基因。我們還有一個非常強大的股東作為我們的後盾。所以很明顯——我們正在尋找——這顯然是我們非常興奮和期待的事情。老實說，我認為現在的不確定性有點太大了。儘管我們有一點，但展望未來幾季仍存在一些風險。我們認為，隨著我們的流失，機會可能會出現，而且我們已經達到了這些水平，特別是在貨運方面。我認為人們會發現前線 DNA 並沒有真正改變，即使我處於困境。

And your next question comes from the line of [John Reardon] from -- he's a (inaudible) investor.

你的下一個問題來自[約翰·裡爾登]——他是一位（聽不清楚）投資者。

Two things. One, you mentioned the unwind from the contango storage situation. Could you tell us what you think the percentage of that has occurred? And then secondly, Libya has gone from basically not exporting much of anything to, I read the other day, it's over 1 million barrels a day. Is that providing some support for -- rate-wise for the Suezmax market in the Eastern Mediterranean?

兩件事情。第一，您提到了期貨溢價儲存狀況的緩解。您能告訴我們您認為發生這種情況的百分比是多少嗎？其次，利比亞已經從基本上不出口太多東西，變成了我前幾天讀到的，每天出口超過 100 萬桶。這是否為東地中海的蘇伊士型油輪市場提供了一些支持？

Thank you. Two really great questions. Firstly, there's the floating storage. On my -- in our presentation on Slide 8, we have some data there from Clipper Data. The way I look at or we look at storage is we look at vessel storing for an extended period of time. So we've put the bar at 21 days. And those levels peaked north of 100 million barrels. Now we're down to 60 million barrels. So there is a 40% decrease. How much oil when kind of that is finished, it's difficult to tell because there's also something about the structure of not only the crude curve, but also of the market itself. As I also think I mentioned, we have like a record amount of sanctioned barrels or sanctioned production in the world, which probably calls for a bit more floating inventory or inventory than we normally would observe. It's on its way down, and I think we have at least taken off 40% to maybe even 50% of the floating storage.

謝謝。兩個非常好的問題。首先是浮動儲存。在我的投影片 8 的簡報中，我們有一些來自 Clipper Data 的數據。我看待或我們看待儲存的方式是我們看待船舶的長期儲存。所以我們把期限訂為 21 天。這些水準最高時超過 1 億桶。現在我們的產量已降至 6000 萬桶。所以減少了40%。當這種情況完成時，很難說有多少石油，因為不僅與原油曲線的結構有關，而且與市場本身的結構有關。正如我所提到的，我們在世界上擁有創紀錄數量的受制裁桶或受制裁生產，這可能需要比我們通常觀察到的更多的浮動庫存或庫存。它正在下降，我認為我們至少已經減少了 40% 甚至 50% 的浮動儲存。

With regards to Libya, Libya has been really exciting and quite surprising actually. So they've managed to ramp up. And I think the last numbers I saws was up to -- they've been able to add 1.2 million barrels per day. This has indeed made it far more interesting to be a Suezmax charter than there have been for the last couple of months. So we do see a lot more cargoes appearing in the market. We also see opportunities arising. A lot of these barrels are -- or have been for a while now actually been going east. And that is like a perfect fit for the Suezmax size of vessels. So yes, it has supported the market in Mediterranean significantly.

關於利比亞，利比亞確實令人興奮，而且實際上非常令人驚訝。所以他們已經成功崛起。我認為我看到的最後數字是——他們已經能夠每天增加 120 萬桶。這確實使得蘇伊士型油輪的租船比過去幾個月變得更加有趣。所以我們確實看到市場上出現了更多的貨物。我們也看到了機會的出現。其中許多桶子已經——或者已經有一段時間實際上正在向東流動了。這非常適合 Suezmax 尺寸的船。所以，是的，它極大地支持了地中海市場。

And your next question comes from the line of Greg Lewis from BTIG.

您的下一個問題來自 BTIG 的 Greg Lewis。

Lars, congrats on the position. I guess I just had a kind of a broad question. It was kind of talked about, people focused on the dividend, rightfully so. I guess I'll ask it a different way. As I look at Frontline, and the company looks like it trades on -- depending on what valuation metric. I know you don't like to talk about any of the -- but we could look at like something like more Wall Street, like [EV] to EBITDA. And the company's at a premium and the company has been able to leverage that premium to grow and be opportunistic over time. So just kind of curious, what do you think drives that premium?

拉斯，恭喜你獲得這個職位。我想我只是有一個廣泛的問題。人們談論了這一點，人們關注股息，這是理所當然的。我想我會以不同的方式問它。當我觀察 Frontline 時，該公司看起來像是在進行交易——這取決於估值指標。我知道你不喜歡談論任何一個——但我們可以看看更多華爾街的事情，例如 [EV] 到 EBITDA。該公司處於溢價狀態，隨著時間的推移，該公司能夠利用這種溢價來實現成長並抓住機會。所以有點好奇，您認為是什麼推動了溢價？

So what drives our relative pricing to our [pads], is that --

那麼，推動我們的[護墊]相對定價的因素是—

Correct. So yes, like if you wanted to go out and buy a company, I mean, it's good to be at a premium if you want to do it. And so I'm just kind of curious how you think about that because it definitely gives you opportunities. So just kind of curious how you think about that?

正確的。所以是的，就像如果你想出去收購一家公司一樣，我的意思是，如果你想這樣做，溢價是件好事。所以我只是好奇你是如何看待這個問題的，因為它確實給了你機會。所以只是有點好奇你對此有何看法？

Well, I think it's -- there are many, many factors that decide on our pricing. Some are kind of maybe not in our making. It's -- we're a preferred stock, our liquidity is high and so forth. We also have extremely low cash breakeven levels. We have a relatively high leverage, which gives you relatively quickly bang for the buck whenever the market moves. And historically, we have proven to be quite rewarding towards our shareholders. I know we've probably said this every quarter, at least ever since I joined Frontline in 2015. But when you invest in Frontline, you invest together with our main shareholder, you're not kind of a sole investor in a big corporation. And his history for being interested in your terms on [the dollar] is well known. So I think that's part of it, I would assume. But it's a difficult number to break down.

嗯，我認為有很多很多因素決定我們的定價。有些可能不是我們製作的。我們是優先股，我們的流動性很高等等。我們的現金損益平衡水準也極低。我們的槓桿率相對較高，每當市場變動時，您就能相對快速地獲利。歷史證明，我們為股東帶來了豐厚的回報。我知道我們可能每個季度都會這麼說，至少自從我 2015 年加入 Frontline 以來。他對你們的[美元]條款感興趣的歷史是眾所周知的。所以我認為這是其中的一部分，我認為。但這是一個很難分解的數字。

Okay. Great. And then just as I think about that, as you -- as the company is out there, and clearly, you kind of laid out the way to move forward and that hey, the market is not good now, but there's reasons to be constructive in the out years. Is the company -- I mean in realizing you have a pretty attractive fleet right now, good age, big. Should we be thinking -- are there going to be opportunities to come -- is there any M&A opportunities do you think that could develop over the next 6 to 12 months? Or it's kind of been all the same players for the last 5-plus years, and you don't really see any potential for consolidation?

好的。偉大的。然後，正如我想到的那樣，正如您一樣，公司就在那裡，顯然，您制定了前進的道路，嘿，現在市場不好，但有理由保持建設性在過去的歲月裡。我的意思是，這家公司現在擁有一支相當有吸引力的機隊，年齡大，規模大。我們是否應該思考——是否會有機會出現——您認為未來 6 到 12 個月內是否會出現任何併購機會？或者在過去五年多的時間裡，玩家都是一樣的，而你真的沒有看到任何整合的潛力？

There is always potential for consolidation, but there is always then, again, the question of price and opportunity, of course. The markets have actually consolidated, but maybe not in the way that investors would want it to do. And that's more like in bigger pools are being built and kind of trading entities are growing and so forth. So the amount of kind of sole owners trading 3 or 4 ships has maybe not reduced, but at least, their tonnage have been consolidated in a way.

整合的潛力總是存在的，但當然，總是存在著價格和機會的問題。市場實際上已經整合，但可能不是以投資者希望的方式。這更像是正在建立更大的池，某種類型的貿易實體正在成長等等。因此，交易 3 或 4 艘船的單一船東數量可能沒有減少，但至少，他們的噸位在某種程度上得到了整合。

With regards to M&A, as you know and I know that there is always kind of the usual opportunities or suspects or whatever you'd like to call them. We are constantly monitoring them. And we're always kind of in the market to look at opportunities, but maybe not actually in this instant looking at how the market is performing right now.

關於併購，正如你所知，我也知道，總是存在一些常見的機會或嫌疑人，或者無論你如何稱呼它們。我們一直在監控他們。我們總是在市場上尋找機會，但實際上可能不會立即關注市場目前的表現。

And the next question comes from the Randy Giveans from Jefferies.

下一個問題來自 Jefferies 的 Randy Giveans。

Back for more with 2 quick modeling questions. First, for the loan facilities, were done at LIBOR plus 190 basis points, so certainly pretty impressive there, Inger. But following those recent refis, is now the plan to maybe repay the remaining $60 million on the Hemen facility? And then also with the new recent refis in place, what is your weighted average interest expense and debt amort schedule through 2021 in terms of core repayments?

返回 2 個快速建模問題以了解更多資訊。首先，對於貸款便利，是按 LIBOR 加 190 個基點完成的，所以這確實令人印象深刻，Inger。但經過最近的重新融資後，現在是否有計劃償還赫門工廠剩餘的 6,000 萬美元？然後，隨著近期新的再融資到位，您到 2021 年的加權平均利息支出和債務攤銷計劃（就核心還款而言）是多少？

So with respect to the -- did you ask about the ordinary installments? Was that the question?

那麼關於—您是否詢問過普通分期付款？是這個問題嗎？

Yes.

是的。

Okay. In 2021, the ordinary installments based on the current loan facilities we have is approximately $160 million a year, evenly split between the quarters. And it will be some slightly increase in these ordinary installments in 2021 as we then take delivery of the 4 LR2 tankers and draw down on the new CEXIM/Sinosure facility, which we talked through earlier in the presentation. And your other question was with respect to the [Sterna] facility? Was that the question?

好的。到 2021 年，根據我們現有的貸款便利，每年的普通分期付款約為 1.6 億美元，各季度平均分配。 2021 年，這些普通分期付款將略有增加，因為我們隨後將接收 4 艘 LR2 油輪，並利用新的 CEXIM/Sinosure 設施進行提款，我們在之前的演示中對此進行了討論。您的另一個問題是關於[斯特納]設施的？是這個問題嗎？

Yes, the $60 million remaining on the Hemen facility?

是的，赫門工廠還剩下 6,000 萬美元嗎？

We do have an agreement there in place saying that it matures in May 2021. So we plan to follow that agreement and then we pay in May.

我們確實有一項協議，規定將於 2021 年 5 月到期。

Got it. All right. And then for the total weighted average interest expense, I see your interest expense came down pretty meaningfully from the second quarter. Just trying to see where that runs up to in the third -- in the fourth quarter.

知道了。好的。然後，對於加權平均利息支出總額，我發現您的利息支出較第二季大幅下降。只是想看看第三季和第四季的情況如何。

Okay. In the third quarter, I think the average cost was around 2.3%. And I think now in the fourth quarter, slightly lower, but around the same level.

好的。第三季度，我認為平均成本在2.3%左右。我認為現在第四季度略有下降，但大致處於同一水平。

Got it. All right. And then one more last modeling question before we can all get to Thanksgiving. I guess, here in the states. For the operating expenses, they had a huge tick up in the third quarter. I know you said most of that was due to some dry docking, some onetime crewing costs. Just trying to get a sense for a good run rate there in the fourth quarter and 2021?

知道了。好的。在感恩節到來之前，還有最後一個建模問題。我想，在美國。對於營運費用，他們在第三季出現了大幅成長。我知道你說過大部分是因為一些乾船塢和一些一次性船員費用。只是想了解第四季和 2021 年的良好運行率嗎？

Yes, as you said, it was a lot of warrant here in the third quarter. However, we have pointed to in the press release that we will also have a kind of one-off in the fourth quarter with respect to this crew cost in relation to COVID-19 of $1.5 million. However, that is, of course, down from this quarter, which was $4.8 million. We also have stated that we will have 5 vessels dry docked in the fourth quarter. So I don't think you can expect that the cost will come any down from the third quarter with respect to dry docking in the fourth quarter. But rather, it will probably be a bit higher. But otherwise, I don't think we will have any extraordinary items in Q4.

是的，正如你所說，第三季度有很多保證。然而，我們在新聞稿中指出，我們還將在第四季度一次性減少與 COVID-19 相關的船員成本 150 萬美元。然而，這當然比本季的 480 萬美元有所下降。我們也表示，第四季我們將有 5 艘船進乾塢。因此，我認為您不能指望第四季度的乾船塢成本將比第三季度下降。相反，它可能會更高一些。但除此之外，我認為我們在第四季不會有任何非凡的產品。

With respect to 2021, I don't foresee that to be any extraordinary anyway. The only exception [what-if] subject I have to make is, of course, the development of the COVID-19 pandemic in a way. And we can't really foresee that, but it seems active activity is coming in place and everything would be pretty normal after a while there as well. So it shouldn't be any cost related to crew changes and that sort of thing going into 2021.

就 2021 年而言，我預計不會有什麼特別的事。當然，我必須提出的唯一例外 [假設] 主題是 COVID-19 大流行在某種程度上的發展。我們無法真正預見到這一點，但似乎活躍的活動正在到位，並且在一段時間後一切都會變得非常正常。因此，到 2021 年，不應該有任何與船員變動等相關的成本。

And your next question comes from the line of George Burmann from CL Securities.

您的下一個問題來自 CL 證券公司的 George Burmann。

I've got a few questions. Number one, you used to be predominantly in the VLCC and Suezmax space. Recently, in the last few years, you moved into the LR2/Aframax area. Can you comment on the reasoning behind that, number one?

我有幾個問題。第一，您曾經主要從事 VLCC 和 Suezmax 領域的業務。最近，在過去的幾年裡，您搬進了 LR2/Aframax 區域。第一，您能評論一下背後的原因嗎？

Yes. Kind of over the years, the Frontline fleet has diversified kind of into 3 key or core segments. The LR2/Aframax market or rather the LR2 market is like the VLCC of the clean trade. That has for a long period of time been like development globally, where refining capacity has been growing rapidly in the Middle East and also in Asia, at the cost of refining capacity in North America and in Northwest Europe. Obviously, that case stumbled a bit on the fracking revolution, meaning that U.S. refineries ended up having a relatively cheap feedstock, and we're able to maintain kind of run rates and margins for a prolonged period of time. So -- but the investment initially was out of the displacement between supply and demand on the product side.

是的。多年來，Frontline 機隊已多元化為 3 個關鍵或核心部分。 LR2/阿芙拉型油輪市場，或者更確切地說，LR2 市場就像是清潔貿易中的 VLCC。長期以來，這就像全球的發展一樣，中東和亞洲的煉油能力一直在快速增長，而北美和西北歐的煉油能力卻受到了損害。顯然，這個案例在水力壓裂革命中遇到了一些麻煩，這意味著美國煉油廠最終擁有了相對便宜的原料，並且我們能夠在很長一段時間內維持某種運作率和利潤率。所以——但投資最初是出於產品方面供需之間的錯位。

This is becoming kind of increasingly current again with India claiming to double their refining capacity within a relatively short time. And we see the tremendous growth of refining capacity in China, meaning that China could become a significant exporter of petroleum products. At the same time, as we see now refineries in Europe have struggled and are kind of, to a larger extent, shutting down. So that was -- that kind of is and was the key strategy behind. What we experienced, obviously, was that the clean markets didn't perform as expected, and the LR2s got engaged in the dirty trade, so drawing a little bit below half the fleet into the dirty trade. But these ships can be cleaned up and can move back to the LR2 market, yes.

隨著印度聲稱在相對較短的時間內將其煉油能力提高了一倍，這種情況再次變得越來越流行。我們看到中國煉油能力的巨大成長，這意味著中國可能成為石油產品的重要出口國。與此同時，正如我們現在所看到的，歐洲的煉油廠一直在苦苦掙扎，並且在很大程度上正在關閉。這就是——這就是背後的關鍵策略。顯然，我們所經歷的情況是，清潔市場的表現並不如預期，LR2 參與了骯髒交易，因此將略低於一半的機隊納入了骯髒交易。但這些船隻可以被清理並重新回到 LR2 市場，是的。

Okay. Great. Next question, the -- you did a pretty big deal last year with Trafigura. I believe it was for 10 Suezmax tankers, pretty new ones, 2019 build. Are there still several under time charter that you time charter back to Trafigura and at what rates are those?

好的。偉大的。下一個問題是－去年您與托克完成了一筆相當大的交易。我相信這是 10 艘蘇伊士型油輪，相當新的，2019 年建造的。您是否還有一些定期租船返回托克，費率是多少？

There's still 5 of them on time charter back to Trafigura with a profit-sharing agreement. So -- and that's at, the level is $28,400 per day.

其中仍有 5 艘按期租船返回托克，並簽訂了利潤分享協議。那麼，這個水準就是每天 28,400 美元。

So they are good earners for you at the moment, even though we don't profit here with them, right?

所以他們目前對你來說是很好的收入來源，儘管我們並沒有從他們那裡獲利，對吧？

Absolutely.

絕對地。

Okay. Then concerning scrapping, you mentioned in your initial remarks that it looks like with the current rate environment that are many, many companies, if they still transport, they would do so at huge losses. Do you see any openings in the scrapyards recently that have enabled companies to scrap? And then you made a remark, other than scrapping, what would some company do in buying a 20, 25-year-old VLCC or Suezmax tanker?

好的。然後關於報廢，您在最初的評論中提到，在目前的費率環境下，很多很多公司如果仍然運輸，他們將遭受巨大損失。您最近是否看到廢品場有任何空缺可以讓公司進行廢品處理？然後您說，除了報廢之外，有些公司購買一艘20年、25年船齡的VLCC或Suezmax油輪會做什麼？

Well, firstly on the scrapping. As far as I understand, I believe -- well, we like to call it recycling. As far as I understand, the recycling plans were also heavily affected by the global pandemic, meaning that they had to shut down. There is an increasing activity in the recycling market right now, and we see more and more vessels being sold for recycling but not necessarily in our asset classes to be that way. There are a couple of Aframaxes that have gone, but very few deals that Suezmax reported. And as I mentioned in my presentation, there is a disconnect between the price these vintage vessels are able to achieve for not necessarily trading, but for storage and other activities, than what the recycling company is willing to pay you for the steel.

嗯，首先是報廢。據我了解，我相信——嗯，我們喜歡稱之為回收。據我了解，回收計畫也受到全球大流行的嚴重影響，這意味著它們必須關閉。目前回收市場的活動不斷增加，我們看到越來越多的船舶被出售進行回收，但在我們的資產類別中不一定是如此。有幾艘阿芙拉型油輪已經離港，但蘇伊士型油輪報道的交易卻很少。正如我在演講中提到的，這些老式船隻能夠實現的價格不一定是交易，而是儲存和其他活動，與回收公司願意為鋼材支付的價格之間存在脫節。

So with regards to what these tankers are used for, I think I would be a little bit kind of cautious to speculate, but obviously, there is oil that is transported kind of outside of the normal spot market. And there is, as I mentioned, there are quite a large amount of sanctioned barrels in the world right now, and these need somewhere to be stored.

因此，關於這些油輪的用途，我認為我的猜測會有點謹慎，但顯然，有些石油是在正常現貨市場之外運輸的。正如我所提到的，目前世界上有大量受制裁的桶，這些桶需要存放在某個地方。

Okay. And then lastly, maybe you can comment again, I read that you're divesting your Ship Management division and you look to book about a $7 million gain here in the fourth quarter on the sale. What are the reasoning behind divesting this division, essentially taking your in-house ship management to an outsourced version. Is that cost-efficient for you, more cost efficient?

好的。最後，也許您可以再次發表評論，我讀到您正在剝離您的船舶管理部門，並且您希望在第四季度的銷售中獲得約 700 萬美元的收益。剝離該部門的原因是什麼，本質上是將內部船舶管理轉為外包版本。這對您來說更划算嗎？

Well, let me explain a little bit on our model. So we do have in-house technical managers, but we do outsource the crewing, and effectively, the day-to-day handling of the vessels. So it means that we have an organization in-house, a technical management department, a relatively large one actually that oversee third-party technical managers. And Sea Team could be looked upon as a third-party technical manager. So indirectly, we were owning a company that we normally just outsource to build that way. So -- and this was -- maybe explains my comment about it not being kind of a core business.

好吧，讓我解釋一下我們的模型。因此，我們確實有內部技術經理，但我們確實將船員以及船舶的日常處理外包。所以這意味著我們有一個內部組織，一個技術管理部門，一個相對較大的部門，實際上是監督第三方技術經理。而Sea Team可以被視為第三方技術經理。因此，我們間接擁有一家公司，而我們通常只是將其外包以這種方式建立。所以——這——也許可以解釋我關於它不是核心業務的評論。

And divesting it was basically due to the fact that OSM came in and offered us an opportunity to continue to run kind of the company -- or the company will be -- continued to be run in very much the same manner and to the same expectations as we have when it was directly owned by us. And we obviously buy the services of that company going forward, just like any of the other third-party technical managers that we employ.

剝離它基本上是因為 OSM 的加入並為我們提供了繼續經營該公司的機會——或者該公司將繼續以幾乎相同的方式和相同的期望運營就像我們直接擁有它一樣。顯然，我們會購買該公司未來的服務，就像我們僱用的任何其他第三方技術經理一樣。

Okay. Great. One last one, if I may. What is your average interest rate on the debt you're absorbing at this point in time? You mentioned that you had a very, very good debt facility there with a very good interest rate and with rates basically worldwide close to 0. I'm wondering what kind of an advantage is that for your company at the moment. And how long are those rates locked in for?

好的。偉大的。如果可以的話，最後一張。您此時所吸收的債務的平均利率是多少？您提到您在那裡擁有非常非常好的債務融資，利率非常好，而且全球範圍內的利率基本上接近 0。這些利率會鎖定多久？

I'll let Inger answer that question. Let her answer that question.

我會讓英格回答這個問題。讓她回答這個問題。

The new facilities, which we have put in place now, we went through with respect to the tenor of those facilities earlier in the call. So that was locked in for -- the margin was locked in for 5 years on those facilities. And obviously, we have also shown our, let's say, debt maturity profile in the presentation. So you can see how this is going to be mature going forward in different loan facilities. But -- so the average rate that we are, let's say, having on a balance today is the 190 basis points in margin and LIBOR on top of that, which is the very low level now.

我們現在已經到位的新設施，我們在電話會議的早些時候就這些設施的期限進行了介紹。因此，這些設施的保證金被鎖定了 5 年。顯然，我們也在演示中展示了我們的債務到期。因此，您可以看到在不同的貸款設施中，這將如何成熟。但是，我們今天的平均利率是保證金和 LIBOR 的 190 個基點，這是現在非常低的水平。

The 3-month LIBOR is around 30 basis points or 25 basis points in that area. That is what we are looking at. And in addition to that, of course, we have this [Sinosure] facility, which we talked about a bit earlier in the presentation, where we have a rate of 6.25%, which we pay on that $60 million. But that is a very small part of our total loan portfolio, so it doesn't really mean so much for the average in a way.

3 個月 LIBOR 約為 30 個基點或 25 個基點。這就是我們正在關注的。當然，除此之外，我們還有這個[中國信保]設施，我們在演示中早些時候談到過，我們的利率為 6.25%，我們支付這 6000 萬美元。但這只占我們總貸款組合的很小一部分，因此從某種程度上來說，這對平均水平來說並沒有多大意義。

So if LIBOR rates rise, your interest rates would -- your interest rate costs would also go up a little?

因此，如果 LIBOR 利率上升，您的利率也會 — — 您的利率成本也會上升一點？

Yes, it will. We do have interest rate swaps in place as well for $560 million on a certain bit higher level than the 25 or 30 basis points, but even though very competitive. So we are not, let's say, totally exposed to raise in LIBOR rates, but to a certain extent, yes.

是的，它會。我們確實也有 5.6 億美元的利率掉期，利率水準略高於 25 或 30 個基點，但儘管競爭非常激烈。因此，我們並沒有完全面臨 LIBOR 利率上升的風險，但在某種程度上，是的。

Yes. And then maybe one quick last one. Concerning scrubbers, is your entire fleet now outfitted with scrubbers where necessary?

是的。然後也許是最後一件事。關於洗滌器，您的整個車隊現在是否在必要時配備了洗滌器？

No. We have about 2/3 of our fleet is fitted with scrubbers as it is right now. We kind of slowed down the pace of scrubber installing with the [demissioning] kind of scrubber margin, to put it that way, the spread between high and low sulfur fuel. Not to say that we won't -- we could easily reinitiate that program in the future.

不會。我們放慢了洗滌器安裝的步伐，並採取了[停用]洗滌器裕度的方式，換句話說，就是高硫燃料和低硫燃料之間的價差。並不是說我們不會——我們將來可以輕鬆地重新啟動該計劃。

Do you expect -- I've recently heard reports about slow steaming. Would that be a positive effect on day rates and tanker demand?

你期望嗎——我最近聽到了有關航行緩慢的報道。這會對日費率和油輪需求產生正面影響嗎？

It could be. It's -- I'm not sure what context you kind of you're thinking about here. But first of all, during the laden leg, when we are in ballast, we can many times decide our own speeds. And in this earnings environment, we will slow down as much as we can to be quite honest. But there is also a general discussion around when we measure our carbon footprint how slow speeding could play a role in order for the tanker fleets to comply with the goals of IMO going forward. So -- but this is still kind of a bit up in the air. And I must admit, we haven't really looked deep into that as of yet.

它可能是。這是——我不確定你在這裡想到的是什麼背景。但首先，在滿載航程中，當我們處於壓載狀態時，我們可以多次決定自己的速度。老實說，在這種獲利環境下，我們將盡可能放慢速度。但也有一個普遍的討論是，當我們測量我們的碳足跡時，為了使油輪船隊遵守國際海事組織的未來目標，緩慢的速度可以發揮多大的作用。所以——但這仍然有點懸而未決。我必須承認，到目前為止我們還沒有真正深入研究過這一點。

(Operator Instructions) And there are no further questions at this time. Please continue. .

（操作員說明） 目前沒有其他問題。請繼續。 。

Okay. Then I just wish to say thank you very much for this call, and thank you for listening. Happy Thanksgiving to the ones joining us from the states and stay safe. Thank you.

好的。那麼我只想說非常感謝您打來這個電話，並感謝您的聆聽。祝福從各州加入我們的人們感恩節快樂並保持安全。謝謝。

That does conclude our conference for today. Thank you for participating. You may now disconnect.

我們今天的會議到此結束。感謝您的參與。您現在可以斷開連線。