StealthGas Inc (GASS) 2009 Q2 法說會逐字稿

Good day and welcome to the StealthGas Inc. second-quarter and first six months 2009 results conference call. For your information, today's conference is being recorded. At this time, I would like to turn the conference over to your host today, Mr. Harry Vafias, President and Chief Executive Officer. Please go ahead.

Thank you and good morning, everyone. Welcome to our conference call and webcast to discuss the results of our second quarter and six months ended June 30, '09. I am Harry Vafias, the CEO of StealthGas and I would like to remind you pleased that we will be discussing forward-looking statements in today's conference call and presentation.

Regarding the Safe Harbor language, I would like to refer you to slide number 1 of this presentation, as well as our press release on our second-quarter and half-year '09 results.

With me today is Andrew Simmons, our CFO and if you need any information on the conference call or the presentation, please contact Andrew or myself.

So let's start from slide number 2. We continue with our business strategy despite the uncertainties presented by the world economy today and I would like to highlight how we continue to reach implementation in the second quarter and first half of '09 and later, discuss the outlook for the remainder of the year.

Our primary objective continues to run a highly efficient and modern fleet on secure and permanent contracts the first (inaudible) that serves a very specific niche market, has no correlation whatsoever to most other shipping sectors, many of which, as you know, will continue to experience significant downturns in both charter levels, in particular vessel values. Following the sale of the Gas Sophie on June 10 and the delivery of the Gas Exelero on June 30, our fleet numbered 42 vessels, 40 Handy-Size gas carriers and two medium-range product tankers.

Looking at the remainder of '09, the Alpine Endurance, a brand-new M.R. product tanker, joined our fleet on July 14 and was immediately deployed on the three-year bareboat charter. A similar vessel, the Stealth Argentina, is contracted for delivery November this year and the ship will be immediately deployed under three-year bareboat charter that is continuing our conservative policy in regard to the employment profile of our fleet.

Following the delivery of this vessel, we have no further scheduled deliveries of the ships until the first quarter of '11 and as was discussed in our press release, about $11 million of staged payments due during 2010 we expect to comfortably finance from our internally generated cash flows.

We have sought to maintain a moderate level of leverage at all times despite the near fivefold increase in the size of the Company's fleet since October '05. After taking into consideration the total fleet of 42 ships at the end of the second quarter '09, our net debt to capitalization ratio stood at 44.4%, which in our view, particularly in these challenging times, coupled with our employment of charter profile and a full review of our charters, should continue to help underpin the underlying financial stability of the Company.

Our third objective has been to secure and maintain a visible revenue stream with stable and predictable cash flows enabling us to continue to pursue a prudent growth strategy. At the moment, fixed employment for our fleet for the remainder of '09 currently stands at 71% of [revenue] days with about 40% already covered for 2010 and nearly 20% fixed already for 2011.

As you will have seen from our results for Q2, our time charter equivalent rate was $6,638 per vessel per day compared to $7,909 in the corresponding quarter last year, which represented a decline of 16%, thus reemphasizing the point I made a moment ago regarding softer spot market trading.

We have also again included in our adjusted time charter equivalent on a blended basis in our slide presentation for both the LPG vessels and the tank (inaudible). (inaudible) none of our vessels were on a bareboat charter. This not only gives you a more realistic figure in terms of the average time charter equivalent, but we have also adjusted the vessel operating expense line later in the presentation as if we were responsible for the operating expenses of all the vessels in our fleet. On this basis of daily time charter, it was $7,857 in Q2 '09 against $9,340 at the same time last year, a reduction of $1483 per day or 15%, which underlines the terms that we have faced in the second quarter as I predicted we would when we last discussed the Company's performance in May of this year.

However, despite these lower income levels, I am very pleased to report that we remain quite profitable and as we will discuss in more detail later on comfortably above our net income breakeven level. We currently have 15 vessels in our fleet on bareboat charter, which are the most secure in terms of operational risk. Plus, we are protected from such expenses as [banker], coinsurance costs as these are no longer expenses for the bareboat charters account.

Our fourth goal has been to own and operate a modern fleet of gas carriers and in this respect, our average age is 10.8 years, not including the four tankers and our five brand new gas carriers that we contracted or acquired between February '11 and April 2012. And that compares to an industry average of about 20 years. It is our continued belief that charters will increasingly look for modern and efficient tonnage. So our modern fleet relative to the industry is, in my opinion, important as we move forward in this uncertain period we are operating in.

Our fifth objective has been to maintain close customer relations, the quality of our customer relations exemplified by a continued and consistently high fleet utilization and the quality of our charters, which offer larger counterparty risk. I am pleased to say that to date we continue not to have any issues in terms of charters' performance and as you can see from our balance sheet, we have (inaudible) unsure of credentials of a small number of charters taking cash deposits or bank guarantees to secure the charter hires.

Our sixth goal has been to maintain cost-efficient operations. I'm pleased to report yet another good performance in Q2 '09. Our net income breakeven level decreased by $296 a day to $5,557 per vessel per day compared to $5,853 in the same period of '08. I believe this is a very critical performance in terms of managing our cost base and has gone some way to preserving the profitability of our Company at a time when we have seen not surprisingly income levels on our ships coming under some pressure.

The close and cost effective management of our vessel continues to be a vitally important area of operation of our Company given the relatively narrow margins which these vessels produce as I believe we have again demonstrated in the second quarter of this year. Cost pressures, as we have discussed in previous quarters, (inaudible) and variability continue to be a factor, but our prudent policy of operating a relatively high number of vessels of bareboat charter continues to (inaudible) to some extent in this regard. Other costs are borne by the charter. But no doubt that crew age and the availability of well-trained crews for us for specific type vessels will continue to be a challenge going forward.

Slide number 3. This slide demonstrates the development of our fleet. By the end of the first quarter '09, we had a fleet of 40 gas carriers and two product tankers, thus continuing our number one position in the Handy-Size LPG carrier sector. By the end of '09 and as currently structured during 2010, our LPG fleet will remain at the same level, 40 vessels. As previously discussed, we will own four brand-new product tankers.

Following these deliveries in '09, I want to confirm again that, apart from some $11 million of staged payments due to the yard, constructing the five LPG ships, we have no capital commitments or need to raise new finance until the first quarter of '11 when they commence their deliveries. Unless, of course, we send a few of our older LPG vessels and thus we take the first few newbuildings without finance at all.

StealthGas continues to solidify its number one ranking in owned vessels in the 3000 to 8000 cbm segment, upon which we are concentrating. We continue to focus primarily on this segment because of its strong fundamentals coupled with the relatively stable rates as we will show later. That they are continuing to obtain even in this difficult period and a favorable order book and sales growth compared to the other sized segments in the LPG sector and indeed many of the other sectors of shipping. We currently have a marketshare of about 15% and after the acquisitions, (inaudible), we expect our marketshare to increase to about 18%, further enhancing, in our view, our growing position of some influence within the market.

Also, we believe that our move into the product tanker sector will prove over the medium term to be well-timed. We have continued our policy of deploying the vessels which occur medium to long-term bareboat charters with all four of these vessels once lastly believe (inaudible) deploying on medium to long-term bareboat charters to unknown names.

Slide number 4. This slide demonstrates our fleet deployment profile and provides you with the earnings visibility for each of our floating fleet current ships and the one tanker contracted to join the fleet in November '09. At the bottom of the employment profile chart, we have included the percentage of hard days fixed. These are due to the size and stability and profitability of our earnings. As you can see, 71% of voyage days are already fixed for the remainder of '09, 40% for 2010 and about 20% for 2011.

In recent weeks, we have seen some positive signs in the period charter market, but I am cautious in calling any return as yet to the levels of pure deployment that we saw earlier in the early years of the Company's trading.

We now turn to the financial highlights of the first quarter '09, so I will pass you on to our CFO, Mr. Andrew Simmons.

Thank you, Harry. Good morning, everybody. Will you now please turn to slide number 5, the financial highlights of the second quarter of 2009? With an average of 41.6 vessels owned, we realized net income net of an $800,000 loss on the sale of Gas Sophie, $7.3 million on voyage revenues of $27.1 million and produced an EBITDA of $14.6 million, again excluding the loss on the sale of the Gas Sophie.

For the second quarter of 2009, we reported a profit of $2.7 million on an interest rate swap on currency hedging arrangements, which included an unrealized noncash profit of approximately $3.2 million and a realized cash loss of approximately $0.5 million, plus a non-cash provision of approximately $200,000 for a restricted stock portion of deferred stock-based compensation.

Net income was $6.5 million, or $0.29 per share, including the $800,000 loss on the sale of the Gas Sophie. Our earnings per share for the second quarter of 2009, excluding non-cash items and the loss attributable to the sale of the vessel, was $0.18 per share calculated on 22.2 million average shares outstanding. Our net debt to capitalization stood at 44.4% at the end of Q2 '09 and we continue to believe that maintaining our leverage at moderate levels are important as it generally compares favorably to the majority of quoted shipping companies.

We now turn to slide number 6. This slide provides you with an overview of the development of our income statement for five consecutive quarters. In comparing our results from the second quarter of 2008 to the second quarter of '09, revenues have declined by 4.9%, EBITDA declined by 12.5% if we exclude the loss of the sale of the Gas Sophie. Our EPS, excluding non-cash items and the sale of the vessel, was $0.29 per share, or $0.18 per share if these items are included. Although it is always disappointing to announce lower profits, we believe that taking into account the prevailing market conditions and the performance of the Company in Q2 was great quite creditable.

Also in looking at this slide, we would again point to the relative steadiness of our business, which coupled with our prudent financial structure that we will discuss later, will, in our opinion, benefit the company as hopefully worldwide economic conditions begin to improve as some commentators are suggesting they may.

We now turn to slide number 7. These are our operating highlights for four prior quarters, the second quarter of this year plus our half-year figures. It also provides a comparison for the fiscal year 2008. In terms of fleet data in the second quarter '09, we owned and operated an average number of 41.6 vessels. Total charter days for the fleet during the second quarter of '09 were 3022 and we also had 743 total spot market days. This was mentioned earlier by Harry. It was a significant increase over just 77 spot days in the same quarter last year.

In terms of average daily results per vessel for the second quarter of '09, we achieved a time charter equivalent of $7,857 per day per vessel on the adjusted basis compared to 8,821 per day per vessel in Q1 '09. Vessel operating expenses per day on the adjusted basis, i.e., no vessels on bareboat charter, were $3,868 a day compared to 3,786 in Q1 of this year. And we continue to be relatively pleased with this performance and the day-to-day running expenses, particularly as we had crew pay increases in both September last year and April this year and is evident in the measures we instigated to have even more stringent management on costs, assisting us to a degree in our ongoing performance.

Turning now to slides number 8 and 8, the financial highlights for the first half of '09. With an average of 41.2 vessels owned and operated in this period, we realized net income net of the $800,000 loss on the Gas Sophie of $7.5 million on voyage revenues of $56.3 million and produced an EBITDA of $23.2 million.

For the first half of 2009, reported a non-cash loss of $3 million on interest rate swap and currency hedging arrangements and a realized cash loss of $1.6 million on interest rate swap arrangements, plus a non-cash provision of approximately $300,000 through a restricted stock portion of deferred stock-based compensation. Excluding non-cash items, net income was $10 million, or $0.45 per share. Our earnings per share for the first half of 2009, excluding non-cash items and the loss of (inaudible) the vessel, was $0.49 per share calculated on 22.2 million shares average outstanding.

Our net debt to market values of our existing fleet at the end of the first half of this year stood at 52.9%, which we believe is among the lowest of the US listed shipping companies and underlines, in our opinion, that our prevailing stock price continues as we have discussed previously and as we will later to undervalue the Company.

We now turn to slide number 10. As we have already discussed, we continue to strive to run our fleet in a very cost-effective manner, concentrating extremely hard on operating our ships efficiently and safely. We were so pleased that our vessel operating expenses in Q2 of '09 were virtually the same as for all of 2008. And while we expect our overall operating costs t rise in the remainder of 2009 as crewing still remains a challenge, we are hopeful that the rate of increase in operating costs will moderate as the year progresses.

So on a cash flow basis, our daily breakeven per vessel for the second quarter 2009 was $5,512 per day if deduct the realized loss on derivatives compared to $5,415 in Q1 of '09, which is encouraging from a cost standpoint. So if you turn back to slide number 7 is that our total operating expenses are lower in the first six months of 2009 compared to the average for fiscal 2008.

On a net income basis, our daily breakeven per vessel net of realized costs on derivatives was $5,507 per day in Q2 of '09 compared to $5,558 per day for the first quarter of this year. Therefore, unchanged, which again underlines the attention that management attached to this area and this performance has helped us to defray some of the decline in the income level of the fleet.

We now turn to slide number 11. This slide is our financial calculator. This slide provides you with the revenues we have already secured as of the date of the end of 2009 based on contracted revenues under time and bareboat charters. Total contracted revenues to date are $103.3 million, which is 92% of total 2008 revenues. Plus we have the (inaudible) in revenues we generated by those of our vessels with days that are not yet contracted for the remainder of this year and that number is 2,527 days as the fleet currently stands. So you can input the rate you wish to assume our average vessel not yet chartered will earn for the remainder of 2009 and you can calculate our projected performance for the remainder of this year for this year. Thank you very much for your kind attention and I will now hand you back to Harry for some further comments.

Let's move to slide 12. This slide shows the relevant freight markets over the past seven years for the medium-size and the larger sizes gas carriers. In comparison, (inaudible) smaller semi-(inaudible) pressurized vessels our [cost] sector have experienced a much lower volatility and (inaudible) steady growth in freight earnings from (inaudible) onwards.

It is clear from these data that our type of ships, which form the core of our business and that are far removed from dry, wet or the container markets, have, over the past seven years, not experienced the wide fluctuations in rates that these other shipping sectors have seen and we are hopeful that despite the world economic outlook that this relatively non-volatile credit market will continue to remain intact. As I believe we have proven today this type of prevailing economic condition through our reported revenues for the first half of this year.

This point is also further emphasized by slide 15. If you turn to it now, we chose the one-year time charter equivalent volatility since the year 2000 between the drybulk and crude tanker sectors and the 3,500 cbm fully pressurized gas carriers and 3,470 (inaudible) vessels, which are capable of the majority of our fleet. As you can see, based on the mean average for these sectors over this quite extended period, the level of volatility is far higher in the dry and wet spaces in our core sector.

We continue to expect the supply of product will increase in the next two to three years, plus demand is expected to continue to be steady, particularly in the Far East and developing world. Therefore, we continue to believe that the outlook for our core market is encouraging and thus, we will continue with the contracted development during 2011 and 2012 of our fleet to take advantage of this expected outlook as it materializes.

Slide 14. This slide indicates the freight rate evolution for (inaudible) charters for our market. The figures are based on independent estimates by large (inaudible). As you can see highlighted in yellow, this segment continues to be as we have just discussed characterized by a relative stability and rates have been reasonably steady over the past two quarters and the independent forecast for the fourth quarter '09 is that rates will drop by only 4% for the 3,500 pressurized segment and will drop by 5% to 6% from the current levels in the 3,200 (inaudible) vessels that tend to (inaudible) gases out of (inaudible) for more industrial type usage.

Projected reductions, which they are unwelcome, did not in any way force the Company into a lossmaking situation. Slide 15. We continue to believe that the forecasted minimum fleet growth of the Handy-Size LPG sector in the year 2010 and the negative fleet growth in '11 at the time when several large scale natural gas projects come onstream gives us a defined and positive outlook for our core sector. There is an expectation that the supply of LPG products must be shipped at this time will increase.

We continue to believe that the supply/demand actions are very encouraging for our Company and its virtually unique situation within the shipping industry, particularly given the conditions being faced by many of other sectors that are shipping today. Despite this positive outlook, we will not, however, expand our fleet further, except for the already contracted new building for delivery in '11 and '12.

We now turn to slide 16. We included this slide for the first time last quarter, taking a sample of different types of listed shipping companies making a comparison of their price to net asset value compared to ours. We have now also included a comparison of price/earnings ratios to further underline our point.

As you can see from this slide, based upon that (inaudible) yesterday, we seem to continue to present a very attractive prospect for investors when benchmarked against these companies. We do not benefit from the sector fundamentals that we have been discussing. I believe that we have taken another random sample of listed shipping companies and you will see a similar picture on a comparative basis. So in my view on this basis at least, plus as highlighted earlier on a comparatively low debt to market value, level will continue not to be valued properly by the market and StealthGas, in my view, is an attractive company to invest in based upon these valuations and the outline we have discussed here today.

We have now actually reached the end of our presentation and would like to open the floor to your questions. So operator, please open the floor. Thank you.

(Operator Instructions). Natasha Boyden, Cantor Fitzgerald.

Thank you, operator. Good morning, Harry and Andrew, how are you?

Good morning.

Hello.

You mentioned in your release asset values that have held up better in the gas carrier market than certainly in other shipping sectors. Can you provide any details or perhaps a percentage regarding how asset values have declined or held up in your sector? And then secondly, over the last couple of calls certainly, Harry, I think you pointed out that S&P activity has been slim to none. Has that picked up at all or are you still seeing a dearth of deals out there?

On your first question, I don't need to comment. You saw the sale of the Gas Sophie. The decline is reaching 10%. Well, as you know better than me that, on the tankers, the big ones especially and the big bulk carriers, the decline has been close to 50%. So I think we are rather liking that point.

On the second question, you said there is a lack of activity of what?

Of S&P activity, sale and purchase in the LPG carrier market? I mean that is something I think you said over the last couple of quarters. I just really wanted to find out from you whether or not that was still the case or you have seen things pick up a bit.

That is still the case because as we have discussed many times, the banks are not giving any money, plus the small buyers that want to buy such things think that the prices are attractive basically cannot. So there is very, very few S&P deals done. And obviously, we are always ready to sell some of the older vessels if we can, of course, get a reasonable price.

Okay. So I guess that leads me to trying to really get a handle on what is your strategy going forward. Do you think asset values have declined enough? Are you going to focus on cash flow generation and deleveraging? Again, I think we have spoken before about potentially doing share repurchases.

The strategy has not changed. We will not do any acquisitions of any type of ships. And as discussed before, if we can sell some of the older vessels and keep the cash for emergency purposes or if the values decline further, then maybe we can use this cash or otherwise, we will use it to pay down debt.

Okay. And then lastly, just going to your newbuilds, are they set to be delivered on time or is there a possibility of any delays at all?

Unfortunately, for us, the job (inaudible) is not only deliver on time, but actually deliver ahead of schedule.

Okay. All right, well thank you very much.

Thank you.

(Operator Instructions). Daniel Burke, Johnson Rice.

Good afternoon, guys.

Hello, Daniel.

Harry, I wanted to ask you a question about China. China has imported record amounts of oil and iron ore in recent months. Can you talk to us about how you see China's role evolving in the LPG market? I guess the fact that their refining throughputs have been rising has probably prevented LPG imports from increasing to markedly.

That is true. We have not seen a huge increase of LPG inputs in China. Don't forget that the Chinese are slowly, slowly building their owned fleets. That applies mostly for tankers and bulkers, but we have also seen slowly, slowly them ordering smaller gas carriers and buying some gas carriers, not now, but six, nine months ago. We believe that the Chinese are a major market, that is why we have quite a few vessels working specifically in China, only in China in the local capital trade with Chinese flags. We think there is an appetite for them to take more, but obviously we don't expect huge numbers and we would be surprised if suddenly they come out and we see big orders for ships and of course, huge imports of LPG. Don't forget they are also slowly increasing their exposure and their interest in natural gas and obviously, natural gas is a competitor of ours.

Fair enough. And then a question on the chartering side. It looks like the customer did elect to take the cancellation option that you had previously disclosed, existed on the Natalie and the Birgit Kosan. The Emperor also had a cancellation opportunity. Did the operator there decide to extend or is that still outstanding?

Whatever options exist on our charter partners have been announced as we always do. We have not announced anything else there for the other ships, remain as per the table in the slides.

Okay. And you don't have any further table disclosures? You don't have any other ships facing early option periods?

Whatever -- as you know, these decisions, whatever exists, are not a plus up to the charters. Whereas, the (inaudible) early cancellation options. Don't forget we had the cash bonus. The Company have -- the charters have to pay a cash bonus to us. Therefore, it is not -- they don't just stop their charter party. There is a payment to us on every single ship that they return early.

Fair enough. And then the last question I had was just on voyage expenses. Not surprisingly that those are higher given the increase in the spot days of course. But I guess bunker prices were also rising sharply through the Q2 period. Did that in and of itself have an adverse impact on you relative to operating your vessels in the spot market here in Q3 where bunker and oil prices have been a little, I guess, a little more flat than they were in the second quarter?

Don't forget that these are very little ships with very little fuel consumptions and generally do small voyages. Thus, of course, bank has affected all the companies, but I would guess in a much, much smaller degree than, for example, a container ship that burns five times what our ship burns or a big tanker. But obviously, yes, the more spot ships you have, that means the bunker prices go up and we do voyages. We have to buy the bunkers ourselves and that is an extra expense.

Okay, great. Thanks for your answers.

Thank you.

[Matt Beatty], Morgan Keegan.

Hello, everyone.

Good morning.

Harry, it seems like the last quarter or two, you seem to be maybe indifferent between spot rates and term and now it looks like in the press release, you might be more leaning towards term. Can you talk about the expectations for your spot rate trends in the next 6, 12 months?

Since before I took the part of the Company public, I was always a (inaudible) guy. That is why both our private fleets and public fleets are all fixed on period. I was not indifferent. I was saying that if we don't see a reasonable number to fix some period, then we will pay the ship spot for a couple of months until the autumn comes, which hopefully not only the rates will be slightly firmer, but there will be more takers for the ships.

Generally speaking, we never like spot trading. We are not gamblers. Since day one, we said we would have minimum 75% of the fleet on period either time charter or bareboat and we are glad to say that in the previous years, we have close to 80% or 90%, which was above our initial target.

The target remains the same. Obviously, we don't control the market. We are in the worst market in the last decade and we are very, very happy that we are still quite profitable and we still have lots of long charters attached to the majority of the fleet. Obviously, now we have lower ideas and we are a bit softer in our negotiations as everyone is I guess. So it all depends to see how September starts and if there is more interest and if there are expectations for a cold winter.

Okay. Andrew, this one is probably for you. Can you talk about the drydocking schedule also for the next six to 12 months and any guidance on expenses there?

Yes, on the financial -- on the slide, there is a figure for drydocking for this year, which I think from memory is $1.3 million and we have already spent some of that in the first quarter, in the first half of this year. We spent about $400,000 -- sorry -- about $266,000 of that in the first half of the year. So there is about $1 million to $1.1 million to go and then for next year, we have about $3.4 million of drydocking expenses sort of modeled in. But we have in the past managed to obviously bring those in or tended to bring those in under that level. But that is the level which we have currently modeled in at the moment.

Okay, thanks, guys.

Jeff Geygan, Milwaukee Private Wealth Management.

Thank you. Good morning and congratulations on what I think is really a commendable performance in a very challenging time.

Thank you very much.

The question that I would have, and Andrew, this may be best for you, regarding the five vessels that you anticipate delivery in 2011 and '12, if market conditions should fail to improve between now and then, what type of alternative or contingent plan would you have with respect to taking delivery and financing those vessels?

I will answer that. First of all, we have a very good relation with the shipyard. We have built lots of vessels with them and actually we are their number one customer, their largest customer by number of ships built. If this unfortunate situation which you describe takes place, which means that the market is as bad as it is now for another three years, close to three years, then we have quite a few options actually.

One option is to try to delay further the deliveries as we have already done so. That is option number one. Option number two is try to cancel one or two ships. Of course, it is going to be a penalty, but that we will have to weigh the pros and cons of that. Another option would be to maybe a portion of the money over to the yard being paid in shares instead of cash. Another option would be to sell more ships than we would wish, so from our secondhand fleet to finance these ships even as banks have still disappeared. This comes to my head at this moment.

Regarding option number two you describe, how far in advance would you need to notify the shipyard that you want to no longer accept those ships, assuming that they start building them months or years in advance?

The ships are built one year in advance. So we have time to go, number one and number two, there is no way a yard will accept to cancel all the vessels, unless, of course, you are bankrupt. Therefore, obviously what you will try to do is try to postpone the deliveries, not cancel, postpone the deliveries of let's say the first three vessels and maybe cancel the last one or something like that.

All right, thanks. I appreciate it.

Thank you.

(Operator Instructions). Ross DeMont, Midwood.

Hi, guys. Harry, a couple of quick questions. Did you recently restructure some of your ownership or holdings in the Company or did I misread the filing?

Depends what you mean restructure. I did not restructure anything. I have not sold a single share since the IPO. I just wanted to give a few shares to a family friend that has helped my grandfather 50 years ago and I thought that now is the right time to do it and therefore, I donated shares to him and that was it.

Okay. That must've been what I read. And on the dividend, once you guys get through your capital commitments this year, and I know it is kind of a bit of a tougher year, when do you think it is appropriate to -- I mean I know you consider it every quarter -- but to put the dividend back in place?

The dividend will be put back obviously when they banks are back in business and when the freight market is slightly in better shape than it is today.

Okay, thanks. That is all I have.

Thank you.

(Operator Instructions). As there are no further questions, I would like to turn the call back over to your host today for any additional or closing remarks.

Thank you. I would like to thank everyone for joining us today for our conference call for our half '09 results. We look forward to having you with us again at our next conference call for our third-quarter '09 results. And hope to see the majority of you during our next informational roadshow, which probably is going to take place in October. Thank you.

That will conclude today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.