International Seaways Inc (INSW) 2024 Q1 法說會逐字稿

Good morning, and thank you for attending today's International Seaways First Quarter 2024 Results Call. My name is Jennifer, and I'll be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers. At the end, if you'd like to ask a question, press star one on your telephone keypad. I would now like to turn the conference over to CEO and General Counsel, James Small. James, please proceed for Gerber.

早安，感謝您參加今天的 International Seaways 2024 年第一季業績電話會議。我叫詹妮弗，今天我將擔任你們的主持人。在通話的演示部分，所有線路將被靜音，並有機會進行提問和回答。最後，如果您想提問，請按電話鍵盤上的星號一。我現在想將會議交給執行長兼總法律顧問詹姆斯·斯莫爾 (James Small)。詹姆斯，請繼續找格伯。

Good morning, everyone, and welcome to International Seaways earnings call for the third quarter of 2024. Before we begin, I would like to start off by advising everyone with us on the call today are the following. During this call, management may make forward-looking statements regarding the Company or the industry in which it operates. The statements may address without limitation the following topics outlooks for the crude and product tanker markets and changes in trading patterns, forecasts of world and regional economic activity and the demand for and production of oil and other petroleum products, the effects of ongoing and threatened conflicts around the globe the company strategy, our business prospects, expectations regarding revenues and expenses, including vessel charter hire and G&A expenses, estimated bookings, TCE rates and or capital expenditures for periods during 2024 are in any other period projected scheduled drydock and off-hire days purchases and sales of vessels constructed of newbuild vessels and other investments. The company's consideration of strategic alternatives anticipated in recent financing transactions and any plans to issue dividends, the Company's relationships with its stakeholders, the Company's ability to achieve its financing and other objectives and other economic, political and regulatory developments globally, any such forward-looking statements take into account various assumptions made by management based on a number of factors include management's experience, perception of historical trends, current conditions, expected future developments and other factors that management believes are appropriate to consider in the circumstances. Forward-looking statements are subject to risks, uncertainties and assumptions, many of which are beyond the company's control, which could cause actual results to differ materially from those implied or expressed by the statements. Factors, risks and uncertainties that could cause International Seaways actual results to differ from expectations include those described in our annual report on Form 10 K for 2023, our report on Form 10 Q for the first quarter of 2024 and other filings that we have made or the future may make with the US Securities and Exchange Commission.

大家早安，歡迎參加 International Seaways 2024 年第三季財報電話會議。在本次電話會議中，管理階層可能會就公司或其經營所在產業做出前瞻性陳述。這些聲明可能涉及但不限於以下主題：原油和成品油輪市場的前景以及貿易模式的變化，對世界和區域經濟活動以及石油和其他石油產品的需求和生產的預測，持續和威脅衝突的影響在全球範圍內，2024 年期間的公司策略、業務前景、收入和支出預期（包括船舶租賃和一般管理費用、預計預訂量、TCE 費率和/或資本支出）處於任何其他預計預定乾船塢和停租期間購買和銷售新建船舶和其他投資建造的船舶的天數。公司對近期融資交易中預期的策略選擇和任何發行股息的計劃的考慮、公司與利益相關者的關係、公司實現融資和其他目標的能力以及全球其他經濟、政治和監管發展，任何此類前瞻性報表考慮了管理層基於多種因素做出的各種假設，包括管理層的經驗、對歷史趨勢的看法、當前狀況、預期未來發展以及管理層認為在這種情況下適當考慮的其他因素。前瞻性陳述受到風險、不確定性和假設的影響，其中許多因素超出了公司的控制範圍，這可能導致實際結果與陳述中暗示或表達的結果有重大差異。可能導致International Seaways 實際結果與預期不同的因素、風險和不確定性包括我們2023 年10 K 表格年度報告、2024 年第一季10 Q 表格報告以及我們已提交或提交的其他文件中所述的因素、風險和不確定性。

Now let me turn the call over to our President and Chief Executive Officer, Ms. Lois Zabrocky.

現在讓我將電話轉給我們的總裁兼執行長 Lois Zabrocky 女士。

Thank you very much. James, and good morning, everyone. Thank you for joining Seaways earnings call for the first quarter of 2024. You can find our presentation on our website in the Investor Relations section.

非常感謝。詹姆斯，大家早安。感謝您參加 Seaways 2024 年第一季財報電話會議。您可以在我們網站的投資者關係部分找到我們的簡報。

Starting on Slide 4. Our results for the first quarter represent our eighth consecutive quarter of strong earnings. Net income was $145 million and $2.92 per diluted share this quarter came in higher than our prior two quarters. Adjusted EBITDA was over $190 million.

從投影片 4 開始。我們第一季的業績代表我們連續第八個季度實現強勁盈利。本季淨利為 1.45 億美元，攤薄後每股收益為 2.92 美元，高於前兩季。調整後 EBITDA 超過 1.9 億美元。

On the upper right hand slide, we highlight enhancements that we have made to our already strong balance sheet. At the end of the first quarter, we had $626 million in total liquidity, including $411 million of undrawn revolver. Now we have consolidated our terminals and converted them into more revolver capacity. In the execution of this facility, we have saved about $80 million per year in mandatory payments for about $3,000 per day across our spot fleet.

在右上角的幻燈片中，我們重點介紹了我們對本已強勁的資產負債表所做的改進。截至第一季末，我們的流動資金總額為 6.26 億美元，其中包括 4.11 億美元的未提取左輪手槍。現在我們已經整合了我們的終端並將其轉化為更多的左輪手槍容量。在該設施的實施過程中，我們的現貨船隊每年節省了約 8,000 萬美元的強制付款，每天節省了約 3,000 美元。

For some perspective on how Seaway Heavy evolved our balance sheet two years ago in 2022, we had mandatory debt repayments of $180 million. Now for the forward 12 months, our mandatory payments are under $50 million. This is a tremendous work by Jeff and his finance team, along with our valued relationship with our bankers. This gives us extensive flexibility embedded in the balance sheet. As a result of these efforts, our spot vessels need to earn $13,600 per day to breakeven with 52% of our spot days booked in the second quarter. It looks like we will generate a significant amount of free cash flow. Again, in the second quarter, we now have $559 million in undrawn revolver capacity, putting key ways in a position to respond to market opportunity.

從兩年前的 2022 年 Seaway Heavy 如何演變我們的資產負債表來看，我們強制償還了 1.8 億美元的債務。現在，對於未來 12 個月，我們的強制付款將低於 5,000 萬美元。這是傑夫和他的財務團隊以及我們與銀行家的寶貴關係共同完成的一項艱鉅的工作。這為我們的資產負債表提供了廣泛的靈活性。由於這些努力，我們的現貨船每天需要賺取 13,600 美元才能實現盈虧平衡，其中 52% 的現貨天數是在第二季度預訂的。看起來我們將產生大量的自由現金流。同樣，在第二季度，我們現在有 5.59 億美元的未提取左輪手槍產能，這為應對市場機會提供了關鍵途徑。

On the lower left-hand slide, we give detail on our fleet upgrading progress. In the last couple of weeks. We have taken delivery of three of six Eagle MRs that we purchased in February, the remaining ships delivered before the end of May. The six vessels are under contract for $232 million. In Ag, we also declared our options for an additional tool to dual fuel ready LR1 expected to deliver in the third quarter of 2020. But overall, our program of building 6 has the first two deliveries in the second half of next year.

在左下投影片中，我們詳細介紹了機隊升級進度。在過去的幾周里。我們已交付 2 月購買的六艘 Eagle MR 中的三艘，其餘船舶於 5 月底之前交付。這六艘船的合約金額為 2.32 億美元。在 Ag 中，我們還宣布了雙燃料 LR1 的額外工具的選擇，預計將於 2020 年第三季交付。但總體而言，我們的 6 號樓計劃將在明年下半年交付前兩次。

The lower right-hand slide outlines our continued return to shareholders. Our strong earnings and our strong balance sheet allowed us to return a substantial portion of our net income to our shareholders. Today, we declared a combined dividend of $1.75 per share. This represents 16% of our adjusted net income and another quarter of double digit yield for our shareholders. Over the last 12 months, we have returned an actualized greater than 13% return here and see where we are focused on a balanced approach to capital allocation continues to create value for the Company and our shareholders. We utilize the cash we're generating in this upcycle to strengthen our balance sheet and put us in position for the next opportunity. We're now renewing our fleet by acquiring new six more modern eco MR. We are building vessels for our niche premium LR one trade and we are selling some older vessels fleet. Older MRs have more than paid for themselves since acquiring them in 2021, we're able to execute each of these assets while still remaining double digit yield to our shareholders.

右下幻燈片概述了我們對股東的持續回報。我們強勁的獲利和強勁的資產負債表使我們能夠將淨收入的很大一部分返還給股東。今天，我們宣布合併股息為每股 1.75 美元。這占我們調整後淨利的 16%，也是我們股東的兩位數收益率的四分之一。在過去的 12 個月裡，我們的實際回報率超過 13%，我們將重點放在平衡的資本配置方法上，繼續為公司和股東創造價值。我們利用在這個升級週期中產生的現金來加強我們的資產負債表，並使我們為下一個機會做好準備。我們現在正在透過購買新的六艘更現代化的生態 MR 來更新我們的機隊。我們正在為我們的利基優質 LR one 貿易建造船舶，並且我們正在出售一些舊船隊。自 2021 年收購以來，較老的 MR 已經物超所值，我們能夠執行這些資產中的每一項，同時仍為股東保持兩位數的收益率。

On Slide 5, we've updated our standard set of bullets on tanker demand drives with the positive green up arrows neutral black dashes and red arrows for negative tanker factors.

在投影片 5 上，我們更新了關於油輪需求驅動的標準項目符號集，其中綠色向上箭頭、中性黑色破折號和紅色箭頭表示負油輪因素。

Touching on the highlights, oil demand continues to grow, with estimates of growth averaging around 1.5% for this year of 2024 year over year with similar projection for 2025. This represents an above average demand growth level, specifically for seaborne transportation, existing regional imbalances of crude oil production and the availability of refined products contrasted with distant strong demand centers makes the tanker in the bottom chart. We highlight the difference between crude oil production, expected throughput and product demand by region. Both Europe and Asia are structurally short crude oil, which they source from the Americas, Middle East, Russia, with the enforcement of sanctions on Russian oil tightening, the disruption of traditional routes can enhance ton-mile demand and supported the tanker markets on the refined market product sector, most regions are short specific refined products, except for the Middle East and Russia is create a lightly product stream as charters continued to take advantage of arbitrage plays to meet demand in different regions for specific grades, it remains very constructive that commercial inventories are low throughout the world continued disruption within the tanker market on top of strong fundamentals underpin an increased need for seaborne transportation.

談到亮點，石油需求持續成長，預計 2024 年年比平均成長率約為 1.5%，2025 年的預測類似。這代表著高於平均水平的需求增長水平，特別是對於海運而言，原油生產和成品油供應的現有區域不平衡與遙遠的強勁需求中心形成鮮明對比，使得油輪位於圖表底部。我們強調了按地區劃分的原油產量、預期吞吐量和產品需求之間的差異。歐洲和亞洲均是結構性原油短缺，其來源來自美洲、中東、俄羅斯，隨著對俄羅斯石油製裁的收緊，傳統航線的中斷可以增加噸英里需求，支撐全球油輪市場。大多數地區都在做空特定成品油，除了中東和俄羅斯正在創建一個輕量的產品流，因為租船公司繼續利用套利手段來滿足不同地區對特定等級的需求，這仍然是非常有建設性的全球商業庫存較低，油輪市場持續混亂，而強勁的基本面支撐了海上運輸需求的增加。

Slide 6, the supply side has seen some orders with our tanker order book now at 9% of the existing total tanker fleet. You can see that in the lower left-hand chart, these new orders stretch into 2027, as shown in the chart on the lower left-hand corner of the slide, the vessels that are on order will replace older ships turning 20 plus years old that at the very least would be removed from commercial trading. As a result, the average fleet age will rise in the next few years at a faster rate than it has over the prior 10. Generally older ships have less efficiency and lower utilization. With an increasing percentage of the fleet falling into this category, the industry will flip the new ships to work covering the increasing seaborne demand overall This sets the stage for a strong up-cycle over the next few years, and Seaways remains well positioned to capitalize on these market conditions. You can count on the way to utilize our balanced capital allocation approach to renew our fleet and adapt to industry conditions with a strong balance sheet while returning to shareholders.

投影片 6，供應方已經看到了一些訂單，我們的油輪訂單目前佔現有油輪船隊總數的 9%。你可以看到，在左下角的圖表中，這些新訂單一直延續到2027年，如幻燈片左下角的圖表所示，所訂購的船舶將取代船齡超過20年的舊船至少將從商業貿易中刪除。因此，未來幾年機隊平均機齡的成長速度將比過去 10 年更快。一般來說，較舊的船舶效率較低，利用率較低。隨著屬於這一類別的船隊比例不斷增加，該行業將翻轉新船舶來滿足整體海運需求不斷增長的需求，這為未來幾年強勁的上升週期奠定了基礎，Seaways 仍處於有利地位在這些市場條件下。您可以依靠我們的平衡資本配置方法來更新我們的機隊並以強大的資產負債表適應行業狀況，同時回報股東。

I'm now going to turn it over to our CFO, Jeff Pribor, to provide financial review. Jeff?

我現在將把它交給我們的財務長 Jeff Pribor，以提供財務審查。傑夫？

Thanks, Melissa, and good morning, everyone. Turning to slide 8, net income for the first quarter was just about $145 million or $2.92 per diluted share.

謝謝，梅麗莎，大家早安。轉向幻燈片 8，第一季淨利潤約為 1.45 億美元，即稀釋後每股收益 2.92 美元。

On the upper right chart, adjusted EBITDA for the first quarter of 2024 was $192 million. In the appendix, we provided a reconciliation from reported earnings to adjusted earnings. Our expense guidance for the first quarter fell largely within a range of expectations, but I'd like to point out a few items of note within our income statement on the revenue side, our lottery business continues to outperform earning about $14 million of revenue in the quarter with about $2.5 million of vessel expenses, $3.5 million in charter hire and $1 million of G&A delayered business contributed about $7 million of EBITDA in the first quarter just shy of its record nearly $8 million .

在右上圖表中，2024 年第一季調整後 EBITDA 為 1.92 億美元。在附錄中，我們提供了報告收益與調整後收益的調節表。我們第一季的費用指引很大程度上落在預期範圍內，但我想指出我們損益表中收入方面的一些值得注意的事項，我們的彩票業務繼續表現出色，在2019 年獲得了約1400 萬美元的收入。萬美元。

Turning now to our cash bridge on Slide 9. We began the quarter with a total liquidity of $601 million, which was composed of $187 million of cash and $414 million in undrawn revolving capacity. Following along along the chart from left to right on the cash bridge. We first had $192 million in adjusted EBITDA for the quarter as $44 million in debt service, which is composed of scheduled debt repayments and cash interest expense less our drydock and capital expenditures of about $40 million in the quarter and the draw of working capital due to timing for the $13 million , we therefore achieved our definition of free cash flow of about $121 million first quarter. This represents an annualized cash flow yield of 18% on today's share price. The remaining bars on the cash spreads reflect our capital allocation for the quarter, we spent $23 million as a deposit for the six ECOMR.s that are delivering in the second quarter as well as pension. And we paid $1.32 per share for about $65 million in dividends during the quarter. These components that lead us to an ending liquidity of $626 million, comprised of $215 million of cash, short-term investments and $400 million in undrawn evolving capacity.

現在轉向幻燈片 9 上的現金橋。本季開始時，我們的流動資金總額為 6.01 億美元，其中包括 1.87 億美元的現金和 4.14 億美元的未動用循環能力。沿著現金橋上的圖表從左到右進行操作。我們本季調整後的 EBITDA 為 1.92 億美元，其中償債額為 4,400 萬美元，其中包括預定的債務償還和現金利息支出，減去本季約 4,000 萬美元的干船塢和資本支出以及由於因此，我們在第一季實現了約1.21 億美元自由現金流的定義。這意味著以今天的股價計算，年化現金流收益率為 18%。現金利差的剩餘欄反映了我們本季的資本分配，我們花費了 2,300 萬美元作為第二季交付的 6 個 ECOMR.s 的存款以及退休金。本季我們支付了每股 1.32 美元，獲得了約 6500 萬美元的股息。這些組成部分使我們的期末流動性達到 6.26 億美元，其中包括 2.15 億美元的現金、短期投資和 4 億美元的未動用不斷發展的產能。

Now moving to slide 10, we continue to have a strong financial position detailed by the balance sheet. You see on the left hand side of the page. Cash and liquidity remains strong at over 600, 26 vessels on the books at cost or approximately $2 million versus current market values of nearly $3.5 million and was $700 million in gross debt at March 31 this equates to a net loan-to-value of just about 14%. Our debt today is 85% hedged at fixed rates, therefore, equating to an all-in weighted average interest rate of about 6% or less than 100 basis points above. So in the table on the bottom right of the slide, our debt balances as of April 30th reflect the amendment extends our $50 million facility, which we now call the $500 million RCF. As Lois mentioned earlier, this facility has no mandatory debt repayments at this time, representing a savings of about $80 million per year. We continue to enhance the balance sheet to create the financial flexibility necessary to facilitate growth and returns to shareholders, we have $559 million of undrawn revolvers for years maturity of the portfolio isn't until the next decade to continue to lower our breakeven costs. And we share in the upside double digit returns to material.

現在轉到投影片 10，我們繼續擁有強勁的財務狀況，詳情請參閱資產負債表。您可以在頁面左側看到。現金和流動性仍然強勁，有超過600 艘船舶，其中26 艘船舶的成本約為200 萬美元，而當前市場價值接近350 萬美元，截至3 月31 日的總債務為7 億美元，這相當於淨貸款成數約14%。我們今天的債務有 85% 以固定利率對沖，因此，相當於總加權平均利率約為 6%，即高出不到 100 個基點。因此，在幻燈片右下角的表格中，我們截至 4 月 30 日的債務餘額反映了修正案延長了我們 5000 萬美元的貸款額度，我們現在將其稱為 5 億美元 RCF。正如 Lois 之前提到的，該貸款目前沒有強制償還債務，每年可節省約 8,000 萬美元。我們繼續增強資產負債表，以創造必要的財務靈活性，以促進成長和股東回報，我們有5.59 億美元的未動用左輪手槍，可供投資組合到期的年份使用，直到下一個十年才能繼續降低我們的損益平衡成本。我們分享了兩位數的材料報酬率。

And the last slide that I'll cover Slide 11 reflects our forward-looking guidance and are booked to date TC., aligned with our spot cash breakeven rate, starting with TCA fixtures, the second quarter of 2024. I'll also remind you, as I always do, that actual TC earn that you'll see on our next earnings call what may be different. But as of today, we have a blended average spot TCE of about $43,700 per day fleet-wide for the quarter on the right-hand side of slide, you can see how that lights up against our spot cash breakeven rates. The methodology here is exclusively using expenses on our spot vessels, less the excess of our time charter revenues above chartered vessel costs and dividing that by spot days. The same relates to the average spot TCE, which as I said, was $43,700 per day for more than half the days second quarter.

我將介紹的最後一張投影片（投影片11）反映了我們的前瞻性指導，並已預訂到TC 為止，與我們的現貨現金損益平衡率一致，從2024 年第二季的TCA 固定資產開始。我也會像往常一樣提醒您，您將在我們下一次的財報電話會議上看到實際的 TC 收入可能會有所不同。但截至今天，我們在幻燈片右側的季度整個機隊的混合平均現貨 TCE 約為每天 43,700 美元，您可以看到這與我們的現貨現金盈虧平衡率有何不同。這裡的方法只使用我們現貨船舶的費用，減去我們的期租收入高於租船成本的部分，然後除以現貨天數。這與平均現貨 TCE 有關，正如我所說，第二季超過一半的時間為每天 43,700 美元。

Looking at the bottom left hand chart for the modelers out there, we provided some updated guidance on our expenses for the second quarter and our estimates for 2024. We also include in the appendix our quarterly expected off-hire and CapEx scheduled to come forward. I don't plan to read these items line by line, but I want to encourage you to use them for modeling purposes.

查看左下角建模師的圖表，我們提供了有關第二季度支出和 2024 年預估的一些最新指導。我們還在附錄中列出了我們預計的季度停租和資本支出計劃。我不打算逐行閱讀這些內容，但我想鼓勵您將它們用於建模目的。

That concludes my remarks. So I'd now like to turn the call back to Lois for her closing comments.

我的發言到此結束。因此，我現在想將電話轉回給路易斯，請她發表結束語。

Thank you very much. Jan. Slide 12 details our investment highlights in brief. Over the last seven years, International Seaways has built a track record of returning to shareholders maintaining a healthy balance sheet while growing the Company. Our total shareholder return is over 490% since our inception, representing 24% compounded annual returns over the last 12 months, our combined dividend of $5.74 represents a 13% yield. We continue to upgrade our fleet purchasing six equal MRs and building six LR ones for our strong niche Panamax International joint venture. We've taken advantage of strong down south. Are you selling some of our older MRs? The MRs have gains on the sale that are higher than what we paid for the vessels. This is all while quietly improving our balance sheet, we now have 36 unencumbered vessels and under $700 million in debt. We have $559 million in undrawn credit capacity, which we will carefully utilize to opportunistically grow our balanced fleet.

非常感謝。一月幻燈片 12 簡要介紹了我們的投資亮點。在過去七年裡，國際海運公司在公司發展的同時保持健康的資產負債表，在向股東回報方面建立了良好的記錄。自成立以來，我們的股東總回報率超過 490%，過去 12 個月的複合年回報率為 24%，我們的綜合股息為 5.74 美元，收益率為 13%。我們繼續升級我們的船隊，為我們強大的巴拿馬型國際合資企業購買了六艘同等的 MR 船並建造了 6 艘 LR 船。我們利用了南方的強大優勢。您要出售我們的一些舊 MR 嗎？MR 的銷售收益高於我們購買船隻的價格。這一切都在悄悄改善我們的資產負債表，我們現在擁有 36 艘無抵押船舶，債務不到 7 億美元。我們擁有 5.59 億美元的未動用信貸能力，我們將謹慎利用這些能力來機會性地發展我們的平衡機隊。

Finally, our balanced fleet spot share now need earn below $14,000 per day to breakeven in the forward 12 months. At this point in the cycle, we expect to continue generating cash that we will put to work, creating value for the Company and most importantly for our shareholders.

最後，我們平衡的機隊現貨份額現在需要每天賺取低於 14,000 美元才能在未來 12 個月內實現收支平衡。在這個週期的這一點上，我們期望繼續產生現金，並將其投入使用，為公司創造價值，最重要的是為我們的股東創造價值。

Thank you very much.

非常感謝。

And with that said, Jim, we'd like to open up the lines for questions.

話雖如此，吉姆，我們想開放提問線路。

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If your question has been answered or you wish to remove your question, please press star followed by two. As a reminder, if you are using a speakerphone, please pick up your handset before asking your question. Our first question comes from the line of Omar Nokta with Jefferies. Mr, your line is now open.

謝謝。我們現在開始問答環節。如果您想提問，請按下電話鍵盤上的星號，然後再按一個。如果您的問題已得到解答或您希望刪除您的問題，請按星號，然後按兩顆星。提醒一下，如果您使用免持電話，請在提問前拿起聽筒。我們的第一個問題來自 Omar Nokta 和 Jefferies 的對話。先生，您的線路現已開通。

Thank you, guys. Good morning and congrats on another strong quarter. I apologize in advance because I'm going to ask this question about the Panamax LR ones, which I feel like I'm asking habitually on your calls, but we are again with a very strong performance in the mid 60s in the first quarter and again, here into 2Q, well above global averages, whether it's in Panamaxes on the dirty side or clean LR ones because there are seasonal elements underway, and that's why we're seeing this strong performance at the moment.

感謝你們。早上好，恭喜又一個強勁的季度。我提前道歉，因為我要問這個關於巴拿馬型 LR 的問題，我覺得我在你們的電話中習慣性地問這個問題，但我們在第一季度的 60 年代中期再次表現非常強勁，再次強調，進入第二季度，無論是骯髒的巴拿馬型船還是乾淨的LR型船，都遠高於全球平均水平，因為存在季節性因素，這就是我們目前看到如此強勁表現的原因。

And then also just kind of thinking about that in terms of I know it's a nice trade in South America, you've added to the LR1 newbuilding, Tyler, you're up to six ships now. Are those plan to all be deployed into that into that market on delivery?

然後想想，我知道這在南美洲是一筆不錯的交易，你已經添加到了 LR1 新造船，泰勒，你現在已經有六艘船了。這些計劃是否會在交付時全部部署到該市場？

Good morning. Omar, thank you for the compliment on the performance on the sector. You know, I would say that in the first quarter, you again saw very strong performance here across the midsize sector you're now seeing in the spot market to be sort of assert themselves for the first time really and kind of have a little lift off for the first time in a couple of years. So well, I think the seasonality of the first quarter is generally quite a strong quarter in the tank for margin. And you see that on the LR ones, which, as you know, are trading in the Americas in their niche trades. And we look forward to the additional barrels that will be coming out of Vancouver with the TMX pipelines come to even add probably more to Aframaxes mostly but also to the base three on four Panamaxes as well. And as far as the building on the LR ones, the intention is to add those into that particular customer base and joint venture. You know, if you look at the LR1 space, it is not us big growth. Trade, however, is a very strong customer base there. And the age profile of that sector is quite old, our tax flows.

早安.奧馬爾，感謝您對該行業表現的讚揚。你知道，我想說的是，在第一季度，你再次看到中型行業的表現非常強勁，你現在在現貨市場上看到，這是第一次真正地表現自己，並且有點提振幾年來第一次關閉。好吧，我認為第一季的季節性通常是保證利潤率的一個相當強勁的季度。你可以在 LR 上看到這一點，正如你所知，它們在美洲進行利基交易。我們期待透過 TMX 管道從溫哥華運出更多的桶，這些桶可能主要用於阿芙拉型油輪，也可能用於四艘巴拿馬型油輪的三軸油輪。就 LR 的建置而言，目的是將這些添加到特定的客戶群和合資企業中。你知道，如果你看看LR1空間，你會發現它不是我們的大成長。然而，貿易是那裡非常強大的客戶群。我們的稅收流動這個產業的年齡結構相當古老。

Okay. That's interesting. So a lot of the TMX discussion has been on Aframaxes but you see potential at least Aframaxes that seemed like they won't be fully loaded. So perhaps kind of what you're talking about the out the LR ones or the Panamaxes may start to capture some of that

好的。那很有意思。所以很多 TMX 討論都是關於阿芙拉型油輪的，但你至少看到了阿芙拉型油輪的潛力，它們似乎不會滿載。所以也許你所說的 LR 或巴拿馬型船可能會開始捕捉其中的一些

We're going to we're going to have to be here at that trade emerges, how many barrels go down in the West Coast company get exported to Asia, for sure. The Aframaxes, the largest size that you can load directly at first there, but, you know, overall it increased volumes in that arena?

我們將必須在貿易出現時，確定西海岸公司有多少桶石油出口到亞洲。阿芙拉型油輪是您一開始可以直接裝載的最大尺寸，但是，您知道，總體而言，它增加了該領域的運量？

Yes. Yes. Okay.

是的。是的。好的。

And then just a follow up, but you've obviously been adding more and more toward recovery still have predominantly of our spot exposure, but you added the charge on the loan LR two, you have. And then you add couple on the oh nine build MRs and what are you thinking here in terms of more cover? Clearly, it sounds like there's opportunities to continue to put ships away if you wanted, is that something you want to do? And is there a particular segment you'd like to add more cover? And yes, any color there, please? Thank you.

然後只是一個後續行動，但你顯然已經在恢復方面增加了越來越多的資金，但仍然主要是我們的現貨敞口，但你增加了貸款 LR 2 的費用，你有。然後你在哦九個構建 MR 上添加了幾個，你在更多掩護方面有什麼想法？顯然，如果你願意的話，聽起來有機會繼續擱置船隻，這是你想做的事情嗎？您是否想為某個特定部分添加更多封面？是的，請問有什麼顏色嗎？謝謝。

I'm going to start and then I'm going to have our Chief Commercial Officer, Derrick complete the question. And we have around 15% of the fleet on time charter at the moment. So we maintain a significant operating leverage to this very strong market. And when we see outside return, outsized returns for us along a longer period, somewhere certainly more than a year in all heading towards three years at a high level that we can lock in, we tend to see those opportunities. And then, Derek,

我將開始，然後讓我們的首席商務官 Derrick 完成問題。目前，我們大約有 15% 的船隊採用定期租船方式。因此，我們對這個非常強勁的市場保持著巨大的營運槓桿。當我們看到外部回報，在較長時期內（肯定是一年多的時間）為我們帶來的巨大回報，朝著我們可以鎖定的高水平邁向三年時，我們往往會看到這些機會。然後，德里克，

I think most Good morning, Omar, I'd just piggyback on those. So, you know, we've been we've been able to sort of crystallize the value on some of the 15 plus MRs for two years. And we recently three years. So we've been happy to sort of lock in that value for the 15 plus ships.

我想，早上好，奧馬爾，我只是想藉這些。所以，你知道，兩年來我們已經能夠具體化 15 多個 MR 中的一些的價值。而我們最近三年了。因此，我們很高興為超過 15 艘船鎖定了這個值。

And thanks for highlighting the LR2 as well. Like you say, she's our loan aligned to. So putting her away for three years, seemed like the right thing. But to your point, with any specific sector, not necessarily, we'll just continue to look for as Lois said outsized returns for longer periods.

也感謝您對 LR2 的強調。就像你說的，她是我們的貸款對象。所以把她關起來三年似乎是對的事。但就你的觀點而言，對於任何特定行業，不一定，我們將繼續尋找路易斯所說的長期超額回報。

Okay. Sounds great. Thank you. Thanks for the color, and I'll turn it over Infomax.

好的。聽起來很棒。謝謝。謝謝你的顏色，我會把它交給Infomax。

Thank you. Our next question comes from the line of Liam Burke with B. Riley. Liam, your line is now open.

謝謝。我們的下一個問題來自 Liam Burke 和 B. Riley 的對話。利亞姆，您的線路現已開通。

Thank you. Good morning, Lars. Good morning, Jeff. Good morning, Louis, it doesn't look like it, but has there been any pushback from your shipping customers on your older MRs, have you had and had trouble chartering them as they move into that 15 to 20 at range?

謝謝。早安，拉斯。早安，傑夫。早安，路易斯，看起來不像，但是您的航運客戶對您的舊 MR 是否有任何抵制？

Thank you for that question, Leo. Because that really said, Derek, of the theater, if you look at this sector and on the strength of those rates rightly so

謝謝你提出這個問題，利奧。因為這確實是說，德里克，關於劇院，如果你正確地看待這個行業並考慮到這些利率的強度，那麼

Good morning, this is Derek here. What to your point, we're looking at several ships in our fleet. The trade spot, better opinion is older, but we're coming in at 38 a day for the quarter and continuing to show strong rates into Q1 sorry, correction into Q2. So at the moment, with the freight market like this, no, we're not really seeing too much discrimination on age.

早上好，我是德瑞克。就你的觀點而言，我們正在研究我們艦隊中的幾艘船。交易現貨，更好的觀點是較舊的，但我們本季每天的交易量為 38，並且在第一季度繼續顯示強勁的利率，抱歉，在第二季度進行修正。所以目前，在這樣的貨運市場上，我們並沒有真正看到太多年齡的歧視。

Great. Thank you very much, Jeff, on the dividend policy, it seems to be the investors are very comfortable with the fact that you have variable quarterly, but your cash costs are coming down. Your cash flow is accelerating. Any thought to moving the $0.12 up? Are you comfortable with the base dividend plus the bus, the variable right now?

偉大的。非常感謝傑夫，關於股息政策，投資者似乎對季度變動感到非常滿意，但現金成本正在下降。你的現金流正在加速。有想過將價格提高 0.12 美元嗎？您對現在的基本股利加上巴士這個變數感到滿意嗎？

Hi, Liam. Yes, we moved it. The fixed component from $0.06 to $0.12. It was two years ago. So I think it's something we'll evaluate from time to time. It's sort of a natural thing of this company's growing, but there's no set timetable for that. So I think it's good question, and it's something we always so we always consider in the fullness of time, but I think that's probably likely.

嗨，利亞姆。是的，我們移動了它。固定部分從 0.06 美元到 0.12 美元。那是兩年前的事了。所以我認為我們會不時評估這一點。這是公司發展的自然現象，但沒有固定的時間表。所以我認為這是一個很好的問題，而且這是我們一直在考慮的事情，所以我們總是在時間充裕時考慮，但我認為這可能是有可能的。

Fair enough. Thank you.

很公平。謝謝。

Thank you. Our next question comes from the line of Chris Robertson with Deutsche Bank. Chris, your line is now open.

謝謝。我們的下一個問題來自德意志銀行的克里斯·羅伯遜。克里斯，您的線路現已開通。

Hey, good morning, everybody. And apologize for my voice in advance have been a little bit under the weather. But from Jeff, now that you have 14% net loan to value, the cash breakevens and lowered, especially on this consolidation of the senior secured facilities. I mean, it seems like the Company is in a very good place to kind of just sit back here and in harvest and return capital from, I guess, would you characterize it that way? Is there anything more to do to further lower the cash breakeven, whether it comes to something that you can do with the financing or the cap structure or targeting OpEx, things like that. I mean, where are we at just the cash breakeven level and plan to lower it further or are we just kind of steady as she goes from this point forward?

嘿，大家早安。提前為我的聲音有點不舒服而道歉。但從傑夫看來，現在你的淨貸款價值比為 14%，現金損益平衡點降低了，特別是在高級擔保設施的整合方面。我的意思是，公司似乎處於一個非常好的位置，可以坐在這裡收穫並返還資本，我想，你會這樣描述它嗎？是否還需要採取更多措施來進一步降低現金損益平衡點，無論是在融資、上限結構或營運支出等方面可以做的事情。我的意思是，我們的現金收支平衡水平處於什麼水平，併計劃進一步降低它，或者我們從現在開始就保持穩定？

Hey, Chris, I think we're pleased that we've been able to achieve what we have on reducing the cash breakeven rates where they are today. I think we're getting it all kind of works together like we're not heading for AMI even for zero debt, but getting your debt that's below recycle value with it in the middle 10s range enables us to do things like the new facility where we switch or transforms the term debt to revolver. And at these levels, does it require any fixed amortization we may choose to amortize, but the breakevens are lower, which produces more cash as well as process in a place where, you know, it's hard to remember and as a market, but it was only a couple of years ago that we had a terrible market.

嘿，克里斯，我認為我們很高興我們能夠實現降低目前現金損益平衡率的目標。我認為我們正在共同努力，就像我們不會為了零債務而走向 AMI，但是讓您的債務低於回收價值並在 10 多美元的範圍內，使我們能夠做一些事情，比如建立新設施，其中我們將“債務”一詞轉換或轉換為“左輪手槍”。在這些水平上，是否需要任何固定攤銷，我們可能會選擇攤銷，但盈虧平衡較低，這會產生更多的現金以及在一個很難記住的地方進行的流程，而且作為一個市場，但它就在幾年前，我們的市場還很糟糕。

So having your breakeven such that you're you would still do well, even in a low market, it is one of our objectives. So we're really happy about that. So yes, we'll always look for ways to do even a little better but I think but the debt that we have now, I don't see major changes in the next year or so of kind of high-quality debt. We'd like to say, you know, some of it's below the rates are running an interest and others have had. This is naturally not in place for a while. So I don't know, Chris, I guess one reason way of saying, I think we're not sitting back. I don't think that would characterize the company that as you have seen, Lois talked about it pretty extensively. We do find opportunities to use cash flow. In addition to the returns to shareholders, we've found some good opportunities to use the cash flow to renew the fleet in motor fleet. So I think we are harvesting, but we're also looking selectively to grow, I'll say it.

因此，即使在市場低迷的情況下，保持收支平衡仍然會做得很好，這是我們的目標之一。所以我們對此感到非常高興。所以，是的，我們總是會尋找做得更好的方法，但我認為，但我們現在擁有的債務，我認為明年左右的高品質債務不會發生重大變化。我們想說，你知道，其中一些低於利率的正在產生利息，而另一些則已經產生了利息。這自然一時還不到位。所以我不知道，克里斯，我想一種說法是，我認為我們不會袖手旁觀。我不認為這能代表這家公司的特點，正如你所看到的，路易斯對此進行了相當廣泛的談論。我們確實找到了利用現金流的機會。除了股東回報之外，我們還發現了一些利用現金流更新車隊的好機會。所以我認為我們正在收穫，但我們也在有選擇地尋找成長，我會這麼說。

Yes, fair enough. Yes. Thank you. Thank you, Jack, for clarifying that categorization as well. Yes, speaking of the fleet renewal efforts? And just kind of looking at the portion of the MRs that are still a little bit dated on you've had that recent sale on. Should we be looking forward to some potential sales of the other MR assets at this point? Or what's the what's the secondhand market looking like today?

是的，很公平。是的。謝謝。傑克，也謝謝你澄清了這個分類。是的，談到機隊更新工作？看看最近銷售的 MR 中仍然有點過時的部分。此時我們是否應該期待其他 MR 資產的潛在出售？或者說現在的二手市場是什麼樣子的？

So current secondhand market is very strong, 38, a day in the first quarter and thus far booked in the second quarter. Very strong, putting six 70s on a multiyear time charters at very strong historically strong rates. We will selectively prune and we do it carefully because it's a balance in this very strong market,

所以目前的二手市場非常強勁，第一季每天有38個，到目前為止第二季已經預訂了。非常強勁，以非常強勁的歷史強勁利率將六個 70 美元簽訂了多年期租船合約。我們將有選擇地進行修剪，而且我們會小心翼翼地進行，因為這是這個非常強勁的市場中的平衡，

definitely lower on the proceeds from any potential vessel sales on. Would that then in turn be used for further renewal efforts on maybe some acquisitions or even ordering?

絕對低於任何潛在船舶銷售的收益。那麼，這些資金是否會用於進一步的更新工作，可能是一些收購，甚至是訂購？

We don't we don't want to specifically bucket it exactly that way by It does. It does tend to be how we execute and how we book to continue to high-grade.

我們不想，我們不想用「它」這樣的方式專門將它分類。這確實是我們如何執行以及如何預訂以繼續保持高品質的關鍵。

I'd say, Ali, you get free cash flow, gets free cash of operations and you get free cash flow from monetizing older vessels at a significant profit all becomes cash to be allocated.

我想說，阿里，你獲得了自由現金流，獲得了運營的自由現金，並且你通過將舊船貨幣化獲得了可觀的利潤而獲得了自由現金流，所有這些都變成了可供分配的現金。

Yes. Thank you.

是的。謝謝。

Thank you, Jeff.

謝謝你，傑夫。

I'll turn it over. Thanks for taking the time.

我會把它翻過來。感謝您抽出寶貴的時間。

Thank you. Before our next question. A quick reminder, if you would like to ask a question. It is star one on your telephone keypad. Our next question comes from the line of Srini Alma Grabe with PTIG. series. Your line is now open.

謝謝。在我們下一個問題之前。如果您想提出問題，請快速提醒。它是您電話鍵盤上的一顆星。我們的下一個問題來自 PTIG 的 Srini Alma Grabe。系列。您的線路現已開通。

Hey, good morning. Thanks for taking my question. So these LR1 newbuilds are a pretty unique opportunity given how early their delivery is, and I'm curious if you were to go to a yard today and order a tanker first, when would that be delivered? And do you have any insight into how many similar open slots for delivery before 2027 may exist at yard.

嗨，早安。感謝您提出我的問題。因此，考慮到這些 LR1 新建船的交付時間有多早，它們是一個非常獨特的機會，我很好奇如果您今天去船廠先訂購一艘油輪，那麼什麼時候可以交付？您是否了解船廠可能存在多少個類似的 2027 年之前交付的空置槽位？

I'm going to I'm going to tie a little bit of that now I'll give it to Derek as well as our commercial land. So yes, we need to you know, obviously, this has been a strong sector for us for some time. So we wanted to take advantage of those slots as we found them and most slots today are into 2027 and really kind of across the tanker space. Maybe you can get some MRs in 2026 and Sir, could you give a little more color on that or?

我要把其中的一部分綁起來，現在我會把它和我們的商業用地一起交給德瑞克。所以，是的，我們需要讓您知道，顯然，這對我們來說已經是一個強大的領域一段時間了。因此，我們希望利用我們發現的這些空位，而今天的大多數空位都已進入 2027 年，並且確實跨越了油輪領域。也許您可以在 2026 年獲得一些 MR，先生，您能否就此提供更多資訊？

Sure, Louis, the venture is the only color I can really add to a lower service. There are like to go to of the first available will be in 2027.

當然，路易斯，冒險是我真正可以為較低的服務添加的唯一顏色。第一個可用的時間可能是 2027 年。

And then for us on these dollar one specifically, what we tried to highlight is, yes, are there are other LR ones being built at other yards. Our LR ones are still built to the old Panamax Canal in that 32.2 meter B. So that's been part of the reason for our strong earnings is being able to go through the canal, our trade on both sides of the Pacific and the Atlantic. And these new buildings will be the same while most of the newbuild LR ones are around 38 meter B. So really built for that clean trade and can't really compete with us on the on the crude trade in the Americas.

然後，對我們來說，特別是在這些一美元的項目上，我們試圖強調的是，是的，是否有其他船廠正在建造其他 LR 船。我們的 LR 型仍建在 32.2 公尺 B 的舊巴拿馬運河上。因此，我們獲利強勁的部分原因是能夠透過運河，在太平洋和大西洋兩岸進行貿易。這些新建築將是相同的，但大多數新建的 LR 建築高度約為 38 公尺 B。因此，它確實是為了清潔貿易而建立的，無法在美洲的原油貿易上與我們真正競爭。

Yes, that's interesting color. Thanks, Louis.

是的，那是有趣的顏色。謝謝，路易斯。

Thank you. There are no questions registered at this time, so I'll pass the call back over to CEO, Lois Zabrocky for any closing remarks.

謝謝。目前還沒有任何問題，因此我會將電話轉給執行長 Lois Zabrocky，以聽取結束語。

I just wanted to thank everyone for joining us for our first quarter earnings call at International Speedway, and we'll talk to you soon. Thank you.

我只是想感謝大家參加我們在國際賽道舉行的第一季財報電話會議，我們很快就會與您交談。謝謝。

Yes. That concludes today's call. Thank you for your participation. You may now disconnect your lines.

是的。今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。