Tsakos Energy Navigation Ltd (TEN) 2012 Q1 法說會逐字稿

Thank you for standing by, ladies and gentlemen, and welcome to Tsakos Energy Navigation conference call on the first-quarter 2012 financial results. We have with us Mr. Nikolas Tsakos, President and CEO; Mr. Paul Durham, Chief Financial Officer; and Mr. George Saroglou, Chief Operating Officer of the Company.

At this time all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advise you that this conference is being recorded today, Friday, May 25, 2012.

I now pass the floor to Mr. Nicolas Bornozis, President of Capital Link, Investor Relation adviser of Tsakos Energy Navigation. Please go ahead, sir.

Thank you very much and good morning to all of our participants. This is Nicolas Bornozis of Capital Link, Investor Relations advisor to Tsakos Energy Navigation.

The Company released its financial results for the first quarter of 2012. The press release has been distributed publicly, and you should have a copy of it by now. If you do not have a copy, please call us at 212-661-7566, or e-mail us at TEN@CapitalLink.com, and we will e-mail a copy to you right away.

Now, parallel to today's conference call there is also a live audio and slide webcast, which can be accessed through the Company's website at the front page at www.tenn.ir. The conference call will follow the presentation slides, so we urge you to access the presentation of the webcast.

Please note that the slides and webcast will also be available after the conference call. Also, the slides and the webcast presentation are user controlled, and therefore you can click on the proper button on your own to move to the next or the previous slide.

At this time, I would like to read the Safe Harbor statement. This conference call and slide presentation of the webcast contain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1955 (sic). Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect TEN's business prospects and results of operations. Now, such risks are more fully disclosed in TEN's filings with the Securities and Exchange Commission.

At this point, ladies and gentlemen, I would like to turn the call over to Mr. Nicholas Tsakos, the President and Chief Executive Officer of Tsakos Energy Navigation. Mr. Tsakos, please go ahead, sir.

Thank you. Thank you, Nic. Good morning to all of you and good afternoon to the remaining of you. Thanks for being on our call today.

It seems that the first quarter of 2012 we have been able to, as we had discussed in our previous call which was within the quarter, that things were getting better from the dire market conditions of the end of 2011 and 2011 as a whole. We as a Company took very quick, drastic moves to be able to get rid of our lossmaking vessels and enhance the profitability of our existing vessels, reduce substantially operating expenses overall, and at the same time look at opportunities in our existing market segments and also in the LNG and offshore business.

We believe that with the help of our shareholders, we have achieved a significant turn from where we were a quarter ago. And with the help of the market, we are going to maintain the same structure in order to be able to turn the Company around.

And don't forget, our Company has been profitable for 18 consecutive years. Out of those 18 years, last year and actually the last two quarters were not profitable, making 2011 our first non-profitable year.

And we are making every effort to go back to profitability in this very, very long record of profitability, which of course will give us growth opportunities and at the same time enhance or maintain a strong cash flow that will be able to continue our dividend policy, which is very important for the Company since its inception almost 20 years ago.

With this, I would like our COO, Mr. Saroglou, to give us what has happened in the last quarter and then what has happened after that. Then we will be -- our CFO will give you the financial analysis; and all of us will be available to answer any questions about Company-specific or market issues. Thank you very much. George?

Thank you, Nick. For those of you who are connected to the Internet and our website, there is an online slide presentation whose format we will follow during this call. Please go to page 3 of the online presentation.

This slide is a snapshot of the fleet as it stands right now. As you see, we have 25 crude carriers, three LNG, and 26 product tankers. These numbers include the recent orders and the options that we have in two conventional tankers and one LNG, in addition to the one that we have ordered.

As you see, this is a very -- we have built a quite fleet of size, one of the largest product tanker fleets in the world. We are obviously a Company catering to the needs of our clients.

We started with four vessels back in 1993, and over the years we have built a strong, modern fleet that caters to their needs. Thanks to this diversified fleet and our strong operating record, we do renewed business with them, which has helped us grow significantly during this year.

If we move to slide number 4, as Mr. Tsakos said, we have seen an improvement, a great improvement in comparison to the fourth quarter of 2011. We registered a 50% income improvement from the levels of fourth quarter of 2011, and we believe we are beginning to see the light at the end of the tunnel, since the market has shown these signs of strengthening.

We are seeing stockpiling ahead of potential escalation due to geopolitical tension and Western sanctions against Iran. This led to a very improved tanker market, especially in the VLCC and the suezmax sectors. There is always a spill-off effect and the change in the sentiments, which we will help the overall market.

But besides the sentiments, according to the International Energy Agency global oil supply increased by 1.2 million barrels per day in the quarter ended March 31, 2012, to reach a record high of 90.6 million barrels per day.

We are seeing increased volumes coming out of OPEC. OPEC supply is hovering at 3.5-year highs with 31.43 million barrels per day in March, compensating for reduced non-OPEC supplies.

Asia-Pacific again continues to be the main growth driver in oil demand, covering for shortfalls in North America and Europe. Global consumption is also rising, and the forecast for 2012 is to rise on average by 0.8 million barrels per day or almost -- that is almost close to 1%; and to reach 90 million barrels per day.

These are the highest numbers that we have ever seen, and this after posting near-zero annual growth in the fourth quarter of 2011. So what we expect during the fourth quarter of 2012, a gradual acceleration towards the fourth quarter of 2012, where we expect to see -- according to the numbers of the International Energy Agency -- a 1.2 million barrels per day increase over the same period of last year.

The oversupply of tonnage still the main reason for the spot market not being where it should in comparison to historical numbers. However, increased scrapping and very limited newbuilding ordering activity in 2011 and 2012 so far is slowing down the growth of the global tanker fleet. If these trends continue, we expect a more balanced supply/demand market, which will lead to an improvement in freight rates.

Although downside risk remains high, the International Monetary Fund has recently upgraded its outlook for the global economy in 2012 and 2013 to 3.5% and 4.1%, up from 3.3% and 4%, respectively. This is expected to translate into increased tanker demand, especially if the slowdown in the rate of growth of the global tanker fleet is sustained.

In this environment, TEN continues to focus on having a balanced and flexible chartering policy; in maintaining a high fleet utilization; in operating efficiencies; cost containment; and selective growth. The Company continues to invest in LNG, a sector in the energy transportation with favorable fundamentals and growth prospects. TEN is also looking for valuable opportunities in the conventional tanker market for modern tonnage.

The third pillar of focus is the shuttle tanker offshore market, another energy sector with good growth prospects as most new oil discoveries in the world are offshore discoveries.

We continue to see strong demand for our vessels from our clients, and since the beginning of 2012 we have chartered or rechartered five vessels, including the Neo Energy, which is our operating LNG vessel. We have fixed it to a four-year time charter which commenced on March 28, 2012. We chartered our aframax Proteas to a one-year time charter with profit-sharing and three of our MR-1s -- Aris, Ajax, and Didimon -- to fixed time charters for five, three, and two years, respectively.

From the beginning of 2011 until today, we have been able to charter and re-charter 28 vessels out of the 51 vessels the Company owns on time charters with period of employment lasting from one to 15 years. A combination of fixed-rate charters and charters with profit-sharing will generate over $1.1 billion in minimum revenues from the above features.

This time-charter strategy has helped the Company navigate safely through the crash of previous and the current market downturn and has given TEN the ability to maintain a strong balance sheet, sustainable dividend distribution, and enough liquidity for further growth.

If we look at some highlights for the first quarter of 2012, as we speak TEN has a pro-forma fleet of 54 tankers. This figure includes 48 vessels in operation; two DP2 shuttle tankers under construction with expected delivery in the first and second quarter of 2013 that has been fixed forward for 15 years; one LNG under construction for delivery during the first quarter of 2015; and three options, one for another LNG vessel and two for conventional suezmax tankers.

The fleet is 100% double-hull, very modern, 5.7 years if you exclude the two old VLCCs, La Madrina and La Prudencia that are held for sale. 21 tankers have ice-class capabilities, and we have 38 vessels out of the 51-vessel fleet with secured employment that ranges from one to 15 years.

Thanks to our time-charter strategy and philosophy we continue to operate the fleet at a very high utilization rate,. 97% was the figure for the first quarter of 2012.

Let's move to the next slide where we present in detail the financial results for the quarter. A quick takeaway, the significant improvement of all metrics over the fourth-quarter 2011 numbers. We've talked about the 50% increase in the income.

Vessel revenues should have reflected even more this improvement if we didn't have four vessels undergoing scheduled special survey repairs. However, this improvement is clearly reflected in the average fleet time charter equivalent of $17,129 per day, which is a 9% improvement over the previous quarter average.

Moving on to slide number 6, again this shows the contribution of our fleet. And again the focus should be in the product tanker fleet, which is one of the largest fleets in the market, and the fact that we have built the majority -- with the exception of the two older VLCCs, the fleet was built in South Korean and Japanese shipyards to very high specification standards.

How is this fleet employed? We have talked about this balanced employment strategy, with a mix of spot charters, pools, and period charters with fixed rates, and period charters with profit-sharing arrangements.

We currently have 12 tankers trading in the spot market; five vessels in pooling arrangements; and 33 tankers in period charters with fixed rates and profit-sharing arrangements. This figure includes the two DP2 shuttle tankers that will begin producing when delivered to TEN during the first quarter and second quarter of 2013 and are fixed on 15-year time charters.

This policy, this time-charter policy with preference over time charters with profit-sharing, has been the main reason for the Company's ability to successfully navigate though market cycles and grow during the last 19 years. These 28 new charters that we have concluded from the beginning of 2011 until today have an average charter life of three years, providing further visibility and stability for future cash flow generation, profitability, and dividend distribution.

This is what the next slide, slide number 8, shows. It is also good for the dollar value for the current fleet employment profile. As of today, we have 65% of the available 2012 operating days, and 45% of the 2013 available operating days.

Overall, we are optimistic for the long-term prospects of the tanker market and continue to position, through this employment philosophy that we have, the Company to benefit from a sustainable recovery in freight rates when this upturn will occur in a more sustained way, thanks to this profit-sharing element that most of our time charters have already in place.

In slide number 9, we show you are sale and purchase track record since 2003. It has been, this policy, an integral part of our operation as all the transactions that we have over the years demonstrate. We have generated capital gains of approximately $280 million or on average $21 million per year.

We have of course reinvested this capital gains in the renewal of the fleet by ordering the majority of our newbuilding tankers before newbuilding prices started to rise. This way I think we have managed both to grow the size of the fleet and maintain its modernity.

The next slide, slide number 10, is our dividend track record. We paid today another $0.15 per share. So the total since 2002, we have paid $9.37 in cash dividends for $362 million in total. This compares with a listing price in our IPO of $7.50. So investors who were are in the stock since our New York Stock Exchange listing have their investment in TEN fully repaid from the dividends the Company has paid and currently have exposure in conventional tankers, LNG, product tankers, and offshore tankers at no cost.

That concludes the operational part of our presentation. Paul will walk you through the financial highlights of the first quarter. Paul?

Thank you, George. The first quarter of 2012 turned out to be modestly better than we had expected originally expected, thanks mainly to taking advantage of a spike in aframax rates and to reducing costs associated with the two older VLCCs.

Revenue after voyage expenses in quarter one were $70 million compared to $66 million in quarter-four 2011. Quarter-one average daily TCE per vessel was $17,129 compared to $15,750 in quarter four, and operating income was just over $1 million.

All the vessels generated positive EBITDA, apart from the two VLCCs and the LNG carrier. Total EBITDA amounted to $26 million.

The LNG carrier's first drydock took over a month, during which the vessel was spruced to pristine condition at some considerable expense, prior to its new and very accretive charter.

Quarter one ended in a net loss of $8.8 million, which was an $8 million improvement over quarter four, excluding the year-end impairment charge, mainly to improved revenue, reduced depreciation on the VLCCs, and reduced finance costs. The two VLCCs continue to incur losses, but at much reduced levels.

Total operating expenses in quarter one were $35.5 million, and daily average OpEx per vessel was $8,300, this somewhat higher level being mostly due to costs during drydockings, excluding the LNG carrier. We do not expect such expenditure to be repeated at the same level. Indeed, insurance, victualling, and crew costs had savings in quarter one; and the strengthening of the dollar against the euro should provide more such savings in quarter two.

G&A expenditure in quarter one fell by $450,000, mainly due to efforts to reduce even further our already very low overhead expenditure in all categories.

Finance costs for quarter one were $10.3 million, some $4.4 million lower than quarter-four finance costs, mainly due to positive valuation movements on swaps. However, we did pay $7.7 million on interest rate swaps, a large part of our finance costs. But while this has been a burden, our all-in cost of debt is 3.8%, which in historic terms is still relatively low.

As previously mentioned, many of these swaps will expire later this year, providing some respite in 2013. But it still remains our intention to renew our hedges, hopefully at much lower fixed rates.

In quarter one we drew down $28 million on a credit facility and repaid $30 million, bringing outstanding loans to $1.51 billion. As the held-for-sale VLCCs are accounted for as current assets, we are equally obliged to account for an estimated amount of the related debt as short-term, just as we did at the year-end.

There have been no pre-payments in relation to loan-to-value clauses beyond amounts already payable within the short term; and nor do we expect there to be. We believe this is in recognition of our chartering policy, our young fleet, our perfect debt service, our close relationships, and a strategy focused on the very areas in which banks also wish to participate.

We have two shuttle tankers under construction. We paid $37 million in 2011, and we expect all remaining installments to be covered by debt -- $55 million in 2012 and $94 million on delivery early next year. We have agreed debt for the first; and we are discussing similarly attractive terms for the second.

We have ordered an LNG carrier, and have a further option. The first stages will be funded by the $63 million offering proceeds. And, backed by charters, we expect to arrange attractive finance for the remainder. This concludes my comments and now I will hand the call back to Nikolas.

Thank you, Paul. Well, I think it was a very clear financial analysis that shows that hopefully we have turned the corner in this market. And if the world economy continues at least in a stable manner and more ships keep on going to scrap, I think we will be seeing a better market in the second and for sure in the third and fourth quarters, which are seasonally better.

And with this we would like to open the floor now for any questions. So, Nicolas, we will be very happy to answer any questions.

(Operator Instructions) Gregory Lewis, Credit Suisse.

Thank you and good afternoon. Paul, you touched on it briefly about vessel operating expenses. Clearly there were a lot of issues in the first quarter that pushed up daily OpEx. When we think about it going forward for the rest of the year, if we were to look back at 2011 it looked like it averaged about I guess $7,700 a day on a (technical difficulty).

Should we think about -- how should we think about the rest of 2012? Can you give any guidance on that?

Sure, sure. I think between $7,700 and $8,000 would be a reasonable number. I think this particular quarter because of the drydockings we had and because we expensed a lot of the expenditure, especially with regards to the LNG carrier where we did a lot of work, we are not likely to see that again.

In addition, the way the euro is going and the dollar accordingly, as you might recall a good 25% of our operating expenditure is in euro, so we should see some benefit in that respect. So I think I am confident that we can hold operating expenses per day to around the [upper], $7,000.

Okay, perfect. Then also, Paul, while I have you, interest expense came in a little bit lower than we were modeling. How should we think about that over the next few quarters? Should we think it is going to be somewhere between what it was in Q1 and Q4? Are you able to walk us through what we should be thinking about in terms of that?

Yes, let me see. I think the variable factor, of course, is the valuation swap -- of the swaps, both in terms of the interest and in terms of the bunker.

So you would say -- what is the bigger driver in the first quarter? Was that related to bunkers?

It was related to both interest rate and bunker swaps, where we had a nice, positive movement.

Okay.

And because they have been strongly negative in the past, we have built up this big negative balance on those three non-hedging interest rate swaps. As they approach expiry over the next two or three years -- in fact one will be just next year, and I think the others go into another couple of years -- that negative balance will reverse. And so we will be getting credit movements on those valuation movements.

Okay, perfect. I guess switching gears, more recently you announced that you had a few options for some suezmax crew tankers. I guess the first one, the option is exercisable this quarter in fac.

I guess my first question is, do you have any sense in terms of your expectations for potentially exercising that option this quarter? Or is it possible to delay that option?

Yes, I think we have -- our BOD is next week, and I think that is when we are going to be taking this decision. We maintain the options until the end of next week, and I think that is when we are going to be deciding on that.

Our intention is perhaps to purchase one of the two options. But again, the Board will decide, because that will make more sense.

Perhaps we were looking to be buying the second option, and it is a technical observation on that, because that will give us more time to actually supervise better the ship. As you know we have built -- almost every ship in our fleet list is built by us, for us. And when there are resales, we are not sure about the quality of those resales.

100% of the ships are very good ships. We will maintain the options, so the prices I think are very, very competitive (inaudible) about 50% were from the peak.

But of course if we take over the second vessel, which I think is the first quarter of the next year, it will give us much more time to put our own team onboard and make sure it falls within the Company standards.

So when thinking about that option for the second vessel, is that something that would have to be exercised shortly? In other words, is that related to the next week? So I mean in other words, if you are going to supervise the vessel being built, I would assume that the technical team would have to be on the ground at the yard sooner rather than later?

Our technical team is there, because the yard is one of the yards that we already building ships. I don't want to give names, but I am sure you are able to understand.

So we have a big team in this Korean yard already building specialized vessels. So we are overseeing.

The thing is, the first vessel is ready to go and, although she is a very good ship, she does not have 100% of the Tsakos standards that our very expensive and demanding newbuilding department wants on a ship like this. So yes, that is why of course it will be a Board decision; but I see us going for the second vessel because it will give us time for our team which is there to start following up the vessel much closer.

Okay, perfect. Thank you for the time.

Thank you, Greg, and see you soon.

David Beard, IBERIA.

Good morning, gentlemen. Some numerical questions and some outlook questions. Would you mind breaking out how much of the VLCC assets and debt are in the current liabilities, or give us an indication?

Yes. Of course it is only an estimation, because the actual amount of debt that will have to be repaid is dependent on the valuation of the remaining vessels within each particular -- covered within each individual loan.

Yes, of course, and the timing of this, too.

Right, so, and -- yes, exactly; it depends on the timing. But very roughly, taking the two together, it is around the $50 million mark, of which most will be covered by the proceeds of sale on these vessels.

Okay. Could you give us a sense of what was expensed in drydocking for the quarter? Because I know it was a significantly larger number.

Yes. It is -- on the LNG alone we were looking -- our OpEx for instance went up from an average of about $11,000 a day to $24,000 nearly. So, somebody with a computer?

About $1.2 million.

$1.2 million on that alone. Then for the other three vessels we are looking at another $1 million for the three of them together.

Okay. That's helpful.

So a good couple million due to the drydockings alone. Yes.

Right, right. No, that's a significant number and especially in the quarter, so. You know, would you mind just talking a little bit of your outlook? Especially people seem to be pretty cautious on suezmaxes; I wonder if you share that outlook.

And maybe just touch base in terms of the LCCs as well.

Yes, well thank you. If you look at our fleet, it is a well-balanced fleet covering almost all of the segments of the -- you know, we have the 14 suezmaxes. Three VLCCs currently, two of them held for sale, so we will be looking to increase our VLCC participation in today's low-cost market. 11 aframaxes, including three on the product side.

So all our suezmaxes are on long-term charters and it seems that they will maintain that position. That is why we are interested in the options that we have got for the suezmaxes.

But what we are seeing is we are seeing a resurgence of the suezmax. It is -- a quarter ago, and that is how fast things go, a quarter ago we were sitting here talking to you about how we were looking on the suezmax market with skepticism, because of the closure of most of the East Coast refineries. Since then, we are seeing that many of those refineries might be surviving or are surviving, are being bought by new entities with deep pockets that are going to maintain this market. So that is a good sign.

And we have seen the psychological move in the last couple of weeks as it is. We are in -- most all our suezmaxes are in the profit-setting segment right now, which is something we are very happy. And it has been a while since we were in this position.

We are looking of them averaging in the $35,000. Our profit shares usually start from $21,000, $22,000, so that gives us some hope for the second quarter, which is usually a slow quarter, but we are happy for the result in this.

So that's what we see on the suezmaxes. A lot of course has to do with the embargo of Iranian oil. So a lot of West Africa cargoes are going to the United States, and West Africa is mainly a suezmax parcel size.

The VLCCs have been poor for very long. Again, because of increased demand and the Iranian sanctions, we are seeing more ton-miles being used. The VLCC market from AG to West because of the sanctions is almost nonexistent today. You will make perhaps $10,000, which is a loss overall, to have a cargo like this, whereas the West Africa to the Gulf or the East Coast is in the $30,000s and the $40,000s.

So I think this is also a good sign for the VLCCs that have suffered substantially. I don't know if this answers your questions, but -- and the view is that as more ships are going for scrap, the market will get better. And as the winter months come, we expect a little stronger market.

That's very helpful. I appreciate the detail on your outlook and also the breakdown on the numbers. That's very helpful. Thanks, guys.

Sal Vitale, Sterne, Agee.

Good afternoon, gentlemen. Thanks for taking my question. The question I have is looking at your fleet on page 6 of the presentation, and you may have addressed this earlier, so I see that La Madrina and La Prudencia, they are held for sale. Can you address the Millennium, what your plan is for that?

The Millennium is also -- all those three ships are very good vessels in the sense that the Madrina and the Prudencia are the last I would say European [dailies] -- believe it or not -- [build] VLCCs. They are very heavy ships and they are very popular for conversions. That is why we are in negotiation for the Prudencia which will be hopefully approved for in the next two weeks on a conversion -- sold for conversion.

The Madrina, and the reason is because it is due for special survey as we speak, I would say not to make this (inaudible) expenditure on the ship. The Madrina has been younger, as you see; another year and a bit off for her survey to go. So there is no reason now that we are earning in the upper $30,000s -- unless there is a firm offer -- to sell her. So she is trading.

The Millennium, she is still on a charter for another year and a half, to [Acerman] at a very accretive employment, the equivalent of $40,000 a day on time charter equivalent. I think at that time we will take a decision for that vessel.

So she is a very good cash earner, she is a very good quality ship. And hopefully by the -- it could be that the market by the fall of 2013 might be very different and we will decide to recharter her for good employment.

Okay. Then the second question is looking forward, I see you have an LNG newbuilding on order. What do you envision -- what portion of your fleet do you envision LNG comprising? Say, if we pick some point in the future, say by 2014 and 2015?

That is a very good point. As I said, we are a diversified energy user and we are as much in crude as we are in products. We are expanding with our shuttle tankers in the offshore business, which is another segment that we find very interesting, mainly through our long-term clients Petrobras.

And of course LNG is a market that we were early starters. We ordered our first ship in 2004. She started trading in 2007. Right now we ordered one ship, and we have another option for the fall for the second ship.

We are out getting offers for those ships for long-term employments. Our aim would be to have, as you said, at least a fleet of five LNGs and four shuttle vessels by 2014, '15, as you mentioned.

Now, and then again, the way we will finance those ships most probably -- and again, this is not the time right now -- will be, could be as an MLP spinoff that the TEN will be the General Partner and the major shareholder. Perhaps that could be -- I mean, we are told that this could be the most efficient way to finance a long-term employment vessels as an LNG in the offshore business. But our aim is to increase significantly the size.

So it sounds like that would be similar to K Teekay's structure with Teekay LNG.

That's right. Yes. That will be something similar; and I think the time frame will be for sure after the US elections, between -- and the delivery of our first shuttle vessel, which is in the first quarter of 2013, depending on market conditions. We might decide that it will not be at time efficient to do it; but this is what we are actually looking at right now.

Okay, thank you. That's very helpful.

Urs Dur, Clarkson Capital.

Hi, guys; this is actually Matt Phillips sitting in for Urs. Good afternoon. I have -- continuing the LNG theme, how do you view the state of bank finance for newbuilds, especially with regard to LNG versus other types of tankers?

Well, as you know, one of the reasons that we hope that this market will become better is because banks have really stopped financing newbuilding orders. And this way we are seeing finally a slowdown of newbuilding orders. Which really, I mean, we are -- as Mr. Saroglou, our COO, said -- we are looking at this huge demand or much more increased demand than what we were before the 2008 crisis.

And in the meantime, our market is poor because of the oversupply of tonnage. So we are seeing the banks actually not lending. There's more loaners not lending for anybody who just want to build a vessel without employment.

But we are seeing still for names like ourselves good lending, high percentages of lending -- of course, if you have a strong balance sheet like we do -- for projects and long-term businesses. I mean we have financed our recent offshore bankers in excess of 75% finance, with what I would say are good terms, and we expect the same for LNGs.

But it is true that we are not seeing the availability to finance for the small loaner, for the one-ship transactions, and not for projects.

Okay, great. Thank you.

Okay. There are no further questions at this time. I would now like to hand back for any closing comments.

Well, thank you very much for supporting the Company. We will maintain and enhance our efforts to turn back to profitability after this short business of nine months that we miss it. In the meantime, we are looking forward to receive any of you in our General Annual Meeting which is on May 31.

Or whoever is visiting Greece for the very exciting shipping exhibition, Posidonia, which starts on Monday the 4th. I know many of you that are on the call will be here. Come and spend some money. Greek economy needs you.

And in the meantime, enjoy your Memorial weekend, and looking forward to seeing you in a couple of weeks. Thank you.

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