Scorpio Tankers (STNG) 5 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Brian Lee	Chief Financial Officer
Emanuele Lauro	Chairman and Chief Executive Officer
Lars Nielsen	Commercial Director
Cameron Mackey	Chief Operating Officer
Robert Bugbee	President
James Doyle	Senior Financial Analyst
Omar Nokta	Clarksons Platou Securities, Inc.
Kenneth Hoexter	Bank of America Merrill Lynch
Gregory Lewis	BTIG, LLC
Jonathan Chappell	Evercore ISI
Randall Giveans	Jefferies LLC
Benjamin Nolan	Stifel, Nicolaus & Company, Inc.
Liam Burke	B. Riley Securities, Inc.
Magnus Fyhr	H.C. Wainwright & Co.

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Scorpio Tankers Inc.

Second Quarter 2021 Conference Call. I would now like to turn the call over to Brian Lee, Chief Financial Officer. Please go ahead, sir.

Brian Lee

Thank you, operator, and thank you, everyone, for joining us today. Tankers earnings Scorpio call. the to second conference quarter Welcome

Dencker Lauro, me contain Executive involve today, Mackey, on On issued James our on Lars release, today, the with earnings based is Analyst. and Emanuele our Senior call August XXXX, Chief results materially Commercial our Financial the Doyle, Officer; X, second Cameron the is call we may President; website, that statements. available are scorpiotankers.com. forth from Chief on Earlier The forward-looking and Director; Bugbee, Actual uncertainty. Officer; Operating press quarter those Nielsen, may which as risks in information of statements discussed differ information Robert such set

Investor review slides as Reports in be earnings the scorpiotankers.com playback are questions, number audio approximately available Call broadcast being Internet will the and conference forward-looking everyone the a XX webcast For so advised website Investor has available is as There limit of on these archive well chance. and the days. at on sec.gov. call the Presentations. the is discussion filings, are of of statement press scorpiotankers.com the should risks Those which release, for purposes. participants Relations Tankers' the for under An also that on you page recorded Relations please made page and our SEC Scorpio at at are asking live this and of disclosure of being questions, uncertainties,

like to later questions, can Lauro. me now discuss financial and offline. modeling specific any Emanuele I'd have you you If introduce contact

Emanuele Lauro

call. second as myself quarter from everybody XXXX Welcome well. Welcome Brian. to you, our results Thank

Robert for everybody a remarks to first make Bugbee last us XX personnel with of may not my just Before minute the I call. aware with and opening issue had minutes the start be very wanted that

ear go as play along. We we by will it

am been our in vessel cancelled. the that disappointingly pandemic, very by the has supply seen As the rather the over of quarter. that that we believe market increase continued we've with and caused have has continued has far remarks as that, low increased has which weakness quarter. pleased with deferred growth, conviction continued value are prices than the Despite recovery increasing instead which position concerned, I incumbent to the

exposed Our modern very spot positioned. remains fleet well

levels. ahead another specifically that demand We anticipate heated still product stronger focus Restricted Hemisphere, ton over a we is sectors have COVID-XX demand as balance recovery a Indeed recently dominating continued upswing sector of to normalization first unfortunately government variants and mile in dominating sensible the developed the global running year-ago time the and still management to a this have was transportation year. than well. nations of part ton final of negative specifically. this means the some of lockdown management liquidity sheet markets. led for policies that sector space, the are and Concerns transportation and below the the in means the rates, are This well entered although of on in is have mile and XXXX the for which to have many Southern dominated form or in delay in

remains continue I've we the as on are concerned, actively we far to our As business front as the mentioned, that to manage ensure liquidity foot.

of in the second usual are seasonal the inventories have we've our low, recently market will half experienced as are and upsized the baby describe for the that rates, theme XXXX the stabilized, bond. which and backdrop Against climate-linked. which convertible which crude innovative facility, bond we This quarter, I believe the We prices in negotiated setting an recovery, pattern year. we topped experiencing, enduring would follow have and

quarter to And impacts be Quietly our positively very being supply which going the product position cycle, values supply Lars? costs. this should capture the this to this be is of recovery. has overview. demand to be positioned current mid-last OPEC for that up can sensible of We position. asset month the move but be more quarter to with seen incumbency should market, to increasing use XXXX, widen terms us low. Lars the walk how continued of and entirely become same are and world improve. expect to earnings. rewarded yard In normalize. experienced we of and why continue but for precursor and confident have by are here tanker continues recoveries, what improvement market we of eliminated stay. in rates We a through remain I can reason richly our this in the have These the constrained forward. continues a in demand against cash mentioned to in an the and evident premium in come is XXXX achieved similarity or and third really XXXX no as ECO and particularly are in point patience costs remains the the before, to vessels in throughout in anticipated actually. increase, the in will optimally first outlook shipping pass differ other as supply the – quarters prices rather remain And well last seen to reflect the course, trajectory reduction and part Denckers, going is now quarter which we this Input of we add spread tanker spaces, deferred to and I of to the market by increasingly have recovery the be availability can in steadily, of continues side. this, also strong this other more weak valuable I've tanker to to sectors variables, new sectors. should values The scrubber-equipped upswing our increase therefore, of product We year the he is to see backdrop believe tanker word the than tonnage similar canceled, Many we've as progressive that There

Lars Nielsen

Emanuele, and good Thanks, everybody. morning,

the we would about and on last or have in getting earnings call, the the products. that, for received more vaccinations I still excited the that’s just data in demand of saw, on initial number impact be vaccinations were We ability recovering that and even would of Europe, vaccination. increase driver U.S. product demand. in the us refined the refined During have believe their first personal in Based many rising and think fact, vaccinations key so. we And

in season turned that refining voyages LRX recovery, been Also, also on on discounting an regions, the carrying market asymmetric the voyages. expectation widespread we a online than increased was to coming backhaul delayed spread Asia more significant from would number of west jet of key back when of The crude encountered the returned, refinery which to maintenance and have volume. displacing our weak their it, VLCCs tanker significant oil expected. Delta particularly the experiencing especially And be maintenance out seaborne LRX, rates, we variant product refinery and distillate we short capacity However, translate to capacity maiden fuel. increased the tankers

second mobility rising global expectation, in rates, underpin our half the the Now, stronger from vaccination growth, economic will recovery year. demand increasing robust deviated of the oil and social easing levels while this distancing of

looking the [indiscernible] has moving will per arbitrage increased been refinery draw these an helped million further refinery starting vessels Two of the has America lacking improve general change and to forward, July. loaded we June in volatility over closure of last And almost utilization U.S. lately, has in XX% demand will of We Americas diesel rising has in rebound July, below to out COVID as moved see lows are and now seeing the and started. few global continue demand as weeks. This have South And eight the of resurging think weeks. averaged I utilization second significant to level increase X within will now the voyages, conversely quarter transpacific the some in been York. specifically inventories Trans-Atlantic refinery the in in barrels gasoline seen reflects in to products by we leave the highest led posting dislocations America which lead utilization with day inventories the even ton-miles transpacific are vein, to – market. or have MRs rates to Latin Asia New of And longer-haul, in same the travel This last increased, and that the also see positive shuttle require otherwise our increased and has rationalization bands. and in since geographical we emerging now historical refineries. barrels global Refinery imports five-year uncompetitive

well room seen have fuel to go. in We recovery still jet a demand, is though there

jet is only XX% of Now while are flights at demand commercial global compared XX% XXXX global XXXX level. at to level,

On The has ever. supply number the the have with MR side, meaningful is fleet price seen the is likely to things profile combined This finally year steel older in high be increase of an scrapping. improved. a scrap highest

on the have a a XXXX shipyard or continue fire focusing historically are pushed in patient the either that negotiated the slots owners be bulk the The to up. capacity a constructive remain and low are we higher container on engine as recovery. cylinders on product We substantial order of book tanker way mentioned have valued Emanuele to full and vessel LNG remaining newbuild multi-fleet newbuild increases the when sustained contract time constrained price and benign supply currently. is out It question We embarking confident and outlook.

anticipate for we continued this recovery hold. that second maintained while, have view We to and a half long

now a of to before the operator, probably market very play, With materialize. which think, questions. we is well half including can go at young that, Scorpio Thank I expect fleet, end the back opportunities can second as positioned to These advantage we much. to rally. take the of they are we see However, more you Scorpio at the now meaningful factors looking

Operator

the question Thank you. Clarksons line Your from Omar with first Securities. of Nokta Instructions] [Operator comes

Omar Nokta

Good guys. morning. Hey Good afternoon.

Emanuele Lauro

Hi, Omar.

Omar Nokta

thing Tankers. obviously you I door, have was you've propulsion? sort Dual here maybe have minority is wet to on is at of of capital investment know of first drove made actually perspective I obviously dual-fuel you stake, guys X Fuel discussed my question a getting like it I in looking busy this kind investment [indiscernible]. and but give here, this type You is that this been terms the at on next a you outlay a your of what pretty small guess, small in the thing – in the just can that of feet million,

Cameron Mackey

Omar. here. Cam Hi, It's

say, is to be starting it next to the that's expect dual-fuel one in of positive We you real the at to the of right investment, for here to I do look a and methanol think engaged a two it. the modest benefit but get It way is, of decades. very trajectory the money. rationale amount as IRR off

our were then has into years our in withstanding was today of delivered designing to at that we ECO about asset, first R&D and in that which you If tankers the a back investment first constructing two XXXX, period market. are and not look it transpired where of

We that are scrubbers, far translate like could than not work makes group. peers. Internet, fair in the order peer our versus of getting to time our investment us of a far that competitive Similarly competitive position investment or because what again, do bit on something into, engaged but in you spreadsheets that in took in really research, a more and with an more

those transformative through in So to to but saying, us to line in as decade. I It seriously is and competitive would it it's draw possible return get look, engaged modest. the allows near-term, be and we to this going the be a the be positioning expect the something positive to pack of this a initiatives not is for stay company ahead as rest one of it

Omar Nokta

for understand the Is going on and what’s lot the talk the is line. been backdrop. probably LNG of obviously traction then a methanol vessels gaining that dual-fuel, maybe Thanks there's larger to about ammonia at years mid-sized down the least the Cam. sort here – And forward? seemingly That's ships, helpful of perhaps

Cameron Mackey

Yes.

pure we alternative every pros are – I volumes Omar well cons that between think and its that infrastructure LNG, may the and may the or have and available. not that's noted has exist

into already for to also infrastructure industrial aspect, where bit there talking fuel, a is So the would production There's which the easiest the future. demand or LNG, people versus a or of density green discussing some just And right renewal bit fungibility fuels think very fair black that respect. have falls or in more and fair at what already conventional that tankers future, in us fleet near we this methanol place. in or calls but is where are the What's are energy place. even as about sweet the further and ammonia, not not fuels eMethanol dual-fuel withstanding spot, the of time transition between hydrogen say is aspirational I in people our of point that line, interesting bridging about the the down interesting to methanol the in blue, one Methanol describe about methanol shipping. fleet grey the of lower but in

Omar Nokta

it. Thanks that more small instance potential follow-up. it's investment, that Is small there Got is in interested to just dual-fuel Or color. negligible a that tankers? in? grow Cam this at Maybe state something know for one point? but it's I for you're

Cameron Mackey

to that. say, but can to at manage respond I interesting sort of have priorities we I'm other many No. it's how limited the us, of to course, in I'd moment.

say a the getting goes see on is door technology a foot expectations There the go is focused in water. or modest now things bit but and the engaged just trade it I in our how the toe thoroughly. are So right understanding just again, opportunity and well. in of would a if this there, fair We'll

Omar Nokta

Yes, there I'll interesting over. things understood. to it develop Will be that Cam. see how Thanks on turn front.

Operator

of comes question with America. of Hoexter Bank the from next Your Ken line

Kenneth Hoexter

Hey. Good morning.

So talk the, used can about you've I now. the age guess youngest got? vessel to you be your It

renewal? as Or age Or five, old, five still come age? think got starts You're up of rates you as starting market? on fleet point How fleet pressure the years to old, with you you years about the to do age any you've do vessels, another in nine eight against XX-X. viewed – are peak

Cameron Mackey

you I Maybe to – Go go Emanuele? ahead. want do right can

Emanuele Lauro

No. engines features similar the design. general, in. technology, the then start to very in It's ways. years fine. differentiate I was The is chime in you the saying, fleet I can electronic the sub XX was and treated that is the vessels going and

as in Cam still vessels. eight ECO years or has ECO being answering first design the alluded generation So despite to are they now before, question vessels nine our design old,

the a not the as we the and same get way markets operate So rest issue in That's same the any they in fact. of do fleets.

this do think As about thinking have far extent renewal, a to not are in we fleet as because about to that think fleet an I position at we luxurious stage renewal.

to shift it's big – ago, and again, or come dual-fuel, the cetera, can something watch working position the because going as sooner is on to be to today of Cam ability that In whether step to we expected. technological are alternative have to terms just a we like taking the that is hydrogen or what few going going LNG described as happening et a at whether minutes fuels ammonia next start is than actually without looking happen,

all means, And sooner five, than now. two one years from expected or by years maybe XX seven, it doesn't mean means

we waiting thinking though before to more in methanol a in testament a are more and options even all us, bit active way, of so strategic ahead time we about start of the And that. is still do way, investment a always a renewal have the we fleet

Kenneth Hoexter

Thanks. That's helpful.

let me guess, think So I Brian, I on maybe – cash.

next about three $XXX done got quarter, due year, treatment water this the money lost of you It your have of out. you've million the past $XXX commitments still you've capital over you – work now, XX obviously, in the scrubber talk come quarters pushed You've lot ballast fourth debt some guess a and XX Maybe you've next in XXXX. quarter, I to eight the million of left installs. the pushed couple some out a of looks quarters. like

on in we quarter call. a that it's about the the on just seems ability of side. it confidence the commitments like – rebound But question in off capital what fourth interim the So talk in interim I talked the mean, – the fourth the – about, to keep debt later those one, quarter, that. that handle you recovery, Maybe confidence your in pushing gives constantly your the it's you

Brian Lee

to due we Ken. that. going that. explain mind working just here refinanced that is what refinancing I Thanks, debt on the from Well, and And in coming is created liquidity refinance, and right, that's some right. All that on maybe when be how of of keep in goes we're

Our repayment is profile, with the vessel ships and but is XX XX vessels a loan, the profile, then years repayment of years. the are life that not refinanced of when the a about age, XX, term free, so reaches debt useful vessel

XX free example, debt that's XX refinance vessel. profile is of give five-year a old ship to million, on if So years. But $XX a years for repayment we so an

we pay year million. each $X So

down So by vessel is XX%. line And the under the normal go a a by can. not it simple year. not going goes initial that's X%, value conditions, if down But a five-year realistic. balance vessel by I normal straight old said XX-year use But XX% we but conditions. each Yes debt again, would down of life,

the said, ability Emanuele across, It and historic we there. here a this significantly that this between where a XX the And If that when again. out when to Also differential, is not historic less as that's have high. liquidity Therefore, year. is not flows some closer at years mind – get has look have in refinancing highs. X%, Ken reduction discounted a go keep value flows, than it’s cash vessel to vessel – X% the ways you to the the increased and up cash vessels discounted in comes do to years, it's of you for XX

with where that's that. we're going So

we're the average to transaction refinanced if year. to So you're when at nine vessels each term a not vessels, – – is and a anywhere between say it's with dealing up when years, vessels are six especially talking XX minimum it’s you normal XXX

how replaced. liquidity again, is So that's

of repayment refinance, cash there. additional when – go you debt, that so puts to And up

that's to So we're why able that. do

Kenneth Hoexter

– Okay. ballast pushed timing the water you've is on pushed up and for coming thanks on further? thoughts capital that still that the those And out scrubber. wrapping that, of some And we just that program you've are Or with up? just out? I there right, of the Brian. Or Am wrapping

Brian Lee

Both forward reduced are going drastically those being here. programs

have think of for like $XX rest million year. the we I this

next going dramatically some have reduced. year. We forward that's But

yes. So

Kenneth Hoexter

the right. thoughts time. for Thanks All and

Brian Lee

Thanks, Ken.

Operator

next the Lewis of line BTIG. Your Greg from comes question with

Gregory Lewis

of in on look bit a you Thank refinance. good just to asset maybe like, to Brian, just that debt and as following asset markets. prices direction right some think the morning, you. maybe financing moving that or to line I Hey, fluid were are And everybody. We little the But Ken's the paint saw realizing market up strokes broad about if financing and lease questioning.

a way pressure at increase say, to Is As we have of – looks over schedule generate we across at and about $XXX balance is color around people operations. would kind think okay, of needs there look million there run cash repayment what of But debt cash, vessels the since on you there a – kind around XX%. about of rate any be the debt and any fleet? really think rough sheet lot couple be have kind from of is way XX%, more to try really look about I paying XXX probably are cash next XX% of Is amortization. just different that Is we the just like like a can look cash that, kind the repaid, of you that the we're maybe I around there we age and of that to think your kind that can quarters, to we're commitments refinance the to any helpful. probably but think there about, that real realizing hey, a refi, as think it paying of and of then that we

Brian Lee

have the age Well, formula it involved. I there's vessel of you're loan. don't the that's as no magic formula pointing here. it a out, secret give you to It's is fluid. is It's where in the

And we Part refinance, liquidity. we have. liquidity were where was of answer of spoke, we an more of my would you is give out get our Ken raised. to vessels each if example one go now to to As

be the vessel So it age would of there. – the is

on, I think tried quarter somewhat be we've realistic said. saying to we're in what we've every been conservative we've working transparent what and in and

for continue that that do of will is we're those of way. So And And I think when we're on. $XX that's it again, that right just some say vessels showing across refinanced we we're repayments it why XX here debts will working that. matter as comes we to be what and looking million at time in now

Gregory Lewis

Okay.

like, old? type looking today? about from like – does Where houses, And as old vessel we there how asset? what five under think to years five if If I the leasing on an rates advance we versus is so, vessel, rate those advanced kind trended? we're refinance of And it over are differ have is do get years of

Brian Lee

It there, difference to going make but valuation a is can change. generally, also the

significantly So going be not different. it's to

you're and lease, seeing on a looking some the doing, to seeing at we're you're in back XX% now go up well as what finance if places, at to you're banks, up you can same come time. we're So and until regular bank XX% looking then markets probably depending

Gregory Lewis

that At seems then going going be infrastructure now, Omar's have like used? trade of real, what's like Where a do with does infrastructure And the it's just all required. the on to terms great. methanol certain vessels methanol. stand of like questions kind new we now? around alternative, that follow-up be it the you is realizing to just to right Cam, methanol infrastructure in on transport going point, be that more right Okay, it's methanol What these the

Cameron Mackey

we're of capability infrastructure end it b) implies refinery off fuel day, infrastructure, I the switching vessel. the a of sort the existing which fuel at of it exists, the for major Thanks dominated c) a) and the of oil – for piggybacks And it's dominated say and fraction obviously about conventional of the question. talking would dual-fuel,

not from is here? conceived to or dual time. propulsion is even sort hydrogen. go system you as fuel It of the as so ammonia this things at aren't And where some most requirements their feasible infrastructure far both place Those at if look

Obviously, thing develop nice exists infrastructure and can pragmatically. which by it the yet, a clear is that easily developed and matured methanol. develop hasn't or So is it from but can that there is there path

as So area study. that’s this we're further the to of part an of reason so drawn

Gregory Lewis

for Perfect. thoughts everybody. the Thank you

Operator

question comes line next from Your the Evercore Chappell Jon of ISI. with

Jonathan Chappell

the you. with Thank I Emanuele, the liquidity values can refinance sale Good this XXX mentioned morning, With that are used weekly. to afternoon. of disconnect have the seems between strong prior also notice, the disconnect, start strong kind it's monetizing good underlying that. in and laid which leverage, ton another debts? you, basically values boosting order is we is widening elevated, And vessels, but you those on it more if liquidity keep way leverage rates in around that operating really it. something secondhand a of of of Lars the and some path maybe and considered adding the like guys have asset you leasebacks optimism cycles, retain market just operating out the substantial widening, secondhand In probably just and ships without and already, to the in the market adding you

Emanuele Lauro

question. for Thanks the

other time in and that it. add whilst way to the some we're sell think buy pinpoint is go and always we to the going difficult considering running we to and – whether are should it's ships. of our or the vessels which you're strike open It or I sell

prior we past today, the the happy to a do it I of anything the at couple market As when specific would in the optimistic positioning sense. deal premium the are that we of We that our paid really following we itself. far there being with of a the selling not of at where strategically. actually any which not opportunity investors time company. selling ships, do asset is sold of that be and selling in we consider opportunistically, stage, cash position us vessels to up to because of change selling whilst is wouldn't the and the some of in perceived and and And go some we've we as think time, premium are we a this the vessels, think at generation front appreciation let really, make which pricing for had the are assets would remain the

Jonathan Chappell

I Right. guess money. the of that's time value

pushed a If of realize waiting versus asset selling get it's continues to liquidity the less of right, and cash that just can you leasebacks. overbearing maybe method recovery adding the instead for that to immediately

wondering Just then… And about that.

Emanuele Lauro

It is buyers there for right, however, to many liquidity vessels. don't the were we which how know Jon, down be sell if idea, with number ships, generation to going of need go number would a I we there large would of

actually and So we and but and sale months generate refinancing, converted previous able acquisitions, refinancing had cash. sale on we process actually and approach financing conventional also still many them green to the focused have leasebacks that now refinancing inherited into where or sold only green facilities, had with the taken and from not different since we we on through leasebacks, which loans went we’re

which hope well the answered which point. which maturing, how little at I point. specific a your facilities, as it's coming that's – take But I've question. I are are maturing we So bit are the and – to But your point

Jonathan Chappell

appreciate I Yes. that.

Lars. for question Second

is fleet, the the week, really of recovery, of last time of so or in we're Europe. on what hit fleet just your think and numbers focused lines areas numbers the of timing variant not product the world tanker western I really demand U.S. fleet, causing latest of this pretty more seems in and question I'm that even in in vaccinations and Asia is the to were But world do until it the the recovery the like our does pace travel, I Malaysia, trade fleet, across starting basins headlines the around of the to dampening Indonesia. whether Vietnam you demand asking and manufacturing a related that's related to causing but whether more in China and think towards or product or like disconnects impeding or positive along though here most magnitude TSA lockdowns driving it's LRX to Asia, up in in not to there, any MR the tanker the recovery.

Lars Nielsen

Jon. Thanks,

I at the The can you've in little think impressive that that turn astounding, it's was look recovery while concern back. cause that how V-shaped you when seen and of India, which a actually around. has consumption been quite gasoline

Chinese at have you and on China to two in numbers doesn't look as Nanjing at consumption numbers the big moment of look in on at the with where and of seem and be going immediate it with the a at had Beijing kind variant lockdowns well, the to what's shift. aspects, Delta You from that the energy

started Asia referred is gasoline seen just of now West ton my a days. move distillate, lot and The now, not Malaysia a we what's happen. lot it's been Who and the U.S. what's prepared our Indonesia moving of in knows we But volume A markets, see and the the going field, moving we've ships take The but then North going place So and we in over volume and LRs markets X, it of to right is I to that of at course, notes, jet hit. in snapshot when they've further arbitrage to to and Thailand, of to the last and is MRs LRX points only market comes not from the the couple When August the good up. XX, Coast. they Asian a look on going transPac starting with fuel as its increasing question. taking rocketed miles. XX to

New We've York into is done products Asia haven't for on We months. which into seeing something XX from harbor, we seen business are moving Peru. MRs

obviously in that these more you're a the different moving going detail, LRXs. which find well, bit so that to time, interesting. into up the kinds move if then they're in So suddenly other. very to very at the things, goes [AG] market. connected suddenly a moment, and for that ways, want seeing you suddenly of LRX in And go there's each strong market are a I has long been a around different see And MR of lot such on as I what's And quiet into volumes

of market early kind together, thing three other on and the weak in that the that substituting they one in kind been that's where depending the taking of other, the you we seeing into biggest year first unison. in Suddenly cargos the where done market on The problem have of weakness. the have very can have Before the Europe. kind And have newbuildings they long-haul business start we and split market but LRXs the the the start depressed particular half LRXs been would been that lot otherwise going albeit would two of been would backhaul and the has primarily. move here, the facing doors to on markets the of or two see up in are has crude VLCCs really moving a cargos market

of risk like half? So does say, what with you going well, of it the support The would that Do that. at to the when upside then be look crude believe in up the to and is the look plus second OPEC its you argument opening markets?

second fewer You will the newbuildings of That's as out coming start that case. in always much historically year. the seeing the half well

might start as we you forward. dynamically move So change things well, can saying,

lockdowns numbers. when constructed means that – what with oh drill suddenly my you to am is everybody look I not And the And see I quickly, this at answers your I but to hope good that actual down take then place, volatility So changes. question. that somewhat as shipping, the it happen so Jon, to you and gosh, this thinks,

Jonathan Chappell

Thank very much. so helpful, Thanks That's Yes. Lars. you Emanuele.

Emanuele Lauro

Thank you, Jon.

Operator

line with Randy the of comes from Jefferies. next Your Giveans question

Randall Giveans

going? it’s How gentlemen. Hi,

Emanuele Lauro

Hey, Randy.

Randall Giveans

A few for Hey. quick me. questions

them the those kind forward on for of pull scrubber I scheduled. XXXX, have installs opportunity off-hire year? to reduce the of to days Any next eight you First, think

Emanuele Lauro

want Cam these take know, don't otherwise… you to I

Cameron Mackey

installation the Emanuele. of ideal schedule you, for is scrubber way to Look, a otherwise Thank coincide installation mandated that the an drydocking. to Sure. with regulatory

So you can those do parallel. in things

theoretically you the Now the moved the but moving lifetime could expense the be like do at around. tail so end would of birthday It's of asset. mandated forward, drydocking your

the schedule mandated generally do time class to we the what is possible the much work drydocking same schedule, then concurrently and drives and scrubber that's the as dock while at we vessel the keep So schedule. as in the require

that's So effective most the thinking cost and in work, most reflected easiest this way is, the efficient we're the the to – that to about way schedule and way the off-hire, way yes, do see. minimize to respond way the maybe you

Randall Giveans

Got it.

in minutes mentioned below last your rates. the the few well but quarter rates some rates quarter And drivers quarter-to-date and here, then third clearly Okay. quarter-to-date we second

guess rates So what of have recovery? you more when you today kind I expect see a and meaningful do are expectation you booking a time to for

Emanuele Lauro

was as or second more meaningful probably towards Lars his year, of the half. that of and has well comments, as saying think latter recovery delayed the to what part is what before, been the half and I has in something I think said, recovery far as the said the second alluding we Lars the as

in to say QX a let's see upswing meaningful rates. the So

and as speak, the actually you've As two, in days, there we indices, an seen has been I'm increase the in three rates. from we experiencing are sure last

the it booking which that, a it's But averages higher comes. Having returning see compared the have we it the the standpoint, structural release. as Of course, move that we said voyages We are in more welcome we are TCEs today period on welcome. from being strongly. that outlined when to and QX should cargos market

but spike if to there. How than out those are. today, we're to TCEs had difficult going be? meaningful pinpoint, we is where It's money the more say, to that's we making So

Randall Giveans

All Got it. last I question. right. guess,

you kind You position. liquidity last you currently mentioned converts. seemed the on you in How to position? feel On your the that do call, exchange very continue liquidity of confident

liquidity further in You're for discussions increases. advanced

on kind you're You've current spending still clearly on vessels money paying dividend, if to but of are comments be what shape liquidity position? appear in a your good and

Brian Lee

Brian. Hi, very We're confident. Randy. It's

to we're we're aggressive. liquidity doing overly create I being it, we things think need when not and

when are that happens, up, vessels vessels out due, when XX about that being anywhere come cash so comes said you're And around I refinanced. that there's refinanced it. when of between, have they talking As or be again, they're a to year

time, and of the quarter as with there. our today, $XXX million go we through And So I XX million every of with liquidity. balance June this today. pretty we're it's good all It's but as think happy the as same question its million here pretty of I $XXX and think $XXX have we

December $XXX had of million. XX, As we

again, we million XX. as $XXX Now of June have,

I a that. with happy we're think significant and increase that's So

Randall Giveans

so it. opportunity right. the I keep Got say All to Well, much. want all Thanks so. just to

Brian Lee

Thanks, Randy.

Emanuele Lauro

Randy. Thanks,

Operator

Nolan of Stifel. Your line next comes question from with Ben the

Benjamin Nolan

Hey guys. just on It's but leases, follow-up hashed me let over, that been last the bit Brian. on

or think so $XX XX sort expecting you a said and of ships refinancing. out the are for get you available year to is or that said in million So release I what you just you're said

where of think, $XX ships, these are good you there given asset million, is of refinancing values a know annually, don't today, Sort number okay, I it's where but if if we're could your cash the current a you – what's values asset and relative to any position of existing of of the good out recycle annually what's in that sense, number leverage assets? sort XX

Brian Lee

they they haven't their dependent up age and that's are do through One, books done vessels and math for and from vessel, we coming closed then waves few lending then I the there financial upon Yes. open for them to available a time-to-time. liquidity the of of refinancing, and the go things. which it institutions

here, now, through. couldn't quarter said give and we what really think have but it come I right has doing proper we historically So have a – each we're I you answer

$XX it good or right So is and not I million behind whether math to – looking that we now, for lot can't quarter so. a if of say a each want number at

Benjamin Nolan

or this the for Fair then market And side, right. Lars All on enough. maybe or whoever. Okay. Emanuele

we of for or Has I the at sort talked at any but to that seen have activities the past or of you wrong, noticed, or guys are least changes to the and I've take durations been mine but term things when there here traders. in know cover point? noticed respect yet going else it in be that maybe that market about are the notable to one to with canary this appetite anything the think is improve, feel some and the of is don't like contracts anything movements, terms of I've You or this least opportunistic movers market of the coal things you've chartering in makes looking predicting

Lars Nielsen

Yes.

that get to are for And two question see then need and would forward plenty and And company, the like I to is lot in oil And but trader strategic inquiries basis, have years, have daily tends weekly positions, there spread of LRX to So of I three let's And if the get kind it. market three more is go launched markets modern and road, like time the is that. delivery bottom least see like course October. can to at say basis. or the or what position for have spot charter can pushed types pay those different element fit particularly markets if requests it that in wants our some do one months that over medium for oil to around, at our people they fair Then position last from of and do long-term that. and on prompt down I on would feeder one, to that not today. around can everybody that on they can maybe today, be a is – MR categorically that of four look kind you interest on be two that for how to a deals see numbers months can position say the And up a what the market willing the done have a to the to consider have do The units a in relative the unit cargo a a quarter forward they further to price? they activity charters. of market printing they hefty are we modern quite to been and cheap

Benjamin Nolan

it I there? it Are guess is Or still noticed in ago? any being a of maybe the was? than change month my were is, where people you they question cadence sort aggressive have more

Lars Nielsen

less I summer the would or the height it's we've I where was. got of now. more it right say obviously mean,

normal be gone that is beach So cadence slower when the the would much quite to people same pretty have little same. the certainly – much activity bit and I the a pretty would or it's say whatever, but maybe

Benjamin Nolan

you. it. Thank Appreciate right. All Okay.

Operator

Burke with Riley. Liam line of B. the Your comes from next question

Liam Burke

Yes. pretty for half cash generated of was Thank and morning. you’re first rate Good tough you environment. the breakeven year, flow you. – Brian, the basically what

ability in Or rate give factor sometime comfort? your for on you at does refinancing your cash? that to you and how proving XXXX, later generate ability environment confidence Looking the that into does

Brian Lee

generate definitely refinancing of factor as liquidity happens. because additional to values No, a increase the will that a that's

at up over And slides. and fundamentals gone have refineries. if – that that going values So behind all look fundamentals And available. refinance which the values mean anticipation will And of think but top to and the that, anybody – there, is is would on at we book can will liquidity. will increase better. need on it's We want at when we we that additional do interested, always then But what's prepared and market these getting come getting to not go point, James it. they if there don't have order then of rates would the it, including desire I

point, good Liam. very it's So a

Liam Burke

been year. this either the that into quarter? fourth has on in is And direction half of or beginning closings last refinery a quarter world, the Great. factoring the How second this throughout rates the process of the

James Doyle

Hey, Liam. It’s James.

Lars Nielsen

James. ahead, Okay. Go

James Doyle

I'd listed to well. ones it's are closing or going you. The pass we've have presentation closed. I'll our say in Lars,

reductions and are refineries a couple some there think North We've will that also probably make output in specifically conversions. Europe more decision. some America, I seen that

with So all little with positive. Australia seen and are do. Lars I things than a think bit example more I this that best deals certainly We’ve these

over that So pass him. I will to

Lars Nielsen

a Yes. with I mean, of we example talked of refineries. close about of it times Australia down happens what couple is but a good the before, some

that stopped in And So suddenly see all we've of course of suddenly had the this they drawn going net York of of Harbor, which the be where and over of lot start pretty complexity a of is going time into was of Stuff that earlier New you're think the in Australia. stocks the on. from mile into refinery, just how end into could July. South in and closure and mentioned the into I periods, The we moving shut to can global stuff accretive and been they've much ton other were last America. kind from the last done to since course, I – per When of believe Middle into moves month you And of Exxon, in seeing in is eight picture. That fixed that to itself, crude year, increase Asia imports North being what units, kind going MRs see that places. come products Altona would dislocations come previously. I immediately of the from from MRs Australia, Australia particular, adding to LRs suddenly not smaller you have additional the going fixtures moving year, our the East Gulf of going Last goes U.S. or is all to is supply come some from doing envelope. one we addition

still pretty kind obviously that to out from. need product they is point it's process to come logical and find where as it's of the they close, that the it's thought things going need these So clear,

that and capacity. question does how takes do it market get will miles to ton where the mean so more increasing is, from? obviously as And It’s come will mean oil start market that the this going you that and to

Liam Burke

Thank Great. you.

Operator

question from Your with the Magnus line comes Wainwright. of H.C. Fyhr next

Magnus Fyhr

fourth way be morning, Brian, the Do into go XX the just how they Good the third you. quarter? quarter one liquidity. on Thank they in first you Yes. discussing, and out? good the or are far Of afternoon. do currently vessels more that quarter question all they stretch the

Brian Lee

other the happens, fourth It's here, into say things to a timing, paperwork like yes. few within next go positioned do refinancing ships where probably are that the quarter. but the three might to and months It

Magnus Fyhr

it you that would vessels second fourth XX, fair and XX to quarter? could between be have quarter assume So potentially another

Brian Lee

Oh yes, absolutely. Magnus, yes.

Magnus Fyhr

That's all had. right. you. All I Thank

Brian Lee

Magnus. you, Thank

Operator

the And speakers I now back call closing the remarks. for there questions. further will are turn to no over any

Brian Lee

speak soon. everybody I Thank to thank to to joining want Have you good day. a you. us, and for hope we

Operator

today's conference concludes call. This

disconnect. now may You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.