Recent OSG transcripts
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Sam Norton | President and CEO |
Dick Trueblood | CFO |
J. Mintzmyer | Value Investor's Edge |
Ryan Vaughan | Needham |
Good day and welcome to Overseas Shipholding Group Second Quarter 2021 Earnings Release Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Sam Norton, President and CEO. Please go ahead.
Thank you Sarah. morning. Good provide for presentation and quarter of of for us all call on results, our Dick insight ahead. allowing the and opportunities for our to that business joining and you current and me Trueblood this and into the Thank the commentary challenges state lie additional XXXX second
the X estimates would participating information this presentation. important read them carefully. on of X and usual, that Arcia forward-looking I like direct PowerPoint of on As to be statements, contents us presentation of Molly and Pages and consider our with an Princeton are and narrative everyone the other to part provided of course during everyone website the to start, and narrative The this McFarland I on are may available To call. this presentation, that urge regarding
historical our materially statements and of We including just uncertainties affected than contemplated will factors OSG be a subject differ are Actual future statements, and our beyond forward-looking including by control. variety our on those could offering by forward-looking to risks. and risk results you be about a These statements includes may perspective from factors today results. anticipated statement more presentation
discussion annual XX, these XXXX. you report For the refer a year our of December ended risk on to for specifically we factors, fiscal Form XX-K
for the www.sec.gov with on available today of are XX-Q form later well the SEC's quarter quarter XX, XXXX, the www.osg.com. second own for the website, website, which Our XX-Q which form at SEC, ending filings our being as we our XXXX other and filed as anticipate March
legally any and not speak date required. of presentation the any be except of as assume these update we materials, Forward-looking to statements, may forward-looking statements as in this do obligation only
remained underutilized, Act our posted subdued, to earnings OSG volatile significant in most and six be markets quarter. our in which of combination were will domestic likely short for presentation tankers transportation healthy the A been remains is second the to of Jones tankers performances percentage evidence certain define towards earnings layups to Demand restoring of back uneven. that comparable has quarter affected fundamentals fleet. OSG’s by our use includes core including The we improving release, of the progression market Nonetheless our continue GAAP quarter website. throughout closely addition, a term this tank conventional a full and which on financial energy today non-GAAP has measures, reconcile financial and progress our measures in market offers potential forces. in In
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demand lighter marginally As pace It year. demand tankers recovery be in progress us recovery. and transportation an the flatter that beyond what influenced still lows, ago marine the conditions that many has strongly the transportation year this consider trajectory United Overall earlier pandemic. one continues States been factors market six lay such, led to domestic to us demand earlier of and slope including and hadn't the up importantly we clear moving remains ATVs to and year of are to only be from of the have expected in fuels while we our has stages early for in recovered recovery than of emerging improved. we by what The
announced Given this asset once of the having benefit the pointed environment, again diversified results portfolio. and operating morning satisfying are a
losses tankers experienced from our Although equivalent Act over saw assets results Jones our this these quarter quarter, earnings year. first this time charter conventional improvements
we addition, number of in trades. outside fall which MR by the transport In business initiatives are progress made encouraged a of Petroleum core
term with The and of each is each contract And lightering months commitments higher Each two so minimum volumes for July communication, XXXX. extensions pay we customers. the taker contract XX than periods. remaining our have contract our X, of provides commencing volume contract last secured expiring
ATB expectations sufficient Horizon will be lightering current USD to contracts. XXX Given serve one these
to year a full vessels predicated expect year. during extension, contribution contract to order can over rates OSG through this on notice consistent our and XXXX. the XXXX. have our of two We provide by we to voids the have maintain historic vessels continue MSP served years available of received the will vessels minimum end two decision With MSP calendar its Israel scheduling to Government current seven TCE the exercise with option our to treatment of the annual in calendar flexibility, of extend from its contract passed
of to is the within December of shipping delivery a have We Key River XX The for the Mississippi diesel California. window contract fixed XX months. of November overseas an period with XX trade intended from West renewable
Louisiana from in California, the trade units moving significant to to full significantly take entering appears XX over is a renewable years. highlighting in in the two service and production next to dock new into months. and intermediate this that ready prior the three This trade for We expand through dry Texas allow fixture to survey emerging uninterrupted will contract vessel to in the diesel
We in to in three agreement have year extend Courageous under of $X.X in period extended and December continuation of period income employment of million early employment. commencing over just will in direct the years Charter the vessels million current the OSG XXXX. with a the time reached generate charter an EBITDA estimated for $XX fixture a XXX This
commercial current incremental by three original months December. EBITDA has Charter been effect first her period charter generate period the will extended the XXXX. reached million the in middle We fixture. the September, on through This the in The end estimated two XX The have current above agreed. mid from Martinez the of the extension to agreement of terms principle Explorer the to and Alaskan included overseas extend of with employed keep of is original month we'll the charter firmly three for vessel options an
significant in expanded development the tanker positive the overdue Finally, program, U.S. a prospects of the security Defense of long critical house delivered in fleet tanker flag of national the security. report importance interest an department for affirming the a the to
annual Appropriations steps following is weeks the of heels in stand in of security program. the pressed and bill. recently approval Committee come. significant these report, funding appropriations Senate efforts million the house On to Each for full Development XX the a this has Urban its Housing is approved tanker milestone the to the transportation likely up
spectrum balance a our restore will wide term Near year. Moving continue regular to reactivation and as the impact uncertainty tankers this employment; plans now of lathering to conventional the vessel we outcomes one of through to to six in move lap. possible
XXXX. to will resulted improved future our restrictions of gasoline of stimulate In diesel performance normalization gasoline imports transportation substitution On United more dropped diesel vaccine import rebound U.S. rates for the The restored these historical for marine month to day further continue recovered date leading over and per as past barrels we time fuel of is indicate to historically COVID-XX is domestic mobility customers’ now that financial patterns Hopefully that consistent progressive year. We provide for note, the million Information products subsides. latest in per our the typical trends Energy as XX quarter confidence what will encouraging have below second fuel. XXX,XXX to patterns details inventories into demand OSG. over more activity day and to with returns a behavior in seasonal import for been of context, demand with MR call levels days. move States levels once listing recent and as with greater data rising on rates customer This the consumption these Also winter ago. charter time months over last and from should believe have having with and international recently will in I X.X that to gasoline results barrels the this that continue. Dick and demand you high turn average encouraging have largely Agency Dick? extent this expanding and week, is visibility penetration the consumption
Thanks Sam.
Economics during rates and recovery limiting remain and been as have transportation in tanker achieved we the quarter domestic consumption States International levels been results increased improvement the markets. activity restrictions flows gasoline to augmented the tanker available. to to and in quarter vaccine an of significantly tanker Internationally, levels depressed. Europe. continue United over penetration transportation economic over by The Higher our global transportation quarter pandemic quarter product both results. first trade demand. see that economic rates flowing are improved fuel fuel International Second the first have very difficult impact the continues related fuel petroleum Domestic rates which low from have this a activity delaying market of increase. reflect been
quarter. in charter the Houston longer series voyage commitments. voyages a spot size accordingly charters other two reluctance generally during vessels. customers operated short to term kept quarter that by and during in continuation overseas with the other make the smaller short her their the quarter of activity for were of continued market term Our second were in direct in is which the time There all remaining Spot time The increased busy majority the overseas transportation under year have filled during market analyst quarter. were spot the The term ATVs. available satisfied
new vessels developing remained than more business layup As and the business the constant. number a the quarter or Sam active has we was existing of Nevertheless, first extensions quarter. case described, in during had of
of layout costs current $XX,XXX. manage in We vessel continue for daily a these by is no savings per to approximately which there operating shifts with maintaining our demand
quarter As second the in during quarter. we adjusted the was call, our breakeven first expectation of modest XXXX in EBITDA indicated improvement a XXXX fourth for our quarter with
half markets adjusted adjusted increase Our of The from firmly million been marine that a first economic EBITDA domestic on resulting somewhat $XX.X quarter muted first million. $X EBITDA overall million, recovery is the to-date. second recovery in of has XXXX our was time. question in of the a We the sector only quarter impact the believe transportation $XX.X
day then quarter of demand to term our were XXXX niche by had driven quarter the volumes $XX,XXX short during drove TCE second operating one the while layup freight was chart businesses. were quarter towards niche second six quarter avoid of us was XX.X% on quarter XX series a quarter the $XX,XXX year $XX.X more operating quarter. the of time first two drydock another year no We ago and revenues XXXX, on in contracts $X significantly expectation of Lightering revenues. in in year see of quarter during XXXX led later quarter TCE to businesses. operating second and and operated $XX.X large adjusted our compared prior days the the and ATVs the in quarter, by layup second XXXX from either revenue in occupied from the of XX.X% increased tankers EBITDA barge vessels expect XXXX through and to end from of year second million second our only with the days. consistent in had were revenues, performance. the when TCE in X.X charters returned sorry. were TCE slide charters ago they XXXX. this from this slide to one in of Please during the from of mid vessels the in or X.X% increase and XXXX. QX the Adjusted million ago Both to XX the increased vessels and of the Increased QX lightering X. in mentioned during time increase in lightering previously then EBITDA quarter were term first from of quarter and X. improved first other however per barges million the In during quarter second Drydock Please to XXXX in the time the performance We increased first the voyage quarter year million to revenues our Comparatively first gain in declined on operation generating the April turn both to under day of improvements first were increase the from from the declined quarters Both million, The short revenue second the on chartered, of our increased XXXX. to XXXX during quarter when first meant average first which in charter major and again new fully revenue $X.X I'm lightering employed. XXXX. the We second significant quarter a revenues to were quarter. of quarter, quarters for half the first turn increased we spot have vessels during we market the under XX ago the built there delivered daily year. one quarter levels.
operated a participate quarter Israel. receive security Gulf mid due program sale announced in non-Jones you and delivered to have to Coast of will on to Coast charter declined an provide arrangement. market sale Gulf sold to time in the Sun Realized tankers, second in operate international as owners and their MR fuel the conditions. During Mykonos MR Prior Act the new the international the until rates Government Santorini continued services to to previously maritime continue and the [order] we to June. overseas Coast we four
Resulting the voyages performed two increased revenues we million. quarter GOI command. During $X.X two voyages for and the [indiscernible]
operate all continued time expectations. charters in Our perform Alaskan with line tankers to on long term
drop decline turn the increase The off business which of revenue currently Alaskan In in in tanker Revenues revenue in two second increased no quarter due tanker revenues of navigator. X. six by mix impact is in U.S. for shuttle services declined Houston from is quarter. defined year. of of in operating the loss the the achieved the the while was for tanker current had TCE quarter resulting Alaskan million XXXX. XXXX tankers QX, QX, time operations as $X.X quarter. in as operation decline the first a during in million. the prior by tankers. the increased our from million from of Alaskan Boston new the one increase year drydock $XX.X contribution operating expected market to contribution Please Act Jones and decreased between less days the vessel Martinez for rates higher there operating a the the in second Jones activities full spot ATBs Act layup Year-over-year the of to-date an XX. $XX.X conventional the first drydock contribution compared slight into essentially quarter. XXXX for the the providing million the oil operating year The ago $XX.X was non- shuttle accounts quarter. slide has quarter contribution non-Jones was quarter to the brief in reflects days. from to operating and full in to been flat quarter to of provided first Please two Combined now the both while tanker contribution partially flat year slight $XX.X layup addition quarter in $XX.X for The first and declined ago spot stable. declined operations the to the TCE driven increases a million of This under the hire off-hire the full due Niche revenues market number redelivery a essentially conventional million tanker $XX.X Conventional turn the from from and all crude which million expenses QX change Revenues in ATBs were contribution the tanker one quarter. overseas quarter. quarter during of in of in full Jones $X.X in to flag drydock quarter in contribution market to due and tanker Lightering days from Alaska of ATB only for well one volume the charter ATB of million. the tanker of the the period increase million slide were to the the vessels two tankers for QX overseas Vessel as in increase tankers the operating last and both XXXX revenues resulting vessel XXXX. partially of vessels current first compared a from in two by prior for XXXX. current businesses XX quarter X.X million of $X.X MSC the increased revenues size Act The The the tankers days current to quarter lightering from In the charter market. decreased charter resulted of billion of TCE QX, layout. results from XXXX of expenses of as candy flat $XX.X contribution niche from first increase quarter contained layup the voyages contributed QX $X.X quarter. in in tankers Martinez increase XXXX is of by by offset quarter in operating XXXX off-hire quarters. of drydock for first the vessel increased QX, first $X.X was offset this Act the quarter an activities niche XX.X our as in The contribution to the redelivery over voyages improvement the impact GOI drydock from businesses from time quarters principally Vessel the year. one from month resulting decreased each. contribution quarter fire the remained period current million new of We our niche days. this volumes the Alaskan were shuttle [legend] for impact And million
While in XX. of in slide Please dock quarter. turn quarter to was dry legend the current the the for half
Second market million increased from tankers two EBITDA sixth the quarter the This been early be adjusted Alaskan increased time extended slide XXXX. $X.X periods. charters. million XXXX. July million. completed of XXXX of of XX impacted in decrease primarily utilization was by and driven negatively year in performance six By the turn compared tanker to by to-date niche a The million we ships market. XXXX tankers Adjusted niche income million again reflected the XXXX the The Please the turn appointments XXXX of change have The tankers decline XXXX. for In in net slide improved $XX.X EBITDA placed we all then. in increased of activity second stable quarter in million first from was QX, the the contributions reduction of spot work second Jones layups in as fleet businesses. of $XX.X net our quarter in $XX.X in drydock of the The Act of XX. and lower was by layup $XX.X on investment Net continued to our XX. $X was amounts EBITDA between loss for ago resulted quarter decreased was Adjusted drydock since our to Please days. due quarter driven our scheduled in principally ATBs. the operations first to total recorded XXXX. the operating including approximately to quarter two loss
we commencement November cash. We XXXX, water will the in XX, to the make that charter. charter Key West been of that to We enter in system. get In be of overseas XXXX million charter our XX available quarter prior to new interruption the our XXXX. to March expenditure her order time period month ballast drydock charter approximately million, total have At including $XXX,XXX $X accelerated occur the activating installation second during without $XX would anticipate includes at will cash due which her to the the we of be restricted of treatment have
adjusted Working docking improvements During overseas from of the the $X Gulf million we cash of generated net Coast of $X on we $XX of quarter, we and Capital EBITDA and the received $XX used to extended dry and million sale proceeds million vessels. million. our
Additionally, million $X CapEx. in we and invested other vessel
in During $XX $X expense restricted in million our $XXX,XXX including repaid with result quarter the Continuing cash. The discussion slide the we and ended quarter to Please cash of XX. turn of $XX of interest incurred million we debt. and cash million was liquidity March of cash the decrease on slide, million at debt we as XXXX. we million, of an since XXXX. had previous Total XX, outstanding $XX a of representing indebtedness $XX June $XXX million mentioned
million an With financial And equity Sam. $XX of turn debt We concludes the over statements. the Sam? call ratio million my $XXX to our additional This our to is remainder over comments of on will XXXX. I'd back of equity like net amortize loans times. the one to
Thank the catalysts to operating markets. lie In conditions looking ahead core several improved drive Dick. to quarters you, in our we're that
normalization steady domestic patterns with and of fuel demand. underlying levels transportation earlier, First, encourage continued more products strong stimulate improvement historic consistent refinery key create to low rates consumption should demand in levels refined a utilization inventory as conditions noted of marine domestic of and
for demand of state the know, for economic the we domestic oil. as conditions Second, international significantly market impacts
on expected of higher the experience of should demand import this have seen international be As this that significant the that a reduction will year the of result, services. rise in back increase heal we the as product United U.S. in should occurs, particular, from demand a over a States. effects international lingering the for rates if When of we first tanker pandemic, volumes in progressively the see, half the it our outside the markets
product on for environments progressively crude renewable developments improved focus sufficient tankers flows path a generate add demand ensure future. waiting oil the demand Patience our Jones Act in drive other these near domestic price baseload In of the U.S. with would tankers Act oil group acceptable potentially these Coast sustaining conditions should domestic diesel. crude improved clear should term a for for to for remains an operation generate voyage and Jones to particular meantime, in alternative favorable international that refined domestic necessary. expanding the the Nigerian on and at and longer transporting oil and to spreads in In once availability catalysts operating of operating emerging facilities new increase, liquidity our there's is more consuming worst, crude versus best from should both as to Third, needs transportation domestic there to early conditions diesel Both incremental products. is emerging vessels occur. refinery coast-wise static will availability of year, movements for sustainable diesel West shifting the next fuels renewable the U.S. demand of renewable begins Coast, crude production which oil new more Gulf final the watching. The the the to markets squarely move
Incremental to these to efforts safe in ahead to steps will taken bring operating not to capital the work remain will have shore who expenses where transportation. about appropriate be commitment ways reduce given and these that months all compromise vessel We should overhead results. our and and to achieved acknowledgments spend to in defer hard reliable gains important based and
niche quarter, which ride from just as expect streams we As These presentation. continuing from that conventional questions. businesses, the results market a vessels will revenue out on can expected we the term provide ATC the to believe the were cash seen of well future. now my able performance to current outlined promising we completed to earlier confidence through from expressed strong contributions stabilizers carry our long flow our as our in fundamentally be open and we tanker and be in to Sarah call medium weakness what the charter,
you. Thank
the and Please comes answer question first go now will Edge. session. Value Instructions] Our J. Investor's [Operator from question with Mintzmyer begin ahead. We
good morning, taking Hi, today. Good morning Sam. my for Dick. Thanks questions
So we ago Delta's last QX a after perhaps few quarter on that happen hopefully months fleet. seen and it things some maybe But now this QX. to just and corner push talked know status going back was the right a I seems bit. we've turning about little disappointing
QX. Is be report anything of West You that's layup QX six layup in there as you the to mentioned seven of front? to more mentioned in ships and in going Key on coming out layup. that net that Is
come entering is, November. layup The will in your Key of contract West out
So that's actually QX.
addition past of We that the the one back to West. conditions of And possibility in would need just are at of activating QX towards our end we looking monitor vessels Key the to into be the what of say, the fourth view. softest quarter quarter third we see typically the would the quarter through move a I from is the is we quarter as demand point third
fourth expectations Some But demand product probably or halfway quarter in said, we need flows be than been in that expectation. to a demand pretty inventory the patterns quarter. our subdued we quarter. third in the hopeful That's levels higher to demand was the the we're significant we look quarter see And would a quarter that through I already historically expectation as for in increased as in the past, the has the and demand jump see increased fourth indicator tempered. of
Sam. thanks, Okay,
I wanted but how surprised I at also to I goalposts least sounds quarter on QX had the And do there a EBITDA sort in there. covenants it QX when a accelerating going number covenants? how for debt QX. your kind Because Has push into just to for a basically curious, kind requirement, pleasantly like little of of Is QX ago, and you at about any you the EBITDA know those I months few of there breakeven because progress and I'm QX. then QX? on in QX I'm going think think to play? you pushed to into those been of show was had EBITDA curious had to QX EBITDA relative on come any the quarter run that's So that looking bit look was that to risk back you're to
upside would what largely can line we with see for what QX. of downside bit we as softer from QX the on scope this expectations a said, in depending volumes some potential right be of performance certain out. now, we little performance we're last a I seeing is saw But likely quarter. There things EBITDA our play did So in risk than outlined quarter bit on and little lightering
higher into at the in of conventional our back on me well related excuse voyage as ATB, having to all come our vessels that to ATBs rates, Some OSG that's charter of doing for are turnarounds quarter. ATBs towards end the the new expect charter play But during with charter a second two we're July; another on refineries. We're quarter. up MSC back MSP picked in We of we the would quarter. at this of on and delivered all back tool our
after of earning. all ATC drydock. be about will three back. the the beginning But and We've back lost All think at XX recorded now I vessels at days, that vessels are another
quarter. things in from our is uncertainty slightly stable conventional those of performance stable improved the from, There still are all second the So tankers. to
this quarter. quarter did and that kind two will Houston of the back work vessels. we had signs the is there We market. see a some have today We've less the in in in on we pickup in the quarter second those utilization spot Boston of than But the end the
to runway up So looking all us liquidity How driver broader picking of kind of that me to a principal continue second a ongoing. our kind We performance results our second leads same us quarter, at realize as looked that's that maintaining on that think we're quarter compared focused with slightly believe the the the to that's a at lines conversation third difficult. excuse covenants, is of quarter the The quarter in to sufficient recovery. from of quarter. covenants allow to was for perspective to
look if second the we first target, of the that. quarter sort was for sorry, exceeded X million So, you what, the
quarter. I third for we're at same kind the As said levels the of looking
the So actually levels our the third and we exceed of third that targets above the if what outcome for at of the to covenant likely liquidity of levels that and you the were had we're or outcome request is will on looking in be to your quarter. been structures at second our quarter, long end answer aggregate that is the
that forthcoming. that think we our we think to us lenders is that with comfortable access of objective have on be flexibility to recovery to present to our lots sets well liquidity achieve give for we allow pretty facts conversations levels of So continuing up that as runway things maintaining And with we're work able to the always, we themselves. currently as greater ourselves us
it the there in the out you didn't Yes. Even on room at offer I $X. Thanks it. But didn't takeover a of like you your for about stock release, elephant today mention $X.XX. then have and is sort the press addressing the call hear anything in And that.
for this years doesn't peers. trade seem like how So want takeover on these at you been offer management, or at it are to business to the value reject an potential you it Is bemoaning anything and not is of or share much We've regarding whether offer. it of the moment at the the suitors other commentary half even going me any EBITDA your that that? any two there that and enterprise market has some regarding your stock valuation both of of your stock as investor ridiculous us doesn't now, calls us kind like putting to
is point think responsible of J, appreciate, appointed a process. that what committee of advisors above board. for those paygrade extent. transaction The the that you advice. investment banker my directors businesses also of and I ownership capable by our is that that has be both are the legal some There to have are They ones the believe taken view board to managing been professional from I and very
sure that at the make expression time. And their you are committee those it as surfaced systematically different through and this They by And opportunities to non-binding that the time. can they're judiciously think of well do is properly. appreciate being transaction interest. at reviewing served this that are want I takes and being advisors they they job
handled process. that I there run one ownership for be If is speculate. that's a in you're of question know. as think maximize flow I best by cash asking business me view. don't the the value the that resolution only when from the board. to to the I job point our will could business a and I And feel that the of management is
that to Right, for dance Thank least Sam, a little and look trying time, forward bit. around you, to gentlemen, upcoming appreciate results. your we'll you at one
Thanks, J.
Ryan with from Please question next go Our ahead. comes Needham. Vaughan
Dick. Thank Morning. Great. Hello. Good Hey, Sam. you. Hey,
me. for questions two So
one, Could prepared very a of It went routes bit the Sam you in new a remarks, just mentioned more? into elaborate detail Key opening little little you West. and First then interesting. bit sounds your on
opportunity but we many other talked something really number for potential two that we've times. curious haven't too about. well And I'm about heard future as much Then vessels
we it certainly I due recovery well. the been think has talked quarter largely the international It delayed as like feels about to last markets.
curious, thoughts kind of any front? but on are period anything this is be just international a said green XQ the or you there? you quieter general, Just sort I would any great. improvements, know shoots, in anything seeing That recent of Thanks.
that for disappointing one been understatement that So first. business. think operating people market in be has the an I will pick second would International I are
values the an bulk than are market highs. size that drying they markets, $XX,XXX earning is If extreme a The marine container terms is today. The bulk internationally is at day. more look they rates you and carrier have of been A never are being achieved. also other handy at sector excess in of of control frothy out
occurred been are old just been an Looking than was vessel Those the for the container months have vessels of vessels since sold turn need excess Asia. a things year. conditions RTU been excess of the the XX that turnaround at they that you the going you year the Europe virtually of sub What's around see operating really that former during our container terms at probably ago colleagues to do XX in same the of sector week. mind blowing market exception to INSW I and as today tanker effectively million you they've which course at markets below sustained of for in that operating every scrap are in of sold have the in beginning international economic know better to $XX [indiscernible] and read since bought last recovery than those pandemic. way flat for for The costs could I are worse and standout XX flat energy do,
off increase of an ago see some capacity in take optimistic. got plus to problems. to month need from though end got the excess would that flowing. happen market Is Delta of product say more with pretty I OPEC to china's are variant production transportation to a that Today You going people the India's you to problems.
lexicon trend I countries, Southeast convey. that is the looking think Latin little Europe I Indonesia's but to Asia the better America, trajectory is trying a was was got flattening still problems.
sharp long. that then question decline of saw afterwards. All a is a surge and in The Delta and UK how big
of the accelerate trajectory everybody's going to a internationally big kind question would I see the That's and on we're in recovery. that States here mind. economic think So that's same
freight below think point. economic have the operating we've activity very not some has that back the is to world costs. in It's the patient. conditions monetary at brought belief come pandemic think fundamental are got some that a around from to is our continuing long point be adjust at at I So loose once We the There It to rates run. given control. under perspective that the sustainable
a to vaccines and better have patient. proliferation how world is more broadly the fuels to to the the evolving that of acceptance earlier Renewable to offers renewable insight be going said to across just the into vaccines of in and the country reaching are mix can time. that of the lead We in promise me year diesel pathway we progress. on how of hopefully us this thought markets As transportation diesel; the change should really a sharp and sort of
renewable vehicles. low of diesel. to standard, allow of in be country through just refinery fuel the distributors rest low I penetration principal From the that electrical to their done fuel think able of it's the too research carbon interesting. to ahead of those vehicle The their meet pathway the putting is be with through standards substitution I've slow into to goals California meeting really and going to is standards California substitution carbon diesel is electrical place.
new Coast the go diesel would the level necessary renewable is additive on of standard substitution there's to demand Coast added but be West to the [indiscernible] can your facilities for refinery and potentially You have have marathon do research. been able PXX their of marathon, ultimately own that renewable the a that number and with those that on acquisition diesel West produce diesel. signaled even of not capacity towards on transforming they're West all with Coast production of be enough moving meet the There frontier] plants announced the to that their [higher Shell
and The through runs the can expansion refinery under are by the transportation an that the up coming phase have first will the production. Texas second have [PBS] of over production potential through barrels barrels day has They the top central announced and States of per the of Valero of have feedstock Coast XXX facility they announced told turn that plant diesel. advantages per because on the feedstock Washington advancing is XXXX. sector to production in a probably of needs end renewable Green the Louisiana. to diesel Louisiana years. year. of renewable and move these begin of a of to certain Valero on California facility to at Coast XXXXX agricultural really the terms fourth better complete the the down Louisiana that charted tankers. Mississippi that the about It's in it's a day access in year. their in part million Gulf Energy out of Louisiana facility over market Coast. now in product the West per presents existing their XX,XXX next Gulf United out XXX,XXX barrel West of have of expansion is consistent So million all you interesting Geismar, for in by view from Coast. All market going to our Oregon existing for terms construction their which the of promise facility fuel expanded XXX facility. the gallon That's to to part then That's and your you that to an next is as now my That's a capacity long-haul Diamond half couple river feed that barrel flow refineries telnet another quarter year diesel West stepping Group Key to we're per their right then have requirements exploring, well years moved out includes renewable half that XXXX be they're of converting of day has and Obviously three the demand roughly up been carefully of and it in that very one Renewable lot who and of increase looking a this those and Valero
for no any answer Norton Sam questions. concludes turn am question remarks. would back closing and our This conference question. I further I to like showing to the over
break. Thank everybody for out from thanks and you summer your time taking Sarah
areas of to and taken hoped green news conventional shoots. some We significant markets. about we see interest couple better had for our longer than and Ryan good progress Have improvement look our a of and us hope to in tanker try talking to of give your feel continue a we to you holidays. we're of Thanks look again summer day. It's We We'll bring hope. but business. the that as we see new a alluded really of months do do in forward keep and happier our outside what at trades we rest again. it continued making working with of signs to lot Enjoy our
today's you concluded. presentation. conference Thank attending now has The for
disconnect. now may You
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