You for standing by, ladies and gentlemen, and welcome to the Tsakos Energy Navigation Conference Call on the Second Quarter 2021 Financial Results. We have with us Mr. Takis Arapoglou, Chairman of the Board Mr. Nicholas 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. I must advise you that this conference is being recorded today. And now I pass the floor to Mr.
Nicolas Pounoussis, President of Capital Link, Investor Relations Advisor of Taka's Energy Navigation. Please go ahead, sir.
Thank you very much and good morning to all of our participants. I am Nicolas Bornoz of Capital Link, Investor Relations Advisor to Tsakos Amietz Navigation. This morning, the company released publicly its financial results for the 2nd quarter 6 month period ended June 30, 2021. In case we do not have a copy of today's earnings release, please call us at 212-661-7566
or e mail us at 10
There is also a live audio and slide webcast, which can be accessed on the company's website on the front page at www.
Tenn.gr.
The conference call will follow the presentation slides, so please We urge you to access the presentation slides on the company's website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also, please note that the slides of the webcast presentation are user controlled. That means that by clicking on the proper button, you can move to the next or to the previous slide on your own.
At this time, I would like
to read the Safe Harbor statement. This conference call and slide presentation of the webcast contains certain forward looking Statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward looking statements involve risks and uncertainties, which may affect TEN's business prospects and results of operations.
And before turning the floor over to Mr. Orapoglou,
I
would like to say that we are particularly happy to be hosting this conference call today from New York. Doctor. Tsakos is in New York. And actually, I would like to congratulate him that a couple of days ago, He was inducted into the International Maritime Hall of Fame in a big ceremony in New York, organized by the Maritime Association The Port of New York and New Jersey. So, Doctor.
Tsakos, congratulations and delighted to have you with us in New York. And without any further delay, I would like to pass the call to Mr. Alapolu, the Chairman of Tsakos Energy Navigation. Mr. Alapolu, please go ahead, sir.
Thank you,
Nicholas. Good morning and good afternoon to everyone. Thank you for joining our call today. We clearly are in the worst period in the market in recent memory. And despite this, the results That we showed today indicate that we've managed to stay relatively unscathed, Proving once more that we have a robust operating model.
We continued our well proven Strategy of countercyclical new investments in accretive charters and with blue chip customers as always. We continue selling all the vessels to maintain the young fleet. We continue keeping a substantial portion of our vessels on time charter, albeit at a lower percentage, to ensure a predictable revenue flow and cover costs, while Steadily increasing the spot content to position TEN for, as expected, a strong rebound in the market. All this, while maintaining a very comfortable cash position, constantly repaying debt, servicing our obligations, Maintaining dividends and containing costs. So nothing really new, Just tweaking the same model according to what's happening in the market.
This has served us All along, well. And for this, again, we need to congratulate Nicolas Tsakos and his team for the focus and the excellent performance. I now pass the floor to Nicolas Tsakos. Thank you very much
Good morning to all and thank you, Nick, for your wishes and thank you, Chairman. We would like to be congratulated also when we will start making The big profits we hope that will be coming soon, but thank you for your good words. We have been using TEN is modeled in a difficult environment. And the difficult environment, it has not only been the market Conditions, but the operational conditions that our 70 vessels have been facing Navigating through the pandemic around the world, and we would like to thank the whole operation team and the men and women on board the ships for actually Being the unsung heroes and recognized heroes for spending more and more time on board their ships away from their families Than actually ever before due to very hostile repatriation rules from various regions and countries. And from our side, we have tried to do the utmost to succeed in vaccinating the majority of them and also making sure that At any cost, and you will see this also sometimes in our bottom line, navigating our vessels at significant costs to friendly Repatriations areas like, I would say, the Philippines and Greece, France, in order to make sure that People will go back to their families, and we will get them safely on board.
So it has been, I would say, a very Strange period of time. We try to keep clear head through this storm. And so far, As our good Chairman said, so good. The horizon seems to be brightening up. I think we have all Looked at this at the Q4 of 2021 as a time that things would start normalizing.
We are looking at the other Markets that we are participating like the dry cargo market and the container market Taking advantage of today's environment, of the bottleneck that is happening. And being here, we can see the majority of our clients are actually looking to put their hands on as many vessels As they come, which is something that is reminiscing of the first and second quarter of 2020, the beginning of the pandemic. This makes us
a bit positive for going forward.
And we have seen also the rates Having bouncing significantly from the bottom, all you have to do is to see at the market reports on the Baltic index. VLCCs with an average of less than $100 on a year to date basis are today in close to $20,000 So I think that's A significant jump, which has to do with seasonality, but also from the thirst for energy around the world. So I hope that the Q4 started much better than the rest, is going to lead us to calmer waters. In the meantime, we are maintaining our model of taking advantage of the crisis to renew the fleet. 10 state of the art vessels, 4 delivered, 6 on order, 6 of them also Dual fuel, for us, it's a significant turn and a big dramatic A design term for the future.
So we're very proud about this, very proud for our new building team for designing the vessels and going forward with our charters hand to hand to a new era of shipping. And hopefully, we will be able to announce in the next couple of quarters much better results. And with this, I will hand the floor to Mr. Sarov, our COO, who will then give the past, but I think George also talked to us about the future because I think that might be a bit more pleasurable. Thank you.
Thank you, Nikos, and good morning to all of you joining our earnings call. So let me start by saying that we're currently seeing and bouncing freight markets in the larger size vessels compared to the summer months and the year to date average rates. Spot rates for VLCCs and Suezmaxes on average are currently 4 to 5 times higher than the year to date average. And we expect this improvement to continue across all vessel types as we enter the seasonally strong 4th quarter. The anticipation of this improvement, we consider it to be sustainable considering that oil demand continues to recover from the demand losses of last year.
Global oil inventories that built last year continue to draw and are below the 5 year average in all major economies and geographies. Mobility statistics in the USA, China and Europe are improving and the strong demand recovery of 2021 will continue next year when we expect to be under pre COVID demand levels by the end of 2022. OPEC plus has now restored almost 50% of the initial 10,000,000 Plus production cuts and is adding from August 400,000 barrels per day every month until the 5,000,000 barrels per day of current supply cuts are phased out, which is expected to happen at the end of Q3 of 2022 based on the current OPEC plus plans. Of course, supply of new tankers continues to be at low historical levels, while the global fleet is getting older and new upcoming environmental regulations are expected to phase out a big part of the aging fleet. Let's move now to the slides of our presentation.
In Slide 3, we see that in 10 since inception in 1993, we have faced 4 major crisis. At this time, the company, thanks to its operating model, which is built to be crisis resistant, has come out stronger. We started with 4 modern tankers in 1993 and we currently have a pro form a fleet of 71 vessels for an average annual growth of 15% in terms of deadweight tons in the 4 decades we operate. In the next slide, We see the pro form a fleet and its current employment profile. We have a combination of vessels in fixed time charters and flexible employment contracts, Time chartered with profit sharing, COAs and spot ratings that capture the market's upside.
All dark blue color vessels, 20 in the slides are on fixed rate time charters, while the light blue and red colored vessels or 69% of the fleet currently in the water And exposure in the market upside. That means that TEN is very well positioned to capture the positive tanker market fundamentals and the recovery in freight rates. And of course, we took advantage of the low freight environment to bring forward a number of scheduled Special surveys to have these vessels available once the target tanker freight market rebounds. And since Fleet modernity is a key element of our operating model. During the first half of twenty twenty one, We concluded the sale of 3 of our older tankers, a 2,003 built Panamax tanker and 2,005 built Suezmax tankers, which will be replaced with 6 new buildings plus 2 options that will enhance the company's environmental footprint As the 4 plus 2 newbuilding Aframax tankers are LNG powered dual fuel vessels, the 3rd such investments in the company's history.
In addition, we are building 1 more DP2 shuttle tanker and 1 LNG carrier. All firm Six new buildings are coming with long term employment attached. In Slide 5, the Left side presents the all in breakeven course for the various vessel types we operate in TEN. As you can see, the cost base continues to be low. And during the first half of twenty twenty one, the revenue generated from the time charter contracts was again sufficient to cover the company's CAS expenses, paying for all vessel OpEx, overheads, chartering costs, and loan interest.
In addition to the low Building costs, we must highlight the purchasing power of TCM, the continuous cost control efforts by management to maintain a low OpEx average for the fleet and the low general and administrative expenses, while keeping a very high fleet utilization rate quarter after quarter. Despite bringing forward scheduled dry dockings, we achieved overall 92% plus utilization for the fleet. And of course, Thanks to the profit sharing element, a cornerstone of TEN's chartering strategy for every $1,000 increase in spot rates, This has a positive impact of $0.62 in the annual EPS based on the number of 10 vessels that currently have exposure in the spot market. Debt reduction is also very important and is part of the capital allocation strategy of the company. Since our debt peaked in December of 2016, we have repaid $340,000,000 of debt and repurchased $100,000,000 in 2 series of step up In addition to bringing down debt, growing the company through timely sale and purchase and new building acquisitions, We continue to reward shareholders with dividend payments.
We paid $0.10 per share dividend to the common shareholders on July 20, 2021. TELUS has rewarded the company's shareholders with almost $500,000,000 in dividend payments or on average $26,000,000 per annum since the New York Stock exchange listing in 2002. Looking at the market, global oil demand continues to recover from the unprecedented collapse because of the COVID pandemic and the measures to contain it. 2020 was the 1st year of negative growth since the period of Great Recession in 2,000 and 82,009. Year end demand was approximately 8,600,000 barrels per day below the levels of the 2019 year end demand figures of approximately 100,000,000 barrels per day.
Most of the losses were in jet and aviation fuel. We expect demand growth of 5,200,000 barrels per day For 2021, 3,200,000 barrels per day growth in 2022. Bearing nonforeseen developments with the On the global supply front, OPEC plus producers continue to manage supply with discipline. Almost half of the 10,000,000 barrels Per day production cuts have returned to the market. The plan is for monthly increases of 400,000 barrels per day, which OPEC plus reviews and adjust in their monthly scheduled meetings.
As we enter winter in the Northern Hemisphere and peak seasonal demand, the release of additional barrels to the market should be a positive a further positive catalyst for tanker demand and tanker rates. Slide 9, with oil demand recovering, let us look at the forecast for the supply of tankers. The order book as of September stands at around 340 Tankers over the next 3 years or 6.8%, which is the lowest order book in more than 20 years. At the same time, a big part of the fleet, 1500 vessels or almost 30% of the fleet is over 15 years. And 382 tankers or 7.5 percent of the current tanker fleet are currently over 20 years.
Upcoming environmental regulations could push more tankers approaching or above 20 years to go for scrapping. In the next slide, We see that 2018 was the highest scrapping years of records with 21,900,000 deadweight ton removed from the market. Last year and the year before, as expected, scrapping was lower. We had a strong August this year and with scrap prices at very high levels, 6 100 at lightweight. We have so far seen 135 vessels exiting the market or 10 point 4,000,000 deadweight ton.
With more environmental regulations and 7.5% of the global fleet above 20 years, We expect the scrapping numbers for 2021 to increase, helping further the supply side of the business. To summarize, Oil demand, we see strong refinery we see the strong recovery to continue. On the supply of oil, Monthly production increases of at least 400,000 barrels per day by OPEC plus are bringing more cargoes to the market at the time when global oil stocks are below the 5 year And demand is increasing towards the pre COVID levels. On the order book and supply of tankers, The order book to current fleet ratio is at historical low levels. A big part of the fleet is reaching phase out age, which all points to tighter supply of tanker for the next 18 to 24 months.
Our company's balance sheet, we have built a crisis resistant operating model. We have a modern fleet well positioned to capture the market developments as we enter the seasonally strong Q4. We continue to reduce debt. We have a strong balance sheet and strong banking relationships that will allow the company to take advantage of the opportunities that will be present. And lastly, looking at how other shipping centers are doing, freight rates and asset prices for both containers and bulk carriers continue to be very strong.
And if past history can be guidance for the future, there is always a time lag for the positive spillover effect to the lagging shipping Sectors and so tankers should be the next shipping sector to enjoy a better freight rate environment. Supporting the above is the increased activity from major end users For long term business, which in our view is a vote of confidence that the recovery of the market is nearby. With the expectation of much better days ahead, I will ask Paul to walk you through the financial highlights of the second quarter and first half twenty twenty one. Paul?
Thank you, George. So despite the continuing stagnant market in quarter 2, TEN was able to generate gross revenue of nearly $137,000,000 and over $275,000,000 in the half year. Much of this was due to our ability to secure almost full utilization with 2 thirds of the fleet on time charter and despite 8 vessels undergoing drydocking, and that includes 4 vessels brought forward for drydocking. Of some significance in these times of squeezed liquidity for tankers, Time charter hire was still enough to cover our charter in costs, our operating expenses, our overheads and our cash finance costs and during the 6 month period, managing to reduce debt by nearly $87,000,000 That still left 32 of our 65 vessels in quarter 2 to operate in the spot market, where they successfully earned revenue over $65,000,000 covering all voyage expenses, which had been impacted by a large increase in fuel costs due to rising oil prices. Also fuel consumption increased as certain vessels completed their time charter and moved into the spot market to find more lucrative earnings where possible.
In June, Suezmax's Arctic and Antarctic was sold for a total of $45,000,000 incurring a modest loss of $5,800,000 but freeing cash of almost $17,000,000 after repaying related loans of $27,000,000 Excluding the loss on the sale of the Suezmaxes, net operating losses Which is $7,100,000 and the overall net loss was held to a relatively decent $13,800,000 in the circumstances. Our daily TCE per vessel in quarter 2 averaged $17,240 A strong performance compared to market average TCE given the difficult conditions and the dry dockings. TEN's overall expenses have been held down by our technical managers since the prior quarter, too, rising in total by only 4%. Operating expenses increased by $3,500,000 on the addition of a further vessel and also due to dry dockings, which this quarter included an LNG carrier, which especially pushed up expenses temporarily,
but left
the vessel in perfect condition to continue its time charter to a major LNG trader. A weaker dollar also contributed to higher costs, Although we expect this to reverse as the U. S. Economy continues to revise. So Average OpEx per vessel moderately increased, but in the 6 months, it fell to just over $7,800 while G and A costs stayed at exactly the same level as in the prior quarter too, bearing in mind that Fees, management fees, have not been increased for over 10 years.
Finance costs fell 46%, mainly due to reduced debt and lower interest rates and margins, while the cost of our debt has remained at only 2% And also, positive bunker hedge valuation movement amounted to over $3,000,000 And at this point, I'll now hand the call back to Nicolas.
Thank you, Paul. And Let's hope you will report with even more enthusiasm big profits sometime soon. Well, I think as it is clear, it has been a very trying period and it has been a trying period for all of us. And sometimes the trying period on the business segment, it has been secondary to what people have suffered around the world. So it is very good to be able to stay safe and maintain our course with a clear head Under these circumstances and finally, we are starting things becoming better on the period and the spot rates.
We are expecting the Chinese Golden Week to start Finning out and getting back to work next week, and we hope to see through that even more Even stronger rates going forward. And with this, I would be Very happy to answer any questions that you might have. Thank you very much.
Thank Your first question today comes from the line of Ben Nolan from Stifel. Please go ahead. Your line is open.
Thanks. So I've got a couple. I wanted to start with The vessels that you ordered, these are dual fuel, I believe the press release said dual fuel, LNG and conventional. Strategically, I guess, the question or where I'm headed on this is, obviously, most of what you do is On long term contract, but is it fair to say that given sort of the uncertainty with Back to fuel and emissions that at the moment, if you're going to be building anything, it probably is going to be dual fuel or was this a specific request of your customer and maybe you're less strict on sort of how you're what you would be looking to build?
Thank you. Thank you very much, Brennan. We took the, I would say, strategic decision not to invest in any conventional newbuildings anymore. So it is with our Strategic partners going
hand to
hand, taking a dive into future technology, I would say it's always better when you dive is to hold somebody's hand than dive into it by yourself. We are as uncertain as anybody that where the future will take us. The way we speak today and Is that the way we see today is that the dual fuel seems to be the medium term solution from now until 2,050. As you know, we are building ships that would last 20 to 25 years, And that's why we took this decision. So it is a decision based on the future and not a decision made on a piece of business That came, we have been offered quite a number of attractive business on conventional vessels, And we decided to pass because we have the Model 10 was created and you or most of your 2 youngs remember back in 1993 On the aftermath of the Opa 90, when we had to convert the whole world's tanker fleet Between 19,090,000 into the Double Double design.
And that's why it then was We started this very, very soon. Way before time, we had the full double double fleet. And I think that's what we're looking in the future with this new technology.
Okay. That's helpful. And then sort of following on to that, One of the, again, fuel challenges is the potential of carbon taxes In the not too distant future and as I understand it though it would be borne by the ship owner, That could, in theory, present a problem if you have a legacy time charter contract that doesn't isn't built to compensate for that. How do you think you or how do you manage through that If there is in fact, whatever it is, a $60.10 carbon tax or whatnot, how do you think that will be borne or Mitigated or handled on your part?
In most of our Fine charter contracts. We have foreseen and I would say I think this is something that I wearing my ex in Turtaco hack. I would add most of my other colleagues to foresee on the long term time charters to make sure that this will be shared between the charterers and the owners. I think that is fair. I think it is unfair for owners to carry the whole burden Of something like this, the owners are paying for the new technology.
We are building the new ships. We are making the investment as we did with the Double Double design 30 years ago. But then I think it has to be shared together with the end users and our charters. So I think so in our long term contracts and we have quite a few of them, We have the selling arrangement.
Okay.
That's helpful. And then last, Just out of curiosity, I mean, it's October 7. I mean, the last Tanker company report was 2 months ago. Any color as to how we're so behind schedule?
Yes. Well, it had to do a lot, but we were planning finally after 20 long months to be here in the United States and do a roadshow. So we wanted to do this on our results. The migration legislations, the COVID would not allow us to come. We were trying to come end of August, the end of September.
And The only reason we were able to I was able to get a permit to come was because of my award for the Hall of Fame 2 days ago. So we said it would be good to be here in New York, could do the results. So immediately, we could do a roadshow, not to be in a block period. So That's right. It was postponed like my award.
I was supposed to be getting this award at the CMA in March 2020. So I'm glad I got it alive. Well,
congratulations and welcome to The U. S. And I was I traveled internationally last week and it felt nice to use my passport again. So anyway, I appreciate it. Thanks so much, Nick.
Thank you.
Thank you. Your next question comes from the line of Magnus Fuhr from H. C. Wainwright. Please go ahead.
Your line is open.
Good afternoon, team, Chagos, and congratulations, Nikos, to the award and the new contracts for the Aframaxes. Thank you.
Thank you, Lucas.
All right.
Couple of questions, just a follow-up on those contracts. I know you stated a few. It could potentially be $350,000,000 Can you give a little more flavor on what kind of targeted returns and the additional costs over a regular Aframax newbuild that the ZLNG capability would cost. And it looks like they're somewhere in the ballpark of 6 years contracts. I don't know if you can comment further on that.
Thank you.
Yes. I think That's quite accurate, what you have said. I think the we were able to Achieve the contracts because of our long relationships and being, I would say, one of the companies that we have been Always faithful to our shipbuilders and not really jumping from country to country. So that's another We have put our continued trust to Korean shipbuilding and our Actually, our new building team has been there since the '90s without moving because we keep on building vessels there, which gives us at least the comfort that technologically, in this new environment, we're not taking too many chances. Of course, the cost we were able to achieve the
pre explosion
of the steel prices environment. And I think today, those ships have an additional 15% to 20% value, at least 15 percent for sure value as we go because steel prices, as you know, have gone through the roof as most commodities Have been going through the roof. So we are glad we were able to build really the previous 4 vessels for The U. S. Major oil company and those 6 at the pre up price prices for new buildings.
But however, still there is a significant another 10% at least 10% to 15% higher price due to the very complicated and excitingly new technology.
Okay, good. And
As far as timing and financing of these vessels, can you comment on what kind of
delivery time frame you would see? Well, we are hopeful. We are very certain we will start taking delivery of those ships Every quarter in 2023. And but in the meantime, we still have quite a few deliveries That are right now a lot into the money in a very big way. We have our LNG coming for delivery in January.
The Tenergy, and it is I mean, you've seen
what has happened to
the LNG markets and to the LNG value. So I think that vessel Today is at least EUR 30,000,000 more. We could flip here if
we hope for EUR 30,000,000 at least
more than what We have paid for her, which is a good situation to be into. And then later in the year, in April, we have Our next Brazilian endeavor with our shuttle tanker. So we will have things to do from now until the Your fuels will be coming for delivery.
All right. So should we assume that
you already spent the 10% down And then just regular down payment performance payments
in 2022? That's correct.
All right. So the last question and I'll let you over to somebody else to ask questions. But the cash balance have declined here. You still have a significant cash balance. My question is, can you still sleep at night with $140,000,000 on the balance sheet?
Well, I've been criticized in the past for having too much Cash in the balance sheet and the reason and now you can see why it was the correct thing to do. Yes, I think we are as I said, we are hopeful that with the market Turning and most of our obligations have are out of the way. Don't forget, we had to we do not have any more obligations For the delivery of either our shuttle tankers or our LNGs. These are money that we have paid. The company takes very seriously its cash management.
We have reduced debt from the peak in 20 And that's all from the company's cash. And on top of that, we have repaid $100,000,000 of our step up preferreds. So we are reducing significantly our obligations. And we're enjoying very low A debt environment which today is under 2%. So I think our WACC cost of capital is very, very low and that's why we feel comfortable.
And do not forget that we have close to 2 1,000,000,000 sorry, dollars 2,000,000,000 or 1,700,000 lightweight tons of steel. So our whole fleet, our debt in our fleet is about 1.35, which is supported by in excess of $1,000,000,000 of scrap values and still a very, very, very, very young fleet. With all this, I think Paul referred to a comfortable situation in today's market environment, of course.
Yes. That's an interesting way to look at it. Nikos, thank you for answering my questions, and congratulations to your award.
Thank you. Thank you very much.
Thank you. Your next question comes from the line of Jefferies. Please go ahead. Your line is open.
Hey, good morning, team Chalkos. This is Chris Robertson on for Randy. How are you?
Hi, very well. Thank you. Finally on this side of the Atlantic.
Yes. Congratulations on the award as well. I guess just following up on the newbuild questions that were asked. Is it fair to say that you put down payments On 4 out of the 6? And then can you discuss kind of the timing for the option period on the additional 2?
Yes, yes, that's the situation and I think it will be for January 2022.
Okay. And then can you talk about any of the other systems Aside from the propulsion, obviously, that will be maybe a new design or upgrade that will be able to comply with the new Phase 3 requirements for the
EEDI? Well, I think I have I hope
we have our newbuilding department on the line, but I think from This is going to be an engineer's dream. And I have one of my daughters, she's threatening to study engineering. So I think it will be a very good time to follow-up the construction of those ships for all her since I don't know why she wants to become an engineer, It's good to have someone in the family in this, but it is going to be really breaking new ground. It will be based on what we already experienced on our LNG vessels. So I think we have the knowledge of operating those ships due to the similarity of the LNG vessels that are dual or sometimes dry fuel ships.
The challenges are going to be the containment system for the gas, which in the design profile will be in tanks instead of being allocated spaces on deck, which happens in retrofit vessels. So I think we're going for the whole having a very, very Demanding and high class shutter, we are going for the whole ship. And as we said, I think We are excited that we're starting this phase of the new design of ships. So again, against A very long charter as we did back in 1998 when we built against a 50 year contract, A number of our first sorry, 1996, our first double double ships.
Sure. I guess moving on to the ATM program. Can you talk about kind of the breakdown between the preferred shares versus common shares? And how are you guys thinking about that in terms of the
Yes. Well, I think we have I made a breakdown in the press release about the ATM program. And I think we have about $20,000,000 have come from the common and $15,000,000 from the preferred So far. And we find the ATM program as a very efficient and Expensive way to create liquidity in the market, and I think it will continue in a measured
And can you briefly comment on the remaining authorization in that program?
I think it's George Sharoglou, if you're listening, he's the one who's keeping all the
What is it, George? Is it EUR 50,000,000 or Yes, close to this level. 15, it's approximately another 15, 15. 15, 15.
Got you. Thank you.
Thank
you. All right.
I think
that's it for us. Thank you, guys.
Thank you very much.
Thank you. I will now hand the call back for any closing remarks.
Well, again, it has been a real pleasure to Be able to be back in the United States and hopefully have spent a little time seeing now that we have Our results out with our shareholders later this week and next week. We have Enter the new phase of development for the company. We expect this phase of development to take us to a much greener Environment and we always follow the environmental calls in a big way and we're very excited about this. And the signs of our markets are looking finally better in numbers and not just in filling, and we'll hope that this We will continue. And in our next call, we will have much better news.
Thank you for all your support following the company. And please let Nick Bornozis know and the team if you would like to have any one on ones now that I am finally free to come and visit. Thank you very much.
Thank you. That does conclude our conference for today. Thank you for participating. You may all disconnect.