Question · Q4 2018
Randy Giveans from Jefferies inquired about the company's IMO 2020 compliance plan, specifically regarding VLSFO availability, and its strategy for fleet renewal. He also asked for the interest rate on the new Beal Bank credit facility.
Answer
Chairman and CEO Herbjørn Hansson and CFO Bjørn Giæver explained that their vessels already use compliant fuel in certain areas and that the company's strategy is to avoid the risks of scrubbers by burning cleaner fuels. For fleet renewal, Hansson stated a preference for acquiring secondhand ships over newbuilds to manage financial burden. He also indicated the interest rate for the new financing is in the 6% to 8% range.