Tim Chang

Tim Chang, on behalf of Bank of America, inquired if the anticipated tanker rate uplift from OPEC+ production increases would primarily materialize in Q4 2025 due to Q3 seasonality. He also asked for an explanation of the significant increase in 'other revenue' and its expected run rate.

Answer

Christian Waldegrave, Director of Research, confirmed that increased oil volumes from the Middle East, Guyana, and Brazil, combined with winter seasonality and geopolitical factors, are expected to support stronger rates in the latter part of the year. CFO Brody Speers explained that 'other revenue' was elevated by a one-time $6 million charge related to an expired FPSO contract, which is not expected to recur.

Speaking on behalf of Ken Hoexter, Tim Chang of Bank of America asked if the anticipated tanker rate uplift from OPEC+ production increases would primarily materialize in Q4, given Q3's seasonal softness. He also requested an explanation for the material increase in 'other revenue' to $42 million and guidance on its future run rate.

Answer

Christian Waldegrave, Director of Research, affirmed that increased oil volumes from the Middle East, Guyana, and Brazil, combined with geopolitical factors, are expected to drive stronger rates and volatility in the latter part of the year. CFO Brody Speers explained that 'other revenue' was elevated by a one-time, $6 million flow-through charge related to a restructured contract for an Australian FPSO, and this amount is not indicative of the normal run rate.

Tim Chang from Bank of America inquired if the anticipated tanker rate uplift from OPEC+ and non-OPEC production increases would primarily occur in Q4, and also asked about the significant increase in 'other revenue'.

Answer

Christian Waldegrave, Director of Research, confirmed that increased oil volumes and seasonality should lead to stronger rates in the latter part of the year. CFO Brody Speers clarified that the 'other revenue' increase was due to a one-time, approximately $6 million charge related to an expired FPSO contract, which is not a recurring item.

Tim Chang from Bank of America inquired about the timing of the expected tanker rate uplift from OPEC+ production changes, asking if the impact would be concentrated in Q4. He also questioned the significant increase in 'other revenue' and its future run rate.

Answer

Christian Waldegrave, Director of Research, confirmed expectations for stronger rates in the latter part of the year, driven by increased oil volumes, seasonal demand, and geopolitical factors. CFO Brody Speers clarified that the 'other revenue' increase was due to a one-time $6 million flow-through charge related to an expired FPSO contract and is not indicative of a new run rate.

Tim Chang, representing Bank of America, asked for timing on the expected tanker rate uplift from OPEC+ production increases and rising Atlantic Basin supply, questioning if the impact would be concentrated in Q4. He also sought an explanation for the significant sequential increase in 'other revenue' and guidance on its future run rate.

Answer

Christian Waldegrave, Director of Research, confirmed that increased oil volumes from the Middle East, Guyana, and Brazil, combined with winter seasonality and geopolitical factors, are expected to drive stronger and more volatile rates in the latter part of the year. CFO Brody Speers clarified that the Q2 'other revenue' was elevated by a one-time, $6 million customer-funded restructuring charge for an expired FPSO contract, indicating it is not a recurring item.