Tsakos Energy Navigation - Q1 2023

Transcript

Operator (participant)

Thank you for standing by, ladies and gentlemen, and welcome to Tsakos Energy Navigation conference call on the first quarter 2023 financial results. We have with us Mr. Takis Arapoglou, Chairman of the Board, Dr. Nikolas 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, at which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Now I pass the floor to Mr. Nicolas Bornozis, President of Capital Link, Investor Relations Advisor with Tsakos Energy Navigation. Please go ahead, sir.

Nicolas Bornozis (President of Capital Link and Investor Relations Advisor)

Thank you very much, and good morning to all of our participants. I am Nicolas Bornozis of Capital Link, Investor Relations Advisor to Tsakos Energy Navigation. This morning, the company publicly released its financial results for the first quarter, ended March 31st, 2023. In case you do not have a copy of today's earnings release, please call us at 212-661-7566, or email us at [email protected], and we will have a copy for you emailed right away. Please note that parallel to today's conference call, 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 in archives on the website of the company after the conference call. Also, please note that the slides of the webcast presentation are user-controlled, and 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 slide and the slide presentation contain 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.

Before passing the floor to the chairman, I would like to highlight that as mentioned in the press release today, TEN celebrates 30 years as a public company. I'd like to extend my own congratulations to Dr. Tsakos and the entire team. The company is kicking off 2023 with a record quarter in terms of performance and results. At this moment, I would like to pass the floor to Mr. Takis Arapoglou, the Chairman of Tsakos Energy Navigation. Please go ahead, Mr. Arapoglou.

Takis Arapoglou (Chairman of the Board)

Thank you. Thank you, Nicolas. Hello, and welcome everyone, and thank you for joining us on our call today. I must congratulate management for an extraordinary set of record first quarter results and seller operational performance, and also congratulate TEN as a whole for celebrating 30 years as a public company, 30 years of uninterrupted growth. Many happy returns to TEN. We continue to benefit from the prevailing solid market fundamentals, building healthy cash reserves, which allows us to maintain our policy of redeeming expensive preferred issues when we can, steadily reducing debt and paying seriously increased dividends, in this year's case, a dividend 140% higher than in 2022.

Subject to the market continuation of this firm in market, the board may consider paying an extraordinary dividend during 2023, over and above the already announced annual common dividend of $0.60 per share. At the same time, we take advantage of the prevailing attractive charter rates, locking in accretive long-term deployments for our vessels, resulting in over $1.6 billion of future contracted revenues over the next three years, which of course, secures a high and sustainable, profitable performance. Our vessels operating in spot are taking advantage of the high rates in the market, as is the case with our vessels benefiting from profit-sharing arrangements.

All this, the combination of all this puts us in a position to comfortably continue, as always, to consider new strategic accretive investment, divestment opportunities as and when these may arise, in order to grow TEN further, always in a measured and prudent way and for the benefit of our shareholders. Congratulations again to management and employees of TEN, best wishes for another 30 years of successes. I'll now pass the floor on to our CEO and President, Nico Tsakos. Thank you.

Nikolas Tsakos (President and CEO)

Thank you, Chairman. Thank you, Nicolas, good morning, good afternoon to everybody. It's with great pride that we are celebrating our 30th anniversary, the year that the company was established, started as a small garage type of startup with four vessels to where it has been today. Also we're celebrating it together with a lot of friends, a lot of colleagues who have been with us all the way. A lot of new colleagues that are carrying the torch now. Of course, we're even happier that we can report record earnings on our 30th anniversary.

Like last year, which was our 20th continuous year on the New York Stock Exchange, we also had the luck to celebrate a record year, and we hope that this year is going to be another record year. For us TEN means personally a lot, also for me and the family. It's a very big part of our lives. How big I will not reveal, because I will give out my age, which most of you know. I can say that very soon it's going to be more than half of my life in dealing with a company that we all enjoy and our shareholders. It's really a scary thought to think of this.

Of course, it's not only the longevity of the company, it marks a lot of milestones for us going forward. The year that we actually started our quotation on the New York Stock Exchange, we had the arrival of our son. He has proven a great investment so far, and even a better investment in 2004, the order of our first LNG, together with the arrival of our two daughters. This year, a record year on the roll out of the house and in colleges around the world. It's been a long process, but it has been an exciting process building the company with friends all over the world.

The way we see the future is that we are in a period that I have never experienced in my, as I mentioned, 30 years of working life, in which the order book has never been so dry, to use that expression. Never in the last 30 years we've seen, you know, a percentage of 3% or 4% of the whole fleet being built. Some categories are really completely unattainable to compete with the demand that is coming. We're seeing demand coming back after the couple of long COVID years, more ton-miles because of the war. Occasional closures of canal. I mean, as you know, we have delays many times in the Bosphorus, mainly in the winter, that have an effect on the market

Right now, we're seeing a very strange situation in the Panama Canal, where because of drought, there's a significant need of dredging and a big number of our larger ships, including our LNGs, not only ours, big containers, Suezmax and VLCCs, either have to wait for long queues, or they have to decide to do additional long ton-miles going around, you know, around South America in order to get to the other side. Every small right now, the market is so balanced that every small detail makes the market even stronger. This is how we are looking at a very good as far as supply and demand situation. We're seeing more refill of strategic reverse reserves around the world.

The driving season, and I hope all of our good friends will take the time and enjoy driving around, started yesterday in the U.S. and in other part of the world. With that, I would say that we believe that this market has legs to go forward. Talking about forward, I will ask George to give us a little bit, a quick synopsis of the past.

George Saroglou (COO)

Very good. Thank you very much, Nikolas. Good morning to all of you joining our earnings call today. We celebrate 30 years as a public company this year. This morning we reported record profits for the first quarter of 2023, the best quarter in the company's history since inception. Key takeaways. First of all, we continue to experience the largest change in trade flows to ongoing crude and oil product movements as a result of the war and Western sanctions on Russian seaborne oil. As the war in Ukraine continues, these changes appear to be permanent. Europe, before the war, was the biggest client of Russian oil. Since the war managed to replace these barrels from the United States, West Africa, South America, Guyana and the Middle East, creating a positive ton-mile multiplier effect for tanker demand and freight rates.

At the same time, tanker new buildings are at an all-time low, with new orders being less than 5% of the existing fleet. Many yards are now booking orders after the end of 2025. At the same time, global oil demand is growing based on the latest monthly forecast from the International Energy Agency, which revised global oil demand upward by 200,000 bbl in May. This year, global oil demand is expected to grow on average by 2.2 MMbpd. If or when realized, it will be an all-time record at 102 MMbpd. Most of the demand growth is expected to come from non-OECD Asia, and especially China.

Despite potential global headwinds like steep inflation, tightening global financial condition, the war in Ukraine and the OPEC+ production cuts announced in May, the global economy is expected to continue growing this year. Oil demand, as we mentioned, is growing and tanker fundamentals favor a strong tanker market for the next two to three years. Going to the slides in our presentation, if we start with slide number three, we see that since inception in 1993, we have faced five major crises, and each time the company came out stronger, thanks to its operating model. Recently, we came out of the COVID pandemic and continued to navigate the challenges created by the war in Ukraine. The fundamentals record low order book for tankers, the aging fleet and the post-COVID oil demand recovery, even without the tragic war, were positive for our industry.

The Western sanctions and price cap imposed on Russian seaborne oil served as an additional catalyst to propel trade rates higher, as long-established trade routes were disrupted and voyage distances elongated. Almost all of the Russian volumes are now flowing long haul to India and China. At the same time, U.S. crude oil exports have gone up from averaging about 3.1 MMbpd last year to about 4.1 MMbpd today. In the next slide, we see the company's fleet growth and capital market access since inception. We raised capital for growth, not at the top of the market, but at times when asset prices were usually low. The numbers in the blue boxes present the company's common share offerings, and in red, the series of preferred shares offering since our listing in the New York Stock Exchange.

The first two preferred series of $50 million each, the Series B and Series C, have already been redeemed at par. Today, we announced the redemption of the third preferred series, the Series D. Redemption will take place on July 7th. The company will pay approximately $88 million to the holders of the Series D preferred. Since 2019, the company has bought back and retired $188 million of preferred shares, saving preferred annual dividend payments of approximately $16.1 million per year. In the next slide, we see the fleet and its current fleet employment. We have an operational fleet of 58 vessels, with 31 out of the 58 or 53% of the fleet in the water having market exposure, a combination of spot, contract of affreightments and time charters with profit sharings.

41 out of the 58 vessels or 77% of the fleet are in secured contracts, fixed time charters and time charter with profit sharing. This means that TEN is well positioned to continue capturing the positive tanker market fundamentals, as evidenced also by the company's first quarter results. Since the start of the year, we have renewed and/or extended some 15 of our tankers to time charters with higher fixed time charter rates or higher minimum base rates and higher profit sharing schemes. Fleet modernity is a key element of our operating model. We sold during the first quarter of the year, eight tankers, six 2005 built MRs, and two 2006 built handy-size tankers, realizing a capital gain of $81 million by taking advantage of strong demand for second-hand tonnage.

We also bought back with company cash two 2005 built Suezmaxes for a price under the fair market value. With these Suezmaxes currently operating in the spot market, management is exploring divestment opportunities as asset prices for quality second-hand tonnage will continue to remain strong. Any divestment of earlier generation vessels will be replaced with modern, eco-friendly, greener vessels. TEN has currently a new building program of eight tankers, consisting of two shuttle tankers for delivery during 2025, four dual-fuel Aframaxes for delivery in the second half of this year and first quarter of next, plus two eco-friendly scrubber-fitted Suezmaxes. Except for the two Suezmaxes that will be delivered after two years, the rest of the company's new buildings have been fixed forward against medium to long-term time charters.

Slide six shows the company's current and long-term clients. As you see, we have a blue chip customer base consisting of all major global energy companies, refineries, commodity traders, with Equinor currently topping the list as our largest charterer with nine vessels and four new buildings, all on long-term time charters. On slide seven, the left side presents the oil breakeven cost for the various vessel types we operate in TEN. We have a simple operating model. We try to have our time charter vessels generate revenue to cover the company's cost expenses, pay for the vessel operating expenses, finance expenses, overheads, chartering costs and commissions, and let revenue from the spot trading vessels contribute to the profitability of the company.

Fleet utilization in the first quarter of 2023 amounted to 96.4%, reflecting efficient technical management and the low number of scheduled dry docking during the period. Thanks to the profit sharing element, for every $1,000 per day increase in spot rates, we have a positive impact of $0.15 in annual EPS based on the number of TEN vessels that currently have exposure to spot rates. Debt reduction is an integral part of the company's capital allocation strategy. Our debt peaked in December of 2016. Since then, we have repaid $663 million of debt and repurchased $188 million of three series of preferred shares, including the Series D we announced today. Slide nine is a snapshot of the company's main financial metrics and performance since 2004.

We need to highlight here the growth of the fleet. We have almost doubled the fleet since 2004. We have maintained more than that. We have maintained very strong a strong balance sheet, very strong cash reserves, and at the same time, for most of the period, we have maintained a very profitable operation. How this strong operating performance and financial performance translates for our shareholders, it translates through the different dividend distribution, which is in addition to paying down debt, as dividend continuity is important for the common shareholders and management. TEN has always paid a dividend irrespective of the market cycle.

$0.30 will be paid on June 15. Another $0.30 will be paid in December at a date that will be announced later in the year and closer to the December distribution. If we compare the $0.60 that will be paid this year against the $0.25 paid last year, the dividend distribution has been increased by 140%. If, in total, following this year, $0.60, the company would have distributed in excess of $516 million to its shareholders since the listing in 2002. The market continues to be... global oil demand continues to recover as the world emerges from the COVID pandemic, and despite financial and geopolitical headwinds, as we mentioned earlier, the International Energy Agency expects global oil demand to grow by approximately 2.2 MMbpd this year.

Most of the growth is going to come from Asia Pacific, fueled mostly by the resurgent China. On the supply side, most of the growth in 2023 is expected to come from non-OPEC countries, including Brazil, U.S.A., Guyana, Canada, Mexico, and Norway. As global oil demand continues to grow, let's look at the forecast for the supply of tanker. The order book stands at less than 5% over the next three years, which is the lowest it has been in the last 30 years. At the same time, a big part of the fleet is over 15 years, and we currently have almost 11% of the fleet that is over 20 years. The last slide is the slide that shows the scrapping activity since 2018.

We have upcoming regulations, an industry that is decarbonizing initiatives and almost 11% of the fleet being over 20 years. We think that all these factors point to a balanced tanker supply market for the next few years. With that, I will ask Paul to walk you through the financial highlights of the first quarter. Paul?

Paul Durham (CFO)

Thank you, George. Well, in the first quarter, the company achieved a net income of $96 million before gains. Total revenue amounted to $261 million, an increase of 75% over the prior year, that contributed $236 million EBITDA, compared to only $42 million in the prior Q1. Our time charter has generated $136 million, and spot freight provided $125 million.

This clearly indicates that the tanker market had considerable strength in the opening weeks of the year, and even now, despite demand concerns, that George has pointed out with respect to potential cuts, the sale of the new vessels of our, beg your pardon, of our vessels in the new year, as mentioned in the press release, also generated extra cash, proving asset values are also buoyant. In all, the first quarter, including vessel sales, resulted in net income of $177 million, a record net income for the first quarter. Our total vessel utilization reached maximum employment, helped by having just two vessels in dry dock.

Our Suezmaxes and Aframaxes participated in a market that provided high rates upwards of $60,000 per day, which, together with our smaller vessels, led to a daily average TCE of over $42,000 per vessel in Q1, and double that of in the prior Q1. OpEx increased, but much was due to inflationary factors and because we used a large part of our cash reserves to build up our vessel supplies and increase maintenance throughout the fleet. Cash resources continue to grow and have by now increased to record heights, allowing a welcome reduction to our outstanding preferred shares that will have a positive impact on our bottom line through many quarters in the future. As a result of bringing our Q1 operations into readiness, our fleet, as always, is in a perfect state to serve our customers.

There we have it, and that's a fairly calm quarter one.

George Saroglou (COO)

I hope we'll do as well or even better for the next quarter, Paul.

Paul Durham (CFO)

Yeah.

Nikolas Tsakos (President and CEO)

Good. Thank you. Thank you, Paul. Thank you, George. Sounds like the Beatles. Thank you, Paul. Thank you, George. On that note, again, I would like to restate that the market fundamentals, the way we have placed the company, the strategy of always maintaining ships in the spot market, but also ships with high utilization that makes us always, even in difficult times, be able to have the propeller earn at least 96% of the quarter, has made the company be able to navigate, as we shown the slide that George has left on the screen, even in difficult times, has always been able to pay a dividend, has always been able to grow. Never had an issue.

I guess we are one of the handful of companies that we have never, ever negotiated any of our loans or banking facilities. We have, I mean, kept on paying and reducing significantly our debts. We peaked at difficult times because the time to invest in ships is when the market is low, and we have picked our debt at around $1.8 million back in 2016. Since then, we have not only reduced our debt, but at the same time grow our fleet from internal cash flows. Also, as George said, we will be reducing by another $188 million and perhaps more our perpetuals.

These are perpetual preferred, so we don't have to reduce them, but I believe it's good housekeeping for us. It makes our balance sheet simpler, and it saves at least $17 million straight from our bottom line, on interest savings. In a period where interest rates have been growing in around the inflationary world that we are living with. We took advantage of this market in just in the first quarter, we have rechartered or new charters of 15 ships at significantly higher levels and for significant long periods of time, anything between from 15 years down to two years.

That gives us a mix of business of $1.6 billion with an average duration of three and a half years, which is something that we know that going forward, the company has secured paying all its obligations and grow even if the spot market goes under break-even. This is the position we are right now. With this, I would like to open the floor for all of us, if you have any questions. Thank you.

Operator (participant)

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for your questions. Our first questions come from the line of Omar Nokta with Jefferies. Please proceed with your question.

Omar Nokta (Managing Director)

Thank you. Hey, guys good afternoon. Thanks for the update. You know, congratulations on yet another record-setting quarter and very strong performance. Just wanted to ask maybe, you know, strategically in big picture about, you know, Tsakos going forward. You know, recently you've exited the MR segment, you got out of those older vessels. And your investments here recently have tended to be much more within the shuttle tankers or in the crude Suezmax, Aframax segment, and you've also got LNG. Just wanted to maybe think about or ask, when we think about Tsakos in the future or going forward in terms of capital allocation, is it really maybe within these three buckets that you're looking to deploy capital? It's either within shuttle tankers, it's within mid-size crude and within, say, LNG.

Is it those three buckets that make up the primary, sort of long-term picture for the company?

Nikolas Tsakos (President and CEO)

Yes, thank you, and good morning. Well, these are high-end parts of the business that we have the internal expertise, as you know, and we're waiting for your visit. Don't wait for Posidonia to come visit us. The office is still running even though without Posidonia. We have new developments in our mainly in our control procedures. We have new control stations for our ships. We'll be looking very forward to see you. You know, I mean, we run everything in-house. For us, the more demanding the trades are, they give us a better return, but it's something we can handle internally. We tend to focus to the high end of the business that is required by the major oil companies.

This does not exclude that we will look at opportunities like the MR segment, because we always like to have a, you know, a participation in it. The last participation ended up being a very successful one when we, when we actually build those ships back 18 years ago now. We were all much younger if you look at the delivery pictures, but it was. You know, we never expected that those ships would have such a good performance after 18 years, and have proven to be one of our, of our best return over the years. However, it's true that we are focusing on the bigger sizes, shuttle tankers, LNG, Suezmax, and VLCCs.

Omar Nokta (Managing Director)

Great. Thank you. Then, maybe just on the two Suezmax new buildings, the ones that are scrubber-fitted, you're having employment discussions on those two. How would you characterize those types of discussions? What I mean is, are they kind of project-style long-term charters similar to the dual-fuel Aframax that you have or the shuttle tankers? Are these more charters you're seeking to de-risk the new building investment?

Nikolas Tsakos (President and CEO)

Well, I think, you know, it is, it is more of charters want to secure a good quality operator, with a long-term employment. It is not so much on specific contracts, but is the more the major companies are looking to secure ships. There are very few ships out there. Right now, you know, very few of us understand or know what will be the next phase of of the engines. You know, is it going to be dual-fuel with ammonia, with LNG, with methanol? There's a wait-and-see situation.

There is a lack of ships, and when ships of that quality in the most, I would say, prestigious yards in the world are being built by a good operator, there are a lot in demand.

Omar Nokta (Managing Director)

Got it. Thank you. Maybe just one final one for me. Just within, say, LNG, wanted to ask kind of what you're seeing in that market opportunities-wise. We've seen the spot market come off here recently, part of it seasonality, part of it pressure on LNG prices. Generally, we've seen the spot come off, but the term market appears that it's much firmer. Just wanted to ask kind of if you can give some color on what you're seeing in the term charter market for LNG, and then also if you're seeing opportunities to go into new buildings there against long-term contracts.

Nikolas Tsakos (President and CEO)

Yeah, I think you're very right to say that the spot market right now, it's around $50,000 down from $100,000 just six months ago. We have been, I guess, always, you know, lucky or ahead, and we have chartered our vessels out for very, very, very perhaps for a very long times at very profitable levels. We actually jumped on the charter long-term wagon sometime in the third, fourth quarter last year, and we have been able to secure a 12-to-15-year employment on one of those ships at very accretive levels. Another 11, 10-to-11-year employment, again, with profit-sharing arrangements on another, and a very good year of extension on the third.

I think we're going to be, at least from our LNGs, we're going to be enjoying, locking in, the high end of the business. I expect that as more the turbine vessels are coming up for renewal in business, and there is a significant new building order book, and that's, you know, perhaps the most in all the energy segment right now, we will see correction in that market. We are always there to participate. I mean, it's a market that we, you know, we want to participate more and more, but we always do it at the right time. The difference between us and when the LNG-specific companies is that we are not pressured to invest in LNGs in order for us to grow our company.

At the same time, as you said, we can do a shuttle tanker, we can do a Suezmax, we can do an MR. The board sits around the table and says: What are the best returns? I think this is what makes TEN special. you know, we do not have to follow just, you know, LNG. LNG is going to be part of our growth, but not, because, you know, not if it's not the best return.

Omar Nokta (Managing Director)

Yeah, that's very clear. Thank you. Very, very helpful. I will turn it over, and, you know, looking forward to my visit to your offices before possible.

Nikolas Tsakos (President and CEO)

Thank you.

Operator (participant)

Thank you. Our next questions come from the line of Climent Molins with Value Investor's Edge. Please proceed with your questions.

Climent Molins (Head of Shipping Research)

Good afternoon. Thank you for taking my questions. I wanted to start by congratulating the team for reaching the 30-year mark.

Nikolas Tsakos (President and CEO)

Thank you. Thank you very much.

Climent Molins (Head of Shipping Research)

In the press release, you mentioned you have secured new contracts and extensions for 15 vessels, including two LNG carriers. Could you provide some commentary on the duration and the expected contribution from the new contract on the Neo Energy?

Nikolas Tsakos (President and CEO)

We would like very much to tell you all these things in private. Please don't feel free. What I can tell you is that the contribution of the 15 new charters and extensions that happened, you know, since the last quarter is of the magnitude of in excess of $500 million in freight, which will which has brought our next three and a half year forward employment, future employment to income coming to $1.6 billion. What we can say is that the Neo Energy has been chartered with a very healthy six-figure number.

if this is we would be happy to, you know, to answer your questions in private in order to avoid, you know, confusing other people with our business.

Climent Molins (Head of Shipping Research)

Makes sense. We'll do that. Thanks for the color. On the press release, you also mentioned that the board may declare an extra dividend on top of the one you already announced. I was wondering, could you provide some additional insight on what the drivers behind the decision would be? Is there a specific metric they would look at, such as cash on the balance sheet or the outlook, or is it a mix of several factors?

Nikolas Tsakos (President and CEO)

Well, this question, we have the luxury to have the chairman of our board here. Mr. Chairman, please, give us a little color to what will take you us to convince you to give a higher dividend?

Takis Arapoglou (Chairman of the Board)

Thank you, Nico. An extraordinary dividend, we will examine that. We'll see how business will progress for the remainder of the next few months. It's a judgment call. There are no triggers. And it all depends on the numbers that we expect to see that they materialize. So it is not based, it will not be based on any triggers or formulas or whatever. It's, we really need to be convinced that what we see as being a sustainable performance really materializes. That's all.

Climent Molins (Head of Shipping Research)

All right. Thank you for the color. That's all from me. Thank you for taking my questions, and congratulations for the quarter.

Nikolas Tsakos (President and CEO)

Thank you.

Operator (participant)

Thank you. There are no further questions at this time. I would now like to hand the call back over to Nikolas Tsakos for any closing comments.

Nikolas Tsakos (President and CEO)

Well, thank you very much for participating in our first quarter. We hope our second quarter in the six-month results to be as good or better. I mean, I think we're going to be seeing the significant increases of new charters that we talked about actually becoming numbers in the second quarter and third quarter. I think because a lot of the business that we actually concluded in the last eight weeks are going to be delivered within this period of time. We're looking at a good, healthy year going forward. This is as we said, it's a milestone year for us. It's 30 year as an entity, as a public company. We will be celebrating again, but doing some business in the meantime.

Whoever is in London, on the, during the shipping, London International Shipping Week, in middle of September, at TEN, we'll be sponsoring a big, shipping seminar and offering a few drinks, for, celebrating our 30 years in the IMO building. The building where our board member and head of our operations and environmental committee, Mr. Mitropoulos, has a lot of memories from being the Secretary General. I'm taking this opportunity to wish you happy birthday, and thank you, Mr. Mitropoulos, for celebrating your birthday with us today. It during a very important time.

Of course, the actual date of our first listing on the Oslo Stock Exchange was the October 10th, 1993, for those of us who still remember the past, which is good. We will be celebrating that, thanks to Capital Link's arrangements, and I think Nick is listening in New York, together with parts of the family, having both my daughters studying at Columbia University in New York at the time. They will be the main entertainment of that period. They're here listening in, that's why I'm saying this. That will be another good opportunity for us to meet the shareholders face-to-face.

Of course, the team is going to be in New York during Marine Money, which is in a couple of weeks. We take this opportunity to thank you for your trust and looking forward. I mean, what we did last year when we were celebrating 20 years on the New York Stock Exchange, we called it TEN or 20, and our share price broke 20 for a considerable time. Now, it's under that. It's very undervalued. Now, TEN or 30, it's a higher, you know, higher target, but you never know. I hope we can achieve it. Thank you very much.

Operator (participant)

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect at this time. Enjoy the rest of your day.