Earnings Call Transcript - ESEA Q3 2020

Operator, Operator

Thank you for standing by ladies and gentlemen. And welcome to the Euroseas Conference Call on the Third Quarter 2020 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer and Mr. Tasos Aslidis, Chief Financial 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. Please be reminded that the company announce their results with the press release that has been publicly distributed. But before passing on the floor to Mr. Pittas, I would like to remind everyone that in today's presentation on conference call, Euroseas will be making forward-looking statements. These statements all within the meaning of the federal securities laws. Matter discussed may be forward-looking statements which are based on current management's expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to Slide number 2 of the webcast presentation, which has the full forward-looking statements and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it. And now I would like to pass the floor to Mr. Pittas. Please go ahead sir.

Aristides Pittas, CEO

Good afternoon, ladies and gentlemen, and welcome to the scheduled conference call for today. Together with me is Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three and nine month period ended September 30, 2020. Let's turn to Slide 3 to see our income statement highlights. For the third quarter, we reported total revenue of $12.3 million. Net income was $0.2 million and net income attributable to common shareholders after the $0.2 million dividend on the Series B preferred shares was $30,000 or $0.01 gain per share basic and diluted. Adjusted the net loss attributable to common shareholders for the period was $1.5 million or $0.26 per share basic and diluted after taking into account one-off sales proceeds and some below current market cycles. Adjusted EBITDA was $1.2 million. Tasos will review our financial highlights in more detail later on in the presentation. Please turn to Slide 4 to view in detail our recent chartering operation and sale and purchase developments. During the quarter, M/V EM ship Hydra was chartered for a period of three to seven months at $7,200 per day. The charterer of M/V Synergy Oakland declared the eight to 12 months option, which is based on context minus 10%. The vessel currently earns about $15,400 a day. There were no drydocking expenses for the third quarter. With regards to idle and commercial off hire, the EM Kea M/V was idle for about 30 days between charters whilst the EM Hydra was idle for a couple of days between the charters. On the S&P front, in November 2020, we completed the sale of motor vessel EM Athens for a total of approximately $4 million of net proceeds, of which $3.75 million was used to repay the outstanding loan of the vessel. In addition to EM Athens during Q3, we completed the sale of motor vessels, Ninos, our 30-year-old vessel and an additional vessel in the fleet for a total of approximately $2.3 million of net proceeds, of which $1 million was used to repay the outstanding loan of the vessel. Please turn to Slide 5 where you can see our current fleet profile. Upon the completion of the above-mentioned sales, we now have 14 vessels, which include nine feeders and five intermediate container carriers with approximately 539,000 deadweight tons and 42,300 TEU capacity. The weighted average age of the fleet by TEU is 15.5 years. Let's turn Slide 6 for our vessel employment chart. As of October 30th, we have about 93% coverage for the remainder of 2020 and about 40% for 2021 based on maximum charter durations. Naturally, we expect that as the market rate increases, the current charterers will keep our vessels to the maximum duration possible. Please turn to Slide 7. Over the last five years, our operational fleet utilization has been in excess of 98.8%. Euroseas has an outstanding safety and environmental record but at the same time, the company is managing to keep costs low, despite running a lesser fleet than the other listed companies. For the third quarter of 2020, our operational fleet utilization was 99.9%, while the commercial fleet utilization rate in the third quarter was 97.9%. The graph from the page compares daily costs excluding drydocking since 2011 with the average of our peers. Overall, our costs achieved are amongst the lowest of the public shipping companies. Let's go to Slide 9 to look at the time charter rates that we had in the market during the third quarter and beyond. Time charter rates during the third quarter increased across all containership sizes. Rates increased further significantly in October and November 2020 up till today with time charter rates of intermediate-sized vessels reaching 2010 and 2011 levels, the highest levels observed in the last decade. Please turn to slide 10 where we show the general containership market highlights of the third quarter in more detail. According to Clarksons, 1,700 TEU geared vessels increased from an average of $6,600 per day in Q2 to $7,050 per day in Q3, and currently it stands at $11,150 per day. The $2,500 TEU geared vessel increased from an average of $7,600 in Q2 to $8,500 in Q3 and currently stands at about $14,100 per day. Similar type of changes we have on the larger sizes as well. The 4,250 TEU gearless vessel increased from an average of $8,500 in Q2 and $12,700 in Q3 and currently stands at $22,000. The 5,600 TEU gearless vessel fell from an average of $18,000 in Q1 to $13,000 in Q2 but currently stands at $26,500. Average secondhand prices for older than 20-year-old vessels remained among their scrap prices in Q3, which however were about 10% higher as compared to their levels during the second quarter. Lately, these prices have increased by about 25% as well. With younger vessels of about five to 15 years old, there was a price increase of approximately 10% for the 3,500 TEU range, whereas smaller vessels remained flat. However, since October and following the increase in charter rates, prices and interest for acquisitions increased substantially. During this time, the new building prices with no scrubbers signed to build were stable with some downward pressure. But the absence of transactions, except from a few larger vessels, indicates the lack of interest at current asking prices. The inactive containership fleet currently stands at about 1.5%, totaling 0.35 million TEU. This includes idle due to scrubbing and retrofitting. It should also be noted that these numbers are down from the 2.7 million TEU as of mid-May and the ship capacity kept inactive for the scrubber profit reached its lowest level since mid-2019 and is now close to zero. The number of vessels scrapped increased in Q3 as scrapping in Q1 on the first part of Q2 were restricted by the lockdowns in India, Pakistan and Bangladesh that did not allow more ships to be scrapped during that period when the market was depressed. Overall, the fleet has grown by 2.4% in 2020 without accounting for the idle reactivations or idling, etc. Please turn to Slide 11. As a result of the pandemic, the economic and trade world environment has dramatically negatively changed in 2020. The last two quarters have been negatively impacted but recovery seems to have come faster than IMF’s initial estimates, which has revised upwards its GDP estimates. The IMF projected world GDP growth in 2020 has been revised upwards from minus 4.9% during the last quarter to minus 4.4% in October. The US economic growth is projected at minus 4.3% while the Eurozone is expected to need a steeper road to recovery with GDP growth expected for 2020 of minus 6.3%. All remaining important economies are now expected to contract as is clearly evident in the slide, yet at lower rates than those expected the quarter ago, except for India, where a staggering contraction of 10.3% is expected. In 2021 global growth according to the IMF is projected to return to growth recovering from a decline in 2020 of minus 5.4% to a positive 5.2% growth rate. Naturally, as a decline in 2020 is now projected to be smaller, the rebound in 2021 is also expected to be lower. Specifically in 2020, the US is expected to grow by 3.1% while Eurozone’s growth is expected to be around 5.2% and China is a very strong 8.2%. Similarly, all other developed economies are projected to show a strong recovery. In terms of demand for containerized trade which closely correlates to global GDP growth and is measured in TEU per mile, according to Clarksons it is now estimated at a negative 4.5% in 2020. However, most recent indications taking into account the latest sales and trade suggest that possibly trade growth will end up at around zero growth this year. Notwithstanding this fact, a high growth rate of 5.9% is expected to return in 2021, indicating a strong improvement of the global economy. At this point, we should note that the trade and growth projections currently made will probably be revised as COVID-19 develops but also due to the uncertainty of the geopolitical situation and especially trade between the US and China. Therefore, market development projections are higher than usual to make. Please turn to Slide 12 to review the containership age profile and order delivery schedule. As we can see, the containership age profile chart is from the left side of the slide. Overall, the containerized fleet is a young fleet with a mere 6% of ships being over 20 years old. However, the older vessels are mainly concentrated in the smaller size classes where our fleet operates. Consequently, the growth of the fleet in these segments might even be negative in the next couple of years as the older ships are more likely to be scrapped. The right side chart shows the delivery schedule of the current containership order book, which is expressed as a percentage of the fleet. The circled figures for the years 2017 to 2019 show the actual fleet growth after taking into account scrapping cancellations and slippages. The red circled figures for 2020 to 2022 show just the order book before any scrapping and slippages. Currently, the total containership order book stands at 7.8% of the fleet, a figure which is the lowest observed in more than 20 years. This low level of order book provides a source of optimism for a quick recovery of the rates if trade demand recovers as supply side vessels will be at minimum levels. Please turn to Slide 3, where we discuss our outlook summary. The unknown duration of the pandemic and its financial consequences have made predictions about the future trade very difficult. The coming of the vaccines, which now seem highly probable till the middle of 2021 gives rise to optimism that we will soon revert to a more normalized market where demand will continue to be affected by more classical drivers, such as politics and economics. Recently revised projections by Howe Robinson estimate that the 2020 container headall demand will end up at around zero percent. A dramatic improvement of previous forecasts would suggest a much better picture than what Clarksons’ numbers still indicate as economies are opening faster. However, recent lockdowns in Europe might slow down this trend. Under these developments of not all bad and overall market in 2020, it is probable that 2021 demand growth whilst remaining strong will not be as strong as indicated in the earlier slide. However, ordering of new ships is expected to be contained in the midst of the still uncertain developments and more importantly, the lack of clarity regarding the fuel of the future. As not knowing the optimal ships for even five years out makes the placing of any new order quite speculative and risky. Therefore, for 2021 and 2022, the expected improvement in demand and the low order book could be a catalyst for a continuing booming market, provided that all COVID-19 related negative disruptions cease to exist and trade wars do not flare up again. Let's turn to Slide 14. The left side of the slide shows the evolution of the one-year time charter rates for containers of 2,000 and 5,000 TEU since 2000. Since the financial crisis of 2008, rates stayed rather depressed with three spikes within the $5,500 to $14,900 per day range. Currently, we see again strong charter rates, flirting with the high seen in 2010 to 2011. But of course they are still lower than the super cycle levels witnessed in the mid-2000s. The right-hand side of the slide shows vessel values in relation to historical prices since 2011. As we can see, containership values are still significantly below the median and average historical values. This indicates that purchases of ships at today's current values could prove very good investments. And with that, I will now pass the floor to our CFO, Tasos Aslidis, to go over our financial highlights in more detail.

Tasos Aslidis, CFO

Thank you, Aristides. Good morning, everyone. I will now present an overview of our financial results for the three and nine month periods ending September 30, 2020. For the third quarter of 2020, the company reported total net revenues of $12.3 million, which is a 19.4% increase from the $10.3 million reported in the third quarter of 2019. This increase was driven by a greater number of vessels operated, although it was somewhat offset by lower time charter rates compared to the previous year. The company recorded a net income of $0.2 million and net income attributable to common shareholders of $0.03 million, compared to a net loss of $0.2 million and a net loss of $0.3 million for the third quarter of 2019. The third quarter results included $0.3 million in amortization of below-market time charter contracts and a net gain of $1.3 million from vessel sales. Depreciation expenses increased to $1.6 million from $1.1 million in the same quarter last year due to the higher number of vessels owned and operated. Adjusted EBITDA for the third quarter was $1.2 million compared to $1.6 million in the same quarter of 2019. Basic and diluted earnings per share attributable to common shareholders for the third quarter were $0.1, calculated on an average of 5.7 million shares, compared to a loss per share of $0.10 for the third quarter of 2019, calculated on 3.2 million shares. Excluding effects such as the amortization of below-market contracts, the net gain on vessel sales, and realized losses on derivatives, the adjusted loss for common shareholders for the quarter ending September 30, 2020, would have been $0.26 per share, compared to an adjusted loss of $0.15 per share the previous year. Analysts typically do not include full guidance in public earnings per share estimates. Now, let's discuss our figures for the first nine months of 2020. During this period, the company reported total net revenues of $41.3 million, a 54.5% increase over the $26.7 million generated in the first nine months of 2019. This growth was a result of both an increased number of vessels and higher time charter rates during the period. The company reported a net income of $3.5 million and net income attributable to common shareholders of $2.9 million, compared to a net loss of $0.9 million and a net loss of $2.5 million for the first nine months of 2019. Results for the first nine months of 2020 included a net gain of $1.3 million from vessel sales and $1.5 million in amortization for below-market time charter contracts, along with a small loss on the write-down of vessels held for sale and an unrealized loss on derivatives. For the first nine months of 2019, the results included $0.2 million in amortization and an unrealized gain of $0.04 million on derivatives. Interest and financing costs for the first nine months of 2020 totaled $3.3 million compared to $2.3 million the previous year, due to increased debt levels, though partially offset by decreased LIBOR rates on bank loans. Depreciation expenses for the first nine months of 2020 amounted to $5 million compared to $2.7 million for the same period in 2019, driven by a higher number of vessels. Adjusted EBITDA for this period reached $9.7 million, compared to $4.1 million in the first nine months of 2019, again due to the higher number of vessels. Basic and diluted earnings per share attributable to common shareholders for the first nine months of 2020 were $0.52, based on 5.6 million shares, compared to a loss per share of $1.19 for the same period in 2019 with 2.1 million shares outstanding. If we exclude the unrealized loss on derivatives, the net gain on vessel sales, the loss on the write-down, and the amortization of below-market time charter contracts, the adjusted earnings per share for the nine-month period ending September 30, 2020, would be $0.16, compared to an adjusted loss of $1.3 for the same period of 2019. Analysts do not include this guidance in their published estimates of earnings per share. Next, let's examine our fleet performance in detail. For the third quarter of 2020, we reported a commercial utilization rate of 97.9% and an operational utilization rate of 99.9%, compared to 100% commercial and 99.9% operational for the same period last year. The utilization rate calculation does not include vessels undergoing scheduled repairs or dry docks. On average, we operated 16.5 vessels in the third quarter of 2020, earning an average time charter equivalent rate of $8,450 per day per vessel, compared to $8,554 in the same period of 2019 with 13.5 vessels on average. Our total daily vessel operating expenses, including management fees and general administrative costs but excluding drydocking, averaged $6,709 per vessel per day in the third quarter of this year, compared to $6,318 during the same time the previous year. For the cash flow breakeven levels, we reported a breakeven level of $7,924 per vessel per day in the third quarter of 2020, down from $9,101 per vessel per day in 2019. Looking at the nine-month period, we reported a commercial utilization rate of 97.2% and an operational utilization rate of 98.5% in 2020, compared to 98.8% commercial and 100% operational last year. Over the first nine months of this year, we operated an average of 18.2 vessels, with a time charter equivalent rate of $9,171 per vessel per day, compared to $8,638 for an average of 11.8 vessels in the first nine months of 2019. Our total daily vessel operating expenses averaged $6,234 per vessel per day for the period, compared to $6,348 for the first nine months of 2019. Our customer breakeven level for the first nine months of this year was $8,662 per vessel per day, compared to $9,005 for the same period of the previous year. Next, let’s move to our debt profile. The slide shows our cash flow breakeven expectations for the upcoming 12 months along with scheduled debt repayments for the coming years. In 2020, our loan repayments included $11.75 million in prepayments due to the sale of four vessels, including the EM Oinousses sold in November. Our loan repayments are projected to decline over the next three years. In 2021, we must repay about $12 million in balloon payments covered by four of our vessels. In 2022, a small $1.9 million balloon payment is due, also covered by vessels. Finally, in 2023, we anticipate balloon payments of roughly $33 million tied to loans secured by our remaining vessels. We plan to refinance all of our balloon payments as they come due. Regarding our funding costs, we have an average margin on our bank debt of about 3.6%, and assuming a LIBOR rate of 0.3%, our senior debt costs would average about 3.9%. Including related party loans and preferred equity dividends, our average non-equity funding cost as of September 30 was approximately 4.5%. Our cash flow breakeven level for the next 12 months is estimated to be around $8,860 per vessel per day, taking into account our loan repayments, operating expenses, general and administrative expenses, interest, drydocking costs, and cash payments for preferred stock dividends. We agreed to an option to pay the quarterly dividend in kind for our Series B preferred shares through January 29, 2020, by issuing additional preferred shares. Now, let's review highlights from our balance sheet. As of September 30, 2020, we had cash and other assets totaling about $10 million. The book value of our vessels was approximately $103 million, leading to a total book asset value of around $113 million. On the liability side, we have outstanding bank debt of $75.5 million, preferred equity of $8.4 million, and other liabilities totaling about $5.7 million. This results in a net book value of $23.6 million or around $4 per share. Adjusting the book value of our vessels to reflect their market values as of the end of October, we estimate the net asset value for our fleet to be between $32 million and $33 million, or about $5.6 per share. Our shares have recently traded between $3 and $3.5, with recent prices slightly above that range. We believe this trading range represents a considerable discount to both our book and net asset value per share, providing significant potential for appreciation for our shareholders and a strong investment opportunity for others. I will now turn it back to Aristides to continue with the call.

Aristides Pittas, CEO

Thank you, Tasos. I want to open up the floor to any questions you may have.

Operator, Operator

Thank you. Your first question is coming now. Please go ahead, caller. Your line is open.

Tate Sullivan, Analyst

Tate Sullivan from Maxim Group. Can we follow up with some comments on the Athens sale? You noted market values for ships have increased recently as well and then that sale, you avoided some drydocking expenses. Do you have a similar dynamic with other remaining ships in your fleet with contracts expiring this year that you may consider selling or how will you evaluate each...

Aristides Pittas, CEO

I think the Athens was the last vessel that we sold this year. We did sell it at a value of about $1 million about the scrap value, indicating this improvement in the market that we have seen and confirming this improvement in the market that we have seen. It was a vessel that was due for special service or we would have needed to pay between $1 million and $1.5 million to pass this vessel survey and install the ballast water treatment plant. So we decided to sell that ship at the time. We don't have any intention to sell any other of our ships in the foreseeable future right now.

Tate Sullivan, Analyst

Is the $1 million figure you mentioned regarding Athens related to the gain on sale with the $4.9 million of net proceeds?

Tasos Aslidis, CFO

The gain of Athens will be recognized next quarter, it was reported in November but will be a book gain on the vessel.

Tate Sullivan, Analyst

And then you referred to the November 19 purchase agreement and issuing a small amount of shares related to that. Are there additional shares in the next year related to that November 2019 acquisition or any other payment obligations in that...

Aristides Pittas, CEO

No, that was an agreement with the seller of the vessels that if the container market a year down the line was stronger than where it was last year, there would be an extra compensation of $125,000 per vessel on the four ships that we acquired, paid in stock. So that was that. And there are no other warrants outstanding of any kind.

Tate Sullivan, Analyst

And so I know you mentioned avoiding, the Athens avoiding the special survey in ballast water. Can you just review uses of cash in the near term? Are there other ships that require special surveys that you cannot talk about?

Aristides Pittas, CEO

There is no imminent special survey in any of our ships within this quarter or the next quarter. I think the next vessel survey could be on the revision in Q2 next year. But there again, the inclination right now is to keep the vessel unemployed and pass it through its special survey.

Tasos Aslidis, CFO

We might have some ships, I think there are couple of synergy ships that might pass water surveys in the first quarter. Nothing is really dramatic in terms of technical difficulty.

Operator, Operator

Thank you. Your next question is coming now. Please go ahead. Your line is open.

Poe Fratt, Analyst

Poe Fratt from Noble Capital Markets. Aristides, could you and Tasos provide an update on Athens? It seems you're anticipating a gain of a million dollars in the fourth quarter.

Tasos Aslidis, CFO

I don't have on top of my head what would be the gain that we’re going to book, but it will probably be around that level.

Poe Fratt, Analyst

Okay, that I just wasn't clear on that. And then on the drydock expense that you avoided. Could you quantify that?

Aristides Pittas, CEO

I said it was between $1 million and $1.5 million. It involves the vessel survey plus the installation of the ballast water treatment plant.

Poe Fratt, Analyst

And then when you look at, Tasos, on your Slide 18, you talked about the preferred dividends and you have $100 a day of preferred dividends. Just to clarify, is that assuming that you're going to pay the preferred dividend starting in January of 2021 in cash?

Tasos Aslidis, CFO

That’s right.

Poe Fratt, Analyst

And then when you look at the markets moving significantly, you have 40% of your days booked in 2021. Do you have a rate that's associated with that forward cover?

Tasos Aslidis, CFO

I don’t have the calculation here, but the average rate shown is in the chart on Slide 6.

Poe Fratt, Analyst

Okay...

Tasos Aslidis, CFO

I would say, it’s just below $10,000.

Aristides Pittas, CEO

There are three vessels, Poe, that will be fixed within this year in the next couple of weeks, which we expect to fix at high levels and will affect this number. So in about couple of weeks, we should have a better clarity as three vessels we are aiming to fix for at least a year.

Poe Fratt, Analyst

And you anticipate my next question, Aristides, is just your ability to move your fleet up to market rates. It looks like the two 2,600 TEU vessels, the Astoria and the Evridiki...

Aristides Pittas, CEO

That’s the name of my grandmother Evridiki.

Poe Fratt, Analyst

I apologize for mispronouncing it. Could you discuss if there is any reason why those two vessels wouldn’t move up to the market rate in the $14,000 range?

Aristides Pittas, CEO

No, there is no reason they would not move up to that level. Evridiki has a slight complication because it will have to pass special survey. So there will be a special survey clause, which might affect a little bit the rate, but still rates we feel are even higher than the $14,000 that we’ve shown in the graph at this stage.

Poe Fratt, Analyst

And then the smaller one, the Aegean Express, any reason why that one moved up into the $11,000 - $12,000 range?

Aristides Pittas, CEO

I think it will be in that range that you mentioned, $11,000 to $11,500, something like that.

Poe Fratt, Analyst

And then as you look, would there be any discount if you went out a year, Aristides, or would...

Aristides Pittas, CEO

Generally, for smaller vessels, it's challenging to secure charters longer than a year. Currently, some charterers are discussing this possibility, but a discount would likely be necessary. We'll see how we decide to proceed with fixing.

Poe Fratt, Analyst

Yes, that's sort of the trade-off of getting cover versus the current rate. And any thoughts on moving more of your fleet to be indexed rates? You know, when you look at the Oakland, that's been able to capture the near-term moving rates pretty well, but you know the rest of the fleet is more static, if you will. Any thoughts on moving more of the fleet to indexed rates?

Aristides Pittas, CEO

Charterers generally do in container shipping don't do it as much. In the dry bulk side, we have many fixes which are index-linked. But on the container side, there are very few charterers that want to proceed along that way. So that's why you don't see it as much. We like that.

Poe Fratt, Analyst

Yes, a little more predictability...

Aristides Pittas, CEO

It’s not extremely predictable but at least it guarantees full employment because you never know how the index will move. If there’s more predictability, if you fix for a year at a certain rate, you know exactly what you're going to make.

Poe Fratt, Analyst

Sorry, that's what I was alluding to, as opposed to indexes can vary significantly. When considering the balloon payment of a little over $12 million due next year, when do you think you’ll be able to discuss the potential for extending that? What are you hoping for in terms of whether you're looking at a two-year or three-year extension, or could you possibly extend the maturity even further?

Tasos Aslidis, CFO

I believe we can extend it for at least two years, and most likely opt for a three-year financing, which will be during December next year. This gives us some time to observe market developments and the growth of earnings and cash flows. However, the scrap value of the four vessels and the loan should adequately cover that balloon payment. Based on our previous experience with refinancing those payments, I expect that we should not encounter significant challenges in refinancing it.

Poe Fratt, Analyst

Aristides, you mentioned the contingent payment related to the acquisition. I'm not certain if this was previously addressed, but could you explain why you utilized the ATM program in August? Will it remain inactive in the upcoming quarters, or is there something specific about August that necessitated the use of the ATM?

Aristides Pittas, CEO

So we saw an increase in the price of the stock that we felt warranted the use of the ATM in order to increase our liquidity. We think that with the current market and with the fixes that we have done and we will do, we will use the ATM only opportunistically if we do see sudden rises in the stock price, which we have seen on a few occasions through probably algorithmic trading that keeps these smaller stocks at some point.

Tasos Aslidis, CFO

Typically, we use it when the price that we can sell shares is above the NAV at the time. So we don't use it in any dilutive way.

Poe Fratt, Analyst

So looking to sort of that north of $5.50, $6 share range. And Tasos, can you highlight just how much availability you have under the ATM, how many shares you can use whether it's a dollar figure or number of shares that you could issue under the ATM?

Tasos Aslidis, CFO

Between $2 million and $2.5 million.

Operator, Operator

Thank you. I will now hand the call back to Mr. Aristides Pittas for closing remarks. Please go ahead, sir.

Aristides Pittas, CEO

Well, I want to thank everybody for listening in to the results of Q3, and things look good and probably Q4 results should be better than Q3 still. So we will talk again at the beginning of the year to discuss the whole year and how prospects are at the time. Thank you.

Tasos Aslidis, CFO

Thanks everybody.

Operator, Operator

Thank you. That does conclude today's conference call. Thank you for participating. You may all disconnect.