Safe Bulkers, Inc. (NYSE:SB) First Quarter 2022 Earnings Conference Call July 28, 2022 12:00 p. m. Eastern Time
Participating companies
Polys Hajioannou – President and CHIEF Executive Officer
Loukas Barmparis – President
Konstantinos Adamopoulos – Chief Financial Officer
Conference Call Participants
Omar Nokta – Jefferies
Benjamin Nolan – Stifel
Molins Climent – Inverter Edge Value
Operator
Thank you for being here, girls and gentlemen, and welcome to the Safe Bulkers convention call to talk about the monetary results for the 2022 quarter.
Today we have with us the bulk carriers, Chairman and Chief Executive Officer, Mr. Polys Hajioannou; President, Dr. Loukas Barmparis; and Chief Financial Officer, Mr. Konstantinos Adamopoulos.
Right now, all participants are in listen-only mode. There will be a presentation followed by a question and answer session. [Operator Instructions]
After this convention call, if you need additional information about the convention call or presentation, please contact Capital Link at 212-661-7566. I must tell you that this convention is being recorded today.
Before you begin, please note that this filing is a forward-looking statement, as explained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in relation to the Company’s events, strategy, and long-term expansion. measures to implement such a strategy, adding planned acquisitions of ships and the completion of other charters by time. Words such as expected, anticipated, planned, believed, anticipated, expected, estimated and diversifications of such words and similar words are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in those forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be accurate. These statements involve known and unknown hazards and are based on a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control.
Actual effects may differ materially from those expressed or implied through such forward-looking statements. Factors that may also cause actual effects to differ materially include, but are not limited to, adjustments in demand for bulk carriers, competitive points in a market in which the Company operates, hazards related to outdoor transactions in the United States, and other points occasionally indexed in the Company’s filings with the Securities and Exchange Commission.
The Company expressly disclaims any legal responsibility or commitment to publicly post any updates or revisions to any forward-looking email contained herein to reflect any replacement in the Company’s expectations in this regard or any replacement in the events, situations or cases on which it is based. .
And now I turn to Dr. Barmparis. Continue, sir.
Loukas Barmparis
Bonjour. I’m Loukas Barmparis, President of Safe Bulkers. Welcome to our convention call and webcast to discuss the monetary results for the current 2022 quarter. The quarter of the moment is a smart quarter.
As we see on slide 3, our EPS was $0. 40 consistent with the consistent percentage and we maintain our $0. 05 dividend policy consistent with the consistent percentage. , but at the same time, we created an intrinsic price through an extensive fleet expansion program with 11 new structures that comply with environmental regulations after 2025, known as IMO. Phase 3 or CO2 emissions.
They also comply with the strictest NOx Tier III regulations. Having received the first Kamsarmax MV Vassos and where we are waiting for the next delivery of a Panamax mail, that is, the weather respects the next few days. We already noticed it in the first shipment. a noticeable increase in earning capacity thanks to the impressive savings in fuel consumption.
We tend to compete on this basis without a bit of a fleet, but more importantly all those orders with deliveries over the next two and a half years were placed at the right time at low costs, particularly lower than existing valuations. .
We maintain a comfortable leverage on the diversity of the scrap price of our fleet, approximately 6. 8 million per vessel, while the average age of our fleet, aged, has stabilized at about 10. 5 years due to our strategy of renovation and delivery of new construction. . .
Our monetary and capital resources remain at $294. 8 million, which, combined with a contractual revenue stream of $390 million, provides flexibility and cloud control in capital allocation.
I will also have to emphasize the importance of our cleanup investments in Israel’s costly environment. We recently stocked an additional scrub for each of our layers. The use of scrubbers in our fleet further complements our ability to generate revenue.
In the last quarter, as we see on slide 4, we have continued to identify movements flowing our capital. That is, we buy back 37. 3 million [renewal] (Ph) saving 8% of that amount in preferential dividends on an annual basis. he founded and introduced the buyback program through obtaining one million shares on the market.
Of course, we basically concentrate on linear operations in this inflationary environment. As a result, our operating expenses were $4,981 and our expenses G
We know that the accumulation of fuel charges is reflected in various elements of operating expense charges, such as transportation charges, lubricants, price ticket charges for changes in the organization, although general repatriation charges would possibly be gradually reduced if there are no restrictions, dry dock paints, etc. Our operating expenses are also affected because the burden of some environmental improvements, such as programs based on oil production, is high.
Moving on to slide 5, we’d like to highlight more issues that make our control unique to our peers. corporate governance, as well as the alignment of our CEO and Chairman of the Board, Polys Hajioannou, which is achieved through its shareholding percentage of approximately 40%.
For our control with 40% of the property, even during market situations and oversupply or base of the past. We have never made the opposite division. We never asked for Chapter 11, we have avoided unwanted capital increases unless it was for our credit to all our shareholders.
We are looking to do the right thing. For example, we have 0% authorization of control statutes and, direct control relations, we have received average commissions of start-up statutes from third parties, 4% less than the popular market of 5%.
Our genuine tendency in the game is what differentiates us, being 40% shareholders ourselves when we place new structure orders in a low market position and create price for our shareholders, while those new structure orders have appreciated between 20% and 25% today, or when we achieve our goal of achieving the most productive performance, or when we make all those prudent moves to strengthen our business.
The merit we see today is that in the long run there is no order in the degrees of the past. We remain cautiously optimistic, despite the global instability caused by invasions, the energy crisis or inflationary pressures and well prepared in environmental terms. regulation.
As you can see from slide 6, our ESG report of the moment was released on July 25, focusing on corporate governance, supporting local communities with scholarship programs, supporting seafarers COVID restrictions, staff training, investments of 371 million in 11 new phase 3 peer structures are holding back the environment in 2022 of an existing fleet of 2. 2 million users employing around of 2 000 tonnes of biofuel by the end of May 2022 and reaching 1 550 tonnes less CO2. It also reported verified EOI data for 2021. Check out our sustainability report on our website, as taking oil deductions for investments is what sets Safe Bulkers apart.
Skip to slide 7 to see an item of individual quarterly earnings. As a general comment, our current quarter 2022 profitability exceeded the current quarter 2021 profitability through $10 million in net income of $91. 6 million in a net revenue stream of $50. 3 million.
We achieved an EBITDA of €66. 5 million and maintained significant liquidity and capital resources of over six hundred million. In April 2020, we repurchased more than a quarter of our preferred shares improving our weighted average capital charge. We have significant monetary visibility with over 360 million charter contracts.
Our monetary strength, reflected in our EPS, $0. 40 consistent with the stock, allowed our Board of Directors to claim a $0. 05 dividend consistent with a non-unusual stake. of the competition
Moving on to slide 8, we highlight some key figures from Safe Bulkers. All figures presented here are from the end of the quarter. Specifically in the chart on the right, we compare our liquidity with our existing CapEx.
Our [indistinguishable] CapEx resources amounted to 294. 8 million, totaling 159. 4 million in money and 55. 4 million records in hand for the rotation of amenities fed through crossover and guaranteed commitments.
Against the existing CapEx, which 319. 5 million compared to the 10 renewables of phase 3 that remain in the ebook of orders in our case at the moment to be acquired in [indistinguishable]. We have already paid advances for CapEx 58. 9 million.
In addition to our liquidity resources, we had more borrowing capacity compared to Chevron free of charges, the existing base is 709 rubles at the time of delivery. In the graph on the left, we compare our debt to the price of scrap as opposed to profits and money from the cash contract.
Our monetary position was $139. 4 million and the proceeds from our contracts, the source of cleansing compensation, was $393. 7 million net of commissions from our non-cancellable assistance and time charter contracts. This is compared to our consolidated debt inventory of €432. 6 million, which includes €100 million in unsecured bonds.
We have to see that the maximum volume of our fleet of $359. 3 million, which is provided in the last column, and is calculated on the basis of our fleet’s overall maximum soft release rate of $5. 65 million per soft ton is in the same order in which they get.
Moving on to slide 10, knowledge of the dry bulk market will provide the evolution of the CRB commodity index, which is lately starting at a five-year high. The index reflects long-term commodity prices, for example, energy, agriculture, valuable metals. and commercial minerals, which are the main signs of Safe Inc.
As a result of the ongoing Russo-Ukrainian war, we have noticed an increase in costs in 2022. The updated IMF forecast released lowers the expected expansion of global GDP to 3. 2 by 2022, reduced to 3. 6 NAV and is 2. 9 by 2023, reduced to 3. 6 NAV.
In China, the new blockades and the worsening of the real estate crises have allowed them to be revised downwards by up to 1. 1% with the main global consequences. in the direction of genuine GDP expansion. The improvement in deterioration reflects the consequences of the war in Ukraine and the tightening of financial policy.
Headline inflation has been revised upwards due to war-induced commodity prices. They have generated pressures on food and energy prices, as well as persistent imbalances in source and demand, which are expected to achieve 6. 6% in complex economies and 9. 5% in emerging and emerging economies this year. Reviews are up just 1% since April.
In 2023, discretionary financial policy is expected to affect global output, with a projected accumulation of only 2. 9%. China’s projected GDP for 2022 is 3. 3% despite COVID-0 lockdown measures, and then 4. 6% by 2023.
We note that when increased activity in Chinese demand for iron ore is the national purpose of controlling carbon emissions, it will need to be achieved and evidence of domestic coal production struggles in mainland China.
In India, the projected predatory GDP for 2022 is 7. 4% and is expected to achieve 6. 1% by 2023. The projected dry global budget for the call is expected to increase by just 0. 2% in 2022, supported through commercial structures such as iron ore. and coal and also through raw agricultural fabrics.
Let’s move on to slide 11 for a quick review of secondary market situations for our layers. As the most sensitive chart shows, the layer market since the beginning of the year remains healthy. In recent times, lids have been volatile, driven through the dynamics of raw materials, which has been analyzed.
The freight deal futures curve, shown in red, is around 25,000 by 2022. Similarly, for Panamax, as the graph at the bottom shows, the FFA carries around 20,000 by 2022. The current commodity market is expected to help the freight market this year.
On slide 12, we provide expected deliveries from our order book. We still have a delivery in 2022 that is imminent, which is the delivery of the post Panamax Climate Respect MV in the coming days. This is the time of this year’s delivery, the first being [indistinguishable] in May.
We have five more deliveries of new structure in 2023, 3 in 2024 and one in early 2025. A total of 11 Phase 3 new constructions that will maintain the average bulk carrier fleet rate at 10. 8 years in 2025.
In the graph at the rear, we provide the record order book and projected fleet expansion for the next few years through 2026 for all vessel sizes. through orders from other sectors, basically container ships in the L
On slide 15, we are focusing on creating an intrinsic price through our investments in the purification generation currently installed on 18 of our vessels. oil at a [indistinguishable] differential at higher levels, which translates into higher revenues for vessels equipped with scrubbers. Currently, the so-called Hi-5 in Singapore amounts to around $290 per ton, and depending on the long market the balance for 2022 is about $280 per ton.
At an average annual entry of approximately 7,200 Australian metric tons for our base of 18 scrubber installers, it means that the profit from the scrubbers is approximately $26 million consistent with the year overall at 250 assumptions. Let me know here that we have agreed five more purification facilities for our Vessel Capesize Elegance.
In addition, the Company is conducting an approximate $2. 2 million dry dock vessel upgrade program by 2022, which includes environmental improvements, in addition to the application of low-friction paints and the installation of energy-saving devices.
At the conclusion of the segment on slide 14, we would like to reiterate that existing money and contractual revenue with our existing order book advances the festival and a strong monetary position. We are setting the level for an era where environmental regulations will dictate festival regulations. .
We are well prepared for the market to continue to offer opportunities, either in terms of our operations and profitability, or in terms of new technologies and fleet renewal.
Now, let me speak with our CFO, Konstantinos Adamopoulos, for our monetary coverage.
Konstantinos Adamopoulos
Thank you, Loukas and good morning everyone. Let me start with our quarterly financial aspects on slide 16. During the current quarter of 2022, we operate in an advanced charter market environment for the same era of 2021 with low interest rates and a profit accumulation that also come with profits. of the debugger supplied to Array
Our quarterly net income was $91. 6 million, compared to $81. 6 million for the same time last year. Net income increased by 12% compared to the same time in 2021, basically due to the accumulation in the final rate of equivalent time. chartering due to improvement in the market, helped by higher revenues and chartering of vessels.
The equivalent daily rent was $25,050 compared to $21,098 in 2021. Net revenue stream for the current quarter of 2022 reached $50. 3 million, compared to net revenue stream of $32. 4 million in the same era in 2021.
Our daily OpEx was $4,981 compared to $4,874 last year, and the same figure excluding dry dock and delivery prices was $4,648 compared to $4,539. The ships’ daily operating expenses increased by 2%, mainly affected by overhaul and maintenance. expenses, as well as higher prices of lubricants.
Our OpEx G
Our adjusted earnings consistent with the consistent percentage for the current quarter of 2022 were $0. 42, calculated on a weighted average number of 121. 6 million consistent with percentages, compared to $0. 31 for the same consistent period of 2021, calculated on the weighted average number of 109. 7 million consistent with percentages.
Let me conclude on slide 17, with our quarterly highlights consistent with the nationals for the current quarter of 2022, and then a comparison with them due to 2021. We also have very acceptable monetary functionality or $0. 40 consistent with the company’s consistent percentage and board of directors. Administrators declare the $0. 05 dividend as a non-unusual consistent percentage.
During the current quarter, we received our first new visitor bill. We believe our new structure will bring us really extensive operational data benefits for years to come.
We would like to note that the Company maintains a healthy monetary position of approximately $167 million as of July 22, with an additional $140. 4 million in revolving loans and secured liabilities. The combined liquidity of more than three hundred million provides us with significant firepower.
In addition, we have profits from our non-cancellable spot and peer-charter contract of over 360 million commissions and this figure does not exclude cleaning profits. And we also have a higher borrowing capacity compared to seven debt-free ships, one used and also nine new ones at the time of delivery.
We, that superior liquidity and relatively low leverage will allow us to be flexible with our capital while rewarding our shareholders. Our press release provided further main points on our monetary and operational effects and we are now in a position to answer your questions.
Q&A session
Operator
Thank you, sir. [Operator Instructions] I show that our first comes from the Omar Nokta line of Jefferies. Continue.
Omar Nokta
Hey guys, good afternoon. Thanks for the overview, I think it was smart and detailed. I tried to ask him about the total purchase, which he announced last month, the total purchase of five million and he implemented it quite quickly, I would say with a million already purchased. inventory has performed quite well here over the past few weeks. How do you foresee purchases from here? The prospect of inventory increases has even more to do with it, but I just wanted to reflect or hear what you have to say about the possibility of the employee buying back more capital.
Loukas Barmparis
We have announced that we will make a buyback of up to five million. We did what we said a million. This buyback is done opportunistically when the market is very low. we expect this program to continue and apply this duration to this buyback program from time to time, when we believe the time is right.
Omar Nokta
Merci. I guess, as far as the dividend is concerned, we started notoriously last year. Any updated mind on how you see that number?U. S. peers have a payout formula for their dividends based on quarterly earnings. I’m not saying you have to do that. But he’s wondering if it’s comfortable to leave the dividend as it stands at that nominal $0. 05 amount consistent with the quarter. Do you see yourself migrating to a payment based on a formula similar to that of some of the other players?
Loukas Barmparis
Because we have this dividend policy and we do dividend resolution quarterly. It seems, I mean, of course, that we would like to see a normal dividend, but I would like to remind you that we are one of the few to have an extensive investment program in new construction. And so, we direct our loose flows to various points.
So, the first one is the investment, because we need to invest in the phase 3 ships, as we have already noticed in the operations, the first one will be much more successful for the company compared to all the other ships we have, because it folds. much less fuel. And that’s all you can want to say when the main points are stated in our ESG report, which is presented on our website.
In the report at the moment, we should praise our shareholders with a significant dividend, which is also connected at this stage, it is not, I would say that it deserves to be considered as a smart comparison with the real price of our shares. And of course, we also direct a small part of our loose money flow to the purchase program of our business.
We’ve made those additional choices. For example, we have bought back a really large number of preferred shares, which improves our picture and capital structure. And I think it will be favorable in the long run for our non-unusual shareholders. We have a very comprehensive multiple view of dividend policy.
Not only are we determined to pay dividends that remind you that our CEO owns 40% of the company, so you would be very pleased to have more and more dividends. But the vital thing is to have a strong company on the front of those stricter regulations that we have followed and that all members of corporations like ours in which we invest – will be able, will react and will be able to be more successful than others and compete on the basis of environmental performance.
Omar Nokta
Now, be very careful with your component there. I perceive it. Thanks. Just a follow-up. Maybe he wanted to ask about the mechanisms of Capesize’s time charters, he also discussed them in the past, but he just wanted to see how the merit of the scrubber works, for example. The most recent version, he discussed, those two ships that are being repaired, I 3 years each, is there an additional fuel benefit of $5. 4 million, based on that predicted fuel gap of $220?And do you think you don’t have a brain sharing the mechanics?
Konstantinos Adamopoulos
Yes, lately I see that our Capesize bulk carrier consumes around 10,000 tons of fuel each year, depending on the bad health days of the ship. So about that amount, if you assume $220, it grants a 10% reduction on old rents, that means you get around €200. So that’s about 2 million a year.
So over the 3 years, you expect to get between five and six million in the ship’s revenue, which is a very smart return if you were the scrubber at the time, we reversed the charge, adding the installation and the purizer charge and the charge of all the technical facilities of about 3 million in line with the vessel.
It’s a very clever turn back that comes at just the right time. Of course we have the treatment plant very low. And if not in 2020 due to COVID, then I move forward in 2021. And much further step forward in 2022 with the effects of war and widening global oil costs and the gap between HFO and realistic support.
We are confident that it will be a solid income. And we’re going to invest in all of our Capesize washing machines over the next six to nine months. Because we even think that up to two hundred or 150 or 160 will still be a successful investment after two or three years. So we’re going to make that investment on all the ships with the highest fuel consumption.
Omar Nokta
Interessant. Merci. Et I guess I was going to ask you to discuss at the beginning what percentages the fact that the charter only has a 10% discount and that you keep this 90% merit depending on. . .
Loukas Barmparis
And look at those two express flights that we control to stay at 90%, it depends on the market situation, the blinds push 20% to stay, you controlled to get out with 10%, you have to give 15%. It’s only in relation to the base rate you get.
Sometimes, you can give the debugger a little more time and get slightly higher speeds on the top. Therefore, it is a given taking practice. Sometimes, when the spread is also very high, you earn 10%, between $200,000 and $300,000 a year with an investment of zero.
Omar Nokta
And just as you discussed the washers that will be installed on the handle of the remaining lid, is it something that’s going to be done proactively, like taking them off the market and installing them, you do it as a kind of general component of your service?
Loukas Barmparis
And look, no, we’re going to do some a little bit earlier, and some of them during your general investigations. We are making other environmental improvements, at the same time. Well, let’s say more willingness to make those investments. and improvements as soon as possible to reduce actual oil intake by 5%, 10% and improve shipping initials.
And at the same time, we’ll take credit for the 20, 25 days of downtime, but we’d possibly have to invest early in the scrubber. So let’s start cutting the premium to have the best oil prices.
We don’t expect oil costs to be passed on anytime soon, despite talks in the next consultation and the like. It will be difficult in the next six to 12 months to involve oil costs. You see what’s going on. Down with the effects of the global in You see that Russia is playing a game with combustible materials to Europe and I believe that the existing oil costs will remain at least for the next 12 months.
So, this will at least give homeowners who have invested in timeline scrubbers an extra cushion that will help profits in an era where the market-driven won’t outperform but would be pretty solid or a little lower than the one we had in 2021.
But for us it is an investment that isArray we did at the right time, they will have the technical knowledge, we can do it quickly, we can make the adjustments of the investments very quickly, we have assured the washers, which is also a struggle. These days, we have secured this purification apparatus in a timely manner. All this comes from the same manufacturers, who were the most trusted manufacturers.
And I’m a smart investment on behalf of the company. Now you recoup the investment in two or 3 years. For me, it’s a smart investment when you compare the assets you make, your purpose is to break even in 8 or 10 years here, you do it in two or 3. Therefore, it is a very smart investment in ships that the most giant ships have giant consumptions.
Omar Nokta
I understood very and useful. I’ll leave it at that.
Loukas Barmparis
Thank you.
Operator
Merci. Et. I show that the next one comes from Stifel’s Ben Nolan line. Please continue.
benjamin nolan
Yes, I’m sorry. In fact, Omar my question. Thanks guys.
Operator
Thank you. [Operator Instructions] And I show that the next one comes from the Molins climent lineage of Value Investor’s Edge.
clement molins
Hello, thank you for responding to my queries. For my part of the last consultation about installing scrubbers on the rest of the Cape faces, when are retrofits expected to be made?And how many of them are expected before the end of the year?
Polys Hajioannou
One will be before the end of the year towards the end of the year. And 3 more, I think it will be in the first quarter, just after the Chinese New Year, at the end of the first quarter of 2023. Loukas, you can do it right. say something inaccurate. I think that’s the dates we have.
We have the availability of wise scrubbers and vessels, their cycles, survey cycles and classification survey cycles to match intermediate deliveries or asset surveys. Remember, you must have downlines without doing anything else.
Loukas Barmparis
Yes, that’s fine. It is ok. I mean, they need our CRM, the other 3 Chinese to hear an idea of 2023 listening.
clement molins
And it has been very active with blue expansion for the past two years, adding new regulations and second-hand selective tonnage. I wonder what your current position is in relation to future acquisitions and, on a similar note, I would like to comment on how are you the oldest user in your fleet?
Polys Hajioannou
Yes, look at the fleet expansion that started in late 2020, we felt that the market would start to recover from COVID-19. At least in the aspect of the call. We are strongly in the dry bulk cargo market just because we never forgot we had dry bulk cargo.
Repeat the please?
clement molins
Yes, I wonder if you can provide further feedback on your position regarding the possible continuation of fleet expansion and your perspectives on how you are treating the older component of your fleet at the moment.
Loukas Barmparis
So, as you’ve seen, we’ve achieved significant shipping savings and acquired more youthful shipments. So we did, I would say, to the maximum, everything in terms of the type of timing of acquisitions. We placed a smart order for a newly built shipment. .
Our oldest ships we have in our fleet, dating back to 2004, have very smart environmental performance, even though they are quite old. Therefore, we are in a position to separate them in the next step, From time to time we can percentage one, but I don’t think we deserve to expect anything spectacular.
Most important is our investment strategy targeting Phase 3 vessels. And of course, I’d like to say that we’re tracking any long-term progress in terms of fuels, which I think will come late in terms of choice of fuels or manufacturing. of green fuels, I don’t think it’s anything of the next two or 3 years, it will be past.
And, of course, the production of green fuels will come even later. So we want to see more, let’s say really extensive evidence about the generation in which we evolved. That’s why we’re skeptical and interested in new orders.
But we’ve done our part, because those 11 seats we bought in phase 3 have really extensive performance, particularly lower, a lower intake than we did. that generates profits, so we intend to compete on that basis.
If not, we are following the situation. And of course, some other point that I need to mention, which I don’t know, if we have, we can see it now, is that the company also substantially uses biofuels, which also represents a smart relief in CO2 emissions compared to the general or popular HFO.
Therefore, it is possible that, in the long run, we will have old assumptions or selective sets of older ships, but that are energy efficient. Maybe we can locate some other time, but it’s likely. generation of boats in which we can invest.
Konstantinos Adamopoulos
If I can go up to Loukas. La delivery of the new structure comes for Safe Bulkers or the time when fuel oil costs £1,000. We never thought that when we ordered those ships we never thought we would receive them at a time when a tonne of fuel is really meant to be – the fuel is worth £1,000. We make the right investment with the oil value of $500 or $400 according to the ton in the VLSFO.
We ordered boats at the right time due to entry and new regulations. And because we have a value of about 30 million ships, 40, 45, they still have value today. So the fact that we get the ships at that time, when the market price of a ton of FSCO oil costs $1,000 or, in some places, even more than $1,200 or something, is a credit to that investment. Therefore, it shows very well in the effects of the next quarter.
clement molins
Very well. Thank you very much for the color. That’s it for me. Thank you for answering my questions and congratulations on this quarter.
Polys Hajioannou
Thank you so much.
Operator
Merci. I’m sure there are no more questions in the queue. At this time, I would like to call back to Dr. Loukas Barmparis, President, for closing remarks.
Loukas Barmparis
Thank you all very much and we look forward to discuss with you our monetary functionality for the third quarter, which will be sometime in November. Thank you again and have a nice day.
Operator
This concludes today’s convention call. Thank you for participating. You can now log out.