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Edited Transcript of GRIN.OQ earnings conference call or presentation 28-Aug-20 12:00pm GMT

Half Year 2020 Grindrod Shipping Holdings Ltd Earnings Call

Aug 28, 2020 (Thomson StreetEvents) -- Edited Transcript of Grindrod Shipping Holdings Ltd earnings conference call or presentation Friday, August 28, 2020 at 12:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Martyn Richard Wade

Grindrod Shipping Holdings Ltd. - CEO & Director

* Stephen Griffiths

Grindrod Shipping Holdings Ltd. - CFO & Director

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Conference Call Participants

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* Charles Kennedy Fratt

NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst

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Presentation

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Operator [1]

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Thank you for standing by, ladies and gentlemen, and welcome to the Grindrod Shipping conference call on the first half 2020 financial results. We have with us Martyn Wade, Chief Executive Officer; and Mr. Stephen Griffiths, Chief Financial Officer of the company. (Operator Instructions) I must advise you that this conference is being recorded today. And we will now pass the floor over to your first speaker today, Martyn Wade. Please go ahead, sir.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [2]

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Thank you, operator. Welcome, everyone. Thank you for joining our call for the first half 2020 ended June 30.

Let me refer you to Slide #2 with the forward-looking statement disclaimer. On this call, we will make certain forward-looking statements, including statements regarding our future financial and operating performance. These statements include information regarding future time charter contracts, outlooks for the dry -- outlook for the drybulk and tanker markets and other operating issues. These statements are based on the beliefs and expectations of management as of today, and actual results may differ materially from our expectations. Investors should read carefully the risks and uncertainties described in the slide presentation and in today's press release as well as the risk factors included in our annual reports and our other filings with the SEC. We assume no obligation to revise or update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

In addition, during this call, we will be discussing certain non-GAAP financial measures. Additional disclosures relating to these non-GAAP financial measures, including reconciliation to the most directly comparable GAAP measures, please see yesterday's press release and Pages 28 and 29 of the slide deck, which is posted on our website and our filings with the SEC.

Please turn to Slide 4 for first half 2020 financial highlights. Financial results for the first half of 2020 was stronger than the first half of 2019 across the majority of income metrics. While revenue in the first half of 2020 was flat year-over-year, gross profit increased to $8.9 million, and adjusted EBITDA nearly doubled to $28.8 million compared to $14.7 million in the first half of 2019. This led to reduction in net loss and loss per share of $10.5 million and $0.55, respectively, in the first half of 2020 compared to the first half of 2019. The results for the first half include the consolidation of the results of IVS Bulk effective February 14, 2020, as a result of our acquisition of Regiment's 33.25% interest in IVS Bulk, increasing our ownership to 66.75%, along with control of the entity.

The effects of the COVID-19 pandemic were felt in both positive and negative ways during the period. The product tanker market temporarily enjoyed historically strong earnings as a result of changes in refined product flows and demand for floating storage worldwide. Conversely, the drybulk market weakened significantly during the first half of the year due to global lockdowns, which cut into raw material demand, particularly in China. Historically, weak drybulk spot charter rates were partially offset by strong chartering outperformance, underpinned by our cargo contracts and active freight hedging during the period. Our handysize and supramax/ultramax vessels outperformed their respective Baltic indices by $2,067 a day and $3,444 a day, respectively, during the first half of 2020. Net loss in the first half was negatively impacted by a $4.2 million impairment loss on vessel sales and disposal of assets.

Let's please turn to Slide 5 to look our fleet development in the first half of the year. In February 2020, we concluded the acquisition of an additional stake of 33.25% ordinary and preferred equity shares of IVS Bulk held by Regiment for total consideration of $44.1 million, thereby increasing our stake to 66.75%. As I mentioned, we took control of the entity and consolidated it into our results following the acquisition. The acquisition was funded through a combination of cash on hand and a series of refinancings, as detailed in the slide and in our press releases.

The ability to consolidate IVS Bulk into our results completes one of our major objectives since we went public in June 2018, to simplify the Grindrod story with investors, by reducing the number of unconsolidated joint ventures. The IVS Bulk acquisition represents material growth for our company since 12 modern Japanese built eco vessels and now fully consolidated into our financial statements.

In terms of fleet development, on the dry bulk side, we redelivered the IVS Augusta, a long-term chartered-in supramax bulk carrier at the conclusion of her charter at February 2020. Also, we agreed to amend the charterparty related to the supramax bulk carrier IVS Pinehurst, which happened at the end of her charter, to extend the charter-in for a period of about 5 to 7 months, commencing in May 2020. And we retained the option to purchase this vessel that no longer have options to extend the period of the charter.

On the product tanker side, we took advantage of the strong market to divest 3 of our product tankers, reinforcing our liquidity. As indicated on the slide, we saw the 2010-built small product tanker Kowie and 2 medium-range tankers, the 2008-built Inyala and 2010-built Rhino for a total gross price of $38.6 million for the 3 vessels. We also redelivered the Doric Pioneer, a long-term chartered-in medium product tanker, at the conclusion of her charter in June 2020.

Now please turn to Slide 6 to discuss highlights of the company's recent developments. Continuing on the topic of fleet developments on the drybulk side, we contracted to sell the 2004-built handysize bulk carrier, IVS Nightjar, to unaffiliated third parties for a gross price of $5.1 million, with delivery to the buyers scheduled within this -- the third quarter. On the product taker side, we redelivered the Doric Breeze, a long-term chartered-in medium-range product tanker, at the conclusion of her charter in July 2020.

As of today, our drybulk fleet include 17 handysize drybulk carriers, including IVS Nightjar, and 14 supramax/ultramax drybulk carriers on the water, the 2 chartered-in ultramax drybulk carriers under construction in Japan due to be delivered between this quarter 2020 and Q1 2021. The tanker fleet includes 3 medium-range tankers and 1 small tanker. More details on our fleet are in the appendix of this presentation. We are also pleased that we achieved a top 10 and first quartile ranking in the 2020 ESG Scorecard by Webber Research.

Now turning to Slide 7. This slide showcases our chartering performance over time and demonstrates our continued ability to outperform the relevant drybulk freight rate benchmarks in both of our core segments, the handysize and supramax/ultramax. Net of commission, we outperformed the Baltic 28 TC Index, BHSI, by 56% and the Baltic Supramax-58 TC Index, BSI-58, by 60% in the first half. It was possible, thanks to our cargo contracts and active freight hedging during the period.

Now I will pass the floor over to Steve Griffiths, Chief Financial Officer, who will go over the financial highlights and performances for the first half of 2020. Steve?

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Stephen Griffiths, Grindrod Shipping Holdings Ltd. - CFO & Director [3]

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Thank you. Thank you, Martyn. Let's turn to Slide 9. Revenue was flat year-over-year at $167.1 million for the 6 months ended June 30, 2020. Gross profit increased to $8.9 million for the 6 months ended June 30, 2020, from $5.9 million for the same period in 2019. Administration expenses were reduced to $12.2 million for the 6 months ended June 30, 2020, from $13.3 million for the same period the previous year. Interest expense was $8.6 million for the 6 months ended June 30, 2020, and $5.8 million for the same period in 2019. The increase for the 6 months ended June 30, 2020, was primarily due to additional debt facilities, including the new facility related to the acquisition of the additional interest in IVS Bulk and the higher interest rate on this facility, which was partially offset by a lower LIBOR rate. Loss attributable to owners of the company for the 6 months ended June 30, 2020, decreased to $10.5 million from a $19 million loss for the same period in 2019. To appreciate the impact of the freight market volatility on our core fleet performance, note that every $1,000 change in TCE per day equated to a $6.2 million of TCE revenue during the first half of 2020.

Now turning to Slide 10. With respect to the balance sheet, the financial statements of the first half of 2020 include the acquisition of the additional stake in and consolidation of IVS Bulk, which caused our total assets to increase to $651 million. The increased cash and leverage reflects the consolidation of the IVS Bulk balance sheet, along with the additional debt we incurred to acquire control of the entity. As of June 30, we held combined cash, bank balances and restricted cash of $55.4 million (sic) [$55.3 million] , while bank loans and other borrowings totaled $294.3 million (sic) [$294.7 million].

On Slide 11, our debt repayment profile includes scheduled amortization payments of $16.5 million and $24.4 million, respectively, in 2020 and 2021. 2021 maturities are comprised of the $35.8 million Sankaty loan and the bank loan-related to the Matuku that we intend to refinance prior to its maturity.

Let's turn to Slide 12. We will now briefly discuss results in the drybulk and tanker business. In the drybulk business, handysize TCE per day was $5,773 per day for the 6 months ended June 30, 2020, and $7,030 per day for the same period in 2019. We achieved a fleet utilization of 99.0% in the first half of 2020, while vessel operating cost per day declined to $4,808 per day. Supramax/ultramax TCE per day was $9,163 per day for the 6 months ended June 30, 2020, and $10,481 per day for the same period in 2019. We achieved a fleet utilization of 97.4% in the first half of 2020. Vessel operating cost per day increased slightly to $4,666 per day, while our long-term chartering costs per day declined slightly to $12,010 per day. Looking ahead, the average long-term chartering cost per day for the supramax/ultramax fleet for the second half of 2020 is expected to be approximately $11,950 per day.

As of August 19, 2020, we have contracted the following TCEs per day: for handysize, approximately 1,210 operating days at an average TCE of $6,280 per day; and for supramax/ultramax, approximately 1,740 operating days at an average TCE of $10,240 per day.

On Slide 13 is the tanker segment's operational performance. In the tanker business, for medium-range tankers, TCE per day was $19,343 per day for the 6 months ended June 30, 2020, a material increase from the $14,276 per day for the same period in 2019. We achieved a fleet utilization of 99.8% in the first half of 2020. Vessel operating costs per day were at $6,664 per day, while long-term charter-in costs per day were $15,300 per day. With the redelivery of the Doric Breeze on July 9, we currently have no long-term charter-in costs in the tanker segment.

For small tankers, TCE per day was $11,368 per day for the 6 months ended June 30, 2020, and $12,015 per day for the same period in 2019. We achieved a fleet utilization of 95.8% in the first half of 2020. Vessel operating costs were at $6,377 per day. As of August 19, 2020, we have contracted approximately 150 operating days at an average TCE per day of $12,220 for our tankers, and that's excluding the Matuku. We have combined the guidance for our tanker segments as we only have two MRs and 1 small tanker trading spot.

Now turning to Slide 14. This slide shows the owned fleet daily cash breakeven analysis for the first half of 2020. Our drybulk-owned fleet cash breakeven rate for the period was $10,150 per vessel per day, long-term charter-in breakeven was $13,120 per vessel per day and core drybulk breakeven was $10,810 per vessel per day. Our tanker-owned fleet cash breakeven rate for the period was $11,750 per vessel per day. Long-term chartered-in breakeven was $16,410 per vessel per day and core tanker breakeven was $12,890 per vessel per day. The cash breakeven rate per day includes operational expenses, net G&A, interest expense and debt repayments.

With that, I would like to turn the call back over to Martyn.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [4]

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Thanks, Steve. Please turn to Slide 16. Let's look to the fundamentals about the drybulk and product tanker sectors and how they have been developing. Clarksons projects the drybulk trade development growth to be a negative 4.5% for 2020, rebounding back to a positive 4.6% in 2021. Chinese economic activity appears to have rebounded earlier than other countries, supporting drybulk trade activity since then, but not enough to make up for overall declines in demand. We expect pent-up demand will lead to a more robust recovery in 2021 in both raw trade figures and even more so in drybulk shipping tonne-mile demand.

Now we can turn to Slide 17. As the slide depicts, the drybulk cargoes hit hardest by the global pandemic have been coal and minor bulks, but iron ore has been more resilient due to Chinese stimulus measures after their lockdowns were eased. In addition, the new Chinese imports are grain and a strong South American harvest have supported resilient grain trade flows.

Now to Slide 18. As the chart on the left indicates, handymax/supramax (sic) [handysize/supramax] time charter rates have steadily increased since the market lows of early May, reflecting the return of economic activity as economies reopen from lockdown. On the other hand, asset prices have declined marginally over the last year, reflecting the poor market conditions experienced in the first half of the year.

Please turn to Slide 19. The drybulk order book continues to shrink to multi-decade lows and is estimated at only 7% of the fleet, with deliveries net of expected scrapping estimated at 27 million tonnes deadweight in 2020. The fleet age profile and order book for handysize and supramax vessels appears even more promising, and those order books are the smallest in the drybulk fleet at 3.9% and 5.3%, respectively. 90% of the drybulk fleet is 15 years or older, with 10% of the fleet 20 years or older. Combined with the new environmental regulations, this should encourage increased scrapping.

Please turn to Slide 20 to look at the product tanker demand. Clarksons projects total demand to contract by 6.7% in 2020 followed by a rebound of 6.1% in 2021. Despite the strong contraction in seaborne product trade, floating storage demands were so strong that it kept a material portion of the fleet employed and charter rates elevated. As the floating storage trade unwinds, more of the fleet has been released back into trading. One can see from the graph, charter rates spiked during the period due to the storage trade. The rates have declined as this trade unwinds. Despite the spike in rates, asset values declined over the period as coronavirus made the logistical completion of sale and purchase transactions extremely difficult to execute even when there were willing buyers and sellers.

Turning to Slide 22. Like the drybulk order book, the product tanker order book estimated at 7% of the fleet is the lowest we've seen in over 20 years. Fleet growth for the product tankers of over 10,000 deadweight. It's estimated at 1.8% in 2020 and 1.7% in 2021.

Finally, please turn to Slide 24 for our conclusion and strategy. We continue to execute on our strategy. One of the key objectives since our public listing in June 2018 was to simplify the Grindrod shipping story for investors by reducing the number of unconsolidated joint ventures. To that end, we have wrapped up the Leopard tankers and Petrochemical Shipping joint ventures and obtained control of the IVS Bulk joint venture, leaving us only with 1 unconsolidated joint venture vessel. The IVS Bulk acquisition represents material growth for the company. The 12 modern Japanese-built eco vessels are now fully consolidated into our financial results. We are confident that our capital structure and operations are easier for investors to track and understand. Another key part of our strategy has been our approach to compliance with the IMO 2020 emission regulations. While some shipping companies have chosen to outfit their vessels with exhaust gas rubbers, we have elected not to do so and instead are using compliant fuel. We have concerns regarding the environmental aspects of scrubbers. And furthermore, the spread differential between high and low-sulfur fuel remains suppressed, thus far indicating our doubts as to the sufficiency of the economic return on the scrubber installation costs for the vessel categories in which we operate.

Turning to the market outlook. The pandemic continues to pose significant challenges and uncertainty. The dry cargo market appears to have bottomed in late April, early May driven by strong Chinese stimulus measures and many world economies emerging from lockdowns. Product tankers temporarily enjoyed higher charter rates during the first half of the year, which we were able to benefit, both from a cash earnings perspective and our ability to sell tankers into a strong freight market. As we look forward, the smallest newbuilding order book in decades supports eventual market recovery due to constriction in vessel supply growth. This environment, we will continue to focus on our core strengths and competitive advantage, including our modern fleet, use of in-house commercial pools and cargoes and our close relationship with high-quality global and regional financial and trading players.

With this, I thank you all for joining our call today and look forward to reporting further progress on Grindrod Shipping.

And with that, we would like to open up for questions. Operator?

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from the line of Poe Fratt from NOBLE Capital Markets.

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Charles Kennedy Fratt, NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst [2]

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I was wondering -- a really good progress on, obviously, cleaning up the joint ventures and simplifying the overall strategy. I appreciate that. Can you -- on the overall macro environment, can you just highlight some of the reasons you think that minor bulk was hit so hard? If you look at the drybulk market, that seems to be an outlier as far as just the gaps of the drop in 2000 -- 2020 relative to other sectors.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [3]

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Thanks. Yes, an interesting question.

China. Obviously, Chinese coal imports for the first half have come through very strong. But apart from Vietnam, coal imports have been hit generally worldwide with slowdowns and lockdowns, the lack of electricity generated and is also fitting into the minor bulks, where particularly in China, initially, factories closed, where literally everyone was under lockdown. And it hit some of our markets very hard. And obviously, some of the minor bulks have quite high value. So what we have found is that countries have been working through stockpiles. And this is now quite exciting, whereby as countries reopen, they have to go back into the market to restock. And of course, there were an awful lot of industries that were running just-in-time supply chains. And of course, came on stock horribly. So I think we're sensing that the people's business model is changing, and that should be positive for the minor bulks. But generally, it was the classic with no industrial production in some countries for 3 months. Factories, et cetera, there was very little demand for the minor bulk, and hence, we got hit. People have division stockpiles.

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Charles Kennedy Fratt, NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst [4]

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Okay. Great. That's helpful. Other companies did not give much color on that. It was more -- I think I'm breaking up, but it seems like it is more May, June was weak because iron ore and coal, but minor bulk still was pretty steady. And I've seen that before.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [5]

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Wait, sorry. Just to elaborate, Poe, because, obviously, we run various services and especially related to, we say, to European steel industry, paint industry. And with the closure, we definitely saw a slowdown in these minor bulks from what is normally a very steady business. So for us, it became apparent. And other areas of the world, it was literally -- tell you what, we don't want an awful lot of products at the moment. We'll make do with what we've got. So for us, it was a bit of a standout.

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Charles Kennedy Fratt, NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst [6]

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And can you give us an idea of sort of the tone of your cargo book as you look into the second half of the year? Has there been a pickup over the first half of the year? How did the first half look from a cargo standpoint? If you could just give us sort of a flavor on what you've seen. It sounds like, tying into your comments about the minor bulk industry, that you're seeing a pickup over the second half of the year. And is that, in fact, happening with your cargo book?

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [7]

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Yes. Where some of our long-term services -- where -- sorry, a lot of it depended on where the services were going to, which countries. Obviously, Asia got hit first by lockdown. So we definitely saw a slowdown of cargo to Asia. Europe continued and then, let's say, going into Europe and other areas. But we have seen a strong resurgence on certain of our core trades. Others, of course, are still being hit because countries are still suffering from corona. And like a lot of shipping, especially on the smaller sizes, we tended to be shipping it into developed economies. And some of these countries are being hard hit. So we have some very good news on some, but others were having to be a little bit more patient before those trades return.

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Charles Kennedy Fratt, NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst [8]

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Understood. Can you talk about your fleet when you look at the pebble beaches coming in ultramax in the fourth quarter of 2020, but the Pinehurst charter is going to expire? One is, is the Pinehurst acquisition or purchase option attractive? Do you -- how should we be thinking about that relative to your plans over the second half of the year?

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [9]

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Sadly not, it was for quite a chunk of the charter where we didn't have the option to buy her. At the moment, no. But as we find with a lot of our long-term Japanese relationships, as charters come up, if the owner wants to dispose the ship, fine. But invariably, we find we can extend and we had the potential on this one, I gather we could well extend her for slightly longer, again, retaining that option past laid. So it's ongoing discussions with Japan. Obviously, Japan has been very hard hit by an awful lot of Western owners renegotiating or reneging. And so those customers of the Japanese that have performed during this time, which I must say, there aren't many. We tend to get very favorable. So if we'd like to extend, they're willing to, it's all part of a long-term relationship, slightly old-fashioned, but we do find it works, and especially in an environment like this, where you're trying to capture now forward potential, those relationships work well. So it's something we're continually looking at with the ships we're taking, can we replace existing ships in the fleet with better ones at more attractive levels? It's an ongoing program.

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Charles Kennedy Fratt, NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst [10]

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Okay. And then your charter-in book with its for -- on the drybulk side is right now, the short-term charter-in book is with around 1,300 over the first half of the year. Can you talk about how that looks over the second half of the year?

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [11]

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Steve, do you want to take that one?

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Stephen Griffiths, Grindrod Shipping Holdings Ltd. - CFO & Director [12]

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Yes. I'll take it. So the charter-in rate for the quarter -- for the first half of the year, it's just over $12,000, and then we add the G&A to that, which takes you to over $13,000. And it's just below the 12-month for the outlook for the remainder of the year. So it is coming down. Some of the more expensive ones have redelivered. But around, fair to say, first half and outlook for the remainder of the year, around the $12,000 excluding G&A, which adds $1,000.

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Charles Kennedy Fratt, NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst [13]

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Yes. I apologize. I should have asked in added days, your overall days were at about 1,200, 1,300 over the first half of this year. And I was just looking for how that might change over the second half of the year. And that's - you might do an...

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Stephen Griffiths, Grindrod Shipping Holdings Ltd. - CFO & Director [14]

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And so again, that depends. It's pretty stable because we've got some more coming in towards the end of the year and 1 redelivery. And I guess, overall as well, they -- the part that is not predictable is the short-term days. And that depends on, really, it's a logistics business, where it depends on whether we need to bring in short-term vessels to optimize our earnings.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [15]

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Yes. Can I just add there, folks. As Steve says, in some ways, it tailed off a little bit as we went into Q2. As we -- we've always running this book of short-term period ships with optional periods. And as the market collapsed, we redelivered those ships. Now as the market turns around, if the opportunity is there, our short-term operating days should go up where we have core business, we can use these ships for a couple of label legs to have the optionality at the end, whether we extend them and that's all dependent on the market. So the advantage of running a short-term book as well is when the market does create it like it did at the end of Q1 into Q2. We have the ability to redeliver the ships all within in the charter stipulations. And then we can reload, hopefully, lower levels with more optionality as we go forward.

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Charles Kennedy Fratt, NOBLE Capital Markets, Inc., Research Division - Senior Transportation and Logistics Analyst [16]

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Great. And then when you look at your TCE rates of the first half of the year and then what you booked for the third quarter, it looks like the recovery is fairly modest as you just look at sort of the 6-month time frame. Can you give us an idea of just your first half of 2020 as far as what your TCEs look like by quarter, potentially? If you have that data available.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [17]

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Steve?

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Stephen Griffiths, Grindrod Shipping Holdings Ltd. - CFO & Director [18]

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No. We don't report quarterly and yes, it's not in there. I mean if we're doing quarterly reporting and we disclosed it quarterly, so it's not something that we have available that I think it's -- we have that available, but we don't disclose it.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [19]

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But -- I'm sorry. And Poe, at a very high level, we obviously came into Q1 with a certain amount of cover because, obviously, Q1 is always notorious for -- we assumed it was only Chinese New Year, not what was going to happen next. And also with the IMO 2020, having cleaned all our vessels during Q4 and basically had them full for the gunnels with compliance fuel going in. So when we saw this spike in the fuel price of the spread of $300, $400, we had a far cheaper fuel on board, which we're able to capture the earnings. Obviously, as you go into Q2, that drops a bit and then the indices pick up. And obviously, whenever the indices pick up a shop as they have, you always play an element of catch-up as well until you get back to the level playing field. So as Steve said, we don't, but it is -- Q1, to be honest, treated us pretty well considering. And Q2 was -- we were on this very early back in the end of January into corona mode, but it's always very [difficult] because so little business was out there and trying to get people to commit. And those that would commit were at such rock bottom levels. It didn't really become worthwhile. It was, yes, to a degree, a tale of two halves within that. But overall, we were very pleased with our overall result. And coming forward, how we are managing to capture this uptick now.

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Operator [20]

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Thank you. Gentlemen, there are no further questions.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [21]

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Okay. Thank you, operator. Thank you, everyone.

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Stephen Griffiths, Grindrod Shipping Holdings Ltd. - CFO & Director [22]

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Yes. Thank you. Bye.

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Martyn Richard Wade, Grindrod Shipping Holdings Ltd. - CEO & Director [23]

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Bye.

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Operator [24]

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Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.