Operator: Our next question comes from Frode Morkedal from Clarksons Securities.
Frode Morkedal: Yes, thank you. I’ll skip all the question on the arbitrage and go to the market. You mentioned both in the report and now in the presentation. On China, I guess you’re seeing less U.S. crude exports to Asia being one of the main reasons for the — in the VLCC rates. Maybe you could expand on that argument? And maybe what you’re looking for in order for this to change for the better.
Hugo De Stoop: It’s — well, the facts are correct. Everything that you said is correct. The question is how will that be developed going forward? And that’s always very difficult because it depends on the levels of the volume that people want to export. Let’s not forget that when we are talking the U.S., it’s very important for ton-mile, but in fact, we’re talking about the West Coast of the Atlantic Basin. So it’s the U.S., but it’s also Brazil in the next — well, starting now, but in the next 2 or 3 years, it’s also going to be Guyana. So there’s a lot of expansion in the production of oil coming from what we call long distance, very positive tone light. The second aspect is that there was a lot of export from the U.S., but they were mostly going to Europe.
And we see now that some of those cargoes are going to China. So — in fact, if you say 2 cargoes going to — or 3 cargoes going to Europe, is the equivalent ton mile and on cargo going to China. So it is complex, and we are a little bit — we have the same visibility that the new guys have. And as I said, I mean, it depends on how many barrels, how many cargoes are being released from different places and that has always been difficult in all markets to forecast that. Overall, we see that there are more restrictions than in the past due to the Russian situation. And overall, we see that these cargoes at least have to complete much further distance than in the past, and that’s positive. About China, in particular. Obviously, China is no reopening.
I think that the government has made it very clear that they want to reboost the economy. The first step is reopening. The second step is to cope with COVID. Let’s not forget that we have had our waves, but they are having their first real wave now. And so you need to cope with that for a couple of months. And once that is over, we are very optimistic about the fact that the economy will grow massively compared to the previous quarter, which was — which were hampered by this situation. Where are the cargo coming from? Well, we will see. But chances are we will definitely need more cargo coming from the Atlantic.
Frode Morkedal: Perfect. That’s great. That’s it for me.
Operator: Our next question comes from Jon Chappell from Evercore ISI.
Jon Chappell: Thank you. I think the illustrative example in the press release of the capital allocation policy is very helpful. A lot of uncertainty on your ability to distribute capital maybe to the same extent as the prior cycle. So super quick 2-parter to my first question. First, I just want to be clear, in the last cycle, it was an 80% payout ratio. And of course, mixed with dividends and buybacks, and that’s what you’re ideally hoping for in this cycle. And the second part of that is, I do understand that February 7 is only 5 days away. But from your divorce example, it sounds like that’s only making a determination on whether the house can be sold or not. When is the second arbitration roughly completed, so we can start to think about distribution of the proceeds from the house sale?
