John C. Wobensmith: So, I kind of look at it in terms maybe three buckets. From a fleet renewal standpoint, we’re going to continue to do that. We’re going to continue to dispose-off, our older ships and redeploy that capital into newer, more fuel efficient assets, which obviously increase our potential earnings power and potential dividend payout. When you look at just buying vessels for cash these days, I do think values are in the 90th percentile which is great. But, obviously there’s an elevated level of risk at buying at those levels. I am hopeful, optimistic that our better equity will continue to really close the gap on NAV. I mean, we’re pretty close now. So, that you can then start using if, for the proper deal you can use your equity as currency. And, I think that will make sense if you’re buying assets in this market. So, those are sort of the three ways I looked at it.
Liam Burke: Great. Thanks, John. And, on the Capesize time charters, you’ve, with the index, you’re really over earning on those assets. Do you see more opportunities to time charter the Capesize or is there any thought where you can do some longer-term charters on your non-Capesize vessels?
John C. Wobensmith: Look, the index deals are obviously great. We’ve picked some pretty good spots on timing when to pull the trigger on the index deals. And as you said, they are earning quite a premium to the BCI plus scrubber economics on top of it. In terms of fixed rate, I talked about the Liberty earlier on the call. We will from time-to-time as this market continues to exhibit volatility, we’ll take the advantage of putting a ship away and taking exposure off the table in the Capesize. I wouldn’t say, it’s not as much of a focus in the minor bulks. That is a robust commercial trading platform where we’re creating arbitrage opportunities and really outperforming our benchmarks, because of that platform, that doesn’t mean to say that, if we see a really good rate on the one year side that we won’t do it. But, I think it’s more of a focus on Capes just because of the volatility that exists.
Liam Burke: Great. Thank you, John.
John C. Wobensmith: Thanks, Liam.
Operator: Our next question comes from Sherif Elmaghrabi with BTIG. Please go ahead.
Sherif Elmaghrabi: Hi, good morning. Thanks for taking my question.
John C. Wobensmith: Good morning.
Sherif Elmaghrabi: Okay. First on the debt, Genco doesn’t have scheduled amortization, but you have been regularly paying down almost $9 million until this year where repayments have stepped up. So, my question is, how are you thinking about voluntary repayments going forward, especially now that the debt per vessel is so low?
Peter Allen: Thanks, Sherif. Yes, debt per vessel is under $3 million per ship, which is pretty remarkable when you think of where scrap value is in that sense and also where the vessel value are as well. So, it’s a very low leverage situation as you alluded to. In terms of our debt, our voluntary debt repayments because we don’t have any scheduled debt amortization until facility maturity in 2028, with the full RCF structure that we have currently, we’re really managing our debt balance to save interest expense and essentially reduce our breakeven and increase our dividend capacity. So, we’re really focused on paying down whatever debt we do have. But, we did sell $65 million worth of ships this year-to-date. So, we took that cash and paid down the RCF, knowing full well that if we do need it, we can redraw.
So, on a go-forward basis, it’s still that $8.75 million target, $35 million for the year. But, we’ll actively manage it with the RCF structure knowing that we won’t lose our borrowing capacity.
John C. Wobensmith: Yes. And, I would add that $8.75 million is part of the overall reserve, which includes paying down the debt, but also keeping monies held back for fleet renewal as obviously it’s a, in shipping you have depreciating assets. But look, from time-to-time we’ll obviously look at that reserve, make sure it’s appropriate based on our capital allocation. We’ll continue to look at all avenues within capital allocation and make the right decision at the Board level. But, we are obviously getting closer to our target of net debt zero. So, we’re looking at quite a few things these days.
Sherif Elmaghrabi: Thanks. That’s really good color. And then, on fleet management, what sort of specs do you look for in a vessel that you might acquire? You sold three older ships added to in Q4, but especially given where values have climbed to? And, I’m curious also how numerous are those opportunities in the sale and purchase market?
John C. Wobensmith: So, we’re solely focused on what I would refer to as eco-vessels which are really in the end of the day 2015 and newer that carry the much more fuel efficient engine designs. That’s paramount for us. I would say in the Capesize market, it’s not as easy. Those ships do not come up for sale as often. The deal that we were able to do in December was just a fantastic deal. The timing was good, but also the ability to get our hands on those two modern Capesize ships. It’s quite a bit easier in the Ultramax sector. There’s just more liquidity, more assets available for sale. But patience pays off, as you saw what we did in December. So, I’m confident that we’ll be able to continue the fleet renewal strategy.
Operator: Thank you. [Operator Instructions] We will move next with Poe Fratt with Alliance Global Partners. Please go ahead. Poe, your line is open.
Poe Fratt: Good morning, John. Good morning, Peter. Sorry about that.
John C. Wobensmith: Hi, Poe.
Poe Fratt: Hey, you mentioned, John, on the S&P market, that you potentially, as your stock moves up closer to NAV it potentially becomes a narrow in the quiver, so to speak. Have you turned any deals down in the past because of your equity value where the seller has been looking for equity?
