Liam Burke: Fair enough. Thank you.
Operator: Thank you. Our next question comes from the line of Chris Robertson with Deutsche Bank. Chris, your line is now open.
Christopher Robertson: Hi, good morning, everybody. I apologize for my voice in advance. I’ve been a little bit under the weather. But Jeff, now that, you have 14% net loan to value, the cash break-evens have been lowered, especially around this consolidation of the senior secured facilities. It seems like the company is in a very good place to kind of just sit back here, and harvest and return capital. I guess, would you characterize it that way? Is there anything more to do, to further lower the cash breakeven, whether it comes to something that you can do with the financing, or the cap structure, or targeting op-ex, things like that? I mean, where are we at just with the cash breakeven level? Plan to lower it further, or are we just kind of steady as she goes from this point forward?
Jeff Pribor: Yes, hi, Chris. I think we’re pleased that we’ve been able to achieve what we have on reducing the cash break-evens to where they are today. I think we’re getting – it all kind of works together. Like, we’re not heading or aiming even for zero debt, but getting, debt that’s below recycle value, and that’s middle teens range enables us, to do things like the new facility, where we switch or transform the term debt to revolver. And if these levels doesn’t require any fixed amortization, we may choose to amortize, but the break-evens are lower, which produces more cash as well as puts us in a place where, it’s hard to remember in this up market, but it wasn’t only a couple of years ago that we had a terrible market.
So, having your break-evens such that you would still do well even in a low market, is one of our objectives. So, we’re really happy about that. So, yes, we’ll always look for ways to do even a little better, but, I think with the debt that we have now, I don’t see major changes in the next year or so. It’s kind of high quality debt, we like to say. Some of it’s below the rates of earning and interest and others of it, this is naturally not, in place for a while. So, I don’t know, Chris, I guess one way of saying, I think – we’re not sitting back. I don’t think that would characterize the company, and you have seen Lois talk about it pretty extensively. We do find opportunities to use cash flow in addition, to the returns to shareholders. We’ve found some good opportunities to use the cash flow to renew the fleet, and those fleets.
So I think we are harvesting, but we’re also, looking selectively to grow. I hope that answers your question?
Christopher Robertson: Yes, fair enough. Yes, thank you, Jeff, for clarifying that categorization as well. Yes, speaking of the fleet renewal efforts, and just kind of looking at the portion of the MRs that are still a little bit dated, you’ve had that recent sale. Should we be looking forward to some potential sales of the other MR assets at this point, or what’s the secondhand market looking like today?
Lois Zabrocky: So, Chris, secondhand market is very strong. 38 a day in the first quarter and thus far booked in the second quarter, very strong. Putting six, seven of these on multiyear time charters, very strong, historically strong rates. We will selectively prune, and we do it carefully because, it’s a balance in this very strong market.
Christopher Robertson: Definitely. And, Lois, on the proceeds from any potential vessel sales, would that then in turn be used for, further renewal efforts on maybe some acquisitions or even ordering?
Lois Zabrocky: We don’t specifically bucket it exactly that way, but it does tend to be how we execute, and how we look to continue to hydrate the fleet.
Jeff Pribor: Yes, I’d say, you get free cash flow for operations and you get free cash flow from monetizing older vessels at a significant profit. It all becomes cash to be allocated.
Christopher Robertson: Yes, thank you. Thank you, Jeff. I’ll turn it over. Thanks for taking the time.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Sherif Elmaghrabi with BTIG. Sherif, your line is now open.
Sherif Elmaghrabi: Hi, good morning. Thanks for taking my question. So these LR1 new builds are a pretty unique opportunity given how early their delivery is, and I’m curious if you were to go to a yard today, and order a tanker, first, when would that be delivered. And do you have any insight, into how many similar open slots for delivery before 2027, may exist at yard?
Lois Zabrocky: Okay. I’m going to try a little bit of that, and I’ll give it to Derek as well, our commercial man. So, yes, we knew, obviously this has been a strong sector for us for some time, so, we wanted to take advantage of those slots as we found them. Most slots today are into 2027. Really kind of across the tanker space, maybe you can get some MRs in 2026. And Derek, would you give a little more color on that?
