Poe Fratt: Okay. And then looking at the Hilda and Torill, they’re currently on short-term charter agreements that runs for the year-end with your subsidiary of one of your GPs. Is that something we should expect to continue to sort of filled the gap until the North Sea market rebalances, you’ve said it’s going to take a little longer than expected a couple more quarters. Is that something we should sort of expect as sort of a stop gap until you can get firm work?
Gary Chapman: Obviously, I can’t speak for the other side of that in terms of our sponsor and KNOT, but certainly, we worked with them and come to an agreement with them to date on those vessels. And if nothing further is forthcoming, as Liam talked about, there’s the Brazil option moving them to Brazil. But again, we’d have to assess the merits of that. But we would probably be turning to KNOT and seeking to negotiate with them a further extension if need to be. Obviously, I can’t talk to their reaction and to their response to that. But certainly, so far, they have proven and shown to be very supportive.
Poe Fratt: Okay. Great. And then just one last one, if you wouldn’t mind. When I look at the options in Brazil, that’s really where there might be a little bit uncertainty in looking into ‘24 with the Carmen and Windsor in the first quarter and then Anna in the third quarter. But you did say that your – given the tightening in the market, you are pretty confident that those will be exercised. When will we find out that those options have been exercised?
Gary Chapman: All the charters, unfortunately, for you and for us, all the charters have different terms and notice periods. So it’s not a simple thing to say or to answer that question. I think we’re increasingly confident given the market in Brazil that even if the options are not taken that there is alternative employment opportunities for each and all of those vessels in Brazil. So yes, we are confident that options will be taken, particularly if customers have got a good charter rate locked in. But notwithstanding that, I think the point is really that option or no option, we’re increasingly confident that we would find employment for any or all of those vessels in Brazil anyway.
Poe Fratt: Great. And just – I apologize, Gary. Just one more, if you wouldn’t mind. What it would be Hilda and Torill, and Ingrid as far as drydocks coming up in the fourth quarter, roughly 30 days? Or sort of what’s a ballpark number for those drydocks?
Gary Chapman: Yes. Torill and Ingrid, are obviously European-based vessels, and we perform all of our drydocks in Europe. So they’re much quicker. So similar to the Hilda that you’d probably expect in the region of 30 days.
Poe Fratt: Great. And Gary, good luck in your new endeavor. Thank you so much.
Gary Chapman: Thank you, Poe. It’s a pleasure working with you. Thank you.
Operator: Our next question comes from Robert Silvera of R.E. Silvera & Associates. Robert, the line is yours.
Robert Silvera: Thank you. Gary, I’m looking at the balance sheet and the current assets, current liabilities, we’re seeing that our cash since the end of ‘22 has climbed substantially, which is good, and the current portion of long-term debt has dropped very significantly, but then dropping down a little bit to the long-term assets, the net vessels and equipment has dropped about roughly $100 million, and the long-term debt has gone up to $820 million. And I’m having problem understanding this. I wonder if you could explain to me why this dynamic is happening where the long-term debt has gone up so substantially since the end of ‘22, while your cash and the rest of the things seem to improve and the current liabilities have dropped so much?
Gary Chapman: Yes. The cash position has risen through operations, but also we hold back money for drydocks. So as we come towards dry docks, the cash position, we will be slightly elevated in order that we’ve got excess cash to pay for those drydocks I think that’s one side of it. The other side in terms of the debt and the current versus the long-term or, let’s call it, non-current, it’s just reclassification between pre refinancing and post refinancing. So as we come up to a refinance, obviously, we’re within 1-year of that refinance maturity date and quite a lot of the debt moves into the current category. As we refinance, it shifts back into the long-term. So if you compare one quarter to the other quarter and there has been a refinance at some point, you will probably see movements such as that happening, and that’s exactly what’s happened on our balance sheet in Q2 compared to Q1 or even the end of Q4 last year.
Robert Silvera: So the long-term asset drop of about $100 million, most of it is that reassessment of the value of the two ships?
Gary Chapman: The reduction in the asset will be normal depreciation and the impairment taken together, yes.
Robert Silvera: Really, in 6 months, we’ve gone down $100 million almost – equipment net investment and equipment.
Gary Chapman: The impairment itself was $50 million of that.
Robert Silvera: Yes. And that’s what I’m saying as well. Okay. Well, our feelings are pleased do not take any more drop-downs until we show that the Brazilian market really has improved substantially and our charter rates are climbing before we will entertain the risk of taking some more drop-downs. That’s…
Gary Chapman: Yes, as I expect, I think one of the other question is drop downs at the moment, really not our priority. It’s still part of the strategy of the business to grow the fleet, but the focus at the moment is visibility of earnings and liquidity.
Robert Silvera: Right, reducing debt like that. Do you have any feeling at the rate you’re doing, what you’re doing and assuming that the Brazilian market continues to strengthen. How long might it take in your estimation? And you won’t be around to have to stand up to this estimation in the long run because you’re off to a new career. But – how long do you think it might take before you see the dividend begin to rise again charter of 6 months, 2 years, what do we do in?
Gary Chapman: Look, I think when we reduced the distribution only earlier this year, and I know it’s been a couple of quarters since then. And we said that we needed longer term charter visibility, and we needed to build liquidity. Clearly, we have sorted out the majority of our refinancing near-term. We have got some drydocks to take care of. And we are making moves in the right direction, I think we have still some work to do. But ultimately, the level at which we have got enough charter visibility and enough liquidity, that’s really up to the Board’s discretion. But I think we are moving in the right direction. I think there is still work to do. But ultimately, it’s the Board’s discretion. So, it’s difficult to answer that. I personally don’t – I don’t think we are there yet. We only got the distribution earlier this year.
