Gary Chapman: You’ve made some really good points there, particularly around the mid to long term, which we certainly would agree with. And it is the short term that’s the challenge for us. I think the part of the reason why we’ve been a little bit raising the caveats about the conventional market is obviously around the fact that the utilization is a little bit unpredictable. Yes, you can sign up for a TC but at a lower rate. And playing in the market really does depend on utilization and to a degree, obviously, fuel and repositioning and ballast costs. So I think it’s not so easy to come up with a rate that this would work and this one wouldn’t. But I think what we can say is that certainly where the conventional market is today, it’s really helpful for us and we are seriously looking at what we can achieve in that market.
And I think given the volatility that we’re seeing in the market, we don’t know what’s going to happen to rates, et cetera with what OPEC and Russia are going to do and the price cap beginning of December. There’s a lot of things happening at the moment that make it very difficult to think that conventional tanker rates are going to come down in the in the short term, and that’s very helpful for us. So, whilst we don’t want to necessarily use our vessels in the conventional market, we would much rather be doing offshore loading activities. It does at least give us a realistic and viable chance to earn good money. And you’re right, I can’t give you a rate. But certainly, despite the caveats we’ve put, we do feel that it’s a good opportunity for us to be able to secure some charters and some income for our vessels.
Richard Diamond: Would it change the — let’s say, you decided to charter, let’s say, two vessels short term or move them to for sell. Do you think that psychologically, the North Sea charters would start to become concerned about the availability of capacity?
Gary Chapman: Yes, and certainly we’ve seen that already starting in 2024 for sure. And I think some of our customers must already be thinking that way, I think. And we’re seeing that in Brazil even today for 2023. So I think that is very, very possible. We’ve seen a couple of vessels leaving the North Sea just recently I think. So again, the numbers are changing regularly. And I think we — things are moving in the right direction for us. We’re not seeing too many variables that are working against us at the moment, newbuild prices are high, certain vessels are leaving, the older vessels are perhaps leaving the market in ones and twos and things are being tied up. And certainly in Brazil, that is already the case. What we doing our best to do is to obviously work with the conditions that we’ve got in the North Sea and do our very best to sign new business for those vessels.
But certainly, the underlying market and the conventional market at least is — it’s supporting us in those efforts, I think.
Operator: Our next question comes from Jim Altschul of Aviation Advisory Service.
Jim Altschul: I guess, I got a couple of questions for you, please. First of all, with regard to your hedge accounting, because for the accounting that — specifically the realized and unrealized gain on the derivative instruments, because I believe in the news release, you said that you’re not using hedge accounting, and if I’m using the right word. There’s a significant — if you look on the income statement, there’s significant increase in the interest expense because of the increase in interest rates. But you also have a significant realized and unrealized gain on the derivatives, I mean the derivatives are all related to your interest rate risk, right? I mean you you’re not
