Hello, and welcome to the Concordia Maritime audiocast with teleconference Q4 2021. Throughout the call, all participants will be in listen-only mode, and afterwards, there will be a question-and-answer session. Just to remind you, this conference call is being recorded. Today, I am pleased to present the CEO, Erik Lewenhaupt, and CFO, Martin Nerfeldt. Please go ahead with your meeting. Okay. A warm welcome to the Concordia Maritime teleconference for the Q4 report. I'm Erik Lewenhaupt, and I'm the new CEO of Concordia Maritime, and I'm sitting here today with our CFO, Martin Nerfeldt. Martin. Thank you very much. I go directly into page number three, the fourth quarter in a summary. During the quarter, we made an agreement for two remaining vessels, and we did that with Svenska Skeppshypotek. Now all 10 vessels are under financing up until 2024 and 2025. We also got from the bank group a waiver, and that's because that we were worried to break our equity covenant. We also have a new CEO who has just introduced himself, Mr. Erik Lewenhaupt. As you maybe have seen, we have also done a write-down of approximately SEK 268 million. We will go more into detail in a couple of minutes about that. We're just coming from a board meeting, and the board just proposed a dividend of SEK 0 per share. After New Year, we have done three big things. We have sold Stena Perros with a liquidity effect of around $1.4 million. We have also released a press release about maybe converting some of the vessels to container ships. We have also got a good charter for Stena Polaris that is chartered out on a bareboat charter for 12 months with options for five years. On the right side, you see the results for 2021 and 2020. You could easily see there that the result before tax, adjusted for impairment, was - SEK 40 million compared to previous year's year of - SEK 86 million. If we then add the write-down, the result before tax for the fourth quarter of 2021 is -SEK 308.2 million compared to last year of -SEK 86.5 million. With that, I leave to slide number four. Erik. Thank you. Well, the market for tankers in general was disappointing in 2021. Unfortunately, while many of the other shipping segments like containers and gas could benefit from a strong market, tankers suffered throughout the year. As you can see on the graph, there was a small increase in Q4, but nothing that really changed the overall picture of the year. Next slide, please. What was the reason for this then? At the start of the year, most analysts and ourselves were quite positive of the market fundamentals. As always, there's a combination of factors here, but these are some of the ones that we see as important. Overall, we believe or we see that there were lower volumes shipped. There was a recovery in the demand for oil. Production and export volumes in particular have not increased at the same pace, mainly due to OPEC and OPEC+ holding back. The inventory levels reached a historically low in the second half of the year. The sort of broad replenishment of stocks has not yet taken place. Shorter distances, particularly in crude, and this is partly due to lower than expected exports from typical sort of long-distance exporters like West Africa and Brazil to regions such as Asia. There has been challenges in production in West African countries, for example, and overall, this led to a reduction in ton miles for crude tankers. Recycling of ships and scrapping was less than needed. Although a firm increase for the year, it was not enough, basically. The net fleet growth and because of that was around 2%-3%. Finally, an increase in both crude and also fuel prices, where the price of crude oil rose gradually over the year from around $50-$80 per barrel, from January to December. This affected both the fuel prices for the spot trading fleet. As things stand right now, it could dampen volumes. Crude as we speak is around $92 per barrel. Martin. Yeah. I go to slide six here. Here on slide six, we try to compare quarters on quarters. We compare quarter three with quarter four. Quarter three, we had a loss of -SEK 141 million. Here I have tried to strip out the write-downs. You see that, before write-down, we are around SEK 100 million better than for the third quarter. That's mainly because of this time charter we have for the IMOIIMAX vessels that we are around SEK 26 million better. We also redelivered some Suezmax vessels. As you know, the Suezmax market has been quite depressing the last couple of months. That was good that we could, according to contract, redeliver these vessels. Because we have fewer vessels, we also have lower operating costs. All in all, the result for quarter four before write-down was SEK -40 million. Of course, if we then add the write-down of SEK -268 million, the net result for Q4 is SEK -307.8 million. With that, we go to page seven. Erik. Yeah. As we previously announced, we have written down the fleet value with about 12% or SEK 268 million. The background is our standard process for impairment analysis. We do a bi-yearly valuation of the fleet with three external broker valuations to determine whether book values are correct, and we also look on future earnings. An impairment loss is found when the book value of the ship exceeds the recoverable amount, which is the higher of the fair value, that is the external valuations or the value in use, where we discount the future cash flows. After the assessment made with the last year accounts, we recognized there was a need to write down book value, which ended up with SEK 268 million. This was mainly a consequence of the unexpectedly long and low tanker market, which have had a negative effect on the market values, which was also confirmed by the sale of the Stena Perros. Martin. Yeah. We go to page eight. Just saying that we have had quite a hectic year for 2021, and we have done a lot of actions to try to strengthen both the liquidity and our financial position. What have we done? Yeah, we have a new financing, or we have amended the financing for all 10 P-MAX vessels. We have got lower installment rate. We have also put all P-MAX fleet on TC charter. As you all know, the charter rate is a minimum of 15,500, and then we have a profit share above that, and we split 50/50. We have also sold two IMOIIMAX vessels with a liquidity effect of SEK 45 million. During the last quarter, we have returned in total four, but from an exposure point of view, it was 1.7 Suezmax vessel, and that has been very good. As we just released, we have just sold Stena Perros just a couple of days ago with a liquidity effect of around $1 million. We move to slide number nine. As just released this week, we've launched a technical design study together with our partners in Stena Teknik and also a German ship design company. The whole ambition or idea here is to study whether it's possible and also initially technically possible to convert one or more P-MAX vessels to container transportation, to container vessels. Initially, due to the double engines and the redundancy of the ships, it seems like they may be suitable as container feeders with a capacity of around 2,100 TEU. We should stress that this is a project which has many technical and commercial challenges, and only because it's technically possible, it doesn't mean that there would be an efficient, effective design that would have a commercial demand. We want to find out, and that's why we launched this study. We expect the study to be complete around the end of Q2. If there would be an eventual conversion later in the year, we expect that to take around three to five months. We move to slide number 10. Just an overview of the fleet status as it stands right now. Like Martin was saying, we do have all of the P-MAX tankers now covered on charter. Most of them have been delivered to Stena Bulk for the arrangement at a time charter of $15,500 a day with a profit share of everything in excess of that, 50/50. The Stena Polaris is on a bareboat to a U.S. company called Crowley. The minimum period is 12 months, but there's options to extend that as well. The P-MAX are covered. As it stands right now, the only ship that we have in the spot market is the Suezmax, the Stena Supreme, and she is trading in the Stena Sonangol Suezmax pool. We move to slide number 11. As just stated earlier with regards to the market, we can see that on product tankers, which is this graph, the Concordia earnings compared to the blue bars, which is the index of Clarksons MR earnings, stands well, but of course, the levels are still not enough. As you can see on the small dotted line above Q4 is where the time charters came into effect. If we move to slide number 12, this is on the Suezmax, the equivalent graph. During the year, the crude tankers have probably been the worst hit, actually, not only Suezmax, but also the VLCC and Aframax. Our earnings in the spot markets were 11,900 for the year for Suezmax, 13,100 in Q4. The benchmark earnings here are pretty similar to MRs on an index basis. $6000-$7000 per day, roughly. Martin. Yeah. We go to slide number 13. Here I would like to go through the results in more detail. If you look at total income, we have a total income for the fourth quarter of SEK 151 million compared to previous year of SEK 165 million. If we compare on the cost side, you could see that we're almost lower on each category. For the voyage related costs, that is mainly due to some spot trades. We don't have that many spot trades anymore. That is spot trades from Q3 that has gone into Q4, so only small parts. That figure is mainly because we have the vessels on the time charter right now. Also see that the operating cost is almost half. That's also because we have fewer vessels. We have sold a couple of vessels, if you compare 2021 to 2020. Anyway, there is a saving if you deduct the vessel that we have sold. If you look at the seagoing personnel cost, it's also lower. Personnel expenses, also lower. Other external costs, also lower. If you look at the depreciation, there we see a big increase. There you need to deduct the write-down. The write-down was approximately SEK 227 million. That is a one-time effect. If you look at interest, it's also better. If you look at the results, it's SEK -307 million. Bear in mind that we have taken a big write-down of approximately SEK 267 million. If we look at the key ratio of Q4, we have an equity ratio. As I said before, we had to waive our equity covenant, and here you see it's below what we could live with. It's 14%, it's quite low. The available liquid funds SEK 34.9 million, and we have an equity per share of 6.21 krona per share. If we then move over to slide number 15, we have some good statistics here to disclose. We're extremely happy that we haven't had any LTIs during the quarter or during the year, to be honest. We have had a few vestings, and the average number of vesting observations for the quarter is 2.0. To me, that's quite good. If you look at the high potential near miss, we had one, and that was a minor spill of water and oil. It was 5L of water and sludge that was spilled on deck. Anyway, even if it's a small thing, we report all these incidents. We try to be as transparent as we can. If we then look at the environmental impact for the quarter, then we compare 2021 against 2020. If you look at the emissions in total, of course, we're going down, and that's mainly because we have fewer vessels. In total, it's 18.3 thousand tons compared to 23.2 thousand tons last year. Also on the emissions side, both for CO2, SOx and NOx, we are lower. It's also good to report that we haven't had any oil spill at all. If we then take a look on the right side there, we had one restricted work case. It was an engineer that twisted his ankle on board. He was okay after a couple of days. Anyway, we report all these incidents, and we encourage people to report all these kind of things. With that, I will leave it to Erik to go through the outlook for 2022 and onwards. Okay. We can go to slide 16 and onwards to slide 17. If we look on fundamentals, there's definitely a strong demand for crude globally. We looked on a report from EIA, which came out this morning or came out yesterday, I think, but reported this morning. Since demand is very strong, and if you look on the outlook as well, it's expected to grow in 2022 and 2023, 2024 onwards. Back from pre-pandemic levels. Right now, there's a few contributing factors in the U.S. You see demand, which is on levels which is normally during the peak driving season, you have cold spells both in the U.S. and Asia adding to demand. It seems people are back to flying, almost like they were before the pandemic hit. On the production side, the question is whether production will be able to keep up, and especially that production which is bound for export. We know West Africa, as I mentioned, have been struggling to keep up with their targets, and it seems like the spare production capacity in OPEC+ has dropped. It seems there's actually a risk that global production capacity could be fully exhausted. We move on to slide 18 and look on the inventory side. I mean, analysts have said this for some time now, but if we look on the right graph, which is the inventories compared to the pre-pandemic average of 2015 to 2019, as you can see, they fell quite substantially during second half last year and are down on very low levels right now. So at some point, this likely has to give. But of course, the high crude price, which is right now, may have a dampening effect on that. So we go to slide 19. And yeah, as mentioned, crude price is high. Move on to slide 20. We see the fleet growth and what is projected. As you can see on this graph, which is for product carriers, in particular, last year, you had a net fleet growth in product carriers on just shy of 2%. Going forward, the expectations are considerably lower. The main reason for this is that the yards have been filled up with orders of container vessels, gas, dry bulk, et cetera. The shipyards are currently fully booked until mid-2024, but less with tankers than usual. If we go to slide 21. In short, you could say that there are positive macro factors in terms of economic growth and oil demand, as mentioned. We are expecting production to increase as well. The inventory levels are low. Should mention as well, there's geopolitical uncertainty to the situation in Ukraine and what that might do to Russian exports. Same with Iran and sanctions there. Of course, that could have an effect going forward on the tanker markets depending on outcome. Finally, there is a low net growth predicted in the coming two to three years. Analysts seem to be cautiously optimistic in the mid-term. Then I leave over to Martin. With that, we would like to summarize what we have said. We have a continued quite weak market. Bear in mind that we have all 10 P-MAXs on charter for a minimum of $15,500. We're on slide 22, we should say. Yeah. The only vessel that we have on spot right now is our Suezmax vessel, Stena Supreme. As we mentioned, we have also sold Stena Perros with a liquidity effect of around $1 million that we are happy with. As we have mentioned, we have written down the book value, and that's, we believe, the right way to do. What we will focus on for 2022 is to continue maintaining liquidity and try to increase our financial position. With that, I'll leave the floor open for any question. Thank you very much. Thank you. Thank you. If you do wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. There will be a brief pause while questions are being registered. We currently have no questions registered. I will hand back to the speakers for any further remarks. Okay. With that, we would like to thank you for listening. We would like to take the opportunity. If you have any questions, just give us a call or an email. We will have this call during the first quarter of 2022. Goodbye. Thank you very much. This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.