Welcome to Concordia Maritime Q1 Report 2023. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. I will hand the conference over to CEO Erik Lewenhaupt and CFO Martin Nerfeldt. Please go ahead. This call is being recorded. Hello, welcome to Concordia Maritime's Q1 report in 2023. I'm Erik Lewenhaupt, I'm joined here by our CFO, Martin Nerfeldt. We'll kick off. Q1 2023, we are presenting a result before tax of around SEK 3 million. Martin will dive into all the financial details in a short while. Highlights in Q1 was the delivery of the last 2006-built ship, Stena Provence, to new buyers in January. That resulted in a repayment of bank debt of SEK 156 million. During this quarter, we've also evaluated future business opportunities, which we will come back to. After the quarter, as was publicized yesterday, we have reached an agreement regarding the sale of the vessel Stena Penguin. We dive into the tanker market during Q1. Looking back on the first month of the year, it started off with a weak tanker market for products in January, which firmed up in February and March. Overall, you could say it was a solid spot market in products, but also in many of the other crude segments. The sentiment is strong and firm for the outlook. Having said that, there's been a rate correction over the last week or so in April. We believe this is more of a seasonal volatility rather than a change in the cycle. We think so because there is still the increase in ton-mile demand as a result of the war in Ukraine, and we see new trading patterns emerging or actually now being more established. The global inventories of oil and products is still high. The order book is still low. On tankers as a whole, we're talking roughly 4%, slightly higher on products, 5.6 was the latest I had, but still historically low. However, some new orders have been starting to emerge in the last month or so. We move on to the Russian market because this is really Russian exports rather than how this affects the market. Just wanted to highlight what an impact this has had. If we look on the crude market, there's certainly a lot of strength in the volumes reaching Far East in terms of India and also China. This graph shows the ton-mile change pre-invasion and in March 2023. As you can see, a big increase in ton-miles for volumes of petroleum products to Turkey, Brazil, Saudi, and other areas in Asia. This has led to the high utilization rates. As we put down in the quarterly report, the crude is still flowing out of Russia. Last or rather at the end of Q3, the export on keel was 3.3 million barrels per day, and pre-war, it was 3.0 million barrels per day, according to latest estimates. The pipeline export certainly has decreased, but from what we see on keel, that is still flowing. Although EU has an embargo on ship movements from Russia, there is still the G7 price cap, which allows crude to be sold and transported under certain levels to sort of cut the inflow of cash to the Russian government. The volumes are there. Spot markets continued firm. As you can see on this graph, there's been a decrease in earnings, as mentioned last two weeks, roughly. Today, the earnings in the Atlantic for an MR is around $15,000-$20,000 per day, and in the Far East, around $30,000 per day. Concordia earnings for Q1 was $15,900. That is counted on the three ships which are on the time charter to Stena Bulk and excluded the Stena Polaris, which is on the bareboat charter. Of course, nothing that we're particularly proud of given the market, as shareholder, I'm sure that you are aware of the contract situation that we are in. We move on and look on asset values, which have continued on their high high curve. In April 2023, we can actually see even a small increase compared to year-end 2022 on five, 10, and 15-year-old ships. This is, of course, a function of the high spot earnings in the market and also the full shipyards and the high shipyard prices. If we move to the next picture and we look on the price levels for new buildings, we are, I should say, in close to record territory or at least in levels not seen since 2008 and 9. There has been a high demand for LNG and container vessels in the past, which has filled up the yard's order books. Now, even though tankers are still low, we've started to see increased ordering of Suezmax, LR2, but also MR tonnage. I would say we should maybe watch this space when it comes to the percentage of the fleet on order. We move on. As we publicized yesterday, we've agreed a sale of Stena Penguin. If this goes according to plan, the ship should be delivered and closed during Q2. This will result in 215 million SEK as a liquidity surplus after repayment of the debt to Svenska Skeppshypotek. The fleet and employment structure, the fleet we have left after a finalized sale of Stena Penguin, we are down to 3 ships, Stena Premium, Stena Progress, and Stena Polaris. As mentioned, the Stena Premium and Stena Progress are on the time charter agreement with Stena Bulk at SEK 15,500 a day plus profit share up to August in 2026. The 2 ships had options for employment, not from us to Stena Bulk, but from Stena Bulk to the end customers. Those options have now been declared. The ships will be open towards the end of 2024 for new employment from towards the sort of the final customer from Stena Bulk. The third ship is the Stena Polaris. She is on a bareboat charter to the American company Crowley, where they put US crew on board. She is then chartered out to the Military Sealift Command in the US. Moving on to the result, I leave the word to Martin Nerfeldt. Thank you very much, Eric. Let's move to slide number 11. Here I will present the Q1 result compared to Q1 2022. You can see that our earnings, there are, we had an average earning of SEK 15.9. That includes profit sharing, but Polaris is excluded here. The difference here is explained by that we only have 5 vessels left during Q1. If we look at the voyage-related operating costs, that's a hangover since last year when we have sold vessels. We still take some costs for them. Operating costs, that's mainly due to our shrinking fleet, SEK 22.3 million compared to SEK 34.6 million the corresponding period last year. Seagoing personal costs, same with that, SEK 19 million compared to SEK 44 million, just a consequence of less vessels. We see a small increase in personal expenses. That's due to that we have employed one more person. Other external costs, you see a quite huge decrease here. You have to bear in mind that in Q1 2022, we sold Paris and President and took a loss there, and that loss is around SEK 1.4 million. So if you deduct that from the SEK 16.4 million, it's almost equal. Depreciation and impairments, that's also a straight consequence of less vessels, 23 compared to 42 last year. If we look at finance net, interest cost is 11.9 compared to 18.2. Here's an interesting thing. The outgoing balance of in 2023, we had debt of SEK 360 million. In Q1 2022, that figure was SEK 1.4 million. You could just estimate the impact of a rising LIBOR as cost. It feels very good that we have reduced the fleet, and at the same time taken profit at very high asset prices. All in all, result after tax of SEK 3 million compared to -SEK 30 million for the same period last year. Let's see here. If we then look at the liquidity and financial position, see here the equity ratio has even increased since end of December. Now it's 40%. Equity ratio is equity divided by balance sheet. You also see here that our liquidity is still stronger and stronger. Now, at end of end of March, it's SEK 161.9 million. Equity, that is SEK 412 million, and the equity per share is SEK 8.64. Interest-bearing debt, SEK 360 million. We look at the environmental and health and security slide, you see. We're very, very proud of this figure. That's work that goes on 24/7. We didn't have any LTIs during the period. We had a little bit unfortunate one inspection that was above five observations. We had another one during the quarter that gave us two observations. That's the average gave us 4.5. Otherwise, we didn't have any incidents except one high potential near miss. That was a minor thing. That was a pipe that wasn't correct positioned during loading. If we look at the environmental impact, you see, only very, very small decreases. For this quarter, we tried to compare apples and apples, so we have reduced the Q2, Q1 figures for 2022 with the same vessels that we have today. If we look at medical treatment, it's zero. Restricted work case, zero. Number of reported whistleblower incidents is also 0. All in all, from an environmental point of view, a very, very good quarter, which we are very proud of. Okay. A few words on the outlook and focus going forward. As you may or may not know, Concordia celebrates 135 years this year as a shipping company. These pictures represent the listed last or current phase of the company, you could say, when we have been a Concordia Maritime listed shipowner on the Stockholm Stock Exchange. During this time, there's been a number of shapes for the company. It started off as quite a mixed bag in terms of fleet with dry bulk, chemical tankers, and crude. During the late 1980s and early 2000s, the focus was heavily on large crude carriers. This picture is the Stena King or Stena Queen together with the Eiffel Towers. For the past 20 years, we have been mainly focusing on product tankers. Now from 2023 onwards, we could be heading for a next chapter. What was the status going into 2023, or what is the status now? We are definitely a smaller company, but we're also a stronger company with a fleet of 3 vessels on stable, but long-term charters up until 2026. We are not averse to selling more vessels if the price is right and the conditions are right. We are high in the cycle of tankers, and we think that is something that the company should take advantage of. We have a stable financial position, but a smaller balance sheet, and we have an ongoing valuation of what could be the next step. What has been the starting point for those discussions then? The Concordia is a shipping company and shall remain so. We have a continued focus on shipping operations and ship owning. We would like to focus on business which can provide an opportunity for growth in the segment and profitability on the, on the shipping operation. We are keeping an eye on coming regulation and the green transition and opportunities that come in a more green shipping environment going forward. There we have started discussions with several potential partners. We have strong partners within the Stena Group from before, but depending on pathway and segment, there could also be other new partners for our operation. If we look on the cycle as such, and of course this is a very simplified outlook. Looking on some of the major segments in terms of LNG, we can see the rates have corrected since the high a couple of years ago, but are still firm and there is still increase in demand in the segment. However, you also have an order book which is in the region of 50% of fleet on order, so that is a challenge going forward. Container obviously has come a long way since the record highs during COVID. You have a fleet on order of around 26%. LPG has been relatively stable in terms of earnings on the past 3 years. You have a fleet on order of 18%. That is also potentially a segment for growth going forward. Dry bulk, obviously a very big segment, fleet on order of 6.9%. Offshore and wind may be a bit difficult to say because this is relatively new, so there isn't really a percentage to give. Tankers, as we were mentioning earlier, around 4% on the segment as whole, just looking on the order book. In terms of what we have been looking at so far, here is an outlook on a couple of segments: product tankers, bulkers, and offshore wind. Product tankers, obviously the segment that we are most familiar with. We have a increase in oil consumption and production over the coming years, and are expecting 2023 to be a record year actually in terms of crude demand and peak oil not expected to hit until 2030. The ton-mile effect obviously has been a strong contributor to earnings recently. In product tankers, there are sub-segments which are more interesting than others. Just to mention a few, we can see the small product and chemical tankers intermediate with a high degree of flexibility in terms of cargos they can handle. Also for those vessels trading in Europe, a future where you see the FuelEU Maritime and other environmental requirements will put a high expectations on the green credentials for that fleet, which could lead to a large phase out in the coming years. Product tankers obviously one exciting category. Dry bulk, very big segment. Just like tankers, you have a relatively low order book, and you also have a rate and also partly asset values which have dropped quite substantially from the second half of 2021. There is a stronger belief in the segment after this correction now. A lot of that is built on the expectations of the Chinese growth in terms of the economic growth and their imports of raw materials to support manufacturing in China. Also here, green credentials will be increasingly important. You have an average age of the fleet, which has moved from around 8, 5 years ago to 13 today. Out of those, the majority of the fleet is non-eco, so less efficient. You also have a very, very low proportion of dual fuel. There are definitely possibilities within this segment. Finally, we look on offshore wind, which is a relatively new segment compared to tanker and bulkers obviously and much smaller. For those of you who followed the media during the past week, you saw perhaps the announcements from the Ostend Declaration, where the nine countries around the North Sea have agreed, or at least set a target of capacity for wind propulsion in the North Sea to grow from 30 gigawatts today up to 120 gigawatts in 2030 and 300 in 2050. Expected a very strong growth in this segment, which is quite fragmented today, which will result in a strong need for service and installation vessels. Interesting segment as well. The process going forward, right now, we are, at the same time as we are, handling the daily operations with the fleet that we have. We're also doing an analysis of the potential segments and processes, sorry, and projects. We have a very tight discussion between ourselves in the management and the board of directors. We hope to have a decision and to be able to share more information on orientation during this coming summer. Questions we have to go back to or come back to rather is the actual project business, contract structure and so on, financing and other types of collaborations. To round off, in summary, we see continued firm markets. We've seen a slight dip in tanker earnings last couple of weeks. We believe it's more to do with seasonal volatility than a change in the longer term. The company has shown a positive result for Q1 and an improved financial situation. We have the delivery in January of Stena Provence, and also quite recently, we agreed the sale of Stena Penguin. We are evaluating and discussing future business opportunities for Concordia going forward. With that, we thank you and we open the floor for questions. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. Okay. If there are no questions, we thank you for all of those who listened in. You are always welcome to reach out to myself or Martin directly for questions. Please follow our monthly market report where you can find a lot of data on the product tanker market. You can subscribe to it on our webpage. With that, we leave you and we say thank you for this time.