Core Alternative ETF Price & Performance (CCOR)

Afternoon, Anurag, everyone.

So we start with the disclaimer and then we [indiscernible] gone straight into the presentation. So, Q3 23 the big news of this quarter is the completed sale and also delivery of the 2 vessels in a premium. And Standard Progress. And as an effect of that, we have also been able to repay all loans, to related parties. And, bear in mind, the bank, debt loans were repaid already during q two. Martin, would you like to shed some light here on the figures? Yeah.

Will go through them more in detail later in this presentation, but I will do a brief summary here. Total income of around 21 yen. It's a consequence that we we had [indiscernible] vessels during the quarter. We had Saint A. Polaris for the whole quarter, and then we have sold Cena Progress and Premium. And progress has been trading 56 days and premium for 40 3 days.

And then we have sold, these 2 vessels and we made a book loss of 6,000,000. I can say that we sold these vessels for book value and then it's a commission of around 2% at need to be added on that. But from a liquidity point of view, that was a good deal for us. We got around 1,000,000 in increased liquidity. EBITDA minus SEK 6.4 Operating result minus 12.6 If we then add the interest cost we're ending up at, as a quarterly result, of minus 21.8 and I will go through this in more detail later.

Very good. So if we have a look on the market during this quarter, we can conclude it's still a historically firm market for, tankers in, all segments. However, for MR product tankers, we can also say that the summer months were lower. Actually, index earnings in the mid teens, August September slightly higher in the twenties, and October lower again, and now in November, we're back up again. So it's, it's, as per usual, a relatively volatile market, but, maybe earnings have not been exactly as high as as some would have hoped for or expected. We'll see more on the next picture. We can conclude that also the period market has been relatively stable with a small dip during the summer, but outlook is still positive and as such also the period rates Asset values are stable. Yield prices are very high. The order book for tankers is growing however, historically, we're still at relatively low levels across the board.

If we see on the MR segment, in particular, the order book is now 8 0.5%. It was 6.3 a year ago, but it's different in different segments. And the very large crude carriers are as low as two 3%, LR2, which is a coated Aframax smaller segment but growing [indiscernible] 20%. So we can go to the next Slide, please. These are spot earnings for a MR. Worth noting here that this is this is a 2010 built vessel with no scrubbers. And, you can just have a look on the on the On the sort of average here on the graph for 21, 20 2, and 23. And as you can see, 21 Historically, or historically, but was very low earnings, around 5, maybe up to $10,000 per day. 22 markets considerably higher with with average somewhere around 35 And this year, it has been so far at least, lower with an average maybe around 25 And if we w for q 3 in the Tamar 26.5 [indiscernible] time charters at 26 and 3, respectively. And then we can go to the next slide. Showing, comparing the the spot with a 12 months time charter. And as you can conclude from this, the outlook is still positive.

Why am I saying that? Well, the 12 month time charter is higher than the spot market, so there's still takers there believing that the the market will continue. At a higher level, as per the the rev draft. And then we can continue have a look on asset values. And for this slide with pulled it all the way back to 2007 to put this into, a a bit more historical context. So this is the asset values for a 10 year old MR And as you can see, we are currently in the highest market since [indiscernible] Before the big financial crisis. And since then, asset values have been trading in a relatively small up until basically, Q2 in in 20 two. And the box here is the period where Concordia have acted on sales. So we started market was still in in a low mode, but, firmed up considerably. And we have been sort of taking advantage of that firming market, during this, sales.

Next. Slide, please.

So for this quarter, sale and delivery of stand up premium and stand up Progress, we've managed both to conclude the sale and get the ships delivered in Uruguay and Trinidad, respectively, during the quarter. The as Martin was mentioning, the price was, was roughly in line with book value, then we had a valuation from on the [indiscernible] June But given the contract that the ship was on and to, the is on a time charter 10 at 15:5 Rafael 2026. And then I have in turn sublet the ship on a contract which lasts [indiscernible] end of next year, end of 24, at a rate which would deliver very little or no profit share to us during that time. And after that, the the standard charter would still last until 26 So given how the market is, we did not want to take a chance on on asset values, and we believe that also with the price achieved, This was the best option for the company, and the deal itself also, gave us a added liquidity of roughly 100,000,000 Now we can go to the next slide. So the fleet today is, 1 ship. Stena Polaris, Bill 2010.

Ice claws 1 a.

And she is, as, our shareholders know, on a charter to [indiscernible] which is a family based, American company based in Florida. And they, in turn, have her on the charter time charter to military Selip's command. Valuation of this ship is as of the latest, average $29,100,000 basis, charter free. But as she is not on a charter free basis, we also have done a assessment with the current charters, and those broker assessments range between $19,500,000 and $24,500,000. So we've been trying to guide you as well as we can, but there is a spread there That is due to the options that exist on this charter and their therefore, the the uncertainty on the duration of the of the charter. Book value of this ship is roughly 215 1,000,000. And then we can go to the next one. Thank you very much, Eric. And I was briefly go through the P and L. If you have any more technical question, you could always give me a call. After this call, and we could discuss further. Total income, $21,000,000. As I said before, 3 vessels, [indiscernible] 9,300 multiply 92 plus it's in a progress and it's in a premium.

For a total of around 100 days. Of roughly 15 and a half per day. Voyage related operating cost. That is cost that has come in in late from vessels that we have sold. Operating cost is in line with sold vessels if you compare it with previous period for Q3 2022. If you compare that line with Seagull in [indiscernible] See that the seagulling is a little bit higher than operating, and that's because of the these 2 vessels that we had, Stella Progress and Stella Premium. They are a little bit more [indiscernible] Personal expenses, that's the staff cost continuing going down, It's also good to see the other external cost. For minus 4.1 compared to minus 6.8. That is our consultants or other administration cost also going down. Depreciation, that's a consequence of that we only had 1 1 vessel left in the fleet. [indiscernible] Going down to finance net, good to see that we have some interest income. When we sold these 2 vessels, we put the on deposit earning good interest. And we will see that going forward. We had an interest cost of minus 10.4. But in that minus 10.4, also tried to clean the balance sheet as much as possible.

So we took some deferred finance costs of 3,100,000 So the real interest there is SEK 6.1 then we had a positive tax figure, and that is because of a tax accrual for the quarter. This is adding up to a result of minus 20.5 for the quarter. Going to next slide, And this is, I'm a little bit proud of this. Sound slide, I must say. Equity [indiscernible] available liquidity of 243 point 4,000,000 and equity of 450,000,000, and the equity per share is now 9.4 3 and, look at the interest bearing liabilities It's gone from 1.6 [indiscernible] to, roughly 10,000,000 and that is, of course, in connection to the vessel that we have sold all vessels that we have done.

Then we'll go to the next slide. Safety statistics. We only had 2 vessels that we are reporting here. Volaris is not re reported in this context. We had one vetting inspection for one of the vessels during the quarter, and, it was 3 observation for her. Otherwise, no accidents or incidents for the quarter. So in that respect, a very good quarter. And with that, I'll leave over to Eric. [indiscernible] Very good. So focus going forward. We have, next slide there please. So, just to reiterate where we stand as of today, Concordia is one of 3 listed Swedish shipping companies, the only one on the main list. Have a 35 year old history. We have 1 vessel built 2010 on a stable charter and a strong financial position. So that is the context very different to how it was part of last year. Next slide, please. Just to try and see where we are in the market, we are in a environment right now with very high new building prices. Which is something to factor in. And, this slide taking it back to 2000, you can see the the 2008, as well. But yard prices have continued to grow and are high in basically all all segments right now.

In addition to that, a lot of, owners are adding dual fuel capabilities to vessels. In order to future proof them, which adds another, say, 10, 15% on a regular ship contract price. So expensive right now. Go to the next slide. Just wanted to highlight as well the the the difference between Chinese and Korean new buildings, this is for MRs, but the difference is across the board. Historically as well, high right now, especially Chinese sorry. Korean large have been struggling with, both supply chain and interest rates but also labor costs, particularly in Korea. Next slide. So, where are we in the cycle? We've been trying to give you here a couple of segments from some of the main segments, and we've chosen the 4 where Clarksons database have a, basically, average earning for the whole segment. So if we change to the 1st slide, next one, then we are at, this is for tankers across the board crude, products, and chemicals. And as you can see, we are still in a historical high context. But earnings across the board are lower than the peak, last year. Outlook still positive. The order book across the fleet is 6.9%, which it's growing, but it's still a low level Challenges, of course, with very low levels of Scrapping.

Right now. But, apart from that, outlook is positive. But, of course, with a high geopolitical uncertainty.

Right now.

We go to the next, and this is, dry bulk as you can see, the highs of 2,008 on the way on the left, and then we had the relatively subdued market all the way up until COVID where the congestion in porch pushed up rates, consist the the period in between 2008 and 2020. Since then, the earnings have normalized Dry bulk in particular very much depending on Chinese import, export, and the, economic situation. The order book here is relatively low. So many people have good expectations for drybulk going forward. Next is container. As you can see, have lived a relatively miserable life in terms of earnings over many years. Up until COVID as well. Where earnings peaked and, enormous, rates were achieved for for the big container operators. Since then, earnings back down to a more normal levels, which are still relatively strong in a historical context. However, order book at 26%, which will be a challenge going forward. And, finally, we go on gas, and this is for LPG carriers.

Historically high rates right now. Very strong market order book as well. Big, but many expect this actually to be absorbed, going forward. Can, note that the LNG market has an order book of close to 50 [indiscernible] One opportunity here going forward is the growing demand for ammonia as a fuel. And the ammonia LPG can be can be combined on, on ships, so you can have a combined However, my extension ships the process going forward, we continue the path that we're on. We're evaluating segments and various projects. Looking at something that has a potential for growth, taking in mind the price levels in that segment and that particular deal. And we want to conclude something with a green twist. Focus that we've been having is, partly on intermediate dual fuel product tankers on dry bulk, both existing ships and newbuilds, and on offshore wind, which is a very strong growth segment. We've had various discussions between ourselves and the board of directors on different projects and segments, we want to find something which is the right project with the right context in terms of partners and and also with the right timing. [indiscernible] which is coming out 1st week of every month.

And you can find it on our webpage. And then finally, we go to a summary. So for q 3 in 2023, we are reporting 2 vessels, sold and delivered and all debt repaid. We are operating in a context with continued firm freight markets with high asset values and yard prices. But we are also in the context where geopolitical and economic uncertainty is higher than it's probably been for a very, very long time. We continue working on future business opportunities to find something in the right context with the right timing.

And that concludes our presentations, and we open the floor for questions. If you wish to ask a question, please dial star 5.

To enter the queue, if you wish to withdraw your question, The next question comes from Peter Edwell from Ponderas Invest. Please go ahead.

Hi, guys.

Interesting report. Considering what where Concordia Maritime is Now, I wonder what the fixed cost to running, the company, Concordia, today And, adding to to that, what's the surplus from from the cash flow of the time charter of Polaris. You have to figure out, are we in a cash breakeven going forward, or where are we?

Yeah. I could answer that question. Happy to absolutely.

From a cash point of view going going forward, if we continue like this, It would be a cash, surplus. When the interest is is around 5% we have a good we have a good, bareboat charter So so definitely, I will not go into any details, but it would be cash Positive. Going forward.

Yes. And, like, what can I say about the fixed cost to to run running the company? As it is today.

As it is today, you could look at the I think the easiest thing is to look at the administration, administration cost. We are a listed company. And, as a listed company, you need certain things, certain service you need, certain competence You need advisers. You need lawyers, etcetera, etcetera. So I think the best thing is to take the [indiscernible] 2020 3. And then we mean, writing the report, we are focused quite heavily right now on administration cost as well. No to go down. And and, we expect that to go down quite a lot, actually. We, just as an I've called around almost all suppliers to try to reduce cost And, it's quite easy to reduce cost if you want to. And if you have to. So that is, one objective that we are working on.

Yeah. Sounds good. So, how many employees are your is it still 4 or 5 or in the We're still 4. We're we're still 4, at least. As we have reported, Peter.

Yeah. Okay.

Okey dokey. Very good. Thanks.

Thank you.

As a reminder, if you wish to ask a question, please dial star 5.

Okay. We're just checking if we have any written questions.

I have a written question from Andes Roos. You're saying, is liquidation of the company an option? [indiscernible] that that is not a question for for management to answer. For starters. It would be a a board quest but motion that the company will continue. As per the presented, plan. Okay. We have another question from Bjorn Knitssen. If you are planning a revitalization of your tanker activities why not consider crude tankers, Suezmax where you may also have synergies with, Stena or other operators. Yeah. Good question. I think for for Concordia, for for various reasons, we are seeing the the tanker segment as being relatively, high as we presented now. And really need to find the right context for for a future deal. So I wouldn't say we would, we would rule out anything or any segment. But as of right now, Suezmax tankers have not been, in in focus We have, more been looking, on the other segments that that we touched upon earlier in the in the presentation. As we have just been able to to take advantage of of the high, asset values in the in the product tanker segment. So, no. Good question. Not in focus right now.

And, from that I don't see any further questions, written one. Operator, do we have any other questions?

There are no more questions at this time.

So I hand the conference back to the speakers for any closing comments.

Okay. In that case, we thank all participants you are as always welcome to contact myself or Martin directly. If you so wish, we will try to guide you best we can. And if nothing else, we thank you for this, and we the Q4 report.

Goodbye. All the best. Thank you. Bye bye. Take care.

Call recording is off.