EU and US could reach trade deal this weekend - Reuters
Nacolat, a leading player in the LNG shipping industry with a market capitalization of $6.75 billion, reported robust financial results for the fourth quarter of 2024, despite a slight decline in revenue. The company announced a profit of CNY 1.64 billion and earnings per share of BRL 30, marking a year-on-year growth of 5.1%. Revenue from operations saw a 1.5% decrease to CNY 4.34 billion. According to InvestingPro analysis, the company currently trades at a P/E ratio of 14.99 and appears to be overvalued based on their proprietary Fair Value model. The company's stock showed a slight downturn with a 2.98% decrease post-market, reflecting mixed investor sentiment.
Key Takeaways
- Nacolat achieved a profit growth of 5.1% despite a revenue decline.
- The company announced a cash dividend of 14 dirhams per share for 2024.
- The global LNG trade is expected to grow significantly by 2030, benefiting Nacolat's market position.
- Strategic investments are underway with 40 new vessels on order.
Company Performance
Nacolat's performance in Q4 2024 highlights its resilience and strategic positioning within the LNG shipping sector. Despite a 1.5% revenue decline, the company managed to grow its profits by 5.1% year-on-year. InvestingPro data reveals an impressive gross profit margin of 77.96% and a healthy current ratio of 1.46, though the company operates with a significant debt burden at 1.48 times equity. This performance is underscored by a strong market position and a diversified fleet, which includes steam, DPTs, and UMAXs, allowing Nacolat to maintain its status as the world's leading LNG shipping company.
Financial Highlights
- Revenue: CNY 4.34 billion (1.5% decrease year-on-year)
- Earnings per share: BRL 30 (5.1% increase year-on-year)
- EBITDA: CNY 3.61 billion (3.6% decline)
- Operating expenses: BRL 890 million (1.7% decrease)
Outlook & Guidance
Looking forward, Nacolat remains confident in its business model and is focusing on maximizing fleet utilization. The company anticipates strong performance in shipyard activities from 2025 to 2028 and is exploring opportunities to enhance shareholder returns. InvestingPro analysis shows the company has maintained dividend payments for 16 consecutive years, currently offering a substantial 6.26% dividend yield. Strategic investments in new state-of-the-art vessels are expected to further bolster its market position. For deeper insights into Nacolat's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Executive Commentary
Hani Abuaker, CFO, emphasized the company's strong profitability, stating, "2024 was another landmark year for Nacolat, marked by strong profitability." He also highlighted efforts to enhance shareholder returns, reinforcing the company's commitment to its investors.
Risks and Challenges
- Potential supply chain disruptions could impact vessel deliveries.
- Fluctuating LNG demand may affect shipping rates and profitability.
- Environmental regulations could impose additional compliance costs.
- Interest rate fluctuations might impact financial hedging strategies.
- Global economic uncertainties pose a risk to international trade dynamics.
Q&A
During the earnings call, analysts inquired about Nacolat's liquidity management and potential opportunities in the US LNG export market. The company assured structured financing and no significant cost pressures on shipbuilding, highlighting compliance with environmental regulations and minimal impact from global tax changes.
Full transcript - Qatar Gas Transport Company (QGTS) Q4 2024:
Operator: Good morning or good afternoon. Welcome to the Nakalat 4Q twenty four Results Call. My name is Adam and I'll be your operator today. I will now hand the floor to Abed Hazem from EFG Hermit to begin.
Abed Hazem, Analyst/Moderator, EMG and Rest Research: Hello, good morning and good afternoon, ladies and gentlemen. This is Abed Hazem from EMG and Rest Research. And we'd like to welcome you all today to Nokonect's Fourth Quarter twenty
Kamran Zoma, Financial Planning and Reporting Manager, Nacolat: twenty
Abed Hazem, Analyst/Moderator, EMG and Rest Research: four Results Conference Call. With us on the line today is Mr. Henio Werra, CFO of Noccollet Mr. Fortius Zirykus, Head of IR and ESG Reporting and Mr. Kamran Jawa, Financial Planning and Reporting Manager.
First off, I'd like to congratulate the NACOLAT management team on another solid year of results. And without further delay, I'd like to hand over the call to Fotis. Steve, the line is yours.
Fotius, Head of IR and ESG Reporting, Nacolat: Thank you, Ahmed. Good afternoon, everyone, and welcome to NACOLAT Fiscal Year twenty twenty four Earnings Results Conference Call. For your convenience, the transcript of this call and presentation are available on the company's Investor Relations section of our website. As a reminder, this conference call is being recorded and the media or press is not allowed to attend this Investor Relations conference call. Many of our remarks contain forward looking statements and for factors that cause actual results to differ materially from these forward looking statements, please refer to the Slide two of the Investor Relations presentation.
In addition, some of our remarks contain non IFRS financial measures. A reconciliation of this is included in the note of this presentation. Kamran Zoma, Nightclub's Financial Planning and Reporting Manager will begin today's call with a brief discussion of the Group's earnings results. After, I will give you overview of the LNG CPIC market. And finally, NACLAB's CFO, Hanyab Weicker, will walk you through the company's business outlook.
Then we will be happy to address your questions. Now, I would like to hand it over to Mr. Kamran Zoma, NACULAD's Financial Planning and Reporting Manager. Kamran, please go ahead.
Kamran Zoma, Financial Planning and Reporting Manager, Nacolat: Thank you, Fotius. Good afternoon, everyone, and again, welcome to Nekalad's fourth quarter twenty twenty four earnings call. To begin, I would like to highlight the key financial results and the performance of Nekalad for the fiscal year 2024. Turning to Slide 10 to 11 of the presentation, I am pleased to report that NACALAD delivered another great year of outstanding performance, achieving another record result. NACALAD has reported profits of CNY1.64 billion, equating to an earnings per share of BRL30.
This represents an impressive year on year growth of 5.1%. This continued upward trajectory reflects our operational efficiency, strategic investment and our unwavering commitment to delivering value to our shareholders. To provide further insight into the results, revenue from operations stood at CNY 4,340,000,000.00 for the year, reflecting a slight decrease of 1.5%. The marginal decline was primarily driven by lower income from our LPG and LNG joint ventures, while the LPG joint venture continued to perform steadily. However, they faced a reduction in charter rates and the impact of the vessels undergoing drydockings.
Similarly, the LNG joint ventures maintained operational excellence despite lower rates on the short term time charters, also having some vessels undergoing drydockings during the year. Additionally, as anticipated, the Shipyard division recorded a slight decline in income due to the reduced activities. Income from interest, dividend and other income totaled BRL184 million, representing a decrease of approximately 24% compared to the 2020 compared to the $242,000,000 Qatari rials recorded in 2023. This reduction is attributable to the lower interest income as Nacalad strategically invested available cash towards the newbuild program announced earlier this year. Vessel operating expenses totaled BRL $8.00 9,000,000, reflecting a marginal decrease of approximately 1.7% from the BRL $795,000,000 incurred in 2023.
This aligns with the planned operational activities and is reflective of annual inflation trends. General and administrative costs decreased by 1%, driven by Nacalat's continuous focus on cost optimization initiative. Now taking all factors into account, Nacalad recorded an EBITDA of CAT 3,610,000,000.00, a slight decline of approximately 3.6% compared to the prior year. This decrease, as mentioned, is largely attributable to the lower interest income reduced lower interest income, reduced contributions from the LNG and LPG joint ventures and a decrease in the shipping activities as outlined earlier. Depreciation and amortization costs totaled R839 million, down from the R935 million in 2023, reflecting a decrease of approximately 10.3%.
This reduction was mainly attributable due to the one off accounting treatment relating to the initial driver component booked in 2023, which was partly offset by regular annual depreciation. Finance expenses for the period stood at CAT 1,130,000,000.00 reflecting a reduction of approximately 9.5%. This decrease is primarily due to scheduled repayment of interest bearing debt along with capitalized interest on investment related to Nekalad's newbuild program. Now turning to Slide 12 to discuss the key areas of our balance sheet and how Nekalad continues to strengthen its financial position. Nekalat's property, plant and equipment stands at CNY24.54 billion, reflecting a growth of CNY3.54 billion, driven by strategic investment in Nekalat's expansion under the newbuild program.
This initiative comprises of 40 state of the art vessels, including 25 conventional carriers, nine QC MAX vessels, all contracted with Qatar Energy and four very large gas carriers designed to transport ammonia along with two state of the art LNG carriers. This was offset by regular depreciation. In line with our dedication to transparency, we have successfully fulfilled approximately 10% of our shipyard commitments as of 2024. Now looking ahead, we anticipate making further payments of 5% to 10% in 2025, '10 percent to twenty percent in 2026 and due to the delivery of approximately 40% of our vessels in 2027, we plan to contribute a further 25% to 35% of our commitments. For 2028 onwards, we expect to make payments of around 10 percent annually through to 02/1931.
It's important to highlight our intention is to finance these payments through structured financing, which aligns with our business model, maximizing the returns on these projects. These investments demonstrate Nacalad's ongoing commitment to enhancing operational capacity and reinforcing our market position. This increase was offset by depreciation for the period. Now, Nakala's balance cash balance stands at BRL2.62 billion, reflecting a decrease of approximately 38% compared to December 2023. This reduction is primarily attributable to the strategic investment in Nacalad's fleet expansion, part of Nacalad's newbuild program again.
As of the 12/31/2024, Nacalad's borrowing increased by CNY 1,840,000,000.00. This is primarily due to new loan facilities secured to support the company's newbuild program. This increase was partly offset by Nacalad's disciplined approach in financial management with scheduled loan repayments. The net fair value of interest rate swaps shifted from a net liability to a net asset position, increased by CNY $767,000,000 to reach a total of CTHR $353,000,000. This positive movement, driven by Nakela's proactive approach in risk management through the implementation of new pre hedges taken earlier this year, aimed to mitigate interest rate exposure in anticipation of financing activities for the newbuild program.
Additionally, the rise in variable interest rates contributed to the overall increase in our fair value. Thank you for your attention. I'll pass it over to Fotius who will provide you an overview of the LNG shipping market. Fotius, floor is yours.
Fotius, Head of IR and ESG Reporting, Nacolat: Thank you, Kamaran, and hello everyone. I'm delighted to provide a brief but comprehensive update on the LNG shipping market. The global LNG trade is poised for significant growth between 2025 and 02/1930 supported by several key drivers. First, the increasing role of LNG in the power sector. Second, accelerated coal to gas switching initiatives.
Three, improved LNG supply four, ongoing geopolitical uncertainties five, advancing technology operational efficiency in LNG and six, focus on energy security. Let us now turn to the Slide 17 of the presentation. With Mackenzie forecast robust growth in the global LNG trade with liquefaction capacity expected to rise from approximately four ten million tons of LNG in 2024 to around six twenty million tons of LNG by 02/1930, a substantial increase of 61%. This surge in global LNG supply is set to drive the demand of LNG shipping demand worldwide. Moving to the Slide 18, Clarksons report that the average spot charter rates for more than two stroke tonnage in 2024 stood approximately in '20 '20 '4 dollars '50 '4 thousand per day.
The DST vessels averaged $42,000 per day and steam vessels stood at around $26,000 per day in 2024. For the average one year LNG shipping charter rates in 2024, Clarkson assessed the rates at $69,000 per day for the Magisk XPA, $54,000 per day for DFTs and $33,000 per day for STIMS. These figures provide a critical benchmark for chartering discussions and demonstrate continued market resilience. Turning to the Slide 20, Clarkson's highlight that the global LNG fleet consists of seven twenty nine vessels in operation in 2024 with three twenty six additional conventional LNG vessels on order book through 02/1931. This represents a 45% increase in the total LNG fleet specifically in conventional LNG carriers.
Additionally, the LNG newbuild prices appear to have stabilized on the price on the range $260,000,000 to $265 In summary, the LNG remains a cornerstone of the energy transition as countries shift from traditional energy resources like coal and oil to cleaner alternatives. While we anticipate near term rate volatility due to the influx of the new vessel deliveries, the long term outlook for LNG shipping remains fundamentally strong underpinned by these positive market developments. With that, now I would like to hand it over the discussion to Mr. Hani Abuaker who will share insights into Nightclub's business and outlook. Mr.
Abuaker, please the floor is open. Thank you, Piotr, and thank you, Kamran. Hello, everyone, and good afternoon. Well,
Hani Abuaker, CFO, Nacolat: I'm delighted to announce that 2024 was another landmark year for Nackelad, marked by a strong profitability for our shareholders and a successful expansion of our fleet. We currently have 40 vessels in order, which is comprising of 36 LNG carriers and four BHGC ammonia carriers. This substantial order book will further position Nakhlath as the world leading LNG shipping company. And upon completion of these projects, Nakalat fleet will expand to an impressive total of 114 ships, strengthening our leading ship in clean energy transportation and our ability to meet the ever growing global energy demand. And in light of this company's strong financial performance, while taking into consideration ongoing geopolitical uncertainties and economic volatility, while the board was happy to recommend a cash dividend of SEK7 per share for the second half of twenty twenty four.
This is in addition to the interim cash dividend of AED 7 that we have already distributed in the first half of twenty twenty four. Together, the amount was total of around 14 dirhams per share for the year of 2024, which is consistent with our previous year payout amount. This decision reflects our strong commitment to delivering consistent and sustainable dividends to our shareholders. It underscores Nacional's strong profitability and robust growth of our balance sheet over the upcoming four years where we expect it to almost more than double and also in return should really reward our shareholders with escalated level of dividend payout in this regard. And in response to the fluctuating interest rate, we are carefully evaluating their impact on both on financial costs and investment opportunities.
To address these challenges, we have prioritized liquidity management, provided proactively refinancing some of our loans at a lower rate and securing new financing while adhering to strict capital discipline alongside operational efficiency. These actions not only help mitigate market volatility, but also enable us to deliver sustainable value to our shareholders, all while maintaining the continuing reliability of our shipping operation. As Kamran mentioned earlier, Nacolad performance in 2024 remains strong, achieving another record year of profit of close to BRL1.64 billion. Looking ahead in 2025, we remain confident in the resilience of our business model and management commitment to maximize fleet utilization. Nacalad is also actively exploring way to enhance shareholders' return.
One such initiative was securing the pre hedge of for potential loans relating to our new build programs, effectively mitigating interest rate exposure. This proactive strategy is reflected in the positive fair value position of these pre hedge on our balance sheet. By continuing with this approach, we aim to strengthen our cash flow and optimize return to our recently announced new build program. And looking ahead for 2025, our resilient and adaptive business model combined with the stability of our long term cash flow position us to consistently deliver sustained value to our shareholders. This ability provides the confidence and assurance required to navigate evolving and dynamic market conditions effectively.
We remain committed to our strategy to strengthen Makilat's global leadership in LNG shipping. By leveraging our core strength, we're confident in our ability to generate strong returns to our shareholders. With that, I now hand it over to the operator to open the floor for questions. So please go ahead.
Operator: Thank you. And our first question comes from Alessandra David from Ashmore (LON:ASHM) Group. Alessandra, your line is open. Please go ahead.
Alessandra David, Analyst, Ashmore Group: Hi. I just had a few questions. The first one is how do you see the liquidity position evolving over the next couple of years? And when can we kind of expect to reach peak leverage? The second question I have is about the performance of the Shipyard segment.
So you've mentioned the stabilization activity. Do you foresee any new growth drivers or opportunities that could improve the overall contribution to group profitability? And then my last question is about the significant progress you've reported on your new build program. I was just wondering what percentage of CapEx for 40 vessels have been paid so far. Are there any unanticipated risks or any risks you foresee with the delivery timelines?
And lastly, how are you managing any cost pressures or inflation on the shipbuilding? Thank you.
Kamran Zoma, Financial Planning and Reporting Manager, Nacolat: Okay. I'll try to take
Hani Abuaker, CFO, Nacolat: these questions and maybe I'll ask Amran to help if anything. Regarding the liquidity position, I believe we in the presentation attached, we, as promised last time, will provide you guys approximately the number of vessels, how they're going to be delivered. And also, we provided you with the percentage of payments that is going to be applied across the whole fleet. So you can use that to exactly have a flavor about our payments and liquidity and etcetera. So that's for the first question and maybe if Kamran can add something to that.
Kamran Zoma, Financial Planning and Reporting Manager, Nacolat: Yes. I mean, to add to Heni's point, Nacolac has always operated on a 90% leverage. So we're always looking at ways to support that and provide the correct financing, especially backed with these long term contracts. So with that we'll be able to secure strong financing due to the clear visibility of the future cash flows. Now in terms of the shipyard performance, I can jump on to that one.
The decline was mainly due to the decrease in activities and that was due to the drydockings mainly coming from the Nekolet fleet. However, we do see the momentum gaining as we did see in Q4 compared to the other three quarters of this year. And we do see a stable performance going ahead and we'll always continue to optimize the resources and effect efficiently going forward to ensure that we maintain these stable performances. And in reference to the progress on CapEx, I think I already mentioned that we have already paid off around 10% of our capital commitments for these new builds. Hany already touched on a slide that we have provided along with this earnings call.
And with the forecasting commitments to the shipyards going forward up until 02/1931. So that should help guide you into Mackinac's capital commitments going forward. I hope that addresses your question or your three questions, I'd say.
: Yes, maybe you could just
Alessandra David, Analyst, Ashmore Group: tap on the cost pressures. How are you looking to manage them?
Hani Abuaker, CFO, Nacolat: Yes, we don't see any cost pressures. These are contracted shipbuilding contract. So our prices for building these ships has been already set specific. So we don't see any potential contracted or cost pressure. Just I want to highlight that.
So we don't see any kind of concern there. And also, I will add about the Shubhyard activities. Remember, as we talked before, 2023 was the peak for the drydock activities, which is every five years for Nakhilad cycle fleet. So we should really expect 2025 some of the activity to start to come in. And hopefully in 2026, it starts to ramp up and 2027 and 2028 should be really another upbeat or strong year compared to what we've seen in 2023.
And going forward, we are very, very optimistic about our shipyards activities. Why? Because with that massive number of vessels that is coming up for the whole, you know, Qatar production, when they start to really come to our shipyards for their annual or every five years maintenance, that will ensure that any kind of slow years will be mitigated or will be ensure a consistent strong order book going forward from '27 and '28, as these almost doubling the size of the fleet of Nakhilat and even more than that, that should keep the shipyards busy every year going forward from 2027 and 2028. Also, we have other joint venture, which is Qatar Fabrication. And as you know, they're mainly being set up as part of the assisting and some of the main strategic projects in the Northfield expansion.
And there's a lot of activities that starts to ramp up there. So hopefully in 'twenty five and 'twenty six, we'll see some good numbers coming from that entity. And hopefully, whether any kind of slow activities compared to 2023, and we have seen in Qatar Shipyard. And I hope I answered all your questions.
: Thank you.
Operator: The next question comes from Mohammed Al Faniyan from Jaguar Investments. Mohammed, your line is open. Please go ahead.
Mohammed Al Faniyan, Analyst, Jaguar Investments: Yes. Hi, good afternoon and congratulations on the great set of results. I have three questions. First, regarding the decline in Maran Nakala GV profitability, I understand this was attributed to the reduced charter rates for LNG vessels as they transitioned off their previous charters. Should we anticipate similar developments impacting additional vessels within Iran or the other JVs in 2025 or 2026?
And what should we expect, I mean, from the shipping JVs in terms of relative financial performance for next year? If you can shift this slide on that.
Hani Abuaker, CFO, Nacolat: Thank you for the questions. We think, again, 2023 was really exceptional year. But if you go to 2022 and you look at the Meran performance, it was more or less in line with the 2024 results. So we hope that market is becoming stronger going forward And that should really reflect to increase our profitability in this specific joint ventures because it has some vessels that they are in a shorter term time charter contract. So we believe that things will stabilize or it's going to be on the upward trend.
And as I said, this is what they've been performing back in 2022. So we don't see any kind of concern. If the other joint ventures, we believe that we are fine and there is still the long term charter contract.
Mohammed Al Faniyan, Analyst, Jaguar Investments: And are there any additional vessels, I mean, with the Maran or the other GVs that would come off their current charters in 10/2005 maybe 10/2006?
Hani Abuaker, CFO, Nacolat: Not really. We believe that most of the vessels has been has gone through that kind of sort of short term rotation. So even if they did, the rates should be more or less in line, but nothing that is expected to be more maybe one or two coming out. But not necessarily that they would be chartered at a lower rate. Just we have some two to three vessels that we were part of that and we came out.
Again, if one or two vessels comes out and the market is strong, we might be a good thing for us to lock them on another short term rate.
Kamran Zoma, Financial Planning and Reporting Manager, Nacolat: But I don't see that
Hani Abuaker, CFO, Nacolat: as a factor that will impact our overall performance. You have to think about the big picture of Nackelat. We are deleveraging our balance sheet and every single company, including Maran. They have a project finance, paying down the debt and these vessels becomes more competitive in a breakeven point of view. So that's usually naturally mitigate the potential risk that's coming their ways even if there's a market rate is being lower.
So hopefully, if we wish our wish thinking is markets stay stabilized, be a little bit higher and then deleverage, the cost of interest is becoming less, more cash is available and hopefully we do have better performance.
Mohammed Al Faniyan, Analyst, Jaguar Investments: That's clear. My second question is related to the drydocking activity. I believe, if I heard correctly, you mentioned that drydocking activity would pick up in 2025 versus 2024, which might be positive for the shipyard GV. But how will that impact the profitability and utilization of your volume?
Hani Abuaker, CFO, Nacolat: Drydock activities, okay, you have to understand, our utilization of our wholly owned vessels is not impacted by drydock activities, okay, because they are in the long term. So during drydock days or cycle, we get paid. They just only so that's very important to distinguish between both where some vessels that in a very short term contracts, they get off and then they have to go for a dry tuck, similar to what we have in our joint venture with Iran. But the other one, the wholly owned, it doesn't matter. They've been in 2023 through drydock.
We had even in 2024, almost 12 LNG of our vessels went through drydock. As you can see from our financial results, they were not impacted. Okay?
Mohammed Al Faniyan, Analyst, Jaguar Investments: And activity in the
Hani Abuaker, CFO, Nacolat: dry dock is that we're thinking is towards the end of twenty twenty five, the cycle starts slowly to pick up into 'twenty six and 'twenty seven, etcetera. And then the Shubhriar cutter Shubhriar should really perform as very close to what we have seen in 2023. And as I said also as well, we have something called cutter fabrication. They are being set up to build platforms and the offshore structure for the NEP. We should really start to see some numbers coming in 2025 and 2026.
So we believe the medium term and the long term is very promising for us.
Mohammed Al Faniyan, Analyst, Jaguar Investments: That's very clear. My last question is related to the company's divestment strategy for all the vessels. I believe you mentioned in the presentation that the total fleet is expected to reach 114 once all those vessels are delivered. But should we expect any divestment during this period up until 02/1930 or 02/1931?
Hani Abuaker, CFO, Nacolat: Well, it's all depends on the business opportunity to be honest with you. If something comes to us as we are delivering new tonnage and there's an opportunity to really to do that, maybe, but honestly nothing is on the table and nothing is off the table. We always look what is the best for us. And usually when we really let go some capacity, we add some other capacity somewhere else. But as of now, this is how we are looking at it.
But it's all that it depends on the market as we move forward and we start to receiving some of the vessels. But as I said, we as a company, we are here and we're going to be here for the long term and the expansion of the NFE is not really deterring us from capturing a very lucrative opportunities as they arise. So we have the balance sheet, we have the long term contract and the cash flow that allows us to be sometimes to be opportunistic in our securing some additional kind of opportunities to leverage the dynamic of the market. So yes, we're always looking at things to optimize our structure and our fleet, And that should be by adding or sometimes removing if it is necessary. But that's something that depends on the market, obviously.
Mohammed Al Faniyan, Analyst, Jaguar Investments: That's very clear. Thank you. Thank you very much.
Operator: And the next question comes from Santosh Gupta from Drury Maritime Financial. Santosh, your line is open. Please go ahead.
: Thank you. So my question revolves around the environmental regulation. How are you seeing the impact of fuel new maritime innovation? Thank you.
Fotius, Head of IR and ESG Reporting, Nacolat: Hello, Santos. I think I will take this question. First of all, as you know, NACILAD is complying with international maritime regulations. So for sure we will ensure to comply with regulations. We will follow any new mandate and the fleet and we will have very top notch the technical team and operation team who task force internally to ensure that we manage for example you can see we order four LPGs who carry ammonia.
So we see the trends. We follow the trends and we will ensure to comply either any type of ships that we have because of steam, we have DMPs, we have UMAXs, we have full diversified fleet, fully accessed to the market in terms of market intelligence. So we have done in the previous ten years back a convention with Reseda in our shipyard when not many people at that time were involved in over the fueling. So I think NACILAD will ensure to find the best optimum solution. At the moment many things are on the table for studies.
Nothing has been proven for long term fixed solution for everything. But for sure we'll ensure compliance with IMO regulation and any updates or updates will happen on the law. I hope I answered your question.
: Sure. Thank you. That's it from me.
Operator: The next question comes from Fraser Hall from Aberdeen. Fraser, your line is open. Please go ahead.
Fraser Hall, Analyst, Aberdeen: Hi. Thanks very much for taking the question. Maybe going back to something that was touched on a little bit earlier about opportunities. I was wondering now with Shift and who's in office with America and to my understanding a lift on kind of export of LNG, kind of what sort of engagement you've seen from the projects going on there for further vessels required? I know that Qatar Energy is a shareholder in some of the larger projects over in America.
So any sort of comments you could provide on opportunities there, when you think that they might arrive and the sort of, I guess, the capacity on the balance sheet really given sort of the timing
Hani Abuaker, CFO, Nacolat: for that would be really helpful.
Kamran Zoma, Financial Planning and Reporting Manager, Nacolat: Thanks. Yes, maybe I yes, go ahead, go ahead, Patrice. Okay.
Fotius, Head of IR and ESG Reporting, Nacolat: First of all, you have to understand that as we have seen in our presentation and we spoke there is a massive growth of LNG liquefaction capacity that will come up to twenty thirteen later. So worldwide, we will see a huge growth of LNG which require obviously LNG shipping requirements. This is the first. Secondly, you can see also that from United States they have unfreeze this kind of permits of which potentially you will see more LNG to come from United States in the following three to five years. This is another positive for LNG shipping industry because we are LNG ship owner because of more LNG from The United States means more ton miles for the global market.
So I can tell you as in Aquila the fundamentals are very strong. And definitely in the following five to ten years you will see many opportunities for us to grow because we're shipping grow and we are the world's largest selling shipping. But definitely we have a big order book at the moment. We need to ensure that all the ships that will take on time and on budget. But at the same time, we are on the market to leverage our market intelligence, financial strong balance sheet and to ensure that we are for the right opportunity contracts.
And that now I don't know if Hany wants to add something on that.
Hani Abuaker, CFO, Nacolat: Yes, I think we need to remember that we currently under our global shipping joint venture, we have four vessels that trade in the international market. And actually almost three of them that they've been for the last
Fotius, Head of IR and ESG Reporting, Nacolat: many years going back and
Hani Abuaker, CFO, Nacolat: forth between United States and somewhere in Europe and some other areas. So Naculat is already known not only regionally and locally, but known internationally by some of the largest producer about the ability and the capabilities and they tried us and they are very quite happy with what we do. So I'm sure Nakhalat will be there and they can be there at any time at any moment to leverage any new capacity that comes in and take it into consideration for that opportunity as they arise. So I think, yes, if anything comes from anywhere in the world, we should really look at these opportunities and leverage on that.
Operator: Okay? We have a question from Sigata Sarkar from QNB. Sigata, your line is open. Please go ahead. Hi, guys.
It's Bobby from QNBFS. How are you? Great set of results. I just had a quick question. What's your view on the global minimum tax and if that applies to you, especially given the fact that The U.
S. Has effectively pulled out of the deal? Could you please comment on that? Thank you.
Kamran Zoma, Financial Planning and Reporting Manager, Nacolat: Hi, Bhavi. Thanks for your question. Yeah, I mean the global minimum tax we don't see it having a significant impact on Nacolad. As you know the OECD rules provide a shipping exemption. So based on that, we do not see any significant impact in on Nacalat and its financial performance.
Of course, we are observing and monitoring this closely and waiting for the final announcements from Qatar to come out. But if as per the OECD rules, we don't see a significant impact at all on our performance.
Operator: Okay, great. Thank you. We have no further questions, so I'll hand the call back to the management team.
Hani Abuaker, CFO, Nacolat: Okay. Thank you all for taking the time to attend today's earnings conference call. We deeply value your continued interest in Nakhilat and your engagement with our journey. As we said before, please reach out to Fotias and the IR team, and we're here to ask and answer all your questions. And hopefully any comments will take it internally and we'll try as much as we can going forward to provide further information based on the feedback we receive from you.
Thank you very much and looking forward to see you in person in the near future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.