Earnings call transcript: Qatar Gas Transport Q2 2025 earnings report

Qatar Gas Transport Company, known for its leading position in LNG transportation, reported its second-quarter 2025 earnings, showcasing a modest growth in net profit and revenue. The company maintains impressive gross profit margins of 78.15% and has consistently paid dividends for 16 consecutive years. Trading near its 52-week high of $1.41, the stock saw a slight decline of 0.67% in recent trading, closing at 4.811. According to InvestingPro analysis, the company appears slightly overvalued at current levels.

Key Takeaways

• Net profit increased by 3.7% year-on-year to Q8 60 million.
• Revenue rose by 1.3% to CLP 2,200,000,000.
• Operating cash flows improved by 4.8% to ZAR 1,450,000,000.
• The company is advancing with 40 newbuild vessels for delivery from 2026 to 2031.
• Qatar Gas Transport maintains a stable dividend strategy with an interim dividend of ZAR 7.2 per share.

Company Performance

Qatar Gas Transport Company demonstrated overall positive performance in Q2 2025. The company’s net profit and revenue saw year-on-year increases, with a healthy return on equity of 13% and a stable beta of 0.31, reflecting low price volatility. The company benefits from long-term charter agreements with creditworthy counterparties, providing a stable revenue stream. InvestingPro subscribers have access to 10+ additional exclusive insights about the company’s financial health and growth prospects.

Financial Highlights

• Revenue: CLP 2,200,000,000, up 1.3% year-on-year.
• Net profit: Q8 60 million, a 3.7% increase from the previous year.
• EBITDA: CLP 1,820,000,000, a slight decrease of 1%.
• Operating cash flows: ZAR 1,450,000,000, up 4.8%.

Outlook & Guidance

Qatar Gas Transport is targeting a 10-15% equity contribution for new vessel investments, with plans to invest approximately $6-6.5 billion in 25 conventional LNG vessels and an additional $3.5 billion for QC Max vessels. With a solid Altman Z-Score of 5.08 indicating strong financial health and a sustainable dividend yield of 4.44%, the company remains well-positioned for its expansion plans. Want deeper insights? Access the comprehensive Pro Research Report for Qatar Gas Transport, available exclusively on InvestingPro, covering what really matters for informed investment decisions.

Executive Commentary

• "LNG continues to prove itself as a vital enabler of the energy transition," stated Fotis Zeritus, Head of IR.
• CFO Hany Abouyekar expressed confidence in the sector’s prospects, noting, "Our portfolio of long-term charter agreements provides a stable and predictable revenue stream."

Risks and Challenges

• The company faces potential challenges from fluctuating global LNG demand, impacting charter rates.
• Increasing vessel operating costs, which rose by 1.6%, may affect profitability.
• Market volatility could influence financing conditions for new vessel investments.

Qatar Gas Transport Company continues to leverage its strong market position and modern fleet to navigate the evolving LNG transportation landscape. With a current ratio of 1.13 and manageable debt-to-equity of 1.45, the company maintains solid financial footing. While facing some operational and market challenges, the company’s strategic initiatives and financial stability position it well for future growth, as evidenced by its year-to-date return of 18.79%.

Full transcript - Qatar Gas Transport Company (QGTS) Q2 2025:

Ezra, Call Coordinator: Hello, everyone, and welcome to NACLET Second Quarter twenty twenty five Results Call. My name is Ezra, and I will be your coordinator today. We will be taking questions after the prepared remarks. I will now hand over to Perth Sheikh to begin. Please go ahead.

Perth Sheikh, Management Representative, Natura: Thank you. Good afternoon, good morning, everyone. Welcome again to Natura’s Second Quarter twenty twenty five Results Conference Call. Today, representing the management team, we have the pleasure of having with us Mr. Hani Abouyekar, who’s the Chief Financial Officer Mr.

Fortiose Zeritus, the Head of IR and ESG Reporting and Mr. Kamran Jova, Financial Planning and Reporting Manager. With the introductions done, I would like to now hand over the call to Mr. Fortiose to take it forward from here. Thank you.

Fortiose Zeritus, Head of IR and ESG Reporting, Nicelat: Thank you. Good afternoon, and welcome to Nicelat’s 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 do not allow you 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 our 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. Kamaran Joma, NACLA’s Financial Plans and Reporting Manager, will begin today’s call with a brief discussion on the group’s earnings results. After, I will give you an overview of the LNG shipping market.

And finally, Nacula’s Chief Financial Officer, Hanya Boate, will walk you through the company’s business outlook. Then we’ll be very happy to address your questions. Now I would like to hand it over to Mr. Kamaram. Kamaram, please go ahead.

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: Thank you, Fotis. Good afternoon, and good morning, everyone, and welcome to Nakelat’s first half of twenty twenty five earnings call. Before I begin, I would like to take a moment to sincerely thank all our employees, both at sea and onshore for their continued professionalism and resilience. The unwavering commitment ensured the continuity of our operation and the safety of our assets, enabling us to deliver clean energy to the world without any interruption. Their dedication was instrumental in delivering a strong performance for the first half of this year and safeguarding the company’s success.

Let me now turn to the company’s financial performance and operational highlights for the six month period ending 06/30/2025. Turning to Slide 10 to 11 of the presentation. Nacalat continued to deliver a solid performance during the first half of the year. Nacalat reported a net profit of Q8 60 million, which translates to Q0.16 per share, reflecting a 3.7% year on year increase. This result demonstrates the stability of our charter profile and the resilience of our business model, supported by consistent asset utilization and disciplined financial execution.

Revenue from operations reached CLP 2,200,000,000.0, increasing by approximately 1.3% compared to the same period last year. Growth was primarily driven by stronger revenues, contributions from the wholly owned vessels under fixed rate charters. In the LPG segment, Lac Aladd began to account for its 100% ownership of the two LPG vessels during the period, previously only 50% of the four vessels, which were recognized under a joint venture accounting treatment. As a result, revenue from those two vessels is now fully consolidated. While the reclassification has changed, it is important to note this has had no material impact on the company’s overall financial results as our economic exposure remains effectively unchanged.

The performance of the LPG vessels during the period was notably stronger, driven by a higher number of operating days following the completion of the dry dock in 2024 and both vessels fixed on time charters resulting in an increase in the average daily charter rate. In the LNG JV portfolio, overall contributions were marginally lower compared to last year. This was due to certain vessels concluding their initial charters and beginning recontracting at prevailing market rates. However, operation performance remains strong and in line with expectations. The Shipyard segment overall actively was lower compared to the prior year.

This was due to reduced activity driven by vessel drydocking cycle. This reduction was expected and in line with schedules of the Nacalad fleet. However, this was partially offset by increased activities in our fabrication segment, which saw a stronger project throughputs during the first half of the year. Looking ahead, we do expect the Shipyard segment to deliver stable performance for the remainder of the year. Interest, dividend and other income amounted to CLP 65,000,000, down 44.4% year on year.

This was primarily driven to lower interest income as excess cash was strategically allocated to fund the equity portion of our newbuild program. Vessel operating costs amounted to CLP $414,000,000, reflecting an increase compared to the CAD408 million incurred in the 2024. The increase of approximately 1.6% was driven by the first time recognition of operating expenses associated with the two LPG vessels transferred from the joint venture earlier this year. General and administrative expenses declined by approximately 23.8%, reflecting ongoing initiatives, timing of planned activity and disciplined overhead controls. Now putting what I have discussed together, EBITDA for the first half of the year stood at CLP 1,820,000,000.00, representing a decrease of approximately 1% compared to the same period last year.

The decline was mainly attributable to the reduction in new interest income, lower contributions from our joint ventures and lower shipyard activity during the period. These were partially offset by higher revenues from the wholly owned vessels, including the consolidation of the LPG vessels as well as a reduction in the G and A costs. In line with our commitment to shareholders and our announcement during the first half of last year, we’re pleased to confirm that the Board of Directors has approved the distribution of an interim dividend for the period ending 06/30/2025. The Board of Directors have approved an interim dividend of ZAR 7.2 per share for the 2025. The interim dividend will be granted to shareholders who own shares at the close of the trading session on the 08/06/2025.

These dividends will be distributed in line with the directors of the Qatar Financial Market Authority through IDA. Depreciation and amortization increased to CAD $434,000,000, up 5.9% primarily due to the capitalization of drydocking costs, which resulted in an increase in the depreciable asset base. Finance charges decreased by 14.2% to CLP $511,000,000, resulting from scheduled repayment of interest bearing loans, successful refinancing at more favorable margins and capitalized interest linked to the newbuild program. As mentioned in the first quarter results, we have taken steps to enhance our transparency of our reporting with respect to tax related disclosures, including the provisions under the OECD Global Minimum Tax Pillar two framework, which was adopted by Qatar. Our exposure remains minimal as the rules provide an exemption for international shipping income, and our exposure is, therefore, limited to our non shipping income in line with the OECD guidelines.

Now turning to Slide 12 to discuss the balance sheet. Property, plant and equipment increased to 24,850,000,000.00, up by 1.3%, primarily driven by capitalized interest from the Nakalat Newbuild installments and the reclassification of the LPG vessels following their transition from the joint venture to a wholly owned asset. Cash and deposits stood at ZAR 2,370,000,000.00 as of the 06/30/2025, representing a decrease of 9.5 from December 2024. This reflects strong operational cash flows, partially offset by ongoing capital expenditure under our fleet expansion. Our liquidity position remains healthy and supportive of future growth.

Nacarad generated ZAR 1,450,000,000.00 in operating cash flows, excluding movements in working capital, representing a 4.8% increase compared to the same period last year. Borrowings decreased by CLP 18,900,000.0, in line with our scheduled amortization profile. As per our strategy, Nakalat continues to manage its capitalized structure, aligning it with its long term financial strategy to maximize shareholder returns. Net fair value of interest rate swaps declined by approximately 112%, shifting from a net asset to a net liability position. This movement was driven by mark to market adjustments of the floating interest rates.

It is important to note that this is a noncash valuation impact, and our interest rate hedges strategy remains aligned with our broader financing plans for the newbuild program. In summary, Lacralad continues to demonstrate financial resilience with a stable half year results and a clear focus on driving sustainable future growth. Thank you for your attention. I will now hand it back to Fotius, who will take you through the market outlook for the LPG shipping segment. Over to you, Fotis.

Fortiose Zeritus, Head of IR and ESG Reporting, Nicelat: Thank you, Kamaran, and hello, everyone. I’m pleased to provide an overview of the LNG shipping market today. As the world’s leading LNG transportation company, Nikilat remains steadfast in its commitment to delivering long term sustainable value to our shareholders. We continue to navigate the evolving global energy landscape with confidence, agility and strategic discipline. Despite the ongoing economic uncertainty and market volatility, we remain confident on the long term prospects of LNG shipping sector.

We believe that the industry will continue to grow and adapt to the changing needs of the global energy system. Our positive outlook is underpinned by several key factors. That sustain increasing demand for natural gas, particularly from emerging markets, alongside the growing diversification of market participants, trade routes and the continued expansion of LNG infrastructure across the value chains and the ongoing development of innovative technologies that are enhancing operational efficiency and environmental performance. Nike Lab is uniquely positioned to benefit from these patterns and trends. Through our modern fleet, strong partnership and unwavering focus on safety, reliability and efficiency, we’ll continue to deliver to the world LNG transportation services that support energy security and energy transition to the global scale.

Let’s now take a look closer at the LNG shipping landscape for the 2025 and beyond. Turning to the Slide 17. Wood Mackenzie projects strong growth in global LNG trade with the liquefaction capacity expected to rise from approximately four eleven million tonnes per annual in 2024 to around six seventy five million tonnes by 02/1930. This is representing a substantial 64% increase. This surge in supply will further strengthen the global LNG shipping demand.

Moving to the Slide eighteen-nineteen Clarksons assessed average one year charter rate in the second quarter twenty twenty five at $33,000 per day for MEB XVF vessels, dollars 70,000 per day for DSDs and $4,000 for steel vessels. While this short term rate reflects some softness, but improved levels from previous quarters, they have minimal impact on long term charter contracts, which continue to demonstrate resilience and support Nicola’s long term chartering strategy. On the Slide 20, Clarkson notes that the global energy fleet is at seven fifty two vessels in operation as of the 2025. An additional two ninety nine conventional LNG carriers are on order book through 02/1931, which represented approximately a 39% increase in the global fleet. Currently, the renewable price appears to have been stabilized at the range between $255,000,000 and $265,000,000 based on the specification of the ships.

In summary, as the world accelerates in transition towards a lower emission future, countries striving to meet this climate commitment while ensuring that energy remains affordable, accessible and secure. In this context, LNG continues to be proved itself as a vital enabler of the energy transition, offering a cleaner, cost effective and dependable alternative to fast growing market seeking to replace higher emitting fuels. While we acknowledge that the short term charter rates volatility in shipping may persist due to the wave of new vessels delivery entering to the market, the long term fundamentals of the LNG shipping industry remain very strong. This strength is underpinned by sustainable growth demand, increasing energy diversification and continuing expansion of LNG trade routes and infrastructure. Nicola remains strategically positioned to capitalize on this long term trend, reinforcing our role as a critical link in the global energy value chain.

With that, I would like now to hand it over the discussion to Mr. Hany Abojekir, our Chief Financial Officer, who will share further insight into Nacrolad’s business outlook. Mr. Hany, the floor is yours.

Hany Abouyekar, Chief Financial Officer, Nacrolad: Thank you, Kamran and Fotijaas, and hi, everyone. I am pleased to report that Nacrolad continued to demonstrate strong operational and financial performance during the 2025, supported by our robust revenue model and disciplined approach to cost management. Our unwavering focus on operational and long term strategic planning continues to reinforce our position as a global leader in the LNG transportation. Despite persistent macroeconomic headwinds, including market volatility and elevated interest rate, Nacalad business operation model remains resilient. Our portfolio of long term charter agreements, underpinned by highly creditworthy counterparties, provide a stable and predictable revenue stream.

This contractual structure effectively insulates us from fluctuation in the spot market, supporting reliable cash generation throughout market cycle. Coupled with our diversified fleet and strong joint venture partnership, this foundation enable us to deliver consistent shareholders value under a range of market conditions. Sustainability continues to be the central to our long term strategy. Now Kulat is investing in a new generation of fuel efficient LNG carriers and exploring viable alternatives fuels, in alignment with IMO emission reduction targets for 2030 and 02/1940. In parallel, our in house shipyard repair and maintenance capabilities support fleet availability while optimizing life cycle costs and vessel availability.

We’re also progressing with the delivery of all our 40 newbuild vessels, which are scheduled for a phased delivery from late twenty twenty six through 02/1931, reflect our commitment to long term value creation, this disciplined strategy capture growth opportunities while mitigating market risks. From a financial management perspective, we remain committed to maintaining a prudent and resilient balance sheet. In the face of fluctuating interest rate, Nauquilat continued to proactively manage its capital structure through staggered debt maturities. Healthy liquidity buffers and selective refinancing of our debt at a competitive rate. Our well structured leverage profile, combined with a strong cash flow visibility, allow us to pursue growth while preserving financial stability.

As it was mentioned earlier, we recorded a net profit of $860,000,000 in the first half of the year. As a result, that reflect our operational strength and financial discipline. We are confident in our ability to sustain this momentum in the years ahead backed by our world class fleet enduring partnerships and sound financial governance. Looking ahead to the remainder of the 2025, we remain adaptive and proactive in respond to the global dynamics. Our priority will be further to optimize our capital allocation and financing activities, ensuring we continue to support our growth pipeline in the most cost effective and efficient manner.

Naokalat is well positioned to navigate smoothly complexity of today’s global environment while delivering on our strategic objectives and creating long term value for our shareholders. Thank you, and we continue for your continued trust and support, and I look forward for your answers during our Q and A sessions today. So please go ahead.

Ezra, Call Coordinator: Our first question comes from Rob Skipper with Ashmore Group.

Rob Skipper, Analyst, Ashmore Group: I’ve got a couple of questions here. First of all, can I have can you give us a bit of an update on the newbuild program? What can you share about sort of the current progress, anything on that? And also, you give some latest guidance on the CapEx for FY ’twenty five? My next question is sort of when are the next sort of large installments due on the newbuild program?

And if any you can give any guidance on sort of peak leverage for the company and sort of time lines in terms of, yes, which years and what quarters, that would be perfect.

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: Sure. I can try and answer that for you, Rob. In relation to the update on the vessels, it’s as per schedule. Everything is going to plan, so we don’t foresee any changes in the deliveries. And in terms of the CapEx installment, what we’ve tried to do in the Investor Relation package, we’ve tried to give an indication of the installments as a percentage wise over the next four quarters and then for the prevailing years, which will help give you some guidance and support in terms of what you need.

I hope that answers your question, Rob.

Rob Skipper, Analyst, Ashmore Group: Perfect. Thank you. And about the sort of the next large installments and the peak leverage for the company, is there anything you can give on that?

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: As I said, I think the if you look at the presentation, I think you’ll see the guidance in terms of the installments for the next few quarters. And sorry, what was the second part of your question?

Rob Skipper, Analyst, Ashmore Group: Just in terms of guidance on peak leverage, of if you can give a time line for that in terms of year average years and quarters, any guidance on that would be great.

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: I think we’ve touched on it before. I mean, we aim to have an equity of around equity contribution of around 10% and the remainder would be through some kind of financing, whether it’s traditional bank financing or any other instrument. But we see that probably in the next three years that will be coming into play.

Rob Skipper, Analyst, Ashmore Group: Perfect. Thank you.

Hany Abouyekar, Chief Financial Officer, Nacrolad: Robert, I think if you look at what we have presented in our Investor Relation package, this is something that’s going to change quarter by quarter. So and you’re going to see the amount of money that we’re going to deploy, which is mainly is going to be a debt finance, and that will change the leverage going forward. So you should really expect and the problem is with your question is we would like to maybe we can give you more details with Fortius and Kamran. But the question is comes in, as you understand, we have new debt coming in and new debt is being from the old vessels is being amortized. So it will fluctuate based on the when the payment happens and when the debt is being amortized.

So that’s something we can give you a little bit more details. This is no specific number we can give right now because as the debt is incurred and as the debt is being amortized, the numbers will continue to fluctuate. But as what Kamran said, we’re targeting a leverage ratio for the new vessels between around 10%, maybe it will go 15% or 20%, the max for equity portion. The 80% will be debt out of this $6,000,000,000 can of investments on the conventional. So you can say around $5,000,000,000 is going to be deployed as a project finance.

So that’s where you can start to really add up as per the Investor Relations package. But also, you need to take into consideration that also in the existing fleet, we’re deleveraging. So you need

Fortiose Zeritus, Head of IR and ESG Reporting, Nicelat: to add up both of them,

Hany Abouyekar, Chief Financial Officer, Nacrolad: and I’m sure you’re going to see the level of leverage that we’re going to go through quarter by quarter and even monthly, so over time. Our

Ezra, Call Coordinator: next question comes from Santosh Gupta with Truly Financial Research. Can you please throw some more light on the split financing of major vessels? So in the previous, I think you answered on the loan to value. Can you also suggest on the number of years for which you are getting the financing, is it for, say, complete life of the contract, which I think should be fifteen to twenty years? And also the interest rate, any indication of the interest rate at which you are getting the financing for the new bid vessels?

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: I can try and answer that one for you, Satish. But the financing in terms of the tenor sorry, it will be around probably around fifteen year mark and in terms of the profile around twenty years. That’s what we have traditionally aimed for and that’s where we’d be targeting.

Ezra, Call Coordinator: Okay. Our next question comes from Juste Villarreal with Morgan Stanley.

Juste Villarreal, Analyst, Morgan Stanley: We have a couple, if we may. First one is about the CapEx amount. If we look at the presentation from the first quarter, on the slide you were mentioning with the installments and the percentage of delivery, we can see total shipbuilding commitment and it’s around $10,000,000,000 mark. And then if look at the presentation for the second quarter, this amount is not there anymore. Is this because of just the way you want to present the data?

Or is that amount subject to change depending on interest rates fluctuations or the agreement with the shipbuilder? And then second question, if we may, about dividends for the second half. What should we expect? Should we expect a similar level as first half or dividend payout percentage?

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: I’m not sure which slide you’re referring to in terms of the installments, but we’ve always been presenting it as percentage of the payments required. But maybe we can if you send us myself or Fotis an e mail, we can help you clarify that point, but we’ve never put any monetary value. In terms of dividends, Henri, can you take that one?

Hany Abouyekar, Chief Financial Officer, Nacrolad: Yes, absolutely. I’ll start with the dividend. As you can see, we have said before, we are planning to sustain the level of absolute dividend that we pay to the shareholders. And we assess that always on the time the Board assess that at the time of the declaration of our dividend. As you can see, we have increased it by a little bit, which is reflected by increase in our profitability from last year.

So you should really expect going forward, as we have highlighted many times in the past, I was part of our capital allocation and ensuring that we reward our shareholders that we getting to maintain an absolute sustainable dividend during until we start to deliver and receive more of the vessels towards the ’6 and during ’twenty seven, and then we’re going to reassess the amount to be paid. Based on the financial performance and the generated revenue that we received from. I’m sure to elaborate a little bit more, and I’m sure the guys can give you more detailed question. The total program, when you talk about the 25 LNG vessels, remember, we have 25 conventional, they’re going to cost around 6,000,000,006,500,000,000.0 and QC Max, which is going to be funded for 2028 towards the 2031 when we receive the large vessels, which is another around 3,500,000,000.0 So that will add up to the $10,000,000,000 What we tried to do in that presentation that was in the IR presentation, which shows what we see for the next four quarters, how the CapEx is going to be secured. All that CapEx, as we said before, will be funded through a project finance.

So I hope we have answered your question.

Ezra, Call Coordinator: Our next question comes from Fraser Hardley with Aberdeen PLC.

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: Can you hear me?

Ezra, Call Coordinator: We can hear you loud and clear.

Fraser Hardley, Analyst, Aberdeen PLC: Great. Thank you. Two questions, if that’s okay.

Rob Skipper, Analyst, Ashmore Group: The first one is to

Fraser Hardley, Analyst, Aberdeen PLC: do with, I guess, the general administration questions, general administration expenses. They dropped quite essentially year over year. I guess in terms of the optimization initiatives that you have done here, is there any sort of ability to replicate those to drive further reductions at like the more material operating cost line? And then secondly, just with the comments you provided about the growth of liquefaction capacity globally, a reasonable proportion of this is coming will be built out of America. So just need to understand any sort of engagements you’re having as a as being a potential, you shipping partner for for these projects there.

And and if not yet, what’s the typical lead time? Or when do these operators tend to engage companies like yourselves to tender for these contracts?

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: Hi, Fraser. I can take the G and A question. Look, I think the G and A has had a decrease. And as I mentioned, it’s due to some timing differences. We do expect it to be stable throughout the remainder of this year.

And to answer your question, we are always working on optimizing costs, improving efficiency to ensure that we can control and drive the number down. But I’ll leave the commercial aspect to Proteus to answer that

Fortiose Zeritus, Head of IR and ESG Reporting, Nicelat: Hello. Can you repeat the second question, please?

Fraser Hardley, Analyst, Aberdeen PLC: Yes, of course. I was wondering if you or when we can expect or when typically you would engage with, I guess, some of the new producers of the liquefaction capacity. I guess, some you’ve got here like Cameron LNG Phase two, I guess, Commerce LNG. I’m not that familiar with the projects, but I guess in terms of new vessel wins or tenders there, have you started engaging with these producers or typically when would that occur, I guess, the lead time before these projects come online for you to do the shipping?

Fortiose Zeritus, Head of IR and ESG Reporting, Nicelat: Okay. Let me tell you clearly. As the world’s largest LNG shipping company, always, we are very active to the market, engaged with charters, oil and gas companies, traders. So there is no like kind of we’re waiting timing. Always we are in open discussion to see open inquiries, to understand the market, to see the right opportunity that we are looking always to have good investment criteria to invest our money and to deploy our capital.

So it is not about it’s about to always to try to find the right opportunity, the right business opportunity on the right timing. And we currently always engage with all the companies around the world. As you know, you have we have chartered our vessels with oil and gas company kind of like U. S. LNG companies like Senre, we would sell BP.

We have many companies who have chartered in the past, and we always engage. There is no specific time. But the most important is to find the right opportunity, the right duration of the contract, the right economics to get in. I hope I answered your question.

Ezra, Call Coordinator: Our next question comes from Rob Skepper with Ashmore Group PLC.

Rob Skipper, Analyst, Ashmore Group: Sorry, last one for me. Just a question regarding the joint venture contributions. They’re still obviously lower than last year. Just would like to know a little bit more about what sort of needs to happen for the JV contribution to improve and sort of what are your expectations regarding this front?

Kamran Jova, Financial Planning and Reporting Manager, Nacalat: Rob. Yes, as I mentioned earlier, the biggest contributor is the recognition or the accounting recognition of the LPG vessels, of course. Last year, they were fully recognized as joint venture. And during this year, they have moved from a joint venture to wholly owned. So that’s the biggest contributor there.

The whole balance is the question, Rob.

Rob Skipper, Analyst, Ashmore Group: Yes. Thank you.

Ezra, Call Coordinator: Thank you very much. We currently have no further questions. So I will hand back over to Hany for any closing remarks. Thank you.

Hany Abouyekar, Chief Financial Officer, Nacrolad: Thank you very much for joining us today in the conference calls. We really appreciate your comments, and we will try to address them, whether separately because some of them is about more of detailed questions. However, we will take the inputs that you guys have raised, and we’ll try to have it reflected in the future to give more insights. So we really address the question you’re asking about, whether it’s about the payment profile, the level of CapEx and also the level of amortization of our existing. With that, thank you very much.

Looking forward to seeing you guys in the future. And thank you for joining us today.

Ezra, Call Coordinator: Thank you very much, Hany, and thank you to all our speakers on today’s call. We appreciate everyone for joining. You may now disconnect your line.

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