EGLE Eagle Bulk Shipping

Gary Vogel CEO
Frank De Costanzo CFO
Jon Chappell Evercore ISI
Randy Giveans Jefferies
Chris Snyder Deutsche Bank
Call transcript
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Greetings and welcome to the Eagle Bulk Shipping Fourth Quarter 2019 Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Gary Vogel, Chief Executive Officer; and Frank De Costanzo, Chief Financial Officer of Eagle Bulk Shipping. Mr. Vogel, you may begin.

Gary Vogel

morning. good and you, Thank I’d like XXXX Bulk’s quarter to welcome call. everyone earnings Eagle fourth to

To today, on inherently and our our statements slide uncertainties. supplement are remarks and note subject discussion presentation access participants Please of forward-looking that to the today to not will risks is statements. part guarantees are available that our include at I website of would These encourage performance future

our filings should discussion statements. financial to operating You our uncertainties condition. and place Please Commission a Exchange our on undue of have our bearing direct and detailed the forward-looking these with for not reliance risks that more and may performance results, on Securities refer a the

adjusted in Please reconciliation to the more Our the Index. certain measures also information presentation discussion the Index in Securities today comparable for that includes release note and EBITDA, and the will refer BSI-XX is we EBITDA a filed appendix concerning this GAAP non-GAAP financial Also our including and reference presentation earnings to basis measures, Commission non-GAAP Baltic with BSI the Exchange TCE. that to measures. most and or Supramax financial financial

X. in for the slide Having fourth quarter one off to quarter turn average dynamic six-year fourth quarterly $XX,XXX. period a reached now Please transition for a the QX, the traded BSI was and markets Company. shipping The of the high approximately in to

and U.S. coal weakness of effect, in call into nickel met, market factors on exports on earnings in ban a quotas was Indonesia's ore our in import being November, a indicated soybean we Chinese including due QX of As to shipments. number lack imports coming

to some into believe negatively market was IMOXXXX Xst. on impacted we January due factors to addition, year-end coming the effect In related

according Eagle achieved the $X,XXX or per for XX%. TCE quarter a day, fourth a outperformance $XX,XXX market to of of net

the out quarters. outperformed we've last XX of back, Looking now XX in

of our market noteworthy according of yet. out fleet This scrubber XX% value ships achieved per own of the also into year For basis highest net a this XX TCE XX,XXX It's in an current yards we of for annualized a the our Pacific full of ships, to retrofits. translates while year to XXXX, outperformance day, positioning and XX creation or million that Eagle achieved $XX $X,XXX.

and for the our In our employees, those to and taking this relevant line a Moving switchover, QX, intensified coronavirus. of significant exacerbated market we're traditional Year We'll a But, actions safety and more from weakness who've and impacts environment due adjust including of back the New address organizations new dictates. onboard weakness to for is been and demand seasonal building our recently, and into more increased by as the first stand foremost the of on and ready wellness now later. the costs as affected, as IMOXXXX in of result regard, and higher Chinese with wellbeing crews fuel this precautions concern further guidance in vessels. of the to the was fuel relating deliveries company trade our detail authorities

compared the averaged has XX% BSI of drop per a $X,XXX as with Quarter-to-date, approximately representing day, QX.

is total to we've the TCE per our benefit $XX,XXX today, savings. net day, This TCE of days inclusive a scrubber generated $XX,XXX of quarter first $X,XXX approximately As from with our spread representing about when compared our for on day of XX% of fleet the fixed current per of fitted available index. fuel outperformance figure around

volatile and for time, fitted Fuel outbreak lower which of HSFO days, fuel majority oil operating since January, IMOXXXX, Fuel pricing. and $XXX the around turn few non-scrubber as come to while spreads those ships, dramatically Please the coronavirus, XXX over the costs are have by same continue we fuel fuel per spreads from at since benefiting quite year-to-date for believe been with industry, increased operating fitted Eagle of scrubber This been X. demand ton. with the between and is to past ships the slide costs will up to inception the forwards widening the the has the spread of normalizes. move in year balance actual averaging now of and close but the have when VLSFO

XXXX.These mark crystallizing million. our entered we’ve In investment to approximately scrubber-related of part for of fuel as XXXX order returns, average to of scrubber of spread value positive respectively. And prices $XXX market XX% today, hedges $X around hedges have and for and start a of are into at exposure $XXX our those

adjusted turn QX. X. to XX% totaled fourth slide quarter, the for million Please $X.X around EBITDA as compared items to for non-cash certain down

TCE total of our XXX some days of at detail. significant in performance shipyard quarter. negatively program during was earnings, work increased or our impacted While our EBITDA the largest scrubber a QX, had our a were IMOXXXX. complete will we more Frank offhire retro of material ships to to our in in Chinese fleet days discuss as history This during in We XX% as ahead more by impact point incurred QX, which a the than XX offhire

to order the benefit, program by that. And In XXXX. the we be to spread potential had just able maximize our scrubber objective the to been January from complete beginning fuel achieved retrofit

Eagle fitted across successful XX last is as drybulk with the ordered end been with a we of scrubbers Supramax/Ultramax has makes has XX only to units remaining great just owner scrubber-fitted fitted been cleaning during with gas program Eagle midsized Company, fitted. the largest or we fleet And competitive us had this fully result of of exhaust organization. own for summer which a believe our monumental timely systems. three is about advantage execution task total XX% have of fleet our of scrubber January, This QX. This our As its program the vessels. provides vessels and and and complete, X% Once of retrofit be of a we the dedication installed teamwork we'll

the delivering to our our days, we is positive believe yielded based has revenue Company. million And on for strategy will early forward continue in value. investment continued our expectations from our Xst, environment investment it's January HSFO contribution the VLSFO, Since in implementation meaningful. compliance between spread and on for scribers IMOXXXX estimate fuel $X.X we be scrubber incremental roughly Although

that, With the I'd to performance. Frank who’ll like to turn financial call our review over

Frank De Costanzo

Thank summary results. you, Gary. a slide XXXX quarter Please nine for our financial turn to of fourth

of fourth voyage hire quarter, Revenue, a net The totaled Company fourth quarter, and net charter of $XX.X the lower share of for the a $XX.X X% prior or for million than loss million both, the reported quarter. expenses, loss $X.XX. per

Operating costs charges. several factors, was negatively settlement and QX operating $X.X days higher installation by to lower onetime ship acquisitions; due due available by vessel OFAC previously in scrubber impacted came at higher performance to EBITDA expenses, million. driven our startup relating offhire; for onetime legal disclosed expenses including Adjusted to the

scrubber the is onetime per into account offhire with taking quarter. approximately mentioned were that million along earnings or events share It above, $X.XX our noteworthy by in the $XX.X impacted

Ultramaxes ballast installation which quarter of million The now of draw for $X.X and by an roughly of XX, to our in the facility. from we $XX turn driven slide in prior end. from a $XX.X million the debt decrease of Total cash decrease our Let's and drydocking balance was overview was the cash XX liquidity. restricted represents offset December purchase sheet treatment acquired expenditures, systems, cash, of XXXX, at million and water Ultraco last new scrubber primarily of part by three the inclusive

million provided and total net Company's $XX the activities comprised of cash came million, total million. liquidity as of XXXX operating December cash $XX.X by XX, The credit revolving in of of quarter, $X.X million facilities. at In was $XXX.X undrawn fourth

under For December year, XX, an borrowings issuance excluding million $XX.X was increase from primarily XXXX principal operating as $XX.X of vessel net quarter. Total the part prior debt cash gross the due was to in debt activities $XXX.X incremental full debt facility, to costs debt offset in of new by by The Ultraco provided debt is repayments. million. related the million, acquisitions increase

S&P and XX lays turn changes right, bar at we water bar net QX three balance of Company's covering out bar cash the for of two and XXXX. million facility large totaling slide the close vessels. finally, debt are $XX the a very the the principal comes EBITDA year our XXXX. top chart bar interests proceeds draw. vessel in $X a CapEx $XX and QX for $XX totaling full covering in the net walk million Please along from drydocking two for To will the which slide million, new you XXXX. The of The adjusted The find The bars the in at to million costs, operations. to QX in revenue million, the represents QX positive operating the And left, is scrubbers number. debt of purchase Ultramax and expenses $X look bars in paid Ultraco the cash $X a accordion the the treatment with systems for of ballast million simple

by $XX Ultramax totaling the the we bar for bond we the at debt operating The balance. very on $XX bar and year and full Ultraco changes positive Company's final of the Supramax expenses the is year now from debt cash debt during net vessels close debt the the draw Let's is XXXX. in in chart which XXXX accordion facility displays seven million, bottom half the convertible the million, offset four covering treatment To a the CapEx find our drydocking, interest offering, totaling with on million will year water covers million $XX totaling received a EBITDA refinancing a vessels we the bar scrubbers purchased new totaling our systems, principal million facilities. $XXX adjusted to A January part the you and year, right, representing on the $XX in bar ballast full $XXX cash bar discuss full proceeds of and slide, million, sold. revenue right the existing the The number. debt bars, for which the for paid

for our Let's now per ship cash slide XX review day. per breakeven

ship in primarily Ultraco facility, than than $X,XXX in the per debt The For full increase related year at XXXX, vessel higher debt along a of result is prior came year-on-year expenses. in prior higher payments year. $X,XXX to per year. the the breakeven Full $XXX $XX,XXX, the ship per operating OpEx principal year XXXX an cash day, with day increase per increase our in or came at new expenses

previously I vessel indicated, was by onetime As costs. acquisition impacted OpEx

In note drydocking per than costs age the XXXX, function $XXX came well ship a as drydocked, vessels as the per of day, $XXX of are XXXX. higher drydocking in at that age the additional older prior drydocked the long-term said, performance. average upgrades performed year. to in ships of performed in the fleet improve That age XXXX the those of Please than the was being

our expense full that in XXXX items XXXX is G&A the year share per excluding than $X,XXX $X,XXX. up which and came as the prior the relating G&A XXXX ship in days in XX ownership non-recurring in vessels. vessels came Cash counted were debt XXXX. to It in the will The our primarily interest this owned per G&A full worth XXXX, less certain year fleet per ship from our at days, fully to due day, for is our vessel which include per increased $XXX on calculation, at day, $X,XXX in is to In higher acquisitions year. a normalize per noting be our be $XXX for increase calculation per year. would only ship regard, we Cash based chartered-in day is per if will

per on higher Ultraco is the ship payments in per $X,XXX prior increase debt debt is our The $X,XXX which principal to Cash principal facility. XXXX new repayments day, in than attributable came year. at

as QX CapEx interest per G&A XXXX debt the $X,XXX levels, full move ship around and debt Looking due repayments down year presentation. to circa of day, breakevens, impact to the expense additional come we appendix which principal slide the our in will and OpEx to XXXX to in of slightly increase forward the drydocks, per see to the per

to This concludes call turn I Gary. now will my the comments. back

Gary Vogel

you, Frank. Please Thank turn to XX. slide

coming IMOXXXX As for first fleets, factors, drydock impacted the the in have quarter, effect, been by owners traditionally coronavirus. affect on seasonal which the fitted the the market’s scrubber earlier from call, into QX apart not particularly that do and indicated both negatively

essentially In charter pushed terms to dynamics rates unable on were weak extra in fuel ships time demand costs early turn of non-scrubber Jan, and given to this owners in charterers, IMOXXXX, equivalent down pass unfortunately has significantly. of fitted

when an into number decrease post to the impacts, coronavirus the evident Year we this to for of New port expected cargo actually New has major by moderate seen While levels, is led increase. Chinese Year, have would clearly post trade XX% had pre-holiday Chinese normally we This Chinese about calls, particularly China. from which in

per Positively, over New curve on weak around QX, we're volumes. and in Notwithstanding metric is the rates $XX, mid $XX we've February over seen a bottomed the rebound Year in with Chinese $XX,XXX at recent and X,XXX market, BSI back the this QX now back weeks, for pre range. XX, now indicating trading the forward day

noteworthy Given currently which look the think also turn erratic Pacific markets. to Atlantic between this and XX exists supply-demand look graphically. the for at it’s extreme dynamics, differential, I slide the to Please at

versus slide depict to We BSI Here, the the this the we Pacific due extreme Atlantic the premium. deck disparity. added to

the overall averaging Pacific close is is X,XXX. While around Atlantic X,XXX, the market the $XX,XXX is BSI hovering while to

significant differential seasonal factors, ebbs to and this Although demand this due off it's around exacerbated year the China. flows into been fall in

averaging dynamics. calls, around Atlantic in due mentioned to prior historical structural have the to at market tends supply-demand we XX% premium, trade As a

skyrocketed reaching that XX-year to premium presents as but well ships our volatility opportunities. operate capture we a Atlantic This arbitrage and challenges, part the Pacific Atlantic basin to in see, can XXX%. high you between the given January, in monthly opportunities As

Looking the occur expect forward, rates and rebounding trade mean gap we as when narrowing and reversion with normalizes. the Pacific will

Please in despite delivered elevated new QX, million remained XX. vessels amounting Vessel to total building of supply XXX XX.X in a growth drop tons quarter. deliveries, turn to deadweight the during slide a

full ships little noteworthy XXXX. that in in schedule. new book most a the hit order delivered water year, of the at the It's there XXX very slippage whereas was XXXX, in ships For total

tons. amounting tonnage the of quarter, deadweight XX million Demolition during X.X older totaled vessels fourth to

in believe likely scrap in given increase. pretends year-over-year candidates increased segment. of potential Handymax For worth the current XXXX. was vessels. scrapping tons that scrapped is the or there's And that we mid-sized scrapping It's This XXXX, dynamics, ships X.X XX total growing figure deadweight million only of a of pricing XX and to the fuel backlog to or year just full noting X.X% market fleet

point fleet widely drybulk the total was fleet, the growth about Given X.X% higher in at above, in in expected earlier net a came the for XXXX than year.

order In level more drydock terms growth, XX at Ultramax supply years. things book look segment of the the X.X%, currently the just for lowest and stands in forward whereas over Supramax, positive, X%

X be is to around In fleet within point percentage at net XXXX, X.X. growth lower but drydock forecasted segment X.X% Supramax/Ultramax

due this Although were of so past total shipyards due due in well to in that we at there's will lower A few vessels market the number other drybulk coronavirus. conditions, as be ordered increased believe To weak productivity it's been context, one likely as to the even for issues ordered. put Chinese XXX potential scrapping in only ships XXXX. time the when XX were years to

midsized fleet. were X% ordered XXXX in of or the XX segment, ships the Within

in significant a the will a As our in of we rates. earnings as of the advantage pickup future price material secondhand we factors without the propulsion number foreseeable future call, pickup on surrounding due as ordering see versus very well a to indicated last uncertainty newbuildings, we optimistic for ships including remain technology, not

growth turn January X.X%. revised weaker some as India, was for by of on to experiencing forecasted were demand. expectations weakness markets down for to which the the domestic emerging including Please XXXX, back in in slide the XX. IMF is of This prospects Global

from With tumbled the in prior. XXXX month has to massive XX.X manufacturing Purchasing The activity I country. been financial has this the which the of perspective, ago, sharpest to XX and the in onset a few the in shock activity To think on virus a index been in crisis, out put the coronavirus, severe for had days underscores this has the came this Managers February impact drop since China. manufacturing, there economic Chinese

will activity, disruptions. ultimately chain world, or impact directly the supply rest know how it's of via coronavirus of terms either In the impossible to the

has growth However, between given and GDP drybulk impacted. demand, our the correlation global industry been clearly

the by While, we benchmark week confident governments, both inventories its Fed when, when from this banks of to supported as don't restocking we're normalization as earlier return well know we cut that as exactly stimulus saw the interest will be rate. central and

on to carry. the we of typically spend of given is drybulk relies importance stimulate commodities such growth. China infrastructure a direct economic policies, the Additionally, beneficiary And

we strong with our then scrubbers. uncertainty balance expected industry with model, owner-operator active as current this the macroeconomic recovery, positioned on capitalize the and leading through our well sheet, the as Eagle is period, our to navigate uniquely Notwithstanding environment, believe position given

With operator the I'd over that, the to and turn call may like to any questions you answer Operator? have.


Thank ISI. you. [Operator our comes Chappell And first Instructions] Jon from question Evercore from

Your line is open.

Jon Chappell

just you. you. morning, three for ones Good hopefully Thank morning, Gary. Frank. Gary, Good quick

a of is clarification. First one more

through As the earnings was you a year-over-year. rates to revenue the decrease it says the charter decrease release revenue in due in read hire in section, that

it read says rates the offset expense, was higher by you charter charter there year-over-year. hire If partially

just rates in or year-over-year? year-over-year core fleet great kind out? of Was So, of comp, us fleet just charter-in for how it a ‘XX higher XQ lower maybe that in XQ but the you help the play kind were of clarify can a why results then tough did the

Gary Vogel

Sorry, John.

I think, were that we higher of charter-in vessels in. chartered the the rates

the overall the sub-XX the to potentially market definitely $X,XXX We on specific can was was but What year-over-year, the figures. year, Although year-over-year, was the chartering get I BSI you lower, second about Ultramax, was lower, market market overall one? down have in back don't that. last the

Jon Chappell

question. premium you the slide Well, into the second then, of the TCE to Maybe versus the I spoke that mean, one was massive segue the XX on Pacific. first Atlantic about

positioned Pacific as in you past? now about, reversion bias recent said with between mean tied the basins, of been Have you kind you're is have and your may scrubbers especially reversion. the maybe spoken balance two fitted maybe trying the towards you've been fleet, maybe you that majority the have the wrong the to to that of not the but expect a mean still you are aggressively you So, word, or

Gary Vogel

back market now majority the a hard we're impacts is mean, given probably the Ultra and The it's is in worked Atlantic capacity. -- for backhaul actually do above just zero that, to great today a earning which clearly Supramax and I we obviously question. a the rates. X,XXX, around Yes,

number in premium looking imagine ships go I our more there. to area, costly as mean, So, market, definitely an but it over at But taking to the position. type don't the of a that that's some get of the it been potential into position contrarian paid next, to it's are significantly the that Pacific the say, we're we to order reversion course, and that things on more months. take with a balance would back to do weak with And performance mean Atlantic out at Pacific, then, extreme. of moment, you in

never You'll is us a in one I right there see think fleet obviously, other. discrepancy, our if vast a a versus a of basin or you the sitting in have ship entire worth even or the showing huge put our because, majority But, now Atlantic. it's Pacific

Jon Chappell

slide any down you demand in you XX, And or are uptick Have extended their an so move But, one, the back China in mentioned different industrial and after there the and people cases all to on maybe situation. taking by returning production IMF guys commodities work you East. like the kind speak, that Far peaked of to the holiday? of obviously in verification fluid on seen final are the It incredibly you ground, the feels forecast the

Gary Vogel

cargo, I it's up were part we while Yes. just here, -- today, a cargos. handed feels I showing three have labors as last last in there's and and out call definitely doing the it's $XXX working. quite and Korea we're it retrofits situation, we Asia. market. in I are the doing quarter you We're -- while of our much this that it's scrubber and that more was We're is mean, came index, the And no the But, said, right. is fluid three questions. there in good. XXX ships and And BSI seeing more up which seeing Southeast mean, doing

definitely this four weeks sitting. to has we much here whereas were of don't ships so, passed, ahead more more activity, but And that ago, feels it want ourselves positive much that and there get were

to definitely older And get fitted completely Fortunately, there I not any mitigated at we're point. but at think Supramaxes ships sitting scrubber business were that being not all. this able that's


our Randy from And question comes from next Giveans Jefferies.

Randy Giveans

a there compared I looking was the about to is XQ Premium on you guidance, the said X,XXX benchmark. just

X,XXX I think, scrubber-related. you said was

or that to are I just Atlantic things Pacific there So, guess, premium? ascribing kind other there over of

Gary Vogel

all, clarify. and I in Yes. I appreciate mean -- order question to the first of

scrubber able XX, for premium. than what have a is generate been quarter, XX% we X,XXX ships to less Having overall with of slightly -- So, XX as have fleet. said our now but about fitted that, ships, the

entire the X,XXX about those and the it you over So down $X,XXX whole get net to take over fleet, out ships a if the benefit fleet. you spread on amortized out

half the of X,XXX and aspects. half from comes other about comes that, the from outperformance from So, various --

important, Of we vessels. dynamically and also but hedging it's ships, course, creating optionality where ships periods, you position It’s That what between derivatives asymmetric chartering arbitrage. your other things call optional is is chartering that. using like

fact So, just it's the outperform approach. not quite QX able basin in I the speaks But and why XX versus looks XX that being it's the been last to of strong. that to quarters the other. absolutely -- a we've And in think one multi-strategy

XX. So, make I you that that confident XX of out think, pretty can

Randy Giveans

update tightening, stance? last I as IMO gave that of you Okay. how few update so And that. a weeks. forward following I spread kind currently X,XXX call get hedge month been position has falling day on trying here an kind ago. likely then, has I just the your an up was in your The the changed premium, to on guess a with or you know to of

Gary Vogel

we've and XX% $XXX mentioned position covered XXXX And XXXX. on hedges XXXX those our we're about hedge fuel for average $XXX and both spread believe XXXX. for for I Yes.

up XXX a -- the blended, probably very now. in with XXXX looking the to week on with on for that right now a has the is if market, much ago position basis. you're sub-XXX hedge And XXXX line $XXX from for you're about forward about based at actually just moved blended spot, So, you which take a

Randy Giveans

for me. Thanks again. it That's excellent. Sure,

Gary Vogel

Randy. Great. Thank you,


[Operator from Bank. from Deutsche next Mehrotra question Instructions] Thank Our Amit comes you.

Your open. line is


for Good Amit. Chris on Hey. Snyder is This guys. morning,

-- So, number you guidance. a guys you Atlantic QX guys sounds in significant Pacific. talked bookings broader had are have in at coming scrubber significant pretty But, vessels installations. the the of in the you also as coming already, in benchmark premium yard outperform like QX, about continue it following of a the to And to rates the out you the

So, could to adjusted the positioning the we could there -- kind I'm a more was an if that? of of outperformance, headwind assuming we even seen significant performance, bit a have the fleet or of for we kind

Gary Vogel

typically no is which out especially There's significantly of need performance position impacted was in of the the fleet, majority XX% trade, anytime ships to it's yards into them that going a Atlantic to you have of in by fact given question in XX any that. that our more to time. And than XX of impact freehand our and given the is don't were -- the China,

these would in no there's to put out us out ships coming a knowing the our those ships ships other question of And yard. minds. position in move be that coming QX, of in So, Asia, out

yes, tied feel about had value that in million we question say, better mentioned done of to $XX on It have no terms think our to commercial best you was XXXX their -- back they number behind But, for were significant positions. our about creation. team, outperformance. if hand And one in it, the I speak they confident call, of would So, we of one. as still


almost because but base it of put in was is of Yes. kind impacting just sometimes Because them to having whammy only not the double feels headwind into significantly like trading, weaker. a the also was you're that the all it flexibility

of feels a kind event? a it or So this onetime like it onetime -- but is fortunately, event,

Gary Vogel

yes, $X mean, hard have get period. ships a effectively come could to that's calculated half is -- Xst, July also, spread a had about XX onetime I back, it over on done things money Xst, as by up year what of I we we the on premium. would good if the that. be X ships Yes. effort, forego Xst, this out that January January to instead right? a about we just against million And on a made backed scrubber XX project. doesn't our mean, installs because, in greater of push to We scrubber event point ready a We concerted of

tough was a regard. before, in But, event least QX in -- the that's ever part us. yes, will. given expect So, onetime that it had as at we yard you had don't of quarter. ships We one said, at behind XX Never

We have get this ships then the and three completely working side. revenue that done completely to be we're just we'll this working and have quarter, us, -- behind on within


is scrubber -- spreads this up, well? that. maybe you about carry sure. implications a entire a has next is Then pretty would positive ore as lot can so course in But, ramping China will bulk, attention. mineable for a for narrative of Yes, which talk stimulus cargos benefit I gets Dry here? assume to big of also just China becoming of market. major Iron the equity beneficiary

Gary Vogel

we and the commodity first year Iron I mean, this it's energy as ore the will infrastructure -- steel, production other I also higher where And few around be that steel movements expect is past and Yes. negative we last right. the But coal spend, that that. And it mean, you of steel have stimulus in consumption years. does. thing is have was huge there's all, of two than expected in course years move. you're you that as well a

in on as weighted terms be cargoes is West part like in construction like so But as of all bauxite. those that's as trade building, amount it'll ore are of bulk a That's year important. cargos you that's largest and ores, -- manganese the considerable also us, things of of volume, a for and have significant the gypsum a various largest or the that things that into Africa limestone, basis, really minor one So, first cargoes we and move well China. And metals, move we a well. then from other

as So, terms both sink. in sourcing a as it's diverse bulks one is benefits geography. is of kitchen well minor a of it in of very that's the of in And terms really commodity


could. the us just one here? if to seems seasonality out of and Grain then remind Brazil guess grain kind South more up. First, you into of kind I because about anything ramping then, leads guys grain just particularly North of you or how that American activity how be And are season up? And shaping Could the America kind more of it's grain I near? season? of America South any just the hearing is outlooks

Gary Vogel


summer, Hemisphere about then Northern So, is And I right. think is winter. overall. mean, grain fall and into into driver seasonal -- its you absolutely if and you're Southern the spring is Hemisphere

coronavirus. buying data there of now unfortunately, to to starting up ago, phase now, trade January. hits seems seen capabilities take really shows XX season. years on haven't over end maybe It's American typically gets it ramp even storage a But X of the typically, And X it's -- seen buying of the up going absence the U.S. to goes we the back longer. it's it into and it capacity, have for and definitely then meaningful October, And And what ramped to it longer, -- hedging now, moving, May. carries gone of a used grain the it kind the in longer but any that. Chinese March, be but typically with season of reasons, we things optimism and in said of of number soybeans on haven't usually, become we in seen a get into So, years deal few X-week we've September. And while farmers, that -- soybeans a I lot November way. normally mean, like it’s been the to last really was North

going it's to mentioned. the from be given I deal they'll is expect be But, U.S. interesting. to So, strong just we crop this be competition year. market trade the going Brazil


I appreciate all does Thanks the time, the color. for it guys. me. That for

Gary Vogel

Great. Chris. Thank you,


And showing any turn our for from over Gary I further And am I'd to back line. you. the conference questions Thank closing to like Vogel no phone remarks.

Gary Vogel

Thank you, operator.

like further thank joining and everyone no call earnings on remarks. quarterly for wish We today have us great to a our I'd day. everyone


does in This today's and thank conclude you program. Ladies participating gentlemen, conference. the for

day. wonderful a have Everyone, disconnect. all may You