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Y-day I wrote about locked in charter averages Okeanis for the future, now I am going to write about costs per day to later compare. Three main parts for me as a simple investor: 1. OPEX 2. Interest costs 3 Amortization/Depreciation together forming all in break even AVERAGE #OET
OPEX, well we pretty much are given that here as 2019 average and Q1 2020 actually was lower (larger fleet lowering costs?) so 8200 it is for me:
Interest costs: Well those have fallen and #OET is fully exposed to that.. As we are kind of doing a stress test of the company later comparing to the work of much appreciated @JHannisdahl assumptions it is not likely Libor would go up in a world where newbuild prices crash 15%..
So I adjust for recent news of 103.2 musd new loan at record low rates and two refinancings and get them at L+3.25% average (3.5%) on 851 musd end Q3 gross debt=~5k usd/ship day (Note one off on refinancings are NOT included, should not be imo).
Amortization and depreciation: The first what Co really pay back and 2nd the capital cost. Depreciation is probably around 11musd/Q from end Q3. I am a simple man, I think they average 19y left of life, fleet value 1200, scrap 180. 1020/19y/4q=13.5m =8700 usd//day using 1552 days
So there you have my napkin calculation of costs 123: 8200+5000+8700=21.9k per day for 17 vessels using 91.3 cost days per quarter (91.3 x17=1552 ship cost days). In real life EPS Co will use lower amortization but near term interest higher with refinancing (one off).
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