Jon Chappell: On the market, and this cycle is like no other, usually, the VLCCs have kind of lead the recovery both from a timing perspective and from a magnitude perspective, and that certainly hasn’t happened this time around. Given the fact that a lot of the ton miles have been — a lot of the ton mile expansion has been really kind of midsize-driven, and the fact that OPEC is maintaining their cuts through this year, how do you foresee the historical relationship between VLCCs and midsized crude kind of playing out over ’23 and the longer term?
Svein Moxnes Harfjeld: Of course, these past sort of 9 months in particular has been annoying, if I can use a modest word being a pure-play VLCC company. But I think over time, things tend to sort of normalize because cost of transportation do matter for the customer base. And maybe not a quick fix piece and the smaller ships might still have an edge in the near future, but keep in mind that VLCCs tend to transport almost 50% of seaborne crude. And most of the new oil coming to the market this year is in Atlantic. And it’s really for sort of also big clients, new large refineries in China, in particular. So we don’t think all of this is going to go on smaller ships. And it’s really inefficient as it is and it creates problems in ports with turnaround and some level of congestion, et cetera.
So I think there is a desire, at least for some of the big clients, to continue to use the big ships for sure. So it’s hard to say when this will sort of go normal again. As I alluded to here in the comments, we don’t think the disruption is expected to disappear sort of in the near — immediately. So it will continue for a little while longer, but it doesn’t mean that these will not make good money. So as we saw in the first quarter, we had some fixtures well above $100,000 a day in the mix. And I think it’s certainly possible. It’s not being hampered by the small asset classes.
Operator: We will take our next question, and the next question comes from the line of Omar Nokta from Jefferies.
Omar Nokta: Just wanted to follow-up maybe on Jon’s question. We’ve seen some fits and starts of the VLCCs over the past 6 months or so; a strong run-up in the fall, a pullback here back in December, January and some momentum in the past couple of weeks. Can you maybe just give us a backdrop of what’s been driving some of this volatility in your eyes? And then what you think is in store for this market over the next few months? Just some big picture perspective.
Svein Moxnes Harfjeld: I think some of the volatility was related to imports to China, Chinese buying of crude in the fourth quarter. So — but we see this as sort of back on again. And even the last couple of weeks, the rates are up some 10-plus work scale points and it’s still moving. And the used cost to the Far East trade is up at least $1 million. So — and that’s also still moving. So — and it’s really buying of crude and planning for this and we think it’s related to the reopening of China. And if you look at the quotas being pretty stronger not only for the crude oil import, but also for refined oil export. They are so strong numbers for both, but there is a little bit — there’s somewhat of a dislocation in the favor of imports. And I think the only way you can read that is that they expect domestic demand to expand quite meaningfully in China. And that is going to continue to drive rates for the big ships up we think.
