Teekay Tankers (TNK) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Nov. 12, 2026

CALL PARTICIPANTS

• President and Chief Executive Officer - Kenneth Hvid
• Chief Financial Officer - Brody Speers
• Vice President of Finance and Corporate Development - Brian Hamilton
• Director of Research - Christian Waldegrave

TAKEAWAYS

• GAAP Net Income -- $195 million ($5.60 per share), reflecting strong spot market leverage and operating performance.
• Adjusted Net Income -- $176 million ($5.04 per share), which contributed to a nine-month total of nearly $500 million.
• Suezmax Q3 Spot Rates -- $100,000 per day, representing average earnings for the Suezmax fleet during the third quarter.
• Aframax/LR2 Q3 Spot Rates -- $67,600 per day, averaged across the fleet during the period.
• Q3 Free Cash Flow -- $179 million, supported by a low free cash flow breakeven rate.
• Total Cash Position -- over $1.4 billion, following the generation of over $520 million in free cash flow during the first nine months of 2026.
• Debt Level -- zero as of the end of the third quarter, maintaining a debt-free balance sheet.
• Q4 Suezmax Spot Bookings -- $272,000 per day, with 63% of spot days booked for the fourth quarter to date.
• Q4 Aframax/LR2 Spot Bookings -- $200,000 per day, with 53% of spot days booked for the fourth quarter to date.
• MR Tanker Acquisition -- $49 million, for the purchase of one 2020-built MR tanker to reenter the product tanker sector.
• Newbuild Vessel Orders -- six vessels, including two LR2 vessels and four Suezmax tankers scheduled for delivery between mid-2027 and 2030.
• Asset Sales -- four vessels sold for $211 million total since the start of the year, yielding combined proceeds of $78 million.
• Fleet Investment -- approximately $716 million, committed since the beginning of the year for the acquisition of 10 modern vessels.
• Midsized Order Book -- 25% of the existing fleet, which is largely offset by 22% of the fleet being older than 20 years of age.
• Red Sea Rerouting Impact -- 30 days added to voyage lengths, as attacks on Saudi crude shipments lead to redirection through the Suez Canal.
• Free Cash Flow Per Share -- nearly $15 for the first nine months of 2026, driven by high spot rates.
• Quarterly Dividend -- $0.25 per share, declared for the third quarter.
• Middle East Export Volumes -- returning to prewar levels, boosting crude tanker demand.
• Shadow Fleet Aging -- 70% of the sanctioned tanker fleet is over 20 years of age, creating significant barriers to returning to regular trading.

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RISKS

• Hvid noted that "refining margins over the past month have decreased from record levels," which contributed to freight rates moderating from peak levels seen in Sept. and Oct.
• Waldegrave warned that a resolution to the conflict in the Middle East would result in the loss of "the inefficiency that is been propping up the market the last little while."

SUMMARY

Teekay Tankers Ltd. (NYSE:TNK) reported adjusted net income of $176 million for the third quarter of 2026, positioning the company to reach record annual results. Management reported that the company is operating with zero debt and a cash balance exceeding $1.4 billion, providing flexibility for its fleet renewal strategy. The company has committed approximately $716 million to acquire 10 modern vessels, including six newbuildings and an MR tanker, while selling older assets to capitalize on high asset values. Management stated that current spot market rates for the fourth quarter have reached new record highs, driven by geopolitical disruptions and tight product markets. The board of directors indicated it will consider a special dividend in Feb. 2027 alongside the announcement of full-year results.

• Hvid stated, "We have secured spot rates of $272,000 per day and 200,000 per day for our Suezmax and Aframax LR2 fleets respectively," regarding fourth quarter bookings.
• The company acquired a 2020-built MR tanker to build back capability and create optionality in the product tanker space.
• Management expects to continue selling older vessels that reach 20 years of age over the next two to three years.
• Redirection of oil flows from the Red Sea northbound via the Suez Canal has stretched fleet capacity by extending voyage durations.
• Waldegrave noted that Chinese crude oil imports have recently returned to approximately 10 million barrels per day, indicating price sensitivity among major importers.
• The tanker order book of 25% is expected to be mitigated by the retirement of an aging global fleet, with 42% of existing vessels reaching age 20 by 2030.

INDUSTRY GLOSSARY

• Suezmax: A tanker vessel with a capacity between 120,000 and 200,000 deadweight tons.
• Aframax: A tanker vessel with a capacity between 80,000 and 120,000 deadweight tons.
• LR2: Large Range 2, a product tanker with a capacity between 80,000 and 160,000 deadweight tons.
• MR: Medium Range, a product tanker with a capacity between 25,000 and 55,000 deadweight tons.
• Ton-mile: A measure of freight volume calculated by multiplying the quantity of cargo by the distance transported.
• Crack spread: The price difference between a barrel of crude oil and the petroleum products refined from it.
• Shadow fleet: A group of tankers operating outside of mainstream regulatory oversight to transport sanctioned oil.

Full Conference Call Transcript

Operator: Welcome to the TK Group Third Quarter 26 Earnings Results Conference Call. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session. At this time, if you have a question, participants will be asked to press *1, to register for a question. For assistance during the call, please press *0 on your touch tone phone. As a reminder, this call is being recorded. Now for opening remarks and introductions, I would like to turn the call over to the company. Please go ahead.

Kenneth Hvid: Before we begin, I would like to direct all participants to our website www.tk.com, where you will find a copy of the TK Group's third quarter 26 earnings presentation. Kenneth will review this presentation during today's conference call. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is in the third quarter 26 Teekay Group earnings presentation available on our website. I will now turn the call over to Kenneth Hvid, Teekay Corporation's and Teekay Tankers' President and CEO to begin. Thank you, Anne.

Hello, everyone, and thank you very much for joining us today for the Teekay Group's third quarter 26 earnings conference call. Joining me on the call today for the Q&A session are Brody Speers, Teekay Corporation's and Teekay Tankers' CFO Brian Hamilton, our VP of Finance and Corporate Development and Christian Waldegrave, our director of research. Starting on slide 3 of the presentation, we will cover Teekay Tankers' recent highlights. Teekay Tankers' delivered another exceptionally strong quarter, reporting third quarter 26 GAAP net income of $195 million or $5.60 per share and adjusted net income of $176 million or $5.04 per share.

To further highlight the strength in our results so far this year, for the first 3 quarters of 26, Teekay Tankers' adjusted net income was nearly $500 million which is in line with our record setting full year result set back in 2023. Our exceptional results were underpinned by our significant operating leverage to strong spot market and strong operating performance. Spot tanker rates during the third quarter averaged $100,000 per day and $67,600 per day for our Suezmax and Aframax LR2 fleets, respectively. Combined with a low free cash flow breakeven, Teekay Tankers generated approximately $179 million in free cash flow from operations, which increased our cash position to over $1.4 billion with no debt as of quarter end.

For the first 3 quarters of 26, we have generated free cash flows of over $520 million The fourth quarter to date bookings have materially increased and look to set a new record. We have secured spot rates of $272,000 per day and 200,000 per day for our Suezmax and Aframax LR2 fleets respectively, with approximately 63%, 53% of spot days booked. This puts Teekay Tankers on track to report record earnings for the fourth quarter and full year. I will go over the market in more detail in the following slides. We continue to execute on our fleet renewal strategy through measured acquisitions.

Since reporting last quarter's results, we have entered into newbuild contracts for 2 Chinese built LR2 vessels and 2 Korean built Suezmax tankers with options for 2 more Suezmaxes all for delivery in 2030. Along with our previously announced Suezmax tanker newbuildings, Teekay Tankers now has a total of 6 vessels on order delivering in mid-2027 through 2020. In addition, Teekay Tankers has acquired 1 2020-built MR tanker for approximately $49 million which expands our footprint into an adjacent sector where we have an ownership history and where we can leverage our integrated model. Lastly, Teekay Tankers has declared its regular fixed quarterly dividend of $0.25 per share for the third quarter.

Over the past several years, Teekay Tankers has supplemented its fixed quarterly dividend with annual special dividends that have been announced as part of the first quarter earnings in May of each year. For the 26 year, the Teekay Tankers Board of Directors expects to consider a special dividend in conjunction with the announcement of our fourth quarter and annual results of 2026 which are expected to be released in February 2027. Moving to slide 4, we look at recent developments in the spot tanker market. Spot tanker rates in the third quarter of 26 were near the record levels experienced in the second quarter with Teekay Tankers' achieving average midsized tanker rates of around $87,000 per day.

However, rates surged in the early part of the fourth quarter to new record highs with mid sized tanker rates averaging well over $200,000 per day quarter to date. These record rates have been driven by a combination of elevated refinery margins, resilient global oil demand, low refined product inventories, and ongoing geopolitical disruptions that have increased transportation requirements. Turning to slide 5, we highlight the supportive oil market dynamics, which have helped facilitate record high spot tanker rates.

A combination of rising crude oil exports from the Atlantic Basin since the start of the year, coupled with more recent recovery in supply of the Middle East Gulf, has pushed global crude oil trade volumes back above prewar levels in recent weeks. Boosting crude tanker demand. In contrast, refined product export volumes remained below prewar levels due to a combination of Ukrainian attacks on Russian refineries and a slow recovery in CPP volumes out of the Middle East Gulf compared to crude. This has led to tight product market and unprecedented crack spreads, which have incentivized refiners to maximize throughput supporting crude trade volumes and sustaining demand for tanker transportation, despite higher freight costs.

However, we should note that refining margins over the past month have decreased from record levels, which is 1 of the reasons why freight rates have now moderated from the very high levels seen in September and October, though they remain at historically high levels. Looking ahead, tanker demand in the medium term will largely depend on how the geopolitical factors currently impact on crude oil trade patterns develop in the coming quarters. Particularly regarding the conflict between The U. S. And Iran. However, we believe that the need to rebuild depleted oil inventories should support tanker demand once oil supply normalize. Turning to Slide 6. We provide an update on the Strait Of Hormuz and Red Sea disruptions.

And their impacts on voyage distances and trade efficiency. The recovery in crude oil exports from the Middle East Gulf which have relied on increased use of ship to ship transfer operations and alternative routes that bypass the Strait Of Hormuz as shown on the slide, has extended voyage durations and reduced effective vessel availability since the start of Q3.

In addition, an increase in attacks on ships transporting Saudi Arabia crude oil in the Red Sea has led to the redirection of oil flows from the port of Yanbu northbound via the Suez Canal and Sumat Pipeline rather than flowing south via the Bab el-Mandeb straight, which stretches the fleet as it adds about 30 days to the voyage length. These changes have benefited the VLCC market the most, but there has been spillover into the midsized segments as Charterers Have Increasingly Used Smaller Tanker Classes To Move Cargoes Long Haul. as shown by the chart On The Right Of The Slide.

At the same time, growing crude Oil Movements From The Atlantic to the Pacific and strong arbitrage economics have increased ton mile demand across tanker segments. While freight bargains have started to moderate from recent peak levels as vessel positioning normalizes and supply chains adjust. We believe that underlying market conditions will continue to be supported by seasonal factors, ongoing trade inefficiencies and geopolitical uncertainty, although perhaps not at the extreme levels of September and October. Turning to slide 7, we look at medium term tanker supply fundamentals. Tanker deliveries are projected to accelerate over the next 3 years, as the current tanker order book delivers.

However, the order book, which is currently equivalent to around 25% of the fleet in the midsized segments, is largely offset by an aging fleet with 22% of the fleet already older than 20 years of age and a further 20% reaching age 20 by 2030. We believe the eventual removal of these older vessels should help in reducing the impact of rising tanker deliveries in the coming years. Net fleet supply may also be impacted by developments in ship. Shadow fleet of tankers and whether these vessels will be permanently excluded from non sanctioned trades or will return to regular trading. We believe that the scope for shadow vessels returning to the legitimate fleet is very limited.

Particularly for older vessels with around 70% of the sanctioned fleet tanker fleet over 20 years of age. These vessels have been operating outside of mainstream channels for many years with little regulatory oversight and will therefore have very high barriers to clear in terms of maintenance and vetting before they could be brought back into regular trading. And with no guarantee that they would be accepted by charterers and terminals. Turning to slide 8. We continue to create value and have significant financial strength and optionality This includes first, our ability to generate significant free cash flow with a low free cash flow breakeven.

With the majority of our vessels trading in the spot market, we generated nearly $15 of free cash flow per share for the first 9 months of 2026. Further, with weighted average fourth quarter to date rates booked of $236,000 per day more than 30x our free cash flow breakeven, we are positioned to generate exceptional cash flow in what is shaping up to be a record quarter and year for the company. Second, we are executing on our fleet renewal strategy by selling older vessels in this high asset price environment and recycling that capital to acquire more modern vessels in a disciplined manner.

Since the beginning of the year, we have sold 4 vessels for $211 million with combined proceeds of $78 million and acquired or committed to 10 modern vessels for approximately $716 million, which includes 6 new buildings delivering in mid-2027 through 2020. These transactions have lowered our average fleet age while maintaining significant operating leverage to the strong tank. Third, we have significant investment capacity even after our remaining committed newbuild payments. This allows us to incrementally progress our fleet renewal requirements while being patient for larger transactions in the future at more attractive entry points.

The tanker shipping industry is capital intensive, cyclical, and increasingly dynamic, and we believe having significant investment capacity provides financial flexibility to pursue opportunities swiftly when the timing is right. While the near term tanker market will remain sensitive to geopolitical developments, Teekay Tankers enters the fourth quarter from a position of exceptional strength with record rates booked to date, a low cash flow breakeven, a debt-free balance sheet, and significant investment capacity, we are well positioned to deliver record results in 2026 continue renewing our fleet and create long term value for our shareholders. With that, operator, we are now available to take questions.

Operator: Thank you. And if you are dialed in via the telephone and would like to ask a question, please signal by pressing *1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, you could press *1 to ask a question. We will now go to your first question coming from the line of Jonathan Chappell with Evercore ISI.

Jonathan Chappell: Thank you. Good morning. Kenneth, this slide 8 the strategic fleet renewal is exactly where I wanted to start, and you laid it out pretty nicely here. Sold 4 vessels, obviously older for 02/11 and acquired 4, ex the new buildings, for less than that. So it seems like there is still this incredible arb opportunity in a market like this. You know, for obvious reasons. You still have, you know, 20-plus vessels, I think, that were built 2011 or before. So how do you balance taking advantage of this again, I hate to use the same words, incredible arbitrage opportunity to monetize older assets that may not last versus generating cash with those assets in this market.

Kenneth Hvid: Yeah. I think that is exactly the right question to ask any tanker company with certainly those of us with the fleet profile that we have today, John, Clearly, that factors into exactly all of the we are making at the moment. As you point out, you could today probably sell at 18 year old Suezmax tanker and go out and buy a brand new 1 delivering in 4 years. Right? So that is that is the incredible arb that you are talking about. We are also seeing is that we have this. The strongest front end of curve that we have ever experienced in the Tango history. Of course, that is what you are factoring in.

And what we are seeing is on some of these very high prompt values is, of course, it is about having the ship in the right position for the right voyage where you can clip a couple of voyages at. And generate extremely high cash flows. that is what you are seeing when we see some of the reported numbers on the second hand value.

So there will always be a balancing act between trying to cash convert, if you wish, some of the run up that we have had in the asset values on these older vessels and see how much of that we can secure, realizing that is exactly the reason why the values of the old assets are so high. That is because the prompt spot rates are generating so much cash flow. So all the time, we are trying to figure out, can. Do we think we can get 1, 2 voyages in, make what clearly will be a lot of cash flow, but also arguably and unexpectedly a lower sale price 3, 6, or 9 months down the road.

And that is basically taking the positions that we all trying to balance out here.

Jonathan Chappell: Mhmm. You mentioned the 4-year time frame for delivery, and you have these new 30 deliveries that you just announced. Today, should we take that as an indication you will continue to recycle potentially some of the older vessels to eventually be offset with those new builds or those kind of viewed completely independent transactions?

Kenneth Hvid: No. I think that is right. When we look at our fleet profile, we have a number of our ships that will reach the age of 20. We do not have any current plans of trading them beyond 20, and they are going to reach that over the next 2 to 3 years. So we know that we will be selling ships. We are just trying to pick the best time to do that. Some of that capital will be recycled into renewing the fleet. And the pace of it, we can we can kind of slow down and speed up on that depending on what our market view is.

But we will, for sure, be selling more ships in the coming 12 months that I will be very surprised if we do not do that. So it is it is going to be very active, right? Buying and selling and spot chartering out. We may be looking at time charters at some point as well. So it is. I think it is it is the whole playbook that. that is being brought in for the next number of quarters here.

Jonathan Chappell: Okay. Final 1. Feel forgive me. I missed the last call, so I get a bonus 1 today. The MR, obviously, it is just 1, and you had MRs in your recent past, but it is a little bit outside of the core scale that you have with the midsized crude carriers. Was that just a 1 off opportunity that was kind of too good to pass up, or could we expect some of this cash recycling potential asset value arb to be focused more on product tanker going forward?

Kenneth Hvid: Yeah. First of all, I think it is a good ship. We bought it at a good price, which we are happy with. We think we can create some value around it. Secondly, I think as we have talked about a little bit in the past, I if we were to expand the sandbox, so the adjacencies here what are they? Where do we feel that we as a company can add the most value with our integrated model? And I think we have we have certainly. We have always viewed it that way that MR is being more operationally intensive. it is probably the segment that lends itself the best to our operating model.

I think having a larger sandbox that we can play in on especially as it comes to acquiring ships on the water. I think that is where we saw relative better value. to be honest, on an underwater MR compared to underwater Aframaxes or Suezmaxes for the time being. That can change. But the reason why we bought this 1, I think, was more to build back the capability to really operate MRs again. I mean, you. When you do not do it, you do not have your DOC in place. And now we are putting that in place. We get seafarers on board.

And that means that if we see opportunities in the product space in the future, we will be able to act on them more swiftly. So I think it is more an option we are creating. it is more starting to exercise a muscle that we have not exercised for a decade here. So. I would not read more into it for now. We have no stated plans of building a big position in MRs, but if we see the right opportunity, we will go for it. Alright. Thank you for the time, Kenneth. I appreciate it. Thanks, John.

Operator: Your next question will come from the line of Omar Nokta with Clarksons Securities.

Omar Nokta: Thank you. Hi, Kenneth. Thanks for the update, and I did maybe just wanted to maybe follow-up just to touch on your latest comments regarding the MRs in response to John's question. Yeah. Just thinking about it, you know, it is been 10 years since you have had an MR. You got this 1. And I guess just kinda thinking about your comments about looking to recycle some of the older Suezmaxes and Aframaxes. And potentially redeploy them in new buildings. Is. I guess, as a thought, as you think about TK from here, it is recycling your core business and just modernizing it.

But then this MR potential and expanding in that product segment As you get your feet wet, as you were kinda maybe highlighting just building it out, is the thought maybe to use your existing cash, you know, balance sheet overall and maybe invest in that segment for growth, or would you see yourself you know, scaling out of the you know, midsized vessels that are older and maybe redeploying those proceeds into the MRs?

Kenneth Hvid: No. First of all, I would say our Aframax, Suezmax, sectors are still absolute core for us. So I would say this is more a reflection of that. We have a larger balance sheet We are keen on continuing to try and find assets where we feel we can generate the most return. And we believe that by having 3 strings to play on here, we increase that optionality in terms of finding opportunities. So it is it is more that, and I think it is it is a reflection of that I think we have said in previous calls that our total fleet size today is probably at the lower end of where we wanted to be as a.

As an integrated company. So this gives us flexibility to rebuild the scale of the fleet and at the same time, trying to deploy capital where we think we have the best chance on making the best return. And as we all know, that changes rapidly with the movement in asset prices and underlying markets. So opportunities come and go in these segments. And having an additional segment, we just think, will create more optionality for us. And given the incredible strength we have on the balance sheet that we have built over the last couple of years. We are obviously very excited about having basically a larger market to play.

Omar Nokta: No. Certainly. And I guess maybe as you think of you know, it is just 1 MR, and so to kind of rebuild that expertise per se, you think kind of in the interim as you look to acquire assets along the way is in chartering going to be something more substantial in this segment as we look ahead here over the next couple of quarters as you perhaps expand your footprint? In product?

Kenneth Hvid: I do not think so. At the moment, as we look at the market, I mean, we have we have. Historically, we have been in charters, out charters. We. We have kind of done it all. But at the moment, I do not think our focus will be on in chartering tons. We probably more looking for opportunities where we where we can buy good assets and maybe I will charter them. We have not exactly decided how we are going to operate it. Obviously, it is not a big spot fleet to have 1 tanker. So we may be looking for time charter opportunities there as we as we go along and until we get a bit more scale.

But again, we are doing this because we. it is a capability we want to build, and we wanna create the optionality. Thank you.

Analyst: Yeah.

Omar Nokta: Makes sense. And a final 1, then I will I will pass it back. Maybe just on the on the special dividend. You highlighted in the presentation, the board is going to evaluate in February. You know, after 2026 results. Is this something. As we think of it, is this sort of a, you know, because you normally declare it in May following Q1 results. Should we view this as the idea of a special dividend is now brought forward by 3 months, or is this kind of a step out or additive to beyond what you have done in the past?

Kenneth Hvid: No. I think it is it is just a more natural closure of the year. I think we. Over the years, we have we have had the quarterly, and we have had 1 annual special We discussed it with the board. and it makes more sense to tie it to the full year result as opposed to coming out with it after Q1 in our view. And so we are just moving it forward. So there is nothing more to it than that. Okay. Alright. Well, thank you, Kenneth. I will turn it over. Appreciate it.

Operator: Your next question comes from the line of Ken Hoexter with Bank of America.

Ken Hoexter: Hi. This is Adam Ruskowski on for Ken Hoexter. Thanks for taking our questions. So maybe just 1 on geopolitical thoughts and U. S. Iran conflict. If there is a move towards resolution, how are you thinking about the net impact of tanker demand from rebuilding inventories versus the kind of ton mile impact of you know, shorter routes from that standpoint. Any thoughts there? Thanks.

Kenneth Hvid: Yeah. I will I will let Christian speak to that.

Christian Waldegrave: Yeah. I think obviously, first of all, it is still a very volatile situation. We are still seeing attacks daily in the in the Hormuz region, and we are still seeing attacks from the Houthis on Saudi oil infrastructure. So I think we are a ways away from a resolution to the U.S.-Iran situation. But if there was a peace deal you know, there is 2 sides to it on 1 hand, you would not need to be doing the sort of shuttle movements out of Hormuz anymore. The oil could flow more freely. So it would be a bit of a more efficient system.

But at the same time, I think there is quite a big desire to get both crude oil and refined products out of The Middle East if the if the war was to be resolved. And so I think you would get OPEC producers pretty quickly ramping up production on top of the expected non-OPEC volumes that are coming on next year. And like you said, I think if that creates a better oil price environment, there is a big need to replenish oil inventories as well, which have been depleted through the course of the year. So I think you would lose a bit of the inefficiency that is been propping up the market the last little while.

You would probably gain more volume And like I said, I think the need to replenish oil inventories could be quite a nice tailwind once this situation is resolved in the Middle East.

Ken Hoexter: And I guess just, WTI falling about $20 over this past couple weeks. Are you seeing any of that kind of replenishment need happening now? And just thoughts on maybe damage done to refinery capacity in The Middle East and maybe longer term, near term ramifications from that standpoint?

Christian Waldegrave: Yeah. In terms of the fall in oil prices, I do not think we are seeing it yet translate into a lot of stock building. What I would say is Chinese crude oil imports have gone back above 10 million barrels a day or close to 10 million barrels a day as of last month. So I think that is a sign. The Chinese especially are quite price sensitive. So I think it is a positive sign that they are starting to import more oil again. And certainly, if oil falls more, I think you will see an acceleration of different countries and refiners looking to replenish those inventories.

In terms of the refinery damage in The Middle East, yeah, I think that is 1 reason why the product exports out of The Middle East have lagged the crude. I think there is progress on that front. I read recently the Citra refinery in Bahrain is on the verge of getting back up to 100%. So it will be a little bit of a slower climb back for the refined products out of The Middle East than it is for the crude. But my understanding is that those repairs are underway.

And as those volumes come back, it is going to really help the product market, especially given that a lot of ships have migrated over to the dirty trades during the course of the year. So, I think that product market could be well set up once those volumes from The Middle East return. Got it. Thank you.

Operator: And it appears there are no additional questions at this time. I will turn it back to the company for your closing remarks.

Kenneth Hvid: Thank you very much to everyone who dialed in today. We look forward to reporting back to you on our full year 2026 results when we report in February. Thank you.

Operator: This concludes today's call. Thank you for your participation. You may now disconnect.

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