Thank you. And thank you all for dialing in and welcome to TORM's conference call regarding the results for the second quarter and first half of 2021. My name is Andreas Abildgaard and I'm Head of Treasury and Investor Relations in TORM. As usual, we will refer to the slides as we speak and at the end of the presentation, we will open up for questions. Please turn to Slide 2. Before commencing, I would like to draw your attention to our safe harbor statement. Please turn to Slide 3. The results will be presented by Executive Director and CEO, Jacob Meldgaard; and CFO, Kim Balle. I will now hand the call over to Jacob.

Thank you, Andreas, and good afternoon to all of you. Thank you for dialing in. Here please turn to Slide 4. I'm happy to be here today and as you know, we have today published our results for the second quarter and first half of 2021. The second quarter of 2021 was negatively impacted by the market downturn caused by the COVID-19 pandemic, which has lowered the global demand for oil products. Because of our strategic choice to increase coverage during the second half of 2020 and our strong performance in the spot market, the second quarter ended with an EBITDA of $45 million and a profit before tax of $2 million. Return on invested capital here ended at 2.6%. Our product tanker fleet realized an average TCE rate of almost $14,600 per day well supported by our largest segment the MR segment where the achieved rates well above $14,500 per day. Now looking into the third quarter here of the year, we have secured bookings at approximately $13,300 per day and we are already now looking into a weaker result in Q3 than realized in the second quarter with 65% of our earning days already covered. We are taking delivery of all the team tanker vessels and of two out of the three modern LR2 scrubber-fitted vessels we bought and we have secured operational lease financing for three LR2 vessels and two of them are as sale and leasebacks of already owned vessels. Here please turn to Slide 5. As you are all aware, the IMO has adopted the EEXI and CII measures in June of this year and vessels will need to comply with these measures in the future. The EEXI must be complied with from 2023 and considering TORM's current fleet, approximately 60 of our vessels are…

Thank you, Jacob. Please turn to Slide 15, As part of our coverage strategy, we use a combination of freight rate, derivatives, and physical contracts to take cover in the market. During 2020 and 2021, we are seeing significant cover through the derivatives market and we realized a gain of $14.5 million during the period. As Jacob talked into, we still see promising market fundamentals and we have therefore reduced our coverage for the coming quarters. Please turn to Slide 16. With our spot based profile, TORM has significant leverage to increase the - to increase in the underlying product tanker rates. As of June 30, 2021 we had just about 11,400 opening earning days in 2021 and almost 30,000 opening earning days in 2022. Adding the LR2 vessels taking over in Q3 2021, the number of earning days will increase with around 1,000 on an annualized basis. For the coming quarter, TORM had coverage - covered 65% of our days at $13,387 per day as of August 5, 2021 which is a reduction compared to the previous quarters as just explained. Please turn to Slide 17. As you know, we have increased our fleet to 82 vessels and have three on order and thereby we have been preparing for an increase in the demand for the product tanker business. We have done this while still maintaining our conservative capital structure with a net LTV of 54%. During the first half of 2021, we have deliberately reduced our coverage for the coming period and by doing this, we have freed up restricted cash and increased our operational leverage thereby increasing the earnings potential for the market recovery. At the same time, we have due to our strong performance in Q2 maintained a strong cash position making us resistant to potential…

[Operator Instructions] And our first question comes from the line of Jon Chappell from Evercore. Your line is now open.

Jacob, before I get started, I have a bad connection so I'm going to try to be slow and clear here and if you need me to repeat my question, happy to do so. So on Slide 14, the positioning of the MR fleet primarily in the West makes sense given the mobility targets that you laid out and everything you know about the lockdowns across different countries. It does seem that maybe the spread of what's even as large as one would think and I'm just wondering about the flexibility to shift that if the Asian countries come out of the lockdown while [technical difficulty]. How flexible can your fleet be if you have to get balance or maybe even focus more on the East if the COVID thing kind of [technical difficulty] in the coming months?

Yes. Thank you, Jon. So, I'll just repeat the question as I understand it. Is our flexibility to shift between the base and should it improve that - let's say that because of the current lockdowns in the East that there is a better paying market in that part of the world than in the West? What's the flexibility? And you can see here over time actually that let's say between Q3 and Q4 back in '19, we had a major shift in the fleet. And so I think we have demonstrated then that if we had the strategic view that it would be beneficial to our fleet mainly in the East, I think we can say that we can at least move this by 20 percentage points, 25 percentage points relatively quickly. The way that we integrate it on our platform and decide on taking particular type of cargo movements at any given time. So, we cannot shift fully so that you would be fully naked in one of the other area. But I'm comfortable in saying that I think 20 percentage points, 25 percentage points we can shift in between quarters when we strategically decide to.

Great. Thank you. And just for my second question, Slide 5 on the EEXI. Not a lot of people are talking about this yet I feel so it's interesting you're very proactive at the start of your presentation of this. Limited impact on [technical difficulty]. Just wondering if you've had a chance to assess the impact on the industry? If your fleet is in a position where there'll be limited downtime or impact from slow steaming, but it could be a tightening mechanism for the industry. Do you have any initial thoughts on that understanding [technical difficulty].

Yes. I mean so the data that we utilizing, you can actually obviously from AIS data track the global fleet of product tankers or any other sub-segment that you may choose and when we do that and we - our estimation is that it is let's say roughly 1% of supply that you were diminishing by once you come to having to comply with the EEXI in a product tanker world. It's probably slightly higher in crude tankers, but it's not our specialty. But if we do the same - use the same methodology for the larger vessels for VLCC, Suezmax, and Afras; we probably come to about 2%.

[Operator Instructions] There no questions at the moment, so please continue.

Okay. Thank you. This concludes the earnings conference call for the second quarter and first half of 2021 results. Thank you all for participating.

Okay. That does conclude our conference for today. Thank you for participating. You may all disconnect.