Question-and-Answer Session
Operator
(Operator Instructions). Our first question is from Scott Burk, Bear Stearns. Your line is open.
Scott Burk - Bear Stearns
Hi, good morning guys.
Felipe Menendez
Good morning, Scott.
Scott Burk - Bear Stearns
Hey just wanted to try to separate out what happened in the fourth quarter that may not be going forward in terms of the expenses. Can you guys just talk about maybe just gross G&A expenses going forward and what kind of level we should look to for that? And I'll come back for another question as well?
Leonard Hoskinson
Yeah, sure. Scott, looking back on our previous guidance on G&A, I think in the previous call you had pointed out to us that your calculated running G&A expense was about $5.1 million per quarter. I think that running rate is not inappropriate. It reflects what our average for 2007 has been and we are not expecting any significant increases in G&A from any of our four business segments during the course of the year.
Scott Burk - Bear Stearns
Even with the addition of the new barges in the river segment and the new Capesize vessel?
Leonard Hoskinson
Not substantially. No. I think one of the factors that is affecting our G&A at the moment is the devaluation of the US dollar against various currencies. And of course we will experience some increases coming from that sector. But we think we have taken measures to mitigate that increase in cost. So, I think the 2007 figure is a good indication of what our running overhead expenses should be.
Scott Burk - Bear Stearns
Okay. And can you talk about any hire time that you incurred for the first quarter and any thing you expect to occur specifically within the ocean shipping vessels or PSVs?
Leonard Hoskinson
Yes we have had a hire time on one of our PSVs and on one of our [handy bulk] tankers operating in South America. Both of these will be substantially compensated by our loss of hire insurance. So you should not expect to see a big deviation coming from that sector. We have not repositioned any units or taken other commercial decisions that would run to them off higher not compensated by insurance during the period.
Scott Burk - Bear Stearns
Could you tell you what the Topazio is earning right now and you said you expect higher in the second quarter but with what’s Topazio earning did it earn for the first quarter?
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