Q1 2024 Star Bulk Carriers Corp Earnings Call
Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers conference call on the first quarter 2024 financial results. We have with us Mr. Petros Pappas, Chief Executive Officer. Mr. Hamish Norton, President, Mr. Simos Spyrou, and Mr. Christos Begleris, Co-Chief Financial Officer; Mr. Nicos Rescos, Chief Operating Officer, and Mrs. Charis Plakantonaki, Chief Strategy Officer of the company.
Thank you for standing by ladies and gentlemen, and welcome to the Star bulk carriers on the first quarter 2024 financial results, we have with US Mr. Petros Pappas, Chief Executive Officer, Mr. Hamish Norton President Mr. <unk>.
Most of <unk> and Mr. Christos.
Co Chief financial officers Mr.
Mr Nicos, Russell, Chief operating officer and Mr. Gareth.
Speaker Change: Second Senaki Chief strategy Officer.
Operator: At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. We now pass the floor to one of your speakers today, Mr. Christos Begleris. Please go ahead.
Speaker Change: At this time all participants are in a listen only mode.
Speaker Change: It will be a presentation, followed by a question and answer session.
Speaker Change: If you wish to ask a question. Please press star one on your telephone keypad and wait for your name to Vietnam.
Speaker Change: I must advise you that this conference is being recorded today.
Speaker Change: We now pass the floor to one of your speakers today, Mr. Chris those things.
Speaker Change: Please go ahead Sir.
Christos Begleris: Thank you, Operator. I am Christos Begleris, Co-CFO of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the first quarter of 2024. Before we begin, I kindly ask you to take a moment to read the Safe Harbor Statement on slide number 2 of our presentation. In today's presentation, we'll go through our Q1 results. Cash Evolution During the Quarter, Actions Taken to Create Value for Our Shareholders, and an update on the Eagle Bulk integration.
Speaker Change: Thank you operator.
Speaker Change: The increase was like Larry co CFO will stop all carriers and I would like to welcome you to our conference call regarding our financial results for the first quarter of 2024.
Speaker Change: Before we begin I kindly ask you to take a moment to read the safe Harbor statement on slide number two of our presentation.
Speaker Change: In today's presentation, we will go through our Q1 results gosh evolution during the quarter.
Speaker Change: Actions taken to create value for our shareholders.
Speaker Change: An update on the Eagle bulk integration based.
Christos Begleris: Vessel Operations, Fleet Update, the latest on the ESG front, and our views on industry fundamentals before opening up for questions. Let us now turn to slide number three of the presentation for a summary of our first quarter 2024 highlights.
Speaker Change: Based on operation Fleet update the latest on the ESG front and our views on industry fundamentals before opening up for questions.
Speaker Change: Well it doesn't I'll turn to slide number three of the presentation.
Speaker Change: Summary of our first quarter 2024 highlights.
Speaker Change: Okay.
Christos Begleris: For the first quarter, the company reported the following: net income amounting to $75,000,000, with adjusted net income of $73,000,000 or $0.87 adjusted earnings per share. Adjusted EBITDA was $123 million for the quarter.
Speaker Change: Well the first quarter the company reported the following now.
Speaker Change: Net income amounted to 75 million with adjusted net income of 73 million or 87 cents adjusted earnings per share.
Speaker Change: Adjusted EBITDA was 123 million for the quarter.
Christos Begleris: For the first quarter, as per our existing dividend policy, we declared a dividend per share of $0.75, payable on or about June 6, 2023. Since 2021, dividend distributions and share buybacks have been over $1.2 billion and $0.4 billion, respectively. Our total liquidity today stands strong at $472 million. Meanwhile, our total debt stands at $1.45 billion. On the right side of the page, you will see our daily figures per vessel for the quarter. Our PCE rate was 19,627. Professor for days.
Speaker Change: For the first quarter I spend our existing dividend policy, we declared a dividend per share of 75 cents payable on or about June 6th 2023.
Speaker Change: Seems 2021 dividend distributions and share buybacks are over $1 2 billion.
Speaker Change: And 0.4 billion respectively.
Speaker Change: Our total liquidity today stands strong at 472 million.
Speaker Change: Meanwhile, our total debt stands at 145 billion.
Speaker Change: Well on the top right of the page you will see our daily figures probation for the quarter.
Speaker Change: Our TCE rate was 19627.
Speaker Change: So per day.
Christos Begleris: Our combined daily OPEX and net cash G&A expenses per vessel per day amounted to $6,185. Therefore, our TCE, Les Opex, and Cas-GNA is around $13,442 per vessel per day. Following Eagle shareholders' approval, on April 9th, the Eagle Buck transaction was completed, and each Eagle Buck shareholder received 2.6211 Starbucks shares per share of Eagle.
Speaker Change: Our combined daily Opex and net cash G&A expenses per vessel per day amounted to 6185.
Speaker Change: Therefore, our TCE less opex and cost you need is around $13442 per vessel per day.
Speaker Change: Falling eagle's shareholders approval on April nine.
Speaker Change: Hey, Good luck transaction was completed in each Eagle about shareholder received 2.6211 Starbucks shares per share of equal.
Christos Begleris: Eagle Bulk's convertible notes will be exchangeable at a conversion rate equal to 83.67 shares of Star Bulk common stock when they mature on August 1, 2024. Cash received following the legal merger amounted to $104.3 million. Currently, we have 161 vessels on a fully-delivered basis, including the five new built-in Camsomax vessels we have announced. During 2024, we sold 8 vessels for a total gross proceeds of $150 million. Four of these vessels, namely Star Audrey, Star Pixies, Stellar Eagle, and Crown Eagle, are expected to be delivered during Q2 to their new owners. Slide four graphically illustrates the change in the company's cash balance during the first quarter.
Speaker Change: Eagle Bulks convertible notes will be exchangeable at the conversion rate equal to 83 point 67 shares of star bulk almost Stoke when he's matures on August 1st 2024.
Speaker Change: Gosh received following legal merger amounted to $104 3 million.
Speaker Change: Currently we have 161 vessels on a fully delivered basis, including the five new buildings Tom's remarks nations, we have announced.
During 2024th we have sold eight vessels for total gross proceeds of 150 million.
Speaker Change: Four of these vessels, namely Star Audrey Starbucks six Stella ego and crowned Eagle are expected to be delivered during Q2 to their new owners.
Speaker Change: Slide four graphically illustrates the change in the company's cash balance during the first quarter.
Christos Begleris: We started the quarter with $262 million in cash and generated positive cash flow from operating activities of $114 million. Including debt proceeds and repayments, CAPEX payments for energy-saving devices, and the Ballast Water Treatment System installment, and the Q4 dividend payment, we arrived at a cash balance of $269 million at the end of the quarter. Slide 5 provides an overview of the company's capital allocation policy over the last three years and the various levers we have used to create shareholder value. On the top left, we show our next date evolution.
Speaker Change: We started the quarter with 262 million in cash and generated positive cash flow from operating activities of 114 million.
Speaker Change: Including debt proceeds and repayments capex payments for energy saving devices and ballast water treatment system installments.
Speaker Change: And the Q4 dividend payment we arrived at a cash balance of 269 million at the end of the quarter.
Speaker Change: Slide five provides an overview of the company's capital allocation policy over the last three years and the various levers we have used to create shareholder value.
Speaker Change: On the top left we show our next data evolution.
Christos Begleris: Since 2021, we have reduced leverage in the company by 43%. During the same period, we have declared consecutive quarterly dividends totaling $1.2 billion. We have taken advantage of historically elevated S&P values to sell some of our older and less efficient vessels using the equity proceeds to buy back our shares at attractive values. Since 2022, we have brought back $423 million worth of Star Bulk stock. 20 million shares, valued at $380 million, were bought in the fourth quarter of 2023 from Oxfam.
Speaker Change: Since 2021 and we have reduced leverage in the company by 43%.
Speaker Change: Over the same period, we have declared consecutive quarterly dividends totaling $1 2 billion.
Speaker Change: We have taken advantage of historically elevated S&P values to sale some of our older and less efficient in pesos using the equity proceeds to buy back our shares at attractive values.
Speaker Change: Since 2022, we have bought back 420 23 million worth of Starbucks stock.
Speaker Change: 20 million shares valued at 380 million were bought in the fourth quarter was 2023 from Oaktree.
Christos Begleris: Given that our shares at the time were trading at a significant discount to net asset value, and we used the process from vessel sales at net asset value, we have taken advantage of the arbitrage to create shareholder value. Combining all of the above, we see that we have focused on returning capital to shareholders while at the same time deleveraging the balance sheet and buying back shares when their opportunities to do so are critical.
Speaker Change: Given that our shares at the time were trading at significant discounts to net asset value and we used proceeds from vessel sales outlet asset value. We have taken advantage of the arbitrage to create shareholder value.
Speaker Change: Combining all of that ball, we see that we have focused on returning capital to shareholders. While at the same time deleveraging the balance sheet and buying back shares when there are opportunities to do so accretively.
Christos Begleris: In total, since 2021, we have taken actions of $2.1 billion to create value for our shareholders. I will now pass the floor to our COO, Nicos Rescos, for an update on the EagleBot transaction integration and our operational performance. Thank you, Christos.
Speaker Change: In total since 2021 we have taken actions of two 1 billion to create value for our shareholders.
Nicolas: I will now pass the floor to our CFO Nicolas racks calls for an update on the Eagle bulk transaction integration into our operational performance.
Speaker Change: You're pretty soft.
Nicos Rescos: Slide 6 illustrates a summary of the ECO-BULK transaction integration. The merger with Eagle Bulk will allow us to leverage our strong global presence of the combined identity with offices in Singapore, the US, Greece, Denmark, and Cyprus. The respective Singaporean offices are to merge into one and continue as a commercial and technical management hub covering the Asia Pacific.
Nicos Rescos: Slide six illustrates a summary of Eagle bulk transaction integration.
Nicos Rescos: The merger with Eagle bulk will allow us to leverage our strong global presence with the combined entity with offices in Singapore, The U S, Greece, Denmark and Cyprus.
Nicos Rescos: The respective Singapore offices or to merge into one and continue as a commercial and technical management hub covering the Asia Pacific.
Nicos Rescos: Stanford Office, to continue both commercial and technical management, covering the Atlantic and the U.S. market. Together with the Athens headquarters in Europe, we will maintain a presence in Copenhagen for chartering operations covering the Atlantic, the continent, and the Med area. We are creating a new integrated commercial team, managing the second largest Ultramax and Supramax fleet globally, to combine capabilities and aim for improved time charter performance. We also aim to rebalance employment strategy and include voyages.
Gary: The Stanford office is to continue both on commercial and technical management, Gary The Atlantic and the U S markets.
Speaker Change: Together with the office headquarters in Europe, we maintained pregnancy in Copenhagen for chartering operations, covering the Atlantic coconut or the mid area.
Speaker Change: We are creating a new integrated commercial team managing the second largest or from actual products fleet globally to combine capabilities. Her name for improved time charter performance.
Speaker Change: We also aim to rebalance employment strategy and include what gets business.
Nicos Rescos: We have already refinanced the ex-Eagle Debt Facility, resulting in interest cost savings of $3.2 million per year. Additionally, we have executed new insurance agreements for the Exegol vessels, saving $1.9 million per annum in insurance premium costs. Crewing will be gradually cut in half, with an expected cost reduction of about $600 per vessel per day during the next 18 months. Significant synergies are expected from the centralization of procurement of all store spare parts and lubricants.
We have already refinanced the ex Eagle debt facility, resulting in interest cost savings of $3 2 million per year.
Speaker Change: We have executed new insurance agreements, where they actually go vessel saving $1 9 million for automating shrunk premium costs.
Speaker Change: Craig will be gradually taken in house with unexpected cost reduction of about $600 per vessel per day. During the next 18 months.
Speaker Change: Significant synergies are expected from the centralization of procurement of all star spare parts and lubricants.
Nicos Rescos: Dry docks of ex-Eagle Bulk vessels will benefit from Star Bulk competitive pricing agreements with service providers and shipyards globally. Marine safety quality and technical maintenance standards, processes, policies, and systems are to be applied across the combined fleet, aiming to align with the Starbubb ride-chief safety score and port state control performance. Lastly, systems integrations are underway to enable efficiencies amongst offices and departments and create further synergies.
Speaker Change: Dry docks of X Eagle bulk vessels will benefit from Starbucks competitive pricing agreements with certain service providers and shipyards globally.
Speaker Change: Marine safety quality and technical maintenance standards processes policies and systems are to be applied across the combined fleet aiming to align with the Starbuck rideshare safety score and phosphate control performance.
Speaker Change: Lastly systems integrations are underway to enable efficiencies amongst offices and departments and create further synergies.
Speaker Change: Turning to slide seven we provide an operational update.
Nicos Rescos: We provide an operational update. Operating expenses were at $4,962 for Q1 2024. In addition, we continue to rate at the top amongst our listed peers in terms of ride ship safety. Flight date provides a fleet update and some guidance around the future dry dock and the relevant total off-high date. On the top right of the page, we provide a CAPEX schedule illustrating a new building CAPEX and vessel energy efficiency upgrades with 100% of our fleet by now being fitted with a ballast water system.
Speaker Change: Oh fourth expenses was at $4962 for Q1, 'twenty 'twenty four.
Speaker Change: Net cash G&A expenses was $1223 per vessel per day for the same period.
Speaker Change: In addition, we continue to right at the top amongst or at least it appears in terms of rideshare safety score.
Speaker Change: Slide eight provides a fleet update and some guidance around our future dry dock and the relevant total off hire days.
Speaker Change: On the top right of the page, we provide our capex schedule illustrating how you're building capex and the vessel energy efficiency upgrades with 100% of our fleet by not being ballast water system Fitbit.
Nicos Rescos: Our expected driver expense for the remainder of 2024 is estimated at $42.4 million for the dry docking of 51 vessels, including 12 ex-Eagle Bulk vessels. In total, we expect to have approximately 1,250 off-hard days during the same period.
Speaker Change: Our expected Drydock expense for the remainder of 'twenty 'twenty four is estimated at $42 4 million for the dry docking of 51 vessels, including 12 X Eagle bulk vessels.
Speaker Change: In total we expect to have approximately 1250 off hire days for the same period.
Nicos Rescos: Based on our latest construction schedule, our new building vessels are expected to be delivered during Q4 of 2025, Q2 of 2020, and Q3 of 2020. In line with EXI and CII regulations, we continue investing in and upgrading our fleet with the latest operational technologies available, aimed at improving our fuel consumption and reducing our environmental footprint, and further enhancing the commercial attractiveness of the Star Bulk Crirs, regarding their energy-saving devices. During the quarter, we have completed and tested retrofits on four vessels, with 19 more vessels planned for retrofit by the end of 2021.
Speaker Change: Based on our latest construction schedule, our new building vessels are expected to be delivered during Q4 of 2025 Q2 and Q3 of 2026.
Speaker Change: In line would be exciting to see a high risk patients will continue to investing and upgrading our fleet with our latest operational technologies available aimed in improving our fuel consumption and reducing our environmental footprint and further enhancing the commercial attractiveness of that star bulk fleet.
Speaker Change: Regarding our energy saving devices.
Speaker Change: During the quarter, we have completed the task of retrofits on four vessels with 19 more vessels planned for retrofit by the end of 'twenty 'twenty four.
Nicos Rescos: The above numbers are based on current estimates around dry dock, retrofit planning, vessel employment, and yard capacity. Turn to slide 9 for an update on our fleet sales. On the vessel sales front, we continue disposing of vessels opportunistically at historically attractive levels, having agreed during Q1 to sell 7 vessels for a total gross profit of $134 million, reducing our average fleet age and improving overall fleet efficiency. During the second quarter, we have further agreed to sell one more vessel, the Crown Digger.
Speaker Change: They're both numbers are based on current estimates around dry dog retrofit planning vessel employment and yard capacity.
Speaker Change: Turning to slide nine for an update on our fleet sales.
Speaker Change: On the vessel sales front, we continue disposing of old vessels opportunistically at historically attractive levels, having agreed during Q1 to sell seven vessels.
Vessels for total gross proceeds of 134 million.
Speaker Change: Our average fleet age and improving overall fleet efficiency.
Speaker Change: During the second quarter were afraid or agreed to sell one more vessel the crowned eagle.
Nicos Rescos: We took delivery of three out of the six long-term chartering eco-vessels that will be delivered to us throughout 2024, and specifically, two Tunaishi Zeus and Kamsa Maxxes and a Tunaishi Cebu Ultramax. The existing Eagle Bulk chartering contracts have been rolled over to Star Bulk following the merger. We have five firm shipbuilding contracts with Kindau Shipyard for the construction of 82,000 deadweight Kamsomat New Building. Considering the aforementioned changes in our fleet mix, we operate one of the largest tribal fleets amongst U.S. and European-listed peers, with 161 vessels on a fully-delivered basis and an average age of 11.3 years. I will now pass the floor to our Chief Strategy Officer, Charis Plakantonaki, for an ESG update.
Speaker Change: We took delivery of three out of the six long term chartering eco vessels that will be delivered to us throughout 2024.
Speaker Change: Specifically to Q&A as usual some comes from Axis and what's your name you say blue Ultra Lux.
Speaker Change: They go bulk existing chartering contracts have been rolled over to Starbucks following the merger.
Speaker Change: We'll have five firm shipbuilding contracts Kingdom shipyard for the construction.
Speaker Change: 82000, deadweight count Starbucks new building vessels.
Speaker Change: Considering the aforementioned changes in our fleet mix, we operate one of the largest dry bulk fleet amongst U S and European listed peers with 161 vessels on a fully delivered basis.
Speaker Change: Average age of 11.3 years.
Speaker Change: I will now pass the floor to our chief strategy officer carriage like at the Lucky Friday ESG update.
Nicole: Thank you Nicole.
Charis Plakantonaki: Please turn to slide 10, where we highlight our continued leadership on the ESG front. The Star Bulk Satel Analytics ESG Risk Smart Score has further improved from 21.3, medium risk, to 19, low risk, maintaining Star Bulk's number one ranking among U.S. listed peers and positioning the company as one of the best performing companies globally in the category transportation shipping. During Q1 2024, we began, along with our partners, the Scoping of Work and Initial Projects with the Maritime Emissions Reduction Center to develop and adopt new and existing solutions for reducing greenhouse gas emissions from the globe. The Center was granted the Motivation Award at the ESG Sipin Awards International 2024.
Speaker Change: Please turn to slide 10, we highlight our continued leadership.
Speaker Change: [noise] the sidewalks I'll say on that.
Speaker Change: E. S theory smartcard, that's further improved from 21 3 million.
Speaker Change: 19.
Speaker Change: Maintaining sowell its number one ranking among U S leaf with Sears.
Speaker Change: This is funny I was one of the best performing companies globally in the gut.
Speaker Change: Please go read transportation.
Speaker Change: During Q1 2010.
Speaker Change: As.
Speaker Change: Along with my partners, it's causing a fork and South project.
Speaker Change: The maritime emissions reduction.
Speaker Change: Developing ourselves.
Speaker Change: Yeah.
Speaker Change: What are you seen greenhouse gas emissions from the club.
Speaker Change: This center was granted the amortization award at the East just keeping our words International's 2000 paying for it.
Petros Alexandros Pappas: On the regulatory front, MPC-81 has progressed discussions related to IMO's mid-term market-based measures, which are set to come into force in 2020. We are continuously assessing the impact of upcoming environmental regulations and considering action plan options for the climate. As part of Star Bulk's program to enhance diversity and inclusion, our first female cadets have embarked on board one of our UCAS Humanae Tribes. We continue the development of Starlink along with the installation of firewalls on board our vessels, and we have embarked on a project to equip our vessels with cyber-route technology to digitalize and advance the monitoring of onboard systems performance and security.
Speaker Change: On the regulatory from MPC, one had some great discussions related to I am most neat term markets. They measures, which are set to come into force in 2000.
Speaker Change: Yeah.
Speaker Change: Yeah convenience that seem to impact.
Speaker Change: Hum.
Speaker Change: And considering actually plan options.
Speaker Change: Yeah.
Speaker Change: Aside from Starbucks.
Speaker Change: Ghansham sensors.
Speaker Change: Our first.
Speaker Change: Boston Sports lifestyle.
We can seamlessly.
Speaker Change: Along with installations firewalls in Florida.
Speaker Change: And have embarked on the project.
Speaker Change: Basically the size of our technologies.
Speaker Change: And a fun and monitoring.
Speaker Change: So four months.
Petros Alexandros Pappas: On the governance front, and as part of our enhanced code of business conduct and ethics, we have launched a new online whistleblowing platform on the company's website to encourage open reporting by employees, crews, and third parties, safeguard confidentiality and anonymity, and improve the handling and monitoring process of any whistleblowing report. I will now pass the floor to our CEO, Petros Pappas, for a market update and his closing remarks.
Speaker Change: On the governance front.
Speaker Change: And as part of our enhanced causes business conduct and ethics, we have launched a new online.
Speaker Change: For them on the company's website.
Speaker Change: My parents up and reporting by employees cruise and ferry.
Speaker Change: Okay got it.
Speaker Change: And I don't really see any move the hunting and monitoring process. When he was he blown reports.
CEO: We now pass the floor to our CEO.
CEO: When a market update and his club.
CEO: Remarks.
Petros Alexandros Pappas: Thank you, Charis. Please turn to slide 11 for a brief update on supplies. During the first four months of 2024, a total of 12.1 million deadweight were delivered, and 1.6 million deadweight were sent to demolition for a net flip growth of 10.5 million deadweight, or 2.9% year-on-year. Uncertainty on future green propulsion, high shipbuilding costs, and limited shipyard capacity until late 2026 have helped keep new orders under relative control. The order book presently stands at a low level of 9.3% of the fleet.
Speaker Change: Thank you harriss.
Speaker Change: Please turn to slide 11 for a brief update of supply.
Speaker Change: During the first and the fourth.
Speaker Change: The first four months of 'twenty 'twenty four a total of $12 1 million deadweight was delivered and one 6 million deadweight was centered demolition for a net fleet growth of 10.5 million dead weight.
Speaker Change: Or two 9% year on year.
Speaker Change: Uncertainty on future Green propulsion, Hi, shipbuilding costs and limited shipyard capacity until late 'twenty or 'twenty. Six has helped keep you are theirs and their relative control.
Speaker Change: The older book presently stands at the low level of nine 3% of the fleets.
Petros Alexandros Pappas: Furthermore, vessels above 20 and 15 years of age stand at 8.8% and 21.2% of the fleet, while scrap prices stabilized at elevated levels and should make demolition of over-aged and energy-inefficient tonnage an attractive option during seasonal downturns over the next years. The average steaming speed of a dry-butt feed... decreased to a new record low level in January due to downward pressures from inflated bunker costs and new environmental regulations. Having said that, over the last two months, speeds have rebounded to 11.2 knots following the higher freight rate environment and a stabilization of oil prices.
Speaker Change: Furthermore, vessels above 20, and 15 years of age stands at eight 8%.
Speaker Change: 21, 2% of the fleet why it's crop prices stabilized at elevated levels.
Speaker Change: Demolition of what waste and energy inefficient on as an attractive option during the season those downturns over the next few years.
Speaker Change: The average steaming speed of the dry bulk fleet.
Decreased to a new record low level in January.
Speaker Change: Do you have the downward pressure was from inflated bunker costs and.
Speaker Change: New environmental regulations.
Speaker Change: Having said that over the last few months speeds have rebounded to 11.2 notch following the higher freight rate environment and Mr and Mr. Bailey stabilization of oil prices.
Petros Alexandros Pappas: We expect emissions regulations, including EXI and CII, to increasingly incentivize slow steaming, retrofits, and to help moderate supply over the next several years. Global port congestion has followed a strong downward trend over the last two years, which gradually inflated available supply by approximately 5%. During the first quarter of 2024, congestion appears to have fully normalized on all sizes, and going forward, we expect it to follow seasonal trends.
Speaker Change: We expect the ambition circulations, including E X I N C. I think there is to increasingly incentivize slow steaming.
Speaker Change: Profits and to help moderate supply over the next several years.
Speaker Change: Hello.
Speaker Change: Port congestion followed the strong downward trend over the last two years, the gradually flavors available supply by approximately 5%.
Speaker Change: During the first quarter 'twenty 'twenty four congestion appears to have fully normalized on all sizes and going forward, we expect it to follow seasonal trends.
Petros Alexandros Pappas: Moreover, Panama Canal constraints since mid-2023 and rising tension in the Red Sea continue to cause strong inefficiencies for trade, with a positive effect on the supply and demand balance in 2024. As a result of the above trends, nominal fleet growth is unlikely to exceed 2.5% per annum over the next couple of years. Let us now turn to slide 12 for a brief update of demand. According to Clarkson, total dry bulk trade during 2024 is projected to expand by 1.6% in tons and 2.4% in ton miles.
Speaker Change: Wherever Panama Canal constraints seems to mid 2023 and rising tension in the Red Sea continue to close a strong enough pieces, just portrayed with a positive effect on the supply and demand balance off.
Speaker Change: 'twenty 'twenty four.
Speaker Change: As a result of the above trends normally low fleet growth is unlikely to exceed 25% per annum over the next couple of years.
Speaker Change: It doesn't now turning to slide 12 for a brief update of demand.
Speaker Change: According to Clarksons total dry bulk trade during 'twenty 'twenty four is projected to expand by one 6% with Thomas and two 4% in ton miles.
Petros Alexandros Pappas: During the first quarter of 2024, total dry bulk volumes increased by approximately five and a half percent year on year, supported by iron ore, coal, and record minor bulk exports, while ton miles increased at a faster pace due to favorable conditions in Brazil and canal inefficiencies.
Speaker Change: The first part of 'twenty 'twenty, four they'll they'll dry bulk volumes increased by approximately 5% year on year supported by iron ore coal and record minor bulk exports why akamai has increased at a faster pace due to favorable conditions in Brazil, and cutting out inefficiencies.
Petros Alexandros Pappas: The IMF is projecting global GDP growth at 3.2% for 2024 and 2025, the same pace as in 2023, with China projected to slow down to 4.6% and 4.1%, respectively. Nevertheless, Chinese GDP increased by 5.3% in Q1, faster than initially expected, while dry bulk imports were up by 8.2% compared to last year. The country's full economic recovery from COVID-19 has yet to unfold due to the struggling property market, but it has received support from strength in infrastructure, manufacturing, and export.
Speaker Change: The IMF projected global GDP growth at three 2% for 'twenty 'twenty, four and 'twenty 'twenty five the same pace as in 'twenty to 'twenty, three with China projected to slow down to four 6% and four 1% respectively.
Nevertheless, Chinese GDP increased by five 3% in Q1, five time than initially expected while drybulk imports were up by eight 2% compared to last year.
Speaker Change: The country's full economic recovery from COVID-19 has yet to unfold.
Youkilis struggling property market.
Speaker Change: It has received support.
Speaker Change: Strength in infrastructure manufacturing and exports.
Petros Alexandros Pappas: Dry bulk demand from the rest of the world is experiencing a strong recovery over the last quarters that is expected to continue as it receives support from lower commodity prices and expectations of easing monetary policy. During the first quarter, imports were up by 2.9% year-on-year, with the increase coming mainly from India and Far East countries, while imports from Western economies are also moving higher, following two years of contraction. Iron ore trade is projected to remain flat in tons and to expand by 1% in ton miles during 2024. However, China's steel production declined by 3.1% year-on-year during the first quarter.
Speaker Change: Dry bulk demand from the rest of the world is experiencing a strong recovery over the last quarters that is expected to continue as it received support from lower commodity prices and expectations of easing monetary policy.
Speaker Change: You ended the first quarter imports were up by two 9% year on year with increases coming mainly from India and far east countries, while imports from Western economies are also moving IR following two years of contraction.
Speaker Change: Iron ore trade is projected to remain flattish tons into expanding by 1% in stockpiles during 'twenty 'twenty four.
Speaker Change: China's steel production declined by three 1% year on year during the first quarter.
Petros Alexandros Pappas: Weak domestic consumption is forcing steel makers to export excess output, and some western economies are raising tariffs as a response. At the same time, domestic iron ore production and imports increased by 15.7% and 7%, respectively, and have helped food stockpiles higher. On the other hand, steel production from the rest of the world has been on a strong upward trend since September and increased by 7.2% during the first quarter. Coal trade is projected to contract by 0.3% in tons and by 2.5% in ton miles during 2024.
Speaker Change: With domestic consumption is force, forcing steelmakers to export the excess I'll put it in some western economies are raising their response at the same time domestic iron ore production and imports increased by 15, 7%.
Speaker Change: And 7%, respectively, and then have full.
Speaker Change: <unk> stockpiles hired.
Speaker Change: On the other hand steel production from the rest of the world is being on a strong upward trend since September and increased by seven 2% during the first quarter.
Speaker Change: Coal trade is projected to contract by 0.3% in tons and by two 5% in ton miles during 2024.
Petros Alexandros Pappas: Global focus on energy security has inflated the gold trade, while Atlantic exporters have redistributed regional quantities east with a positive effect for tonnemiles. Chinese imports surged 61% during 2023 and remained strong during the first quarter of 2024, supported by a 4.1% year-on-year decline in domestic coal production and a 7.4% year-on-year increase in thermal electricity generation. Furthermore, India is emerging as a leading buyer of coal in recent quarters, as consumption has outpaced domestic production and has led to a strong increase in imports.
Speaker Change: Global focus and ended the securities gains in flavors called rate, while Atlantic exporters have redistributed the original quantities east with positive effect for ton miles.
Speaker Change: Chinese imports surged 61 per cent during 2023 and remain strong during the first quarter 'twenty 'twenty four supported by four 1% year on year decline in domestic oil production and a seven 4% year on year.
Speaker Change: In terms of electricity generation.
Speaker Change: Furthermore, Anda is emerging as the leading buyer of coal during the last quarters is consumption has outpaced domestic production and has led to a strong increase in imports.
Petros Alexandros Pappas: Grains trade is projected to expand by 2.1% tons and by 5.2% ton miles during 2024. Exports from Latin America increased by approximately 14% during the first quarter, following strong Brazilian soybean exports and a recovery of Argentinian volumes. Moreover, Ukraine increased exports to the highest level since the start of the war, while lower grain prices, improved crop forecasts, and increased focus on food security are projected to support grain trade in the medium term.
Speaker Change: Grain trade is projected to expand by 2.1 per cent dogs and by five 2% don't mind is doing 2024.
Speaker Change: Experts from Latin America increased by approximately 14% during the first quarter following strong Brazilian soybean exports in a recovery, but it does give you an volumes forever, Ukraine, and Greece exports to the highest level since the start of the war.
Speaker Change #100: While lower grain prices, improving crop forecast and increased focus on food security is projected to support the grain trade in the medium term.
Petros Alexandros Pappas: The Minor Battery is projected to expand by 3.7% in tons and by 4.7% in ton miles during 2024. Minor Barthold has the highest correlation to global GDP growth, and the recent trend in the container market provides a positive indicator for short-term prospects of smaller size. The positive price arbitrage continues to incentivize Chinese steel exports and backhoe trades, while bauxite exports out of West Africa continue to expand at a high price and pace and generate strong tonne miles for capsized vessels.
Speaker Change #101: Minor bulk trade is projected to expand by 3.7% Mcdonald's and by 4.7% don't manage during 'twenty 'twenty four.
Speaker Change #102: Minor bulk trade has the highest correlation to global GDP growth.
Speaker Change #103: And the recent strength in the container market provides a positive indicator for short term prospects are smaller sizes.
Speaker Change #103: Positive price arbitrage continues to intensify as Chinese steel exports and backhaul trades, while bauxite exports out of West Africa continued to expand at the high price base and generate strong ton miles for Capesize vessels.
Petros Alexandros Pappas: As a final comment, the long-term prospects of the dry bulk market remain positive due to favorable supply dynamics, increased inefficiencies in trade, and a recovery of demand supported by large global infrastructure investment needs for the world's green transition. Star Bulk expects to take advantage of the recent strength in the dry bulk market, having mostly maintained its diverse scrubber-equipped fleet in the spot market, and thus continue to create value for its shareholders. Without taking any more of your time, I will now pass the floor over to the operator to answer any questions you may have.
Speaker Change #104: As a final comment the long term prospects of the dry bulk market remain positive.
Speaker Change #105: The favorable supply dynamics, increasing efficiencies in trade and the recovery of demand supported by large global infrastructure investment needs for the worlds leading position.
We expect to take advantage of the recent strength in the dry bulk market, having mostly maintained its diverse scrubber fitted fleet in the spot market.
Speaker Change #106: Thus continue to create value for its shareholders.
Speaker Change #107: Without taking anymore of your time I will now pass the floor over to the operator to answer any questions you may have.
Speaker Change #108: [noise]. Thank you.
Operator: Thank you. Again, at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in place. You may press start if you would like to remove your question from the chat. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. Our first question comes from the line of Omar Nokta with Jeffreys. Please proceed with your question.
Speaker Change #109: Again at this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation from any of your life.
Speaker Change #110: You may 1st sorry.
Speaker Change #110: Most of your question.
Speaker Change #111: For participants using speaker equipment, it may be necessary to pick up four.
Speaker Change #111: For the start.
Omar Mostafa Nokta: Thank you. Hi guys, good afternoon.
Speaker Change #111: Okay.
Speaker Change #112: Our first question comes from the line of Omar.
Speaker Change #113: Please proceed with your question.
Omar Mostafa Nokta: Just a couple questions for me. And you've been asked this before. I recall you were asked shortly after the Eagle announcement. Just in general, how you view the Star Bulk fleet from here. Petros, you just talked about the diversified, just towards the end of your comments, you mentioned the diversified fleet. You know, you've been more dynamic recently, obviously, with the merger, you've sold some ships. Post-merger now, you're a bit bottom heavy on the Supra Ultra side.
Speaker Change #114: Thank you.
Omar: Hey, guys. Good afternoon, I guess, just a couple of questions for me and you've been asked this before I recall you were at shortly after the Eagle announcements I've just in general how you view the Starbuck fleet from here Petrus you just talked about the diversified just towards the end of your comments you mentioned the diversified fleet you know you've been more dynamic.
Speaker Change #116: Recently, obviously the merger you've sold some ships post merger now you're you're a bit bottom heavy on the Super Ultra side, obviously, giving you more exposure to the minor bulk trade I guess in general as we think abuse being more dynamic with the fleets are capes at place of Capesize vessels is that a place you'd like to see a higher <unk>.
Petros Alexandros Pappas: Obviously, giving you more exposure to the minor bulk trade. I guess, in general, as we think of you being more dynamic with the fleet, are capes a place, a cape-sized vessel, is that a place you'd like to see a higher ratio of stars in the fleet going forward? Or do you prefer to build or increase the subcape ratio of the fleet? Sorry for the long winded question.
Speaker Change #117: Ratio of stars fleet going forward or do you prefer to build or increase the sub Cape a ratio of the fleet sorry for the long winded question.
Petros Alexandros Pappas: Thank you, Omar. It happened that this is a supramax, and ultramax fleet. Next merger may be a cape flip, who knows. For the time being, you are right; we are smaller vessel heavy. But that also gives us an opportunity in the sense that during high markets like this, one can sell older vessels of the fleet and that way keep the average age at a better level. So I think that going forward, you may see us sell some of our less efficient and older vessels, and that may kind of rectify the count until we make our next move.
Omar: Thank you Omar well.
Speaker Change #118: It happens that this is a super amongst children much Felipe.
Speaker Change #119: Next marriage, there may be a Cape fleet, who knows for a time being youre right. We are smaller vessel heavy.
Speaker Change #119: But that also gives us an opportunity in the sense that during a high markets like this is.
Speaker Change #120: One can sell all of their vessel the fleets and that way keep the average age of death.
Speaker Change #120: And at a level. So I think that going forward you may see us sell some of our <unk>.
Speaker Change #120: The less efficient than all of their vessels and that may kind of rectify the count until would make our next move.
Speaker Change #120: [laughter].
Hamish Norton: With the company, you have $1.4 billion of debt, and you've got $470,000 or so of cash. How are you thinking about that amount of debt in general? Are you comfortable keeping it at that level? You have on slide five the 43% reduction in net debt since 21. Do you feel the need to keep that trend going and lower that figure? Are you okay with the current balance?
Speaker Change #121: Makes sense. Thanks, Thanks, Petros and maybe just a follow up.
Speaker Change #122: You know in terms of just the debt load at the at the moment with the company you have a 1 billion for a desk and you got 470 or so of cash how are you thinking about that amount of debt in general are you comfortable keeping it at that level you have on slide five.
Speaker Change #122: 43% reductions in net debt since 'twenty, one how do you feel the need to keep that trend going in and lowering that figure are you okay with the current balance.
Speaker Change #122: Yes.
Hamish Norton: For the moment, Omar, we're continuing to delever at basically the same absolute rate. As we've been de-levering, you know, for a while, you know, we're paying down, you know, $250 million of debt a year, and, you know, for the, Unknown Executive, Charis Plakantonaki, Christos Begleris, Hamish Norton, Nicos Rescos, Simos Spyrou, Ma Ho, Star Bulk Crirs, Simos Spyrou, Hamish Norton, Nicos Rescos, Simos Spyrou, Hamish Norton, Nicos Rescos, Simos Spyrou, Hamish Norton, Nicos Rescos, Simos Spyrou, The era of decarbonization and we think you need a strong company with a strong balance, to do that well.
Speaker Change #123: For the moment or are you know, we're continuing to Delever is basically the same absolute rate.
Speaker Change #124: We've been Delevering you know for it for a while you know we're paying down.
Speaker Change #124: 50, 250 million in debt a year.
Speaker Change #125: And I you know for the for the.
Speaker Change #126: And for the foreseeable future, we're going to keep doing that obviously at some point, we get to net zero and you know we'll figure out something to do that but we wanted to set the company up to be able to get into the.
Speaker Change #127: The era of de Carbonization, and where you think you need a strong company with a strong balance sheet.
Speaker Change #127: To do that well.
Hamish Norton: Yeah, no, I agree. And then I guess just on that, potentially getting to net debt zero, does that in any way shift or change the dividend policy approach or the minimum cash requirements you're looking to keep?
Speaker Change #127: Yeah no.
Speaker Change #127: I agree and then I guess just on that.
It potentially getting to net debt zero is that in any way.
Speaker Change #128: Shift or change the dividend policy approach or the minimum cash requirements, you're looking to keep.
Hamish Norton: We have no current plans to change, you know, any of our capital allocation policies. You know, if the world changes, the policy may change, but for the moment, that is our policy.
Speaker Change #129: We have no current plans to change any of our capital allocation.
Speaker Change #130: You know policies.
Speaker Change #131: Yeah I'll leave it if the world changes you know the policy may change, but for the moment the policy. It is our policy.
Speaker Change #131: Okay.
Hamish Norton: Very good. Thanks, Hamish. And thanks, Petros. I'll turn it over to you. Thank you, Omar.
Speaker Change #132: Good Thanks, Hamish Thanks, Patrick I'll turn it over.
Speaker Change #131: Omar.
Operator: Thank you. Our next question comes from the line of Ben Nolan with CFL. Please proceed with your question.
Omar: Thank you.
Speaker Change #133: Our next question comes from the line Ben Nolan with Stifel. Please proceed with your question.
Benjamin Joel Nolan: Yeah, thanks. Actually, first, Hamish, could you maybe dive into that comment that you made there about wanting to have a strong balance sheet to move into a decarbonizing world, or I forgot exactly how you framed it, but what does that mean, does that mean at some point you're going to need to replace assets for things that have much lower carbon emissions, or maybe just unpack that comment, if you could. I mean, I guess the answer is, you know, we don't actually know what's going to happen.
Benjamin Joel Nolan: Yeah. Thanks.
Benjamin Joel Nolan: Actually first hey, Mitch could you maybe dive into that comment that you made there about.
Benjamin Joel Nolan: Wanting to have a strong balance sheet to move into a decarbonize D decarbonising world or I forgot exactly how you framed it but what does that does that mean at some point you're going to need to replace the assets for things that have much lower carbon emissions or maybe just unpack that a that comment if he could.
Speaker Change #135: I I I mean, I guess the answer is yeah, we don't actually know what's going to happen.
Benjamin Joel Nolan: And, you know, if you don't know what's going to happen, that sounds like a really good reason to have a strong balance sheet. The more you know what's going to happen, the more you can lever up in anticipation of what's going to happen.
Speaker Change #136: And you know if you don't know what's going to happen that sounds like a really good reason to have a strong balance sheet.
Speaker Change #137: Yeah. The more you know what's going to happen. The more you can lever up in anticipation of you know what's going to happen.
Speaker Change #137: But yes, I mean, we we think that probably there will be expensive ships burning expensive fuel getting really high charter rates.
Hamish Norton: But yes, we think that probably there will be expensive ships burning expensive fuel getting really high charter rates. And we think it will be very good for business and very good for us because we think it will favor large companies that can afford, you know, R&D and compliance and all the overheads that go with having a, you know, difficult regulatory environment. But, you know, whatever it is, it's going to favor big companies with lots of resources and a strong balance.
Speaker Change #138: And we think it will be very good for the business and very good for us because we think it will favor large companies. They can afford you know R&D in compliance and in all the overheads that go with having that as a.
Speaker Change #138: A difficult regulatory environment.
Speaker Change #138: But you know whatever it is it's going to favor.
Speaker Change #138: Companies with lots of resources and a strong balance sheet.
Christos Begleris: And if I may add to Hamish's point, this is Christos. Hi Ben, we think it's prudent that during a healthy market we reduce debt as much as possible so that in the future, we have more capacity to take on more debt when the prices are lower and when we want to further leverage on the upside.
Crystal: And if I may add to agencies point. This is crystal type then we think it's prudent that doing a healthy market reduce debt as much as possible. So that's in the future effectively we have more capacity to take on more debt.
Speaker Change #140: When the prices are lower and when we want to further leverage on the upside.
Benjamin Joel Nolan: Sure, yeah, and I absolutely agree with that. Sticking with sort of the decarbonization theme a little bit, I know that you guys have investigated or invested in some cases in certain early stage R&D type technologies. Curious if you have any updated thoughts on what that might look like, you know, whether it's carbon capture, any particular fuel types that you think are emerging as the best candidates, any new color in that respect.
Sure Yeah and.
Speaker Change #141: And I absolutely agree with that.
Speaker Change #140:
Speaker Change #142: Just sticking with sort of the de de carbonization theme a little bit.
Speaker Change #143: I know that you guys have.
Speaker Change #142: Investigated or invest it in some cases.
Speaker Change #142: And certain early stage R&D type technologies.
Speaker Change #144: I'm curious if you have any updated thoughts on what that might look like you know, whether it's carbon capture or any particular fuel types that you think are emerging as the the best candidates and any any new color in that respect.
Nicos Rescos: Hi Ben, this is Nicos. For the time being, we're investing in technologies that have been tested, so basically improving as much as we can the existing fleet. You will have noted that we are continuing to install energy efficiency devices that are proven to decrease our consumption and improve the commercial appeal of each vessel. We are agnostic of all technologies going into the market. We're testing house-cleaning robots, we're testing paints; they both have an effect on performance.
Nicos Rescos: Hi, Ben this is Nicos <unk>.
Speaker Change #145: For the time being we're investing in technologies that have been tested so basically improving as much as we can be hopefully you will have no debt.
Nicos Rescos: We are continuing stalling energy efficiency devices that are proven to decrease our consumption and improve the commercial opdivo reach myself.
Speaker Change #146: We are agnostic of all technologies.
Speaker Change #146: The market, we're testing a house cleaning robots were testing pains. They both have an exact number four months without carbon capture all onboard on one of our vessels, but it's a matter of putting our audience to meet in order to make things a viable commercial.
Nicos Rescos: We have tested carbon capture on board one of our vessels, but it's a matter of putting all ends to meet in order to make it into a viable commercial solution. We do believe that it is an intermediate solution until we have fuels that will be widely acceptable both in terms of supply consumption and, of course, on the engines, but for the time being, we're trying to improve the existing vessels as much as we can. Carbon capture, yes, we do have hope that this may materialize later in the year.
Speaker Change #146: Solution, we do believe that it is an intermediate solution that can do we have.
Speaker Change #146: Pure will be widely acceptable Boston supply consumption and of course on the engines.
Speaker Change #146: But for the time being we're trying to improve the existing vessels as much as we can.
Speaker Change #146: We'll capture yes, we do have hope that this may materialize later into the year.
Petros Alexandros Pappas: Okay, that's helpful. And then lastly for me, it seems like, and I appreciate the color that you guys gave on the integration of Eagle, and it seems like so far, so good with respect to finding synergies, which I know is difficult in this industry, but the costs are down, the share price is up, and, at least by my math, it is above NAV, so that part of the thesis has played out thus far.
Speaker Change #147: Okay. That's helpful. And then lastly for me it seems like Oh.
Speaker Change #148: I appreciate the color that you guys gave on the integration of Eagle and it seems like so far so good with respect to finding synergies, which I know is difficult in this industry, but the costs are down.
Speaker Change #148: The share prices up and at least by my math is above N. A V. So that part of the.
Speaker Change #148: The thesis has played out thus far.
Petros Alexandros Pappas: I'm curious if that is opening the doors for other opportunities, and Petros, I know you talked about, you know, the next merger, what have you. Are you finding potential sellers out there that can, you know, look at that transaction and say, you know, this is a good liquidity event for me and a way to maximize the value of my assets, and at the same time, you guys can utilize your shares as a currency?
Speaker Change #149: I'm curious if that is opening the doors for other opportunities and Petros I know you talked about.
Petros Alexandros Pappas: The next merger or what have you are you are you finding potential.
Petros Alexandros Pappas: Potential sellers out there that can look at that transaction and say this is a good liquidity of that for me in a way to maximize the value for my assets and at the same time you guys can utilize your shares as currency.
Petros Alexandros Pappas: Well, you know, look, everything like this helps, right? Closing one deal and doing a good job of it is clearly going to help our reputation in the market, you know, for other deals. But, you know, I don't underestimate how hard these deals are to get done. You know, we have gotten a lot of them done, but it's, you know, they're always hard to close, and they're always low probability. That being said, we're looking at possible transactions, and you know, we may be able to do one or more. We certainly intend to try to keep growing.
Speaker Change #151: Well you got to look at every everything like like this helps right closing one deal and doing a good job of it is clearly going to help our reputation in the market you know for other deals, but you know I don't underestimate how hard.
Speaker Change #152: Are these deals already get done.
Speaker Change #152: Yeah, we we had gotten a lot of them done, but it's you know it's.
Speaker Change #152: They're always hard to quality and they're always low probability.
That being said, we're looking at a.
Speaker Change #152: Possible transaction.
Speaker Change #152: And you know we may be able to do one or more we certainly intend to want to try to keep growing.
Speaker Change #152:
Petros Alexandros Pappas: Okay, that's all. And I guess, are you, I don't know, maybe more optimistic about it?
Speaker Change #153: Okay, Yeah, that's all and I guess are you.
Speaker Change #154: Our U I don't know maybe more optimistic about that and then maybe you would have been a few months ago.
Petros Alexandros Pappas: I think we are more optimistic, but, you know... I hope our optimism is actually able to influence the way the world works. We're doing our best.
Speaker Change #155: I I think I I think we are more optimistic but yeah.
Speaker Change #155: I hope our optimism is actually able to influence you know the way the world works.
Speaker Change #156: Sure Yeah.
Speaker Change #155: No.
Speaker Change #155: We're doing our bad.
Benjamin Joel Nolan: All right. Well, and I... Okay.
Speaker Change #155: Alright.
Speaker Change #155: Right.
Petros Alexandros Pappas: Ben, I think that we are more optimistic than usual, also because of the environmental regulations. I think they will have a positive impact on the supply, and I think this is going to happen take place for several years going forward. So that's a good basis for our optimism, I believe.
Speaker Change #155: I think that.
Speaker Change #155: We are more optimistic than usual also because all of the environmental regulations I think they will have an impact on a positive impact on the supply and so I think this is going to happen to take place for several years.
Speaker Change #157: He is going forward. So that's a good basis for our optimism optimism my I believe yeah, I mean, what the environmental regulations due in large part is make it now no fun operated small shipping company.
Hamish Norton: Yeah, I mean, what the environmental regulations do, in large part, is make it no fun to operate a small shipping company. For a long time, for centuries, it's been great fun to operate a small shipping company. I think that's changing, and the business is becoming less fun and more sort of demanding of a large corporate organization. Yeah, well.
Speaker Change #158: For a long time for centuries, its been great fun to operate a small shipping company I think that's changing.
Speaker Change #158: Yeah.
Speaker Change #158: The business is becoming you know less fun and more sort of demanding of a large corporate organization.
Benjamin Joel Nolan: Yeah, well, it's always fun to have fun. So I appreciate the color. I appreciate it. Thanks. Thank you, Ben.
Speaker Change #159: Yeah, well, it's always fun to have fun. So I I appreciate the color I appreciate it and thanks.
Benjamin Joel Nolan: Thank you Ben.
Speaker Change #159: Yeah.
Speaker Change #159: Yeah.
Operator: Thank you. And as a reminder, if anyone has any questions, you may press star one on your telephone feedback in order to join the question and answer session. And it looks like we have reached the end of the question and answer session. I'll now turn the call back over to Mr. Petros Pappas for a closing remarks.
Speaker Change #160: Thank you and as a reminder, if anyone has any questions. You May press star one on your telephone keypad in order to join the question and answer.
Speaker Change #160: Okay.
Speaker Change #160: Yeah.
Speaker Change #160: And it looks like we have reached the end of the questionnaire section I'll now turn the call back forward.
Spotless for closing remarks.
Petros Alexandros Pappas: No further comments, Operator. Thank you very much.
Speaker Change #161: No further comments operator, thank you very much.
Speaker Change #161: Yeah.
Operator: Thank you. This concludes today's conference, and you may disconnect your line at this time. Thank you for your participation.
Speaker Change #162: Thank you. This concludes today's conference and you may disconnect your lines.
Thank you for your participation.
Speaker Change #162: [music].
Speaker Change #162: Hum.
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Operator: Speaker 1 Speaker 2 Speaker 3 Speaker 4 Speaker 5 Speaker 6 Speaker 7 Speaker 8 Speaker 9 Speaker 10 Speaker 11 Speaker 12 Speaker 13 Speaker 14 Speaker 15 Speaker 16 Speaker 17 Speaker 18 Speaker 19 Speaker 20 Speaker 20 Speaker 21 Speaker 22 Speaker 23 Speaker 24 Speaker 25 Speaker 26 Speaker 27 Speaker 28 Speaker 29 Speaker 30 Speaker 31 Speaker 32 Speaker 33 Speaker 34 Speaker 35 Speaker 36 Speaker 37 Speaker 38 Speaker 39 Omar Norton, Omar Norton, Nicos Rescos, Simos Spyrou, Amit Mehrotra, Christopher Robertson, Petros Pappas, Unknown Executive, Charis Plakantonaki, Christos Begleris, Hamish Norton, Nicos Rescos, Simos Spyrou, Ma Ho, Star Bulk Crirs, Simos Spyrou, Amit Mehrotra, Nicos Rescos, Simos Spyrou, [inaudible]
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