Q2 2024 United Maritime Corp Earnings Call
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Operator: Thank you for standing by, ladies and gentlemen, and welcome to the United Maritime Corporation conference call on the second quarter and six months ended the 30th of June 2024 financial results. We have with us Mr. Stamatis Tsantanis, Chairman and CEO, and Mr. Stavros Giftakis, Chief Financial Officer, United Maritime Corporation.
Speaker Change: Thank you for standing by ladies and gentlemen, and welcome to the United Maritime Corporation Conference call on the second quarter and six months and at the start date of June 22000, full financial results, but how would ask Mr. Tommy Thomas Chairman and CEO and Mr. Tao British package Chief financial.
Mr. Stomatis Santana: We have with us Mr. Stomatis Santana, Chairman and CEO, and Mr. Stabil Giftakis, Chief Financial Officer of United Maritime Corporation.
Speaker Change: Officer of United Maritime Corporation.
Operator: At this time, Opartis Santana, listen on the note. There will be the question and answer session, at which time, if you would like to ask a question, please press star, one one on your top on keypad. You wouldn't hear an automated message advising your hand is raised.
Operator: At this time, all participants are in listen-only mode. There will be a question and answer session, at which time, if you would like to ask a question, please press star 11 on your telephone keypad. You will then hear an automated message advising your hand is raised.
Speaker Change: At this time, all participants on listen only mode that'll be the question and answer session at which time, if you'd like to ask a question. Please press star one bomb on the telephone keypad.
Speaker Change: Yeah, and automatic method you'd bogging Johan this race.
Operator: Please be advised that this conference call is being recorded today, Tuesday, the 6th of August, 2024. The archived webcast of the conference call will be soon made available on the United Maritime website, www.unitedmaritime.gr, under the Investors section. Many of the remarks today contain forward-looking statements based on current expectations. However, actual results may differ materially from the results projected from those forward-looking statements. Additional information concerning factors that can cause the actual results to differ materially from those in forward-looking statements is contained in the second quarter and six months ended 30th June 2024 earnings release, which is available on the United Maritime website again at www.unitedmaritime.gr. I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatis Santanis. Please go ahead, sir.
Operator: Please be advised that this conference call is being recorded today, Tuesday, the sixth of August 2024. The Archives webcast of the conference call will be soon made available on the United Maritime website www.unitedmaritime.jar under the Investor section. Many of the remarks today contain forward-looking statements based on the current expectations. Actual results may differ materially from the results projected from those forward-looking statements.
Speaker Change: Please be advised that this conference call is being recorded today Tuesday, the sixth of August 2024.
Archived webcast of the conference call will.
It will be soon made available or they're not just maritime website www dot United Maritime don't draw under the investors section.
Speaker Change: Many of the remarks today contain forward looking statements based on the current expectations.
Speaker Change: Results may differ materially from the results projected from those forward looking statements additional information concerning factors that could cause the actual results to differ materially from those in forward looking statements is contained in the second quarter and six months ended 30 June 2024 earnings release, which is available on.
Operator: Additional information concerning factors that can cause the actual results to differ materially from those in forward-looking statements is contained in the second quarter and six months ended the 30th of June 2024 earnings release, which is available on the United Maritime website: again www.unitedmaritime.jar.
Speaker Change: The United Maritime website, again, www dot United Maritime Doge job.
Mr. Stomatis Santana: I would not like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stomatis Santana. Please go ahead, sir. Good afternoon. Welcome to United Maritime's conference call to discuss our Q2 and first half of 2024 financial results and recent corporate developments. United Maritime returned to probability in Q2 for the net income of 0.7 million and net revenues of 12.4 million. The fleet's average times at equivalent rate was 17,143 dollars thanks to a strong KSI's market. For the first six months, net revenues were 23 million dollars, but we had a net loss of 0.8 million due to Q1 hedge in activities.
Speaker Change: I would now like to turn the conference over to one of your speakers today, the chairman and CEO of the company and he says to modest some tonnage. Please go ahead Sir.
Modest Tonnage: Good afternoon.
Stamatis Tsantanis: Welcome to United Maritime's conference call to discuss our Q2 and first half of 2024 financial results and recent corporate development. United Maritime returned to profitability in Q2 with a net income of $0.7 million and net revenues of $12.4 million. The fleet's average time chatter equivalent rate was $17,143, thanks to a strong cape-sized market. For the first six months, net revenues were $23 million, but we had a net loss of $0.8 million due to Q1 hedging activity.
Speaker Change: Welcome to United Maritimes Conference call to discuss our Q2 and first half of 2024 financial results and recent corporate developments.
Speaker Change: United Maritime returned to profitability in Q2 with a net income of <unk> 7 million and net revenues of $12 4 million.
Speaker Change: <unk> average time charter equivalent rate was $17143. Thanks to a strong capesize market.
Speaker Change: For the first six months net revenues were $23 million, but we had a net loss of 0.8 million due to a Q1 hedging activities Stablish will provide more details on this.
Mr. Stomatis Santana: Stables will provide more details on this. The strong dribbled market since Q4 2023 varied dates our sector investment and we are optimistic about higher returns. We are declaring a dividend of 7.5 cents per share cash dividend for Q2, yielding about 13%, and have paid over a dollar 50 in dividends cash dividends since January 2023.
Stamatis Tsantanis: Stavros will provide more details on this. The strong dry bulk market since Q4 2023 validates our sector investment, and we are optimistic about higher returns. We are declaring a dividend of 7.5 cents per share cash dividend for Q2, yielding about 13%, and have paid over $1.50 in dividends since January 2023.
Speaker Change: Strong dry bulk market since Q4, 2023 validates our sector investment and we are optimistic about higher returns we are declaring a dividend of $7 five per share cash dividend for Q2, yielding about 13% and have paid over $1 50 in dividends cash dividends.
Speaker Change: Since January 2023.
Mr. Stomatis Santana: Fleet updates. We delivered the OAC, a 2010 Council Max with new owners, with profits recognized in Q3. It will be replaced by the NIC, a 2016 council max, arriving in October. We continue to seek acquisitions in a dribbled sector meeting our commercial and capital return criteria. The appreciating market value of our bulkers position, as well to reward our shareholders further.
Stamatis Tsantanis: Fleet Update. We delivered the OAC, a 2010 Kamsar Max, to its new owners with profits recognized in Q3. It will be replaced by the NISI, a 2016 Kamsar Max arriving in October.
Stablish: Fleet updates.
Speaker Change: We delivered the OSC at Brazilian telecoms, IMAX rich new owners with profits recognized in Q3. It will be replaced by the May see in 2016 comes Remax arriving in October.
Stamatis Tsantanis: We continue to seek acquisitions in the dry barrack sector, meeting our commercial and capital return criteria, the appreciating market value of our bulkers, and positioned as well to reward our shareholders further through new investment. Oaks, Ourset We acquired a minority stake in a company designing an energy construction vessel for $8.5 million, which will be completed by 2027. This vessel is designed to operate across all major subsea subsegments against the growing demand backdrop, and will serve renewables and oil and gas sectors benefiting from increased offshore demand.
Speaker Change: We continue to seek acquisitions in the dry bulk sector meeting, our commercial and kept our return criteria.
We appreciate the market value of our barkers positioning us well to reward our shareholders further.
Mr. Stomatis Santana: New investments. Officer Sector. We acquired the minority stake in a company designing and energy construction vessel for $8.5 million. Completing by 2027. This vessel is designed to operate across all major subsea sub segments against the growing demand backdrop for several newables and oil and gas sectors benefiting from increased officer demand. Aframax Times Arter We joined a Times Arter on an Aframax Crew Tanker, committing about $300,000 in working capital for up to 9 months. This has been made in partnership with a very prominent Aframax pool operator.
Speaker Change: New investments.
Speaker Change: Offshore sector.
Speaker Change: We acquired a minority stake in a company designing and energy construction vessel for $8 $5 million.
Completing by 2027 days.
Speaker Change: This vessel is designed to operate across all major subsea sub segments against the growing demand backdrop with self renewables and oil and gas sectors benefiting from increased offshore demand.
Stamatis Tsantanis: Afro-Max Time-Shot, We joined a time charter on an Afromax crew tanker committing about $300,000 in working capital for up to 9 months. This was made in partnership with a very prominent Aframax pool operator. Commercial Developments, Panama Express. The Exelixi extended its charter from August 15 for about 11 to 14 months. The Synthesis extended its charter from October forward for about 11 to 14 months, the same charter as the Cape Chase vessel.
Speaker Change: Aframax time charter.
Speaker Change: We are joined at time charter on an Aframax crude tanker co meeting about $300000 in working capital for up to nine months. This has been made in partnership with a very prominent Aframax Paul operator.
Mr. Stomatis Santana: Commercial developments, Panamax vessels. The Axelix C extended its charter from August 15 for about 11 to 14 months. The Synthesis extended its charter from October forward for about 11 to 14 months, the same charter.
Speaker Change: Commercial developments panamax vessels, the XL exceed extended its charter from August 15 for about 11% to 14 months.
Speaker Change: <unk> extended its charter from October forward for about 11% to 14 months the same charters.
Mr. Stomatis Santana: Cape size vessels. The Goodship charter extends from July until July 2024 until late 2025. And the Glorious Ship starts a new 70 to 80 dates after in August in continuation with the existing one at $22,500 a day. For Q3 2024, we estimate a daily Times Arter equivalent of approximately 18,000 for the blended fleet, with 65% of the days already fixed.
Speaker Change: Capesize vessels.
Stamatis Tsantanis: The good ship charter extends from July 2024 until late 2025, and the Glory Ship starts a new 70-80 day charter in August, in continuation with the existing one, at $22,500 a day. For Q3 2024, we estimate a daily timesatter equivalent of approximately 18,000 for the blended fleet, with 65% of the days already fixed. Industry Overview.
Speaker Change: The good ship charter expense from July until July 2024 until late 2025.
Speaker Change: And the Glory ship starts a new 70 to 80 day chartering logos in continuation with existing one at $22500 a day.
Speaker Change: For Q3, 2024, we estimate a daily time charter equivalent of approximately 18000 for the blended fleet with 65% of the days all already fixed.
Mr. Stomatis Santana: Industry overview. The drival of market is strong driven by Cape size demand and increased grain and coal demand as well. China's iron ore imports rose 6% with Brazilian exports also up by 6%. Stable Chinese steel market driven by manufacturing and infrastructure is expected to prevail globally in the next years. Global steel production is expected to remain stable in 2024 and 2025. West African bauxite exports up 14% in the first half with further increases expected in the future. Canada's iron ore exports rise 15% expected in the second half of the year. Long-term trends in aluminum and steel consumption are sustainable, driven by energy transition and infrastructure demands.
Speaker Change: Industry overview.
Stamatis Tsantanis: The dry balance market is strong, driven by cape size demand and increased grain and coal demand as well. China's iron ore imports rose 6%, with Brazilian exports also up by 6%. A stable Chinese steel market, driven by manufacturing and infrastructure, is expected to prevail globally in the next years. Global steel production is expected to remain stable in 2024 and 2025. West African bauxite exports were up 14% in the first half, with further increases expected in the future.
Speaker Change: The dry bulk market is strong driven by capesize demand and increased grain and coal demand as well.
Speaker Change: China's iron ore imports rose, 6% with Brazilian exports also up by 6%.
Speaker Change: Stable Chinese steel market, driven by manufacturing and infrastructure.
Speaker Change: As expected to prevail globally in the next years growth.
Speaker Change: Global steel production is expected to remain stable in 2024 and 2025.
Speaker Change: West Africa bauxite exports up 14% in the first half with further increases expected in the future.
Stamatis Tsantanis: Canada's iron ore exports are expected to rise 15% in the second half of the year. Long-term trends in aluminum and steel consumption are sustainable, driven by the energy transition and infrastructure demands. Several mining expansion projects are expected to ensure steady cape size demand. Coal and grain cargo growth provide stability for smaller vessels, with increased inefficiencies reducing effective vessel supply. The dry bulk order book is at historically low levels, with net fleet growth expected to be below 2% annually for the next two years, favoring a positive market balance.
Speaker Change: Canada is iron ore exports rise, 15% expected in the second half of the year.
Speaker Change: Long term trends in aluminum and steel consumption are sustainable driven by energy transition and infrastructure demands. Several mining expansion projects are expected to ensure steady capesize demand.
Mr. Stomatis Santana: Several mining extraction projects are expected to ensure steady capesized demand. Coal and grain cargo growth provides stability for smaller vessels, with increased inefficiencies reducing effective vessels supply. The drival quarterbook is at historically low levels, with net fleet growth expected to be below 2% annually for the next two years, favoring a positive market balance.
Speaker Change: All in grain cargo growth provides stability for smaller vessels with increasing efficiencies reducing effective vessel supply.
Speaker Change: The dry bulk order book is at historically low levels with net fleet growth expected to be below 2% annually for the next two years favoring a positive market balance.
Mr. Stomatis Santana: This concludes my initial summary.
Stamatis Tsantanis: This concludes my initial summary. I will now hand over the call to Stavros for a detailed financial update. Stavros, please go ahead.
Mr. Stabil Giftakis: I will now hand over the call to Stavros for a detailed financial update.
Speaker Change: This concludes my initial summary, I will now hand over the call to establish for a detailed financial update several please go ahead.
Mr. Stabil Giftakis: Stavros, please go ahead. Thank you so much.
Stavros Giftakis: Thank you so much. Welcome everyone to our earnings call. Let us start by reviewing the main highlights of the financial statements for the second quarter and the six-month period that ended on June 30, 2024. Our overall performance showed a significant improvement compared to 2023, which I must remind you was a transitional year for United.
Mr. Stabil Giftakis: Welcome everyone to our annual school. Let us start by reviewing the main highlights of the financial statements for the second quarter and the six-month period that ended on June 30, 2024. Our overall performance showed significant improvement compared to 2023, which I must remind you was a transitory year for United. In the second quarter, our net revenues reached 12.4 million, marking a 24% increase from the same period last year. This growth was driven by expanded fleet, improved freight rates, and operating levels. are adjusted EBDA for the second quarter was 6.3 million and will record the net income of 0.7 million.
So: Thanks, So much welcome everyone to our earnings call, let us start by reviewing the main highlights of the financial statements for the second quarter and the six month period that ended on June 32024.
Stavros Giftakis: In the second quarter, our net revenues reached $12.4 million, marking a 24% increase from the same period last year. This growth was driven by our expanded fleet, improved freight rates, and operating leverage. Our adjusted EBITDA for the second quarter was $6.3 million, and we recorded a net income of $0.7 million. In comparison, these figures for 2023 were $2 million and a net loss of $3 million, respectively. For the six-month period, net revenue totaled $23 million, while adjusted EBITDA rose to $10 million compared to $12.8 million and $0.6 million, respectively, last year. However, despite the improved profitability in the second quarter, we recorded a net loss of $0.8 million for the six-month period ended June 30, 2024.
Speaker Change: Our overall performance showed significant improvement compared to 2023, which I must remind you was a transitory year for United.
Speaker Change: In the second quarter, our net revenues reached $12 4 million, marking a 24% increase from the same period last year rich.
Speaker Change: This growth was driven by our expanded fleet improved freight rate and operating leverage.
Speaker Change: Our adjusted EBITDA for the second quarter was $6 3 million and we recorded a net income of <unk> 7 million in comparison. These figures for 'twenty to 'twenty, three with $2 million and a net loss of $3 million respectively.
Mr. Stabil Giftakis: In comparison, these figures for 2023 were 2 million and a net loss of 3 million respectively. For the six month period, net revenue total 23 million while adjusted EBDA rose to 10 million compared to 12.8 million and 0.6 million respectively last year.
Speaker Change: For the six months period net revenue totaled 23 million, while adjusted EBITDA rose to 10 million compared to $12 8 million 0.6 million respectively last year.
Mr. Stabil Giftakis: Despite being proved to stability in the second quarter, we recorded the net loss of 0.8 million for the six month period in the June 30, 2024. Moving on to our balance sheet, our cash position at the end of June 2024 was 7.7 million, reflecting the significant topics program undertaking during the first six months for the dry docking of four of our vessels, and there's one statement for our new comes, our max vessel missing, which is expected to be delivered within the year. All our vessels have returned to service since the beginning of the second half. CapEx is now behind us, while we have also delivered the OAC to ship buyers, and therefore our liquidity position has improved significantly as of today.
Speaker Change: Despite the improved profitability in the second quarter, we recorded a net loss of <unk> 8 million for the six months period ended June 32024.
Stavros Giftakis: Moving on to our balance sheet, our cash position at the end of June 2024 was $7.7 million, reflecting the significant CAPEX program undertaken during the first six months for the dry docking of four of our vessels and the advance payment for our new Cams Armax vessel, Nissin, which is expected to be delivered within the year. All our vessels have returned to service since the beginning of the second half, Capex is now behind us, while we have also delivered the OAC to its buyers, and therefore, our liquidity position has improved significantly as of today. Our funding debt, which includes liabilities from our Berbotin transaction, stood at $91.7 million.
Speaker Change: Moving on to our balance sheet, our cash position at the end of June 2024 was $7 7 million, reflecting the significant capex program undertaken during the first six months for the dry docking of four of our vessels and advance payments for our new comfort IMAX vessel machine, which is expected to be delivered.
Speaker Change: During the year.
Speaker Change: All our vessels have returned to service at the beginning of the second half Capex is now behind US. While we have also delivered view Aussie to hip buyers and therefore, our liquidity position has improved significantly as of today.
Mr. Stabil Giftakis: Outstanding debt, which includes liabilities from our berbot in transaction, stood at 91.7 million. This translates to a long time value for the fleet of approximately 50%, including the berbot in liabilities. Regarding our debt, we recently concluded a new 18 million sale and leaseback agreement to fund the 17.1 million purchase option of the synthesis. The final announcing burst in interest rate of 2.7% over 3 month term SFR and numbered analysis over a seven year term through monthly installments of approximately 100,000. We have continued options to repurchase the vessel at pre-term prices following the second anniversary of the berbot charter and the final purchase option of 6.5 million at the end of the berbot period, which we expect to exercise.
Outstanding debt, which includes liabilities from our Billboard in transaction stood at $91 7 million.
Stavros Giftakis: This translates to a loan-to-value for the fleet of approximately 50%, including the Berbotin liabilities. Regarding our debt, we recently concluded a new $18 million sale and leaseback agreement to fund the $17.1 million purchase option for the Synthesis. The financing bears an interest rate of 2.7% over a three-month term SOFR and amortizes over a seven-year term through monthly installments of approximately $100,000. We have continuous options to repurchase the vessel at pre-determined prices following the second anniversary of the Bear Boat Charter and a final purchase option of $6.5 million at the end of the Bear Boat period, which we expect to exercise.
Speaker Change: This translates to a loan to value for the fleet of approximately 50%, including the debut in liabilities.
Speaker Change: Regarding our debt. We recently concluded a new 18 million sale and leaseback agreement to fund the $17 1 million British option of this infancy refinancing versus an interest rate of two 7% over three months time, so far and amortize over a seven year term.
Speaker Change: Monthly installments of approximately 100000, we.
Speaker Change: We have continuous options to replicate the vessel at predetermined prices. Following the second anniversary of available charter and the final purchase option of $6 5 million at the end of the available period, which we expect to exercise.
Mr. Stabil Giftakis: Additionally, we recently entered into a 16.5 million loan facility with a prominent lender in Taiwan to finance the exercise of the 12.4 million purchase option for the 3C. The principal will amortize over a five-year term through quarterly installments of 0.4 million and the final balloon payment of 18.5 million. The facility is priced at 2.6% over 3 months term SFR.
Stavros Giftakis: Additionally, we recently entered into a 16.5 million loan facility with a prominent lender in Taiwan to finance the exercise of the 12.4 million purchase option for the 3C. The principal will amortize over a five-year term through quarterly installments of $0.4 million and a final balloon payment of $8.5 million. The facility is priced at 2.6% over a three-month term SOFR.
Speaker Change: Additionally, we recently entered into a $16 5 million loan facility with a prominent landed in Taiwan to filing we exercise over the $12 4 million British auction for victory seen the.
Speaker Change: The principal will amortize over a five year term through quarterly installments of 0.4 million and the final balloon payments of $8 5 million. The facility is priced at two 6% over three months term so far.
Mr. Stabil Giftakis: Our financing terms keep improving, and we expect this to reflect positively in our future profitability. Regarding our investments and divestment activities that some others mentioned previously, we expect to record an accounting profit of approximately 1.5 million in the third quarter from the sale of the Aussie. Considering our investment in the offshore sector, we have committed to participate with an amount of up to 8.5 million dollars, which will be called based on certain milestones and conditions in five separate installments over a period of 33 months. This schedule aligns with the construction of the ECV unit along for Lastly, concerning our participation in the P&L of the Affirmative Time Charter, we have committed a quarter of a million for the vessels' working capital.
Stavros Giftakis: Our financing terms keep improving, and we expect this to reflect positively on our future profitability. Regarding our investments and divestment activities, as Stamat has mentioned previously, we expect to record an accounting profit of approximately $1.5 million in the third quarter from the sale of OASI. Concerning our investment in the offshore sector, we have committed to participate with an amount of up to $8.5 million, which will be called, based on certain milestones and conditions, in five separate installments over a period of 33 months.
Speaker Change: Our financing terms, keeping improving and we expect this to reflect positively in our future profitability regarding our investments and divestment activities that some months as mentioned previously we expect to record an accounting profit of approximately $1 5 million in the third quarter from the sale of <unk>, considering our investment.
Speaker Change: The offshore sector, we have committed to participate with an amount of up to $8 $5 million, which will be called based on certain milestones and conditions in five separate installments over a period of 33 months reschedule aligns with the construction of the ECB unit, allowing for minimum.
Stavros Giftakis: This schedule aligns with the construction of the ECV unit, allowing for minimum impact on our liquidity. Lastly, concerning our participation in the P&L of the AFRAMAX Time Charter, we have committed a quarter of a million for the vessel's working capital. Finally, I would like to express our optimism about future growth and the implementation of diversified strategies. We anticipate further improvements in our profitability and are committed to rewarding our investors with dividends and share buybacks, as appropriate. I would now turn the call back to Stamatis for his concluding remarks. Okay, Stamatis?
Speaker Change: Impact on our liquidity.
Speaker Change: Lastly concerning our participation in the P&L of the Aframax time charter, we have committed a quarter of a million for the vessels working capital finally, I would like to express our optimism about future growth and the implementation of diversified strategy, we anticipate further improvements in our profitability and our comp.
Mr. Stabil Giftakis: Finally, I would like to express our optimism about future growth and the implementation of a diversified strategy. We anticipate further improvements in our profitability and are committed to rewarding our investors with diligence and shared buybacks as appropriate.
Speaker Change: Get it to rewarding our investors with dividends and share buybacks as appropriate.
Mr. Stomatis Santana: I would not turn the callback to samadhi's, which is concluding remarks.
Speaker Change: I'll now turn the call box commodities, which concluding remarks sir.
Mr. Stomatis Santana: Samadhi? Thank you, Savro.
Speaker Change: <unk>.
Speaker Change: Thanks, Laura.
Stamatis Tsantanis: Following our successful tanker investment cycle in Q3 2023, which delivered strong returns for our shareholders, we have expanded our fleet to 8 dry bulk vessels without dilutive capital raising. Since November 2022, we have declared total cash dividends of over $1.50 per share. Cash dividends, of course, are a significant portion of our current share price. Additionally, we aggressively returned capital with 6.7 million in common share buybacks at an average price of $1.87 per share.
Mr. Stomatis Santana: Following our successful tanker investment cycle in Q3 2023, which delivered strong returns for our shareholders, we have expanded our fleet to eight dry-bark vessels without dilutive capital raising. Since November 2022, we have declared total cash dividends of over $1.50 per share, cash dividends, of course, a significant portion of our current share price. Additionally, we aggressively returned capital with 6.7 million in common-served buybacks at an average price of $1.87 per share. United Maritime is well positioned to benefit from positive dry-bark market trends due to index-linked time-shutters that provide direct exposure to capesizing Panamax market fluctuations. A strong balance sheet that allows for leverage exposure to the sector and the potential for higher returns on capital.
Speaker Change: Following our successful tanker investment cycle in Q3, 2023, which delivered strong returns for our shareholders. We have expanded our fleet to eight dry bulk vessels without dilutive capital Raisings. Since November 2022, we have declared total cash dividends of over $1 50 per.
Speaker Change: Sure cash dividends of course, a significant portion of our current share price. Additionally, we aggressively return capital with $6 7 million in common share buybacks at an average price of $1 87 per share.
Stamatis Tsantanis: United Maritime is well positioned to benefit from positive dry bulk market trends due to index-linked time charters that provide direct exposure to cape size and Panamax market fluctuations, a strong balance sheet that allows for leveraged exposure to the sector and the potential for higher returns on capital, and a proven commitment to rewarding shareholders through substantial capital returns resulting in a high dividend yield. Lastly, I am confident in our recent offshore sector investment, which I believe will also generate higher returns for our company. That completes our call, and I would like to turn the call over to the operator for any questions you may have. Operator, please take over. Thank you.
Speaker Change: United Maritime is well positioned to benefit from positive dry bulk market trends due to index linked time charters that provide direct exposure to capesize and panamax market fluctuations.
Speaker Change: <unk> balance sheet that allows for leveraged exposure to the sector and the potential for higher returns on capital.
Mr. Stomatis Santana: A proven commitment to rewarding shareholders through substantial capital returns, resulting in high dividend yield.
Speaker Change: <unk> commitment to rewarding shareholders through substantial capital returns, resulting in high dividend yield.
Mr. Stomatis Santana: Lastly, I am confident in a recent offshore sector investment, which I believe will also generate higher returns for our company.
Speaker Change: Lastly, and confident in our recent offshore sector investment, which I believe will also generate higher returns for our company.
Mr. Stomatis Santana: That completes our call, and I would like to tend to call over to the operator for any questions you may have.
Speaker Change: That completes our call and I would like to turn the call over to the operator for any questions you may have.
Operator: Operator, please take over. Thank you. Thank you, dear participants. As a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star 11 again.
Speaker Change: Operator, please take over thank you.
Operator: Thank you, dear participants. As a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star 1 1 again.
Speaker Change: Thank you Dear participants as a reminder, if you wish to ask a question. Please press star one on your telephone keypad and finance to be announced.
Speaker Change: To withdraw your question. Please press Star one again, please Jim Bob will compile the Q&A roster. This will take a few moments.
Kate Sullivan: Please, then, Bob will compile the key in a row, so this will take a few moments. Now we will take our first question, and it comes to the line of Kate Sullivan from Maxing Group. Your line is open. Please ask a question.
Operator: Please stand by while we compile the Q&A roster. This will take a few moments. Now we're going to take our first question. And it comes from the line of Tate Sullivan from Maxim Group. Your line is open. Please ask your question.
Speaker Change: And now we'll go and take our first question.
Speaker Change: And this comes from the line of Tate Sullivan from Maxim Group. Your line is open. Please ask your question.
Kate Sullivan: Great. Hi.
Tate Sullivan: Hi, thank you for having a call on UC and talking to you again. On the energy construction vessel, can you talk about how you started looking at that market? Has this been a long-term evaluation of that market, and have you done business with a Norwegian partner before?
Kate Sullivan: Thank you for having a poll on UC, and you can talk to you again.
Tate Sullivan: Hi, Thank you for having the call on you see you can talk to you again.
Mr. Stomatis Santana: Are there energy construction vessels, Thomas? Can you talk about how you start looking at that market? Has it been a long-term evaluation of that market, and have you done business with a Norwegian partner before? Good morning, Kate. Nice to hear from you again. I believe it's a great diversification opportunity, and it's nothing super substantial. I think it's a good entry point.
Speaker Change: Energy construction vessel.
Tate Sullivan: Can you talk about.
What.
Speaker Change: How you start looking at that market and it's been a long term evaluation of that market.
Speaker Change: Have you done business with a Norwegian partner.
Speaker Change: Goodbye.
Speaker Change: Nice to hear from you again.
Speaker Change: I believe it's a great diversification opportunity and it's nothing.
Speaker Change: Super substantial I think it's a good entry point, but establish sitting next to me is going to give you more color on how we have decided to proceed with that so if you want to.
Mr. Stabil Giftakis: But Stavros, sitting next to me, is going to give you more color on how we have decided to proceed with that. So Stavros, if you want to. Thanks so much. Kate, we have started to look at the sector sincerely this year. Things have changed. I wouldn't say dramatically, but gradually there in terms of the demand; demand has been increasing. There is very limited supply, and most of the ships have been built more than a decade ago. So there is actually demand for good performance in terms of energy. These types of ships can serve both the oil and gas industry and their renewables projects.
Stamatis Tsantanis: to proceed with that.
Stamatis Tsantanis: Yeah, Tate, we have started to look at the sector since early this year. Things have changed, I wouldn't say dramatically, but gradually, there in terms of demand. Demand has been increasing, there is a very limited supply, and most of the ships were built more than a decade ago, so there is actually demand for good performance in terms of energy. These types of ships can serve both the oil and gas industry and renewable energy projects, so we think that the demand will be very robust for these ships going forward.
Speaker Change: Thank you so much.
Speaker Change: We have been we are starting to look at the sector since early this year.
Speaker Change: Things have changed I wouldn't say dramatically, but gradually there in terms of.
Speaker Change: The demand demand has been increasing and there is very limited supply in most of the ships have been built more than a decade ago. So there is actually demand for.
Speaker Change: For good performance in terms of energy <unk>.
Speaker Change: This type of ships, we can serve both the oil and gas industry and the renewables.
Mr. Stabil Giftakis: So we think that the demand will be very robust for the ships going forward. The supply is very limited; half of the fleet is older than 15 years, and there are actually only a couple of ships that are being actually built right now. So we identified this specific niche as a good entry point for United for the offshore. As you know, I mean we have decent connections in the market, also in Norway, so this project was presented to us. We showed it to our board, and we all decided that this would be a good opportunity for United to enter the sector.
Speaker Change: Projects. So we think that the demand will be very robust for the ships going forward. The supply is very limited.
Stamatis Tsantanis: The supply is very limited, half of the fleet is older than 15 years, and there are actually only a couple of ships that are being built right now, so we identified this specifically as a good entry point for United for the offshore. As you know, we have decent connections in the market also in Norway, so this project was presented to us, we showed it to our board, and we all decided consensually that this would be a good opportunity for United to enter the sector.
Half of the fleet is older than 15, Houston that are actually only a couple of ships that are being actually built right now and so we identified the specific niche as a good entry point for United.
Speaker Change: The offshore and as you know I mean, we have decent connections in the market also in Norway. So this project was presented to US we showed it to our board and we all decided consensually that this would be a good opportunity for United to enter this sector.
Stamatis Tsantanis: Okay, great. Thank you for that. And then $8.5 million is your share, not the total cost of the vessel, correct? No, no, no. The total cost of the vessel is $8.5 million.
Speaker Change: Okay, great. Thank you and then $8 5 million as your share not the total cost of the vessel correct.
Mr. Stabil Giftakis: The total cost of the vessel is around $100 million, around $96 million, around $60 million will be financed by debt, so our participation results in a share of around 22 to 25% of the vessel. Okay.
Stamatis Tsantanis: No, no, no. The total cost of the vessel is around 100 million, around 96 million. Around 60 million will be financed by debt. So our participation results in a share of around 22-23% of the vessel.
Speaker Change: The total cost of the vessels is around <unk> million around 96 million.
Speaker Change: Around 60 million will be financed by debt. So our participation in the results in the share of around 22% to 23%.
Speaker Change: Of the vessel.
Stavros Giftakis: Okay, thank you. And then the comments about the dry docking of the four vessels in the first half of the year. What portion of those dry dockings was in 2Q versus... Well, they're all complete now. There's no cost that will be extended into 3Q. I guess that's my takeaway. Yes, we have almost nothing.
Speaker Change: Okay, great. Okay. Thank you and then.
Kate Sullivan: Thank you. And then the comments about the dry docking of the four vessels in the first half of the year will that have what portion of those dry dockings was in the two Q versus well, they're all they're all complete now. There's no cost that will be extended into three Q. I guess it's my takeaway. Yes, we have almost nothing for the third and the fourth quarter, so we will have a very good operating, you know, fleet for the second half of the year, which I believe is going to improve our cost flow quite significantly.
Speaker Change: The comments about the Drydocking of four vessels in the first half of the year will that push those dry dockings was in the <unk> versus <unk>.
Speaker Change: Well, they're all they're all complete now there is no cost that will be extended into <unk> I guess, that's my takeaway, yes, we have almost nothing for the third and the fourth quarter. So we will have very good operating.
Stavros Giftakis: Yes, we have almost nothing for the third and the fourth quarter, so we will have very good operating you know fleet for the second half of the year, which I believe is going to improve our cash flow quite significantly and So we do not anticipate all the ships that we went that underwent dry docks went Also in upgrading processes, so the ships are actually running much better than before So I believe that we're going to have all of our fleet running very smoothly and very efficiently in the second half of the year with very limited downtime
Speaker Change: Fleet for the second half of the year, which I believe is going to improve our cash flow but significantly.
Mr. Stabil Giftakis: So we do not anticipate all the ships that we went that underwent dry docks went also in upgrading processes or the ships are actually running much better than before. So I believe that we're going to have all of our fleet running very smoothly and very efficiently in the second half of the year with very limited downtime.
Speaker Change: So we do not anticipate all the ships that we weren't that underwent dry docks.
Speaker Change: Also in upgrading processes. So the ships are actually running much better than before so I believe that we're going to have for all of our fleet running very smoothly and very efficiently in the second half of the year.
Speaker Change: With very limited downtime.
Stavros Giftakis: The Taiwanese, was that the first time? Wife, that's a different one.
Kate Sullivan: The Taiwanese was that the first time once they're formed? So, can you please repeat the question because you're breaking up? Hi, Paul.
Speaker Change: Okay.
Tyler.
At a time when you look at that the first time.
Speaker Change: Why.
Operator: Sorry, Ted, can you please repeat the question because you're breaking up?
Jeff: Jeff one.
Speaker Change: Sorry taken lupus repeat the question because you're breaking up.
Tate Sullivan: Hi Paul, was that the first time you had a lender based in Taiwan?
Mr. Stabil Giftakis: Was that the first time you have had a lender based in Taiwan? Hi, Tate. We had a similar; we had the experience with this lender in synergy. This is the related, the previous part of United. So basically, as you know, I mean there are synergies on the management side between the two companies, and we have worked quite well with this lender. So he expressed interest to finance also United now that the company is maturing is in a more mature state. So, yeah, we proceeded with this financing with a known party to us. Thank you, Paul.
Was that the first time, you have had a lender based in Taiwan.
Stavros Giftakis: Hi Tate, we had a similar experience with this lender in Synergy, the related, previous parent of United. So basically, as you know, I mean, there are synergies on the management side between the two companies, and we have worked quite well with this lender. So he expressed an interest in financing United, now that the company is maturing, is in a more mature stage. So yeah, we proceeded with financing with a known party to us.
Speaker Change: Alright.
We had a similar.
Speaker Change: We have experienced with this lender.
In synergy.
Speaker Change: <unk>.
Speaker Change: Got it.
Speaker Change: Previous bottomed of United.
Speaker Change: So basically as you know I mean, there are synergies from the management side between the two companies and we have worked quite well with its lender. So he expressed interest to finance also ignited now that the company is maturing is.
Speaker Change: In a more mature state.
Speaker Change: So yes, we proceeded with this financing with a non party to us.
Speaker Change: Yes.
Bob: Thank you Bob.
Kate Sullivan: Thank you, Tate.
Tate Sullivan: Thank you, Dave. Have a great day!
Kate Sullivan: Have a great day. Thank you.
Bob: Thank you have a great day.
Speaker Change: Thank you.
Operator: The speaker's now further questions for today.
Operator: Dear Speakers, there are no further questions for today. This concludes today's conference call. Thank you for participating. You may now all disconnect.
Speaker Change: The speakers no further questions for today. This concludes today's conference call. Thank you for participating you may now all disconnect speakers. Please standby.
Operator: This concludes today's conference call. Thank you for participating. You may now all disconnect. Speakers, please stand by.
Stamatis Tsantanis: Thank you. Thank you.
Speaker Change: Thank you. Thank you.
Speaker Change: Okay.
Speaker Change: [music].