Q3 2024 Safe Bulkers Inc Earnings Call
Unknown Executive: Ladies and gentlemen, thank you for standing by and welcome to the Safe Bulkers conference call on the third quarter 2024 financial results.
Ladies and gentlemen, thank you for standing by and welcome to the Safe brokers conference call on the third quarter 2024 financial results.
Polys Hajioannou: We have with us Mr. Polys Hajioannou, Chairman and Chief Executive Officer.
We have with US Mr. Paul This is yano, chairman and Chief Executive Officer.
Unknown Executive: Dr. Loukas Barmparis, President and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. 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 one on your telephone keypad and wait for your name to be announced.
Doctor Lucas from Paris, President and Mr. Konstantinos I don't know if Lewis Chief Financial Officer of the company.
At this time all participants are in a listen only mode.
There'll be a presentation followed by a question and answer session at which time if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced.
Unknown Executive: Following this conference call, if you need any further information on the conference call or on the presentation, please contact Capital Link at 212-661-7566.
Following this conference call if you need any further information on the conference call or on the presentation. Please contact capital link at 2126617566.
Unknown Executive: I must advise you that this conference is being recorded today. The archived webcast of the conference call will soon be made available on the Safe Bulkers website at www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from the results projected from those forward-looking statements. Additional information concerning factors that can cause actual results differ materially from those in the forward-looking statements is contained in the third quarter 2024 earnings release, which is available on the Safe Bulkers website, again at www.safebulkers.com.
I must advise you that this conference is being recorded today.
The archived webcast of the conference call will soon be made available on the state Folkers website at Www Dot safe Bulgars dotcom.
Many of our remarks today contain forward looking statements based on current expectations actual results may differ materially from the results projected from those forward looking statements.
Additional information concerning factors that can cause actual results differ materially from those in the forward looking statements is contained in the third quarter 2024 earnings release, which is available on the safe bunkers website again at Www Dot say folgers dotcom.
Polys Hajioannou: I would now like to turn the conference call over to one of your speakers today, the Chairman and CEO of the company, Mr. Polys Hajioannou. Please go ahead, sir.
Speaker Change: I would now like to turn the conference call over to one of your speakers today are chairman and CEO of the company Mr. Polish Caggiano. Please go ahead Sir.
Loukas Barmparis: Okay, hi, good representation, good morning to all. I'm Loukas Barmparis, President of Safe Bulkers. We had a good quarter compared to the same quarter last year.
Speaker Change: Okay.
Speaker Change: Hey, good morning to all my money exploration.
Speaker Change: Yeah, we've had a good quarter compared to the same quarter last year.
Loukas Barmparis: However, the charter market is gradually softening, allowing with continuing geopolitical uncertainties. We remain focused on capital allocation towards our new builds program, on improving our operational efficiency and on rewarding our stockholders with a dividend of five cents per share of common stock.
Speaker Change: It was a tough in a market that you can ask any softening, allowing with continuing to political uncertainties.
Speaker Change: The main focus.
Speaker Change: At that location.
Hello, Graham on improving operational efficiency and only want to note holders with a dividend of five <unk> percent.
Speaker Change: No.
Loukas Barmparis: Following a comprehensive review of the forward-looking statements, which is presented in slide number two, let us begin with a market update in slide number four. The CAPE market segment has been volatile throughout the quarter. All eight of our CAPEs are presently period charted, boosting an average remaining charted duration of 2.6 years with an average daily rate of $23,600. This provides us with a considerable degree of cash flow visibility, topping $175 million in contracted revenue backlog from CAPEs alone.
Speaker Change: Following a comprehensive review of the forward looking statements.
Speaker Change: We see the slide.
Speaker Change: Slide number two later at the beginning with a market update in slide number four the Cape market segments has been volatile throughout the quarter all eight about gate with pillar started boosting.
Speaker Change: We're seeing an average remaining charter duration of two six years with the Alberta seemingly in eight of 23 point $6000.
Speaker Change: This provides us with a considerable degree of cash flow visibility topping 175 million in contracted revenue backlog from Cape alone on the Panama loans.
Loukas Barmparis: On the Panamax front, the charted market stands soft at low tens of thousands.
Speaker Change: The market has done so starting with low density.
Loukas Barmparis: Moving on to slide 5, we present an overview of a CRB commodity index fluctuation in basic commodity prices. Global disinflation continues, raising the prospects of further easing of interest rates, but with a decreased rate, leading to higher for longer interest rates in the context of policy uncertainty. The geopolitical landscape, with continuing tensions in the Middle East, the Red Sea and Ukraine, underscores the heightened level of global uncertainty which leads to softer global GDP growth expectations for 2025 and 2026 as reflected in the IMF October forecast for a growth of about 3.2% to 3.3% in the coming years accompanied by control of inflationary pressures.
Speaker Change: Moving on to slide five we present, an overview of our CSB commodity index fluctuation.
Speaker Change: Commodity prices.
Globally. This deflation continue continued relationship goes people said that easy we did it today, but we did decrease eight leading to higher so long as he did it today in the context of foreign exchange.
Got it.
The political landscape with continued intensity the middle East there is green.
Speaker Change: Green underscores this heightened level of global uncertainty, which leads to global GDP growth expectations for 2025 and 2026.
Speaker Change: The IMF forecast for growth of about three two to three points each person in the coming years.
Speaker Change: Combined our companies buy control of inflationary pressures.
Loukas Barmparis: The dry bulk demand outlook indicates slowing growth with significant uncertainty. According to BIMCO, the forecasted global dry bulk demand growth will have a 1% fall in 2025. China's slower growth... may hinder demand for dry bulk commodities like iron ore and coal, while the impact of the recently introduced $1.4 trillion package over five years for the so-called local government's hidden debt is expected to alleviate pressure on local authorities and free up funds for supporting economic growth and sustain many investors' expectations for more direct fiscal support next year. Iron ore shipments are estimated to grow slightly, but weak Chinese demand and increased recycled steel users are anticipated to restrict growth.
Speaker Change: The dry bulk demand outlook, he became the slowing growth with significant uncertainty. According to bill called the forecast of global dry bulk demand growth, we have been 1% four equal antiquity by China's slower growth.
Speaker Change: Okay.
Speaker Change: Maybe in the demand for dry bulk commodities like iron ore and coal while the impact of the recently introduced one four trillion dollars spike is over five years for their so called local government keeping debt is expected to alleviate.
Speaker Change: National and local authorities and fee upfront.
Speaker Change: Supporting economic growth and sustained meaning versus expectations for most diet excuse them now for next year.
I don't know shipments are estimated to grow slightly but we can say these demand and increased recycled steel users are anticipated to at least goes.
Loukas Barmparis: Coal shipments may drop by about 3.5% due to rising renewable energy use in Asia and increased coal production in China and India. Grain shipments are predicted to rise by 1.5%, but May's supply remains tight, particularly from Ukraine. Minor bulk shipments include bauxite are expected to be a key growth driver as demand increases due to the energy transition. Freight rates are likely to be softer, particularly for Panama Expressions, due to the supply-demand imbalance expected from growing freight sizes and moderating demand. Chinese economy faces challenges from weak domestic demand and real estate sector crisis impacting growth rates.
Speaker Change: Coal shipments dropped by about three 5% due to what I am getting you about NXT youth E Hei and increased gold production in China and India.
Speaker Change: Getting shipments up as you get to what I say, one 5%, but may supply remains tight particularly for Canadian grain.
Speaker Change: Minor bulk shipments and grew the book side I would expect it to be a key growth driver is the Muslim digital geeky.
Speaker Change: Due to the energy transition.
Great today, you said likely to be soft, particularly for panamax vessels due to the supply demand imbalance expenses from growing pizza sizes.
Speaker Change: And the moderating demand.
Speaker Change: So I need to go home these faces challenges from weak domestic demand in the U S.
They have spectrum guide you in Boston Las Vegas.
Loukas Barmparis: The IMF projects China's GDP growth to be 4.5 in 2025 and 4.1 in 2026, signaling a gradual slowdown. The limited consumer spending and high debt levels are hampering economic recovery, despite the recent fiscal stimulus measures. The weakness in the steel and construction sectors is expected to reduce demand for key commodities such as iron ore. Trade barriers and external pressures could further limit China's growth potential, with risks of deflation affecting domestic stability.
Speaker Change: Yeah Yeah.
Speaker Change: Okay.
Speaker Change: Okay, China GDP growth to be 4.5 <unk>.
Speaker Change: 25 and $4 one.
I'm really.
Really glad to have slowed down.
Speaker Change: Consumer spending and how you'd get to levels.
Speaker Change: Penny economy economic recovery Bye bye.
Speaker Change: By the stimulus measures.
Speaker Change: They cannot see weakness in the C and construction capabilities.
Speaker Change: We expect it to reduce demand for chicken more than that.
Iron ore trade bodies, and external but actually can further be sign up flow locations with lease or what information affecting domestic upbeat.
Loukas Barmparis: India, on the other hand, is projected to experience the fastest growth among major economies, with a forecast of 6.5% GDP increase in 2025 and 2026. India's expanding domestic market and manufacturing sector contribute positively to the drive by demand, with infrastructure investments playing a vital role. Increased renewable energy and industrial growth will be key drivers for India's economic momentum. The agricultural productivity and favorable monsoon conditions could stabilize inflation and support growth, enhancing each food security.
Speaker Change: Got it.
Speaker Change: Switching to experiencing the fastest growth among major economies.
Pete: Oh Gosh this is Pete.
Pete: One, 5% GDP increasing trade between five.
Pete: In 2020.
Pete: English expanding domestic marketing and manufacturing excellence.
Pete: <unk> contributes positively to the dry bulk demand with ease of structuring the business name Oh, excuse me up with energy and industrial growth will be key drivers for ETS economic momentum.
Speaker Change: Have you guys heard productivity for example.
Speaker Change: Monsoon conditions with the standard life information and support those and how do you eat food security.
Loukas Barmparis: Let's proceed now in slide 5-6 to examine supply-side dynamics. A combination of increased recycling and stable delivery rates is expected to balance the fleet expansions, yet supply growth may continue to outpace demand. Accepting pressure of freight rates, the dry bulk fleet is projected to grow by about 3% on average in 2025 and 2026 due to stable new deliveries and increased recycling with Panamax vessels comprising the largest share. Recycling volumes are anticipated to rise as weaker market conditions could prompt the retirement of older vessels. New building models have slowed as their order book now stands at about 10% of the current fleet.
Speaker Change: Let's focus now in slide five.
Speaker Change: I mean, the supply side dynamics in.
Speaker Change: The combination of increased slightly in February the evaluation is expected to violence dispute expansions you had supply growth may continue to outpace demand.
Craig: Congressional Craig Craig that's right.
<unk> consistently grow by about 3% on average between 25 billion.
Craig: Due to stable and.
Craig: And increased recycling with panamax vessels, comprising the largest there.
Craig: In fact, the volumes are anticipated to rise of weakened market conditions with chrome.
Craig: Thailand onboard the vessels you.
Craig: You were building models, such slow us and their order book now stands at about 10% on the guided fleet.
Loukas Barmparis: Supply could be marginally impacted by concession reductions as seen in Brazilian port concession in 2024 due to smaller grain harvests. Asset prices, which rose in 2024, are projected to weaken over the next few years and second-hand fleet prices may fall in line with expected lower freight rates. Chinese silkyards are expanding, but unless bulk contracting increases, new building prices are unlikely to rise significantly. Currently, about 25% of the existing global fleet is older than 15 years. Safe Bulkers fleet now counts 11 Phase 3 vessels on the water, all delivered after 2022. In addition, 23 vessels have been environmentally upgraded and 11 are eco-vessels having superior design efficiency.
Craig: Supply would be margin boxes by potential reductions are speaking about port congestion.
Craig: Sure.
Craig: More of a game economy.
Craig: I should prices when can always be 'twenty 'twenty four are projected to weaken over the next few years and the circumstances and cyclicality.
But I think all in line with expected lower Prepays.
Craig: Finally free cash are expanding but unless the bulk comes back then you were billing practice.
Speaker Change: Unlikely to rise significantly guy.
Speaker Change: Currently about 25% of the existing global fleet.
Speaker Change: They've done 15 years.
Speaker Change: If I could sneak now gone live in phase III vessels on the water or they leave it after 2022.
Speaker Change: In addition, 23 vessels have been environmental you have created an 11 on equal basis, having superior design efficiencies.
Loukas Barmparis: 80% of our fleet comprises of Japanese-built vessels, surpassing the global average of 40%, with our average fleet age being just 9.8 years. Overall, our fleet today is fundamentally upgraded and commercially more competitive than two years ago, underscoring our commitment to sustainable business. We will continue to become even more commercially competitive as we have on our order book 7 more phase 3 vessels placed at prices well below the prevailing market to be delivered to us within the next 2 years. The impact of fleet aging and street and environmental regulations will position our fleet favorably to complete within the street and greenhouse gas targets.
Speaker Change: Eight they assume about fleet compression its still needs to be dealt with.
Lastly, the global average of 40% with all other sleep AIDS B, that's nine eight years.
Speaker Change: All that all of our fleets today fundamentally upgraded and commenced any more competitive than two years ago underscoring our commitment to sustainable business.
Speaker Change: We will continue to become even the multiple mentioned competitive either double no order book seven more face you've mentioned placement, but I said well below the prevailing market to be delivered to us within the next few years.
Speaker Change: They bought the fleet aging and frequent environmental regulations, we position our fleet fable it'll be two completed within decision greenhouse desert target.
Loukas Barmparis: Let's go now to slide 8. For our company update, we present an overview of our greenfit advantages. The fleet breakdown is presented in the top right graph, comprising of 46 vessels, with 23 having undergone environmental upgrades, 11 being Phase III, 11 being Echo, and the remaining ones scheduled to be upgraded within this year. The bottom graph presents our fleet renewal strategy with the divestment of 14 older vessels, acquisition of 7 second-hand vessels, delivery of 11 phase 3 new builds, and an order book comprising of 7 more phase 3 new builds, resulting to a stable 10-year average fleet age over the past 4 years as clearly presented in slide number 9, a trajectory of fleet expansion serving as a testament to our commitment towards sustainability.
Speaker Change: Let's go now to slide eight for a company update we present, an overview of all the Greenfield advantages.
The people break down down is presented in the top right.
Speaker Change: Comprising of 46 vessels with 23.
Speaker Change: They're gonna environmental update you live and being phase III, you, let them be echo and the remaining one scheduled to be upgraded we see this year.
Speaker Change: The bottom graph does it sounds like in the U S attitude with the divestment of 14, all the vessel acquisition fit in the secondhand vessels delivering 11 feet, you'll reach and they know the book comprising of seven more Casey Ubuntu, resulting to a stable. He had other achieved eight over the past four years are clearly presented in flight.
Speaker Change: Number nine in particular, you'll see the expansion study as a testament to our commitment towards especially in IBD.
Speaker Change: Okay.
Loukas Barmparis: In slide 10, we present Safe Bulkers' debt profile for the next couple of years, which stands at a very comfortable level throughout the period, with adequate room for our CAPEX spending and shareholders' rewarding. As of September 30, 2024, our consolidated debt before defect financing costs are of about 500 million, including the 100 million euro unsecured bond at 295 fixed coupons, maturing in February 2027. Our consolidated leverage stands at a comfortable 32% and our net debt per vessel stood just below $9 million for an average-aged fleet of less than 10 years old. Concluding the company update, in slide 11 we present Safe Bulkers key attributes such as our sterling 65 years track record, a robust management ownership alignment, comfortable leverage of 32%, Our ample liquidity of $295 million, our significant contracted backlog of $233 million, our green fleet advantage evidenced by a 7.4% decrease in fleet IR of greenhouse gas emissions and by our dry BMS standards managed system implementation in addition to forthcoming environmental regulations.
Slide 10 presents a bug is centrify for the next couple of years, which stands at very comfortable levels.
Speaker Change: The fields with adequate room for our Capex spending and San Jose rewarding US for September 32024 opened for you did you did before deferred financing costs.
Hi, Oh, five about a 500 million, including the 100 million unsecured.
Speaker Change: One 7 million fewer of them unsecured bonds at 295 coupon maturing in February 2027.
Speaker Change: Consolidated leverage stands at a comfortable 52% and that.
Speaker Change: Our net debt the vessels puts us below 90 million with an average age of less than 10 years old.
Concluding the company have a good date in slide 11 will be that's a bug is T I D.
Speaker Change: Oh, the selling 65, yet, but I'd say air cooled and Opus management ownership alignment comfortable leverage of 52%.
Speaker Change: If we go to 295 million a significant contracted backlog of 253 million Oh, great Green fleet abundant evidenced by a seven 4% decrease in Egypt.
Speaker Change: Oh greenhouse gas emissions and by our Dray BMS standards monarch system implementation in anticipation of forthcoming in but I'm in the regulation.
Loukas Barmparis: We remain true in our commitment to expand by building a resilient company, owing a quality and competitive fleet, strategically positioned to leverage on the regulatory landscape and reward our shareholders with a meaningful dividend payout ratio.
What do you mean do we know commitment to expand by building.
Speaker Change: It is truly a company owing quality and competitive fleet.
Speaker Change: Their GP position from leverage on their own very gladly landscape and it won't all shareholders with a meaningful dividend payout.
Konstantinos Adamopoulos: I now pass the floor to our CFO Konstantinos Adamopoulos for our quarterly financial overview. Konstantinos, the floor is yours.
Speaker Change: I now pass the floor to our CFO. Paul said, you know kind of more bullish for our quarterly financial overview of course, I think also the floor is yours.
Konstantinos Adamopoulos: Thank you, Loukas, and good morning to all of you. As a general note, during the third quarter of 2024, we operated in a stronger charter market environment compared to the same period in 2023, with increased revenues due to higher charter hires, increased earnings from scrub and fitted vessels, and higher interest expenses due to increased interest rate advance.
Paul Yano: Thank you Luke and good morning, Joe Although there are no notes during the third quarter of 224, where you operate it in a stronger charter market environment compared to the same period in 2020 with increased revenues due to higher charter hires increased earnings from scrubber fitted vessels and higher interest expense.
Speaker Change: Youre doing inside the state of Iowa.
Konstantinos Adamopoulos: Let's now focus on liquidity, our cash flows and our capital structure as presented in slide 13. We are maintaining a comfortable leverage of 32%. Our debt of $499 million remains comparable to our fleet's gross value of $330 million, although our fleet is young at just 9.9 years old. Our weighted average interest rate stood at 6.35%, inclusive of margins, for our consolidated debt. with a portion of 100 million dollars in euros fixed at 2.95% coupon for the unsecured 5-year bond. We have already paid $94.6 million or 29% of our commitments for our CAPEX in relation to our outstanding orders.
Speaker Change: Let's now focus on our liquidity or cash flows and our capital structure is presented on the slide 15, we are.
Speaker Change: Maintaining a comfortable leverage of 32% our debt of $499 million. It remains comparable to our fleets scrapped by you or are they kind of $30 million, although our fleet is young.
Nine nine years old.
Speaker Change: Our weighted average interest rate stood at $6 75 per cent inclusive of margin for our consolidated debt.
Speaker Change: With a portion of $100 million and euros fix that 95% coupon or the unsecured five year bonds.
Speaker Change: We have already paid $94.6 million or 29% of our commitments for our capex in relation to our outstanding order.
Konstantinos Adamopoulos: Our liquidity and capital resources stand strong at approximately $318 million, which together with the contracted revenue of about $250 million, gives a total of almost $570 million. This is more than double our outstanding CAPEX of $232 million. and this provides flexibility to our management in capital allocation. Furthermore, we have additional borrowing capacity in relation to two existing unencumbered vessels and seven new builds upon their delivery. We ensure that the capital expenditure is adequately covered by our contracted future revenues, fortifying our balance sheet towards a trajectory of sustainable growth.
Our liquidity and capital resources stand strong at approximately $318 million, which together with a contracted revenue of about $250 million gives a total of almost $570 million.
Speaker Change: And this is more than double our outstanding Capex of 232 million.
Speaker Change: And this provides flexibility to our management and capital allocation.
Speaker Change: But the model will have additional out of boredom capacity in relation to two existing unencumbered vessels and seven new builds upon their delivery.
Speaker Change: And ensure that the capital expenditure I think will be covered by our contracted future revenues fortifying our balance sheet towards sustainable growth.
Konstantinos Adamopoulos: Moving to slide 14 with our quarterly financial highlights for the fourth quarter of 2024 in comparison to the same period of last year. Our adjusted EBITDA for the third quarter of 2024 stood at $41.3 billion. This compares to $30.9 billion for the same period in 2023. are adjusting EPS for the third quarter of 2024 with 16 cents and this is calculated on a weighted average number of 106.8 million shares. In comparison to $0.08 during the same period in 2023, that was calculated on a weighted average number of 111.6 million shares.
Speaker Change: Moving to slide 14, with our quarterly financial highlights.
Speaker Change: The fourth quarter for 2024 in comparison to the same period of last year.
Speaker Change: Adjusted EBITDA for the third quarter plenty plenty forestalled stood at 41 point something billion dollars.
Speaker Change: This compares to $39 million for the same period in 2023.
Speaker Change: Our adjusted EPS for the headquarter plenty to do that before was 16 sense and this is calculated on the weighted average number of 106 8 million shares.
Speaker Change: In comparison to eight cents during the same period in 2023, rather was calculated on the weighted average number of 111 6 million shares.
Konstantinos Adamopoulos: Slide 15 will present an overview of our quarterly operational highlights for the third quarter of 2024, again in comparison to the same period of 2033. During the third quarter of 2024, we operated 45.27 vessels on average. Those earning an average TCE of $17,108 compared to 44.13 vessels earning an average TCE of $14,861. The company's net income for the third quarter of 2024 was $25.1 million compared to net income of $15 million during the same period in 2023.
Speaker Change: In slide 15, we presented an overview of our quarterly operational highlights for the third quarter of 2020, Florida again in comparison to the same period of 253.
Speaker Change: You'll get the third quarter, our fluids is going before we operated 45 point 27, they said it so now that it's.
Speaker Change: Those earnings that I bet, It's D C over 17000, hundreds and $8 compared to $44 13 vessels and I bet, It's D C or $14861.
Speaker Change: The company's net income for the headquarter of <unk> 24 was 25 point going to $1 million compared to net income of 15 million during the same period 2023.
Konstantinos Adamopoulos: In conclusion to our presentation, we would like to point out that based on our financial performance, the company's Board of Directors has declared a 5 cent dividend per common share. We would like to emphasize that the company is maintaining a healthy cash position of about $90 million as of November 1st, 2024. Another $205 million in committed and available revolving credit facilities. That's a combined liquidity of $295 million Furthermore, we have contracted revenue for our non-cancelable spotted period-time charter contracts of $232 million. Net of Commissions, NB4 Scalable Revenue, Additional Borrowing Capacity in Relation to our 2 Unencumbered Vessels, and 7 New Bits.
In conclusion through our presentations, we would like to point out that based on our find nothing about four months. The company's board of directors has declared a five cent dividend per common share.
Speaker Change: I would like to emphasize that the company is maintaining a healthy cash position of about $19 million I was around November 1st went through 'twenty four.
Speaker Change: Another $205 million in committed and available revolving credit facilities.
Speaker Change: That's a combined liquidity.
Speaker Change: $295 million.
Speaker Change: Furthermore, we have contracted revenue for our non contact numbers for that period of time charter contracts with $402 million.
Speaker Change: This is net of commissions and before describe the revenue and additional borrowing capacity in relation to our two unencumbered vessels.
Speaker Change: And seven new builds.
Konstantinos Adamopoulos: We believe our strong liquidity and our comfortable leverage will enable us to expand the fleet while still rewarding our shareholders.
Speaker Change: We believe our strong liquidity and are comfortable ever has and will enable us to expand the fleet why does pay to rewarding our shareholders.
Unknown Executive: We are now ready for the Q&A section. Thank you. We will now 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 tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you.
Speaker Change: We're now ready for the Q&A section.
Speaker Change: Yeah.
Speaker Change: Thank you we will now be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Confirmation tone will indicate your line is in the question queue you.
Speaker Change: You May press Star two if you would like to remove your question from the queue.
Speaker Change: Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Yeah.
Speaker Change: Thank you. Our first question comes from the line of Emily Harkins with Jefferies. Please proceed with your question.
Emily Harkins: Our first question comes from the line of Emily Harkins with Jeffries. Please proceed with your question.
Emily Harkins: Hi, this is Emily on for Omar. Thank you for taking our question. First, you outlined that consolidated leverage is 32% at the end of the quarter. We wanted to know, are you comfortable at this level? Are you striving to lower your debt? Is the goal to be debt free?
Speaker Change: Hi, This is Anthony on for Omar.
Speaker Change: Omar Thank you for taking our questions first your Atlanta consolidated leverage at 32% at the end of the call here, who want to know are you comfortable at this level are you starting trailing your debt is it going to be debt free wiring or.
Emily Harkins: Why are Could you please speak a little bit slower, because the sound is not very clear. Yeah, of course. I wanted to ask you outlined that consolidated leverage is 32% at the end of the quarter. And we wanted to know, are you comfortable at this level? Are you striving to lower your debt?
Speaker Change: Yeah.
Speaker Change: Could you please speak a little bit slower because the.
Speaker Change: The sound was not very clear.
Speaker Change: Yeah, that's correct.
Speaker Change: Wanted to ask you outlined that consolidated leverage is 32% at the end of the quarter and we wanted to know are you comfortable at this level are you striving to lower your debt and is the goal to be debt free.
Loukas Barmparis: And is the goal to be debt Yes, good morning to you. No, this is a very comfortable level. We don't plan.
Speaker Change: Yes, good morning to get them. All this vertical was up 11, we don't plan to.
Unknown Executive: the rest of the U.K.
Speaker Change: What did you say.
Speaker Change: Well you know, we think new building deliveries in the next yes sure.
Speaker Change: This.
Our haynesville or anything below 40%.
Speaker Change: It's a good enough even if it rises from 45.
Speaker Change: Oh 50 per cent and lengthening, yes, it's kind of very comfortable.
Speaker Change: And so I'll give him the age of the fleet.
Speaker Change: Yeah.
Emily Harkins: Thank you. And as a follow up, Panamax spot rates have lagged in comparison to other dry bulk classes, such as the Capes and Supramaxes.
Speaker Change: Thank you and I, just thought well that panamax spot rates have lagged in comparison to other type of classes such as the kids and supermax is could you. Please provide some color as to why that might be a discrepancy there.
Emily Harkins: Could you please provide some color as to why there might be a discrepancy there?
Loukas Barmparis: And look, the company owns Panamaxis and Kamsamaxis, Post Panamaxis and caves. So basically... on the medium to large dry bulk assets. And we don't know, we don't know on any ultra maxes or any handling.
Speaker Change: Well look at all the compounds. The company owns are Panamaxes comes Imax's post panamax, okay. So basically.
Speaker Change: On the medium to large for them right.
Speaker Change: Bulk of them.
Speaker Change: Assets.
We don't know or don't know on any older amongst all of that in the foundries at.
Loukas Barmparis: You know, there is not one category that you can and the rest.
Speaker Change: There's not one category that's you got it.
Speaker Change: No.
Speaker Change: <unk> decided to expand upon laws Oh.
Speaker Change: Our opportunistic and we will expand the company wouldn't expanding that comes out or capes in future.
Speaker Change: That remains to be seen according to a poor children appear capesize vessels.
Speaker Change: A lot of money and the market is.
Unknown Executive: and Bernard Lefkowitz. Thank you.
Speaker Change: So even in a low market are they they have been doing well in Nielsen yes.
Speaker Change: Soft demand from China.
Speaker Change: And of course in the future I think there is opportunity to expand in that sector of the market. We will do so, but we need to see lower prices still do that.
Yeah.
Speaker Change: Thank you all came out of them.
Unknown Executive: Okay, the As a reminder, if you would like to ask a question, press star one on your telephone keypad. One moment, please, while we repoll for any additional questions. Thank you.
Speaker Change: As a reminder, if you would like to ask a question press star one on your telephone keypad. One moment. Please while we poll for any additional questions.
Speaker Change: Thank you. It appears we have no further questions at this time I would now like to turn the floor back over to management for closing comments.
Unknown Executive: It appears we have no further questions at this time.
Loukas Barmparis: I would now like to turn the floor back over to management for closing comments. Okay, thank you for just a quick remark also in terms of how comfortable we feel with a 32% consolidated leverage. I mean you can see slide 13, the leverage in comparison with the scrap value of the vessels when they are 25 years old. You understand that we feel extremely comfortable because we're just about less than 200 million dollars from that price.
Speaker Change: Okay.
Speaker Change: Thank you for attending.
Speaker Change: Quickly Monica also intentional, but how comfortable we feel with a 32%.
Speaker Change: Consolidated leverage I mean, as you can see slide 15.
Speaker Change: The last minute.
Speaker Change: In comparison, we see that kind of by your blood vessels. When they have 25 years, you'll have to understand that that's where we feel extremely comfortable because we're just a boat listen to 200 million.
Speaker Change: Millions of alerts.
Polys Hajioannou: Now thank you for attending this conference call and we're looking forward to discuss again with you in our next quarter for the next quarter and year-end financial results. Thank you very much.
Speaker Change: From that right now thank you for attending this conference call and we're looking forward to discuss again with you. We know the next quarter for the next quarter. Then you identify nothings out thank you very much.
Unknown Executive: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
Speaker Change: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.
Speaker Change: Okay.
Speaker Change: Okay.