Q1 2025 Safe Bulkers Inc Earnings Call
Unknown Executive: Financial Results We have with us Mr. Polys Hajioannou, Chairman and Chief Executive Officer, Dr. Loukas Barmparis, President and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. At this time, all participants are in listening 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 remember, Mr. Polly eye Shadow, Chairman and Chief Executive Officer.
Speaker Change: That day Lucas Bonfire.
Konstantinos Anemochorous: President and Mr. Konstantinos, Anemochorous, Chief financial Officer of the company.
Speaker Change: At this time, all participants are in listen only mode.
Speaker Change: 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.
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 212-661-7000. 7 5 6 6 I must advise you that this conference is being recorded today.
Speaker Change: Following this conference call if you need any further information on the conference call or on the presentation. Please contact capital link at 2126617.
Speaker Change: 7566.
Speaker Change: I must advise you that this conference is being recorded today.
Unknown Executive: The archived webcast of the conference call will soon be made available on the Safe Bulkers website, www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from results projected from these four looking statements.
Speaker Change: The archived webcast of the conference call will soon be made available on the faithful Krish website, www dot Facebookers dot com.
Speaker Change: Many of his remarks today contain forward looking statements based on current expectations.
Speaker Change: Actual results may differ materially from results projected from these forward looking statements.
Unknown Executive: Additional information concerning factors that can cause the actual results of different materially from those in the following statements is contained in the first quarter 2025 earnings release, which is available on the Safe Bulkers website.
Speaker Change: Additional information concerning factors that could cause the actual results to differ materially from those in the forward looking statements is contained in the first quarter 2025 earnings release.
Speaker Change: Which is available on the site focus website again, www dot safe brokers dot com.
Polys Hajioannou: Again, www.safebulkers.com I would now like to turn the conference call 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 to one of your speakers today, the chairman and CEO of the company. Mr. Promise is Yano. Please go ahead Sir.
Polys Hajioannou: Hello, I will do the presentation. So, good morning to all.
Speaker Change: Hello, I will do the presentation showed good morning to all and Thats why the bodies places of state budgets.
Loukas Barmparis: I'm Loukas Barmparis, President of Safe Bulkers, and I'm welcoming you to our offer results. During the first quarter of 2025, we faced a shortage of the markets due to seasonality, geopolitical uncertainties and concerns related to tariffs, which could affect global trade and growth. We maintained our strong balance sheet and took delivery of our 12th new build. In this volatile environment, we continued to renew our fleet, focusing on operational excellence, environmental performance in relation to IMO regulations, and the creation of long-term value for our shareholders, maintaining a strong capital structure, ample liquidity, and a leverage of about 7%.
Speaker Change: I am welcoming you to our quarterly results.
Speaker Change: During the first quarter of 2025, we face short term charter market due to seasonality geopolitical and shape. It is <unk>.
Speaker Change: Related to society.
Speaker Change: Global trade and growth.
Speaker Change: We maintain our strong balance sheet and took delivery of our 12 youll build in this volatile environment, we continued to renew our fleet focusing on operational excellence.
Speaker Change: Our rental performance.
Speaker Change: In relation to item regulations, and the creation of long term value for our shareholders, maintaining a strong capital traction.
Speaker Change: Ample liquidity.
Speaker Change: Leverage of about 7%.
Loukas Barmparis: Further to our repurchase program of roughly 3% of the company's common stock, which we fully completed, we've declared a $0.05 per share dividend, rewarding all Konos shareholders. We remain focused on capital allocation towards our new builds program, on improving our operational efficiency and environmental footprint, as all our actions are targeting to increase the wealth of our shareholders.
Speaker Change: Due to our repurchase program of approximately 3% of the Gabonese Commscope, which we fully completed we've declared a <unk> <unk> per share dividend.
Speaker Change: Regarding our common shareholders.
Speaker Change: We remain focused on capital allocation to launch our new build program.
Speaker Change: Our operational efficiency and environmental footprint.
Speaker Change: Sure.
Speaker Change: Auctions are targeting to increase the loyalty of our shareholders.
Loukas Barmparis: Following a comprehensive review of the forward-looking statements language, which is presented in slide 2, let's proceed to examine the supply-side dynamics in slide 4. The dry bark fleet is projected to grow by about 2.8% on average in 2025 and in 2026 due to stable new deliveries and increased recycling with Panamax vessels comprising the largest share. The third book now stands at about 11% of the current lead and new building orders have slowed. Asset prices are projected to weaken further and second-hand ships' prices may fall in line with freight markets. Recycling volumes are anticipated to rise as market continues to prompt the retirement of older vessels.
Speaker Change: Following a comprehensive review of the forward looking statement language, which is presented in slide two let's proceed with the supply side dynamics in slide four.
Speaker Change: The dry bulk fleet is projected to grow by about two 8% on average in 2025 and 2026 due to stable new deliveries and increased recycling with panamax vessels.
Speaker Change: Comprising the largest share.
Speaker Change: The order book now stands at about 11% of the guide in fleet and New building orders have slowed.
Speaker Change: Asset prices are projected to weaken further in the second and second hand ships price may fall in line with freight market.
Speaker Change: Recycling volumes are anticipated to rise through us market continues prompt the retirement of older vessels.
Loukas Barmparis: 13% of ship capacity in the order book will be capable of using alternative fuels upon delivery and out of those ships 40% can use LNG, 37% Methanol and 23% Ammonia. However, the dual fuel order book in the dry bulk sector is minimal. We do have two dual fuel new builds on order with delivery by Q1 2027 and currently about 25% of the existing global fleet is older than 15 years. Safe Bulkers fleet now counts 12 phase 3 vessels on the water all delivered after 2022. In addition, 24 vessels have been environmentally upgraded and 11 are eco-vessels, having superior design efficiencies.
50% of ship capacity in the order book will be capable of using alternative fuels upon delivery and out of those ships, 40% convinced LNG, 57% methanol in 'twenty three ammonia.
Speaker Change: The dwell fuel order book in the dry bulk sector is minimal we do.
Speaker Change: Have a tool to actual new beach on order with delivery.
Speaker Change: 1027.
Speaker Change: Currently about 25% of the existing global fleet is older than 15 years.
Speaker Change: C suite now counts growth phase three vessels on the water.
Speaker Change: The EBIT up to 2022.
Speaker Change: In addition, 24 business have been environmental upgrade at any level at echo vessels, having superior design efficiencies.
Loukas Barmparis: 80% of our fleet comprises of Japanese-built vessels, surpassing the global average of 40%, while our off-average fleet age is about 10 years old. We believe that us, Energy Efficient Designs, will have an advantage the coming years. We will become even more commercially competitive as we have, on our order book, six more Phase III vessels. which were placed at prices well below the prevailing market to be delivered to us by the first quarter of 2027, positioning us favorably to compete within the stringent greenhouse gas targets. It is worth noting that MEPC 83 has adopted the new environmental regulation in relation to global fuel standard, which conceptually is similar to fuel EU regulation.
Speaker Change: 80% of our fleet compression <unk> built vessels, surpassing the global average of 40%, while our average fleet age is.
Speaker Change: About 10 years old.
Speaker Change: We believe that as energy efficient designs, we have an advantage in the coming years will become even more commercially competitive with us we have on our order book six month phase III vessels.
Speaker Change: We to replace a basis well below the prevailing market to be delivered to us by the first quarter of 2027 positioning us favorably to compete within the stringent greenhouse gas targets.
Speaker Change: It is worth noting that MEP Capt as I thought.
Speaker Change: The new environmental regulation in relating to global fuel standup, we conceptually similar to fairly unique relation.
Loukas Barmparis: The global implementation of a fuel standard that penalizes the excess of fuel carbon intensity compared to specific predetermined reducing limits, broadens the scope of the regional fuel EU and will substantially affect the vessel's tradability 2028 onwards, promoting the use of alternative fuels and the energy efficient phase 3 vessels. The recent decisions of the MEPC 83 dictate a faster pace towards decarbonization.
Speaker Change: Global implementation of a purely standup that penalizes the exist.
Caliber intensity compared to specifics with it had been reducing limits broadens the scope of the original Shirley Hu and will substantially affected HSA ability 2028 onwards, promoting the use of alternative fuels and damage efficient phase III basis.
Speaker Change: Davidson decisions of WPC 83.
Speaker Change: If positive base towards decarbonization.
Loukas Barmparis: Moving on to slide 5, we present an overview of the demand and basic commodities trade. The combination of trade war, as expressed through tariffs, and the Chinese property crisis elevate policy uncertainty and pose a considerable downside risk for global growth and against disinflation. For our segment, we anticipate a softer freight rate market and supply grows faster than demand, and we expect an increasing focus on the existing fleet, decarbonization, and on energy-efficient new buildings. The global GDP growth expectations for 2025 and 2026, as reflected in the IMF's April forecast, cause for a growth of around 2.8% in the coming years.
Speaker Change: Moving on to slide five we present, a overview of the demand and basic commodities today.
Speaker Change: The combination of trade war as expressed through targeted and the Chinese property crisis, elevate bullish uncertainty in Wuxi considerable downside risk for global growth and against this inflation.
Speaker Change: Segment, we anticipate a softer freight rate market and supply grows faster than demand and we expect an increasing focus on the existing fleet and you've got one aviation and energy efficient buildings.
Speaker Change: The global GDP growth expectations for 2025 and 2020.
Speaker Change: Actually collected in the <unk> April forecast calls for a growth around two 8% in the coming years.
Loukas Barmparis: and provided by the Gratual Control of Inflationary Pressures. According to BIMCO, the forecasted global dry bulk demand will be from minus 1% to 0% in 2025, followed by a growth of from 1.5% to 2.5% in 2026, with grains and manual bulks being the best-performing sectors. China's slower growth may hinder demand for dry bulk commodities like iron ore and coal. Iron ore shipments are estimated to slightly grow as a result of weak Chinese demand and increased recycled steel usage. Coal trade will be affected by the rising renewable energy use in Asia and the increased coal production in China and India.
Speaker Change: Combined by a gradual control.
Speaker Change: HIV patients.
Speaker Change: According to <unk>, the cash that the global dry bulk demand will be.
Speaker Change: Minus 1% to Sheila I think into 25, followed by a growth of from one 5% to two 5% in 2026.
Speaker Change: With grain and minor bulks being the best performing sectors.
Speaker Change: China's slower growth in the demand for dry bulk commodities like iron ore and coal.
Speaker Change: I don't know if shipments are estimated to slightly grow as a result of weak Chinese demand and increase the side still Houston.
Speaker Change: To aid will be affected by the rising of renewable energy use in Asia, and the increased coal production in China and India.
Loukas Barmparis: gain in minor bulk shipments are predicted to rise and expected to be a key growth driver. The IMF projects China's GDP growth to be 4% in 2025 and in 2026, signalling a slowdown in consumption amid delayed stabilisation in the property market and persistently low consumer confidence and trade uncertainty. India, on the other hand, continues to perform and is projected to experience the fastest growth among major economies, with a forecasted 6.2% GDP increase in 2025 and 2026. Increased renewable energy industrial growth will be key drivers for India's economic momentum. It's expanding domestic market and manufacturing sector.
Speaker Change: Gains in the minor bulk shipment is predicted to rise and expect it to be a key growth driver.
Speaker Change: They are a mix of projects.
Speaker Change: They met with China's GDP growth to be 4% in 2025 and in 2026.
Speaker Change: Nothing has slowed.
Speaker Change: Slowdown in consumption.
Speaker Change: Lakes stabilization in the property market and persistently low consumer confidence and trade uncertainty.
Speaker Change: Yeah. The account continues to perform and it's a good experienced the fastest growth among major economies with a forecast at six 2% GDP in 2025 and 2020.
Speaker Change: And instead of you about NAC interested goals will be key drivers for Indias economic momentum.
Speaker Change: It's expanding domestic market and manufacturing sector.
Loukas Barmparis: may continue to contribute positively to the dry bulk demand with infrastructure investments playing a vital role.
Speaker Change: May continued to contribute positively.
Speaker Change: Positively to the dry bulk demand with infrastructure investments playing a vital role.
Loukas Barmparis: Summing up, the supply-demand equilibrium on slide 6, the supply growth is expected to continue to outpace demand, exerting pressure on freight rates. The clip market segment has been weaker through the year. On the other hand, all eight of our clips are presently period charted with an average remaining charted duration of two years and an average daily charted rate of $23,000, plus about $16,000 on the spot market, providing us visibility of cash flows, topping $137 million USD in contract revenue backlog from CAPES alone, excluding the scrubber benefit. On the Panamax front, the charter market stands short at about $11,500.
Speaker Change: Summing up the supply demand equilibrium on slide six.
Speaker Change: The supply growth is expected to continue to outpace demand exerting pressure on freight rates.
Mike: Mike its segment has been a week or two here.
Speaker Change: On the other account.
Speaker Change: Eight of our Capes are presently below target with an average remaining charter duration of two years it inevitable that the rate of $23000 bullish about 16000 on the spot market, providing us with the ability of cash flows topping 137 million.
Speaker Change: USD and contracted revenue backlog from Capes alone excluding this benefit on.
Speaker Change: On the Panamax front, the charter market expansion.
Speaker Change: <unk> <unk> and <unk>.
Loukas Barmparis: Moving to slide 8, we present an overview of our quarterly highlights. We have declared our 14th consecutive quarterly dividend of 5 cents, representing a 5.5% dividend yield, while at the same time, our free cash flow financed our new building program. Furthermore, we completed the repurchase program of 3 million common shares, we maintained ample liquidity, profitability and capital resources of $276 million and a comfortable leverage of 37%. Why we achieved zero vessels for 2024 in the D&E Carbon Intensity CII rating of IMO? Lastly, recently, we took delivery of our 12th phase 3 nuclear, serving as a testament to our commitment towards sustainability.
Speaker Change: Moving to slide eight we present, an overview of our quarterly highlights.
Speaker Change: We have declared our 14th consecutive quarterly dividend for pipe.
Speaker Change: Representing a five 5% dividend heat while at the same time.
Speaker Change: The cash flow finance, our new building program program.
Speaker Change: Furthermore, we completed the repurchase program of 3 million common shares we maintained ample liquidity profitability and capital expenditures of 276 million and the <unk>.
Speaker Change: Comparable limited.
Speaker Change: 7%.
Why.
Speaker Change: Achieved gilles vessels for 2024.
Speaker Change: D E carbon intensity.
Speaker Change: <unk> Oprah Emil <unk>.
Speaker Change: Lastly, recently, we took delivery of our 12.
The phase III European trading.
Speaker Change: Trading as a testament to our commitment towards sustainability.
Loukas Barmparis: In slide 9, we present our return to shareholders of $73.6 million paid in common dividends and $69 million paid in common shares, repurchases since 2022. We have been consistent in generating sustainable returns across market fluctuations as a result of our track record, hedge fund management, and our overall business model.
Speaker Change: In slide nine represents our return to shareholders of $73 $6 million paid in common dividends and 69 million paid in common shares.
Speaker Change: The benefit in 2022.
Speaker Change: We have been consistent.
Speaker Change: Is there anything sustainable returns across market fluctuation actually thats about track record touch on management and our overall business model.
Loukas Barmparis: Concluding the company's update in slight error with the St. Augustine Fundamentals. Safe Bulkers is a drivable company with 390 million market cap, 47 businesses on the water, having 317 million scrap value. We maintain significant firepower with 128 million cash, 149 million in unsold RCFs, and 176 million borrowing capacity against our significant order book of 6 new builds, mainly in Japanese shipyards. We consistently focus on our majority Japanese bid fleet, which has advantage on energy efficiency and lower CO2 taxation, reflected in our CII rating of 0 versus at the bottom ratings of D&E for 2024. We maintain a young, technologically advanced fleet, strong balance sheets, comfortable leverage and a low net debt per vessel of 8.5 million for a 10 years old fleet.
Speaker Change: Completing the company's update and flagship will detail our strong fundamentals.
Facebook is a dry bulk company with 390 million market cap 47 from the water.
Speaker Change: $617 million scrap value.
Speaker Change: We maintain significant.
Speaker Change: $188 million.
Speaker Change: $149 million on Ics.
Speaker Change: 76 million borrowing capacity I guess, how significant order book of six newbies, mainly in Japanese shipyard.
Speaker Change: We consistently focus on all the majority Japanese built fleet.
Speaker Change: Which has abundance on energy efficiency and lower fuel taxation reflected now.
Speaker Change: Hitting over zero versus at the bottom right in <unk> in April 2024.
Speaker Change: We maintain a young technologically advanced fleet, some balance sheet profitable limited and the low net debt position of $8 5 million for 10 years old fleet.
Loukas Barmparis: We have built a resilient business model with cash flow visibility of $203 million in revenue backlog, healthy expansion for sizable fleet that achieves scale, and a 1.5% annualized dividend yield strategic position to leverage on the environmentally regulatory landscape.
Speaker Change: We have built a resilient business model with cash flow visibility of $203 million in revenue backlog first expansion for sizable fleet that achieves scale and meaningful 5% annualized dividend yield is strategically positioned to leverage on the environmentally.
Speaker Change: I think globally landscape.
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'll now pass the floor to shift focus, especially on our mobile apps for our financial overview.
Speaker Change: <unk> the floor is yours. Thank you Luca good morning.
Konstantinos Adamopoulos: Thank you, Loukas, and good morning to all. During the first quarter of 2025, we operated in a weaker capital market environment compared to the same period in 2024. We decreased revenues. Decreased earnings for Moscow-defeated vessels and increased operating expenses. Moving now on slide two, with our quarterly financial highlights for the first quarter of 2025 compared to the same period of last year. Our adjusted EBITDA for the first quarter of 2025 stood at $29.4 million, compared to $64.3 million for the same period in 2024. Our adjusted Earnings Per Share for the first quarter of 2025 was $0.05, calculated in the weighted average number 105.1 million shares.
Speaker Change: During the first quarter authoritative identifier.
Speaker Change: Our equity in a weaker market environment compared to the same video games rented 24.
Speaker Change: With decreased revenues.
Speaker Change: Turning from starter feature the metrics of increased operating expenses.
Speaker Change: Moving now on slide two with our quarterly financial highlights for the first quarter of 2025 compared to the same periods of last year.
Speaker Change: Our adjusted EBITDA for the first quarter of 225 years stood at $29 four.
Speaker Change: $4 million.
Speaker Change: Compared to $63 $64 $3 million for the same periods into budgets went before.
Speaker Change: Our adjusted earnings per share for the first quarter of <unk> was five <unk>.
Speaker Change: Calculated on a weighted average number of $105 1 billion of shares.
Konstantinos Adamopoulos: compared to $0.20 during the same period in 2024. Calculated in the weight average number of 110.4 million shares. On the graph on the top, during the first quarter of 2025, we operated 46 vessels on average. earning an average daily time charge equivalent to $14,655 compared to $47.2 billion. 0.08 versus on average, ending at times as the equivalent of $18,158 during the same period in 2024. Our daily operating expenses increased by 6% to $5,765 for the first quarter of 2025. compared to $5,442 for the same period in 2024. Daily versal earning expenses, excluding dry-dogging and feed delivery expenses, increased by 10% to $5,546 for the first quarter of 2025, compared to $5,038 for the same period in 2024.
Speaker Change: Compared to three 8% during the same period in 2024.
Speaker Change: Calculated on the weighted average number of $110 4 million shares.
On the graph on the top during the first quarter of 225.
Speaker Change: It's four to six vessels for an operator.
Speaker Change: Ending and average daily time charter equivalent of $14655.
Speaker Change: Third to 47.
Speaker Change: Points reiterate vessels on average time charter equivalent of a $158 during the same period in 2024.
Speaker Change: Our daily vessel operating expenses decreased by 6% to five.
Speaker Change: $765 for the first quarter of 2025.
Speaker Change: Compared to $5442 for the same period in 2034.
Speaker Change: Daily vessel operating expenses, excluding dry docking and delivery expenses increased by 10% to $5546 for.
Speaker Change: For the first quarter of 2025 compared to $5038.
Speaker Change: For the same periods in 2024.
Konstantinos Adamopoulos: Concluding our presentation, slide 13, we present a quick overview of our quarterly operational highlights for the first quarter of 2025. We would like to highlight that based on our financial performance, the company's board of directors declared a 5 cent dividend. We would like to emphasize that the company is maintaining a healthy cash position of around $122 million as of May 9th, 2025, another $128 million available in committed revolving trade facilities. So we have a combined liquidity and capital resources of $250 million. Furthermore, we have contracted revenue from Unknown Council of Spotted Peel Time Chartered Contracts of $179 million net of commissions and this before any additional scrapped revenue.
Speaker Change: Concluding our presentation on slide 13, we presented recovery.
Speaker Change: Quarterly operators on our highlights for the first quarter of 2025.
Speaker Change: We would like to highlight that based on our financial performance the company formally.
Speaker Change: Perfect great.
Speaker Change: <unk> five dividend.
Speaker Change: Per common share.
Speaker Change: We would like to emphasize that the company is maintaining a healthy cash position.
Speaker Change: Around $122 million.
Speaker Change: Both may nine 2025.
Speaker Change: And another 128 million.
Speaker Change: Available committed credit facilities.
Speaker Change: Total combined liquidity and capital that is orders of $250 million.
Speaker Change: Furthermore, we have contracted revenue from our noncancelable supported <unk> charter contract.
Speaker Change: $179 million Federal Commission.
Speaker Change: Before.
Speaker Change: Additional scrubber revenue.
Konstantinos Adamopoulos: We also have additional borrowing capacity in relation to six new bids upon their delivery and one existing new bid which is debt-free. We believe our strong liquidity and our comfortable leverage provide flexibility to our management in capital allocation. And this would enable us to expand the fleet further, build a resilient company, create a long-term prosperity for our shareholders.
Speaker Change: We also have additional borrowing capacity in relation to <unk> upon their delivery.
Speaker Change: Do you believe that.
Speaker Change: <unk>.
Speaker Change: We believe our strong liquidity comfortable membranous provides flexibility to our management and capital allocation.
Speaker Change: And this would enable us to expand our fleet further related.
Speaker Change: Related company.
Speaker Change: <unk> for our shareholders.
Konstantinos Adamopoulos: Thank you and we are now ready to take your questions. Thank you.
Speaker Change: Thank you and we are now ready to take your questions.
Speaker Change: Thank you.
Unknown Executive: We'll now be conducting a question and answer session. If you would like to ask a question at this time, you may press star 1 from your telephone keypad and a confirmation tone will indicate your lines in the question queue. You may press star 2 if you would like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star key. One moment please while we poll for questions. Thank you.
Speaker Change: Now be conducting a question and answer session.
Speaker Change: Fantastic question at this time, you May press Star one from your telephone keypad any confirmation tone will indicate your line is in the question queue.
Speaker Change: Let me first start to feel like to withdraw your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.
Speaker Change: One of them. Please poll for questions. Thank you.
Speaker Change: Yes.
Unknown Executive: All reports to Assembly Q, it is 5-1 to ask a question. Thank you.
Speaker Change: All repriced assemble here just wanted to ask a question.
Yes.
Omar Nokta: Our first question comes from the line of Omar Nokta with Jeffries. Please receive your question. Thank you. Hi, guys. Good afternoon. Thank you for the update. You know, clearly, you've been buying back shares at a fairly decent rate, I'd say, you know, clearly over the past few years, you launched a 5 million share buyback three months ago, you finished it up fairly quickly. How are you thinking about buybacks from here? Obviously, it's still a lot of uncertainty, just given the other macro. But the outlook maybe seems to have gotten slightly better, perhaps just based off of the way the financial markets have acted here, you know, post this China-U.S.
Speaker Change: Thank you.
Speaker Change: Our first question comes from the line of Omar <unk> with Jefferies. Please proceed with your questions.
Speaker Change: Thank you.
Speaker Change: Hi, guys. Good afternoon. Thank you for the update.
Speaker Change: Clearly you've been buying back shares at a fairly decent rate I'd say over the past few years, you lost $5 million share buyback three months ago. You finished it up fairly quickly how are you thinking about buybacks from here, obviously is still a lot of uncertainty just given the macro.
Speaker Change: But the outlook maybe.
It seems to have gotten slightly better perhaps just based off of the way the financial markets have acted here post this China U S agreements.
Loukas Barmparis: agreement. And maybe that brings about a more positive attitude. Just wanted to get a sense from you, how does that sort of this backdrop affect your view on further share purchases from here? Yes, as you are aware, we always react on a very consistent basis and according to certain principles. So the things that we are considering in order to initiate a buyback program is, first of all, what is the condition of the market? So in profitable markets, we tend to buy more shares. The second is the price of our stock. If we feel that the stock price is depressed, we may initiate buyback programs. Generally, as already said several times, we believe that our stock is undervalued.
Speaker Change: And maybe that brings about a more positive attitude just wanted to get a sense from you how does that sort of this backdrop affect your view on further share repurchases from here.
Speaker Change: Yes, as you are aware we always.
Speaker Change: Just on a very consistent basis and according to shipping principles. So.
Speaker Change: The things that we were considering in order to initiate the buyback program is first of all what is the condition of the market.
Speaker Change: Sure.
Speaker Change: In profitable markets, we tend to buy.
Speaker Change: Buy more shares to take on these with price of our stock or show either stock price. If we feel that is.
Speaker Change: Strip prices depressed we may we may.
Speaker Change: Initiate the buyback programs.
Speaker Change: Jamie.
Speaker Change: I'd.
Sandra: As already said Sandra van should we believe that there will still be.
Speaker Change: Undervalued show.
Loukas Barmparis: So quite often, it's worth investing for everybody, not only for us, it's worth investing in our stock instead of buying a new ship. Yep, makes sense. And then I guess maybe just, as you kind of think about the idea of buying, you know, the your stock, the obviously NAV would seem to, you know, across different metrics, or different, whomever is calculating it, it's definitely materially above the current stock price. What would you, how could you, can you maybe just give, perhaps how you're seeing the sale and purchase market as it is now, we understand that values have been rather elevated, given your where freight rates are, and some of the uncertainty in the market.
Speaker Change: Quite often.
Speaker Change: It's worth investing for everybody and not only for promotions work investing in our scope instead of buying a new ship.
Speaker Change: Yes makes sense and then I guess, maybe just as you guys think about the idea of buying.
Speaker Change: Your stock.
Speaker Change: Obviously it.
Speaker Change: It seems though across different metrics are different.
Speaker Change: Whomever is calculating it it's definitely materially above the current stock price what would you how could you could you maybe just give perhaps how youre seeing the setup purchase market as it is now we understand that values have been rather elevated given.
Speaker Change: Where freight rates are in some of the uncertainty in the market can you just give a flavor of what youre seeing in ship values and how things are looking directionally.
Loukas Barmparis: Can you just give a flavor of what you're seeing in ship values and how things are looking directionally? Yes, the, the, a lot of, for me, the, the... S&P values, I would say, have dropped in the last six months, around 25% on the older ships and around 10 or 15% on the very modern ships. So it's not really attractive prices to start buying ships right now, considering where the freight market is.
Speaker Change: Yes.
Speaker Change: Hello for me.
Speaker Change: Simply by US I would say that.
Speaker Change: <unk> dropped in the last six months.
Speaker Change: On the call.
Speaker Change: 75%.
Speaker Change: All the sheets in around a.
Speaker Change: 10, or 15% on the very modern ships.
Speaker Change: So it's.
Speaker Change: It's slow.
Speaker Change: Not really.
Speaker Change: Attractive prices to stop buying ships.
Speaker Change: I'd now considered around the freight market piece.
Loukas Barmparis: So at this point of time we're not doing much, we have our new buildings, take delivery off and we are doing the buyback from time to time, but of course also the buyback we don't want to do it too fast or too much in a hurry because, you know, the company still has to take delivery of six ships and we don't want to do a very fast buyback until the market Trophy National Museum of Greece. Temples, historical sites, have been described in concentric lines along the walls of plans I hope that you have enjoyed this.
Speaker Change: So at this point of time, we are not doing much with a lot of new buildings, they're moving.
Speaker Change: And.
Speaker Change: The buyback from time to time.
Speaker Change: So the buy button window to do it.
Speaker Change: Two possible tool.
Speaker Change: Two two months, we had it because you know the company has to take delivery of the ships.
Speaker Change: <unk>.
Speaker Change: We don't we don't know.
Speaker Change: Very fast.
Speaker Change: Back onto the market.
Speaker Change: Great marketing tool so.
Speaker Change: And we're waiting for the.
Speaker Change: The opportune time.
Speaker Change: Yes.
Speaker Change: Two by two one.
Speaker Change: <unk> remains depressed.
Speaker Change: In a stressful was absolutely better signs.
Speaker Change: Some improvement in the freight market is the same market stays at current levels were up on a rush.
Speaker Change: And.
Omar Nokta: by More Stock mods. at such a trade market because we have to keep all companies' options open. Yep, that makes sense. Great. Well, thank you. I'll turn it back.
Speaker Change: Buying more stock up.
Speaker Change: Concentrate market, because we have to keep oil company structure.
Speaker Change: Open.
Speaker Change: Yes that makes sense.
Speaker Change: Great well, thank you I'll turn it back.
Climent Molins: The next question is from the line of Climent Molins with Value Investors Edge. Please proceed to your question. Hi, good afternoon and thank you for taking my question. I wanted to start by following up on Omar's questions on buybacks. Could you confirm whether the $3 million share program was exhausted during the first quarter? And if not, how much was spent post-quarter end? Yes, this I think we have reported and it has been exhausted, yes, over a million have been purchased. So, the program has been completed.
The next question is from the line of content more.
Hollins: Hollins with value Investor's edge. Please proceed with your question.
Speaker Change: Hi, good afternoon, and thank you for taking my questions.
Speaker Change: I wanted to start by following up on <unk> questions on buybacks could you confirm whether the 3 million share program was exhausted during the first quarter and if not how much was spent post quarter end.
Speaker Change: Yes.
Speaker Change: We hope so.
And it looks as though camilo.
Speaker Change: Ben.
Speaker Change: Expenses.
Speaker Change: So the program has been completed.
Climent Molins: Yeah, I was asking if you could clarify whether any repurchases were done after quarter end for modeling purposes most After quarter-end, only in the first quarter, I mean the whole repurchase program was completed within the first quarter. That's very helpful. Thank you. And I also wanted to ask about your capesizes, which are all now employed on medium term contracts. You have a couple of those coming open later this year. Is there any appetite to trade them on spot? Or would you prefer to fix them on time charters? Yes, the one has come up and is coming up in this month.
Speaker Change: Yes, I was asking if you could clarify whether any repurchases were done after quarter threat for modeling purposes, mostly.
Speaker Change: After after quarter end.
Speaker Change: Constable.
Speaker Change: Only in the first quarter.
Speaker Change: I mean the whole.
Speaker Change: Purchase program was completed in the first quarter.
Speaker Change: That's very helpful. Thank you.
Speaker Change: And I also wanted to ask about your Cape sizes, which are all now employed on medium term contracts.
Speaker Change: Youll have a couple of those coming open later this year is there any appetite to trade them on spot or would you prefer to fix them on time charters.
Speaker Change: Is that one has come up and it's coming up in this month.
Climent Molins: At the moment, the period charter rates are not at the levels we would hope for a long period. We will opt for round voyages in the spot market at the current levels and try then after a month or so to re-fix that maybe on period if there is a better environment. Generally, we are trading the stock market, unless we see employment, period of employment of a couple of years above $20,000, then we consider the period of employment. Makes sense. Thank you.
Speaker Change: The charter rates that the charter rates.
<unk> levels.
Speaker Change: Daniel.
Speaker Change: We will not.
Speaker Change: What is in the spot market up the current levels.
Speaker Change: And.
Speaker Change: Then after a month or so to fix that maybe on <unk>.
Speaker Change: With that environment.
Speaker Change: The other one that will come more often.
Speaker Change: It's another one.
Speaker Change: Most likely will come open around August again, we will judge at this time, we will deliver in August.
Speaker Change: And the bulk of the window.
Speaker Change: And then at that point.
Speaker Change: So at.
Speaker Change: At the time.
Speaker Change: Things to do.
Speaker Change: Yes.
Speaker Change: We are trading.
Speaker Change: Trade in the spot market.
Speaker Change: Employment pillars environmental couple of Es.
Speaker Change: Above 20000, when we consider the figures in coatings.
Speaker Change: Yeah.
Speaker Change: Makes sense. Thank you that's everything for me. Thank you for taking my questions and congratulations for the quarter there.
Climent Molins: That's everything from me. Thank you for taking my questions and congratulations for the quarter. Thank you.
Speaker Change: Thank you.
Unknown Executive: At this time, I'll turn the floor back to management for closing remarks. Thank you very much for attending this webcast and we are looking forward to discuss again with you in the next quarter. Have a nice day. Thank you.
Speaker Change: Thank you at this time I'll turn the floor back to management for closing remarks.
Speaker Change: Thank you. Thank you very much for updating this.
Speaker Change: Yeah.
Speaker Change: Results of this webcast and looking forward to discuss again with you in the next quarter.
Speaker Change: Nicely. Thank you.
Unknown Executive: This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
Speaker Change: This will conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation have a wonderful day.