Q3 2025 Seanergy Maritime Holdings Corp Earnings Call
To five financial results, we have with US Mr. Tung.
Tate Sullivan: Thank you. How were you able to secure a 2027 delivery? Was it the last slot in the China shipyard or one of the last slots? Did you consider other countries as well too?
So my two sons Danis.
And see you on Mr. Sovereigns gifts talk to your Chief Financial Officer of synergy Maritime Holdings Corp.
Stavros Gyftakis: Well, quality above all. We're not going to sacrifice any delivery for inferior quality, as you can understand. We found this—I mean, we have been in discussions with various shipyards for quite some time. We chose that. We might be seeking other solutions as well at similar other shipyards of high quality in China. We will not sacrifice the quality of this vessel for early delivery. In this particular case, we kind of had a win-win situation where we had prompt delivery, kind of prompt delivery, and at the same time, very high quality. We felt comfortable with that. We have certain good connections with a lot of people in the Far East. We believe we will be able to source some other deals as well.
At this time all participants are in a 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 one one on your telephone keypad and you will then hear automated message advising that Johan race. Please.
Please be advised that this conference call is being recorded today Thursday November 13th 2025.
The archived webcast of the conference call wisdom be made available on the synergy website www dot synergy maritime Dot com.
To listen to the archived audio file they ship the synergy website following the webcast and presentation section under the Investor Relations page.
Many of the remarks today contain look 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 the actual results to differ materially from those in the forward looking statements is.
Tate Sullivan: Okay. Well, you mentioned that earlier too. We'll look out for those. Stavros, on the cost of your debt, your interest rate going forward—I'm sorry if I missed it—but do you think you're now at about the 7% interest rate level or even lower with where floating rates have gone?
Contained in the third quarter and nine months ended September 30th 2025 earnings release, which is available on the synergy website again www dot synergy maritime that's gone well.
Stavros Gyftakis: It's lower than that. I mean, look, the financings that we have concluded recently, the margins are at around 2%. As we move forward, the ones that we're negotiating now, a couple of packages in connection with a new building and some refinancings that we're going to do are even lower. I mean, from quarter to quarter, you might see variations because there are certain fees that are being paid in order to break a financing or get into another financing, which sometimes are charged under the interest expenses. Overall, judging where Seanergy Maritime Holdings is today, I would estimate the average cost to be closer to five and a half, below six.
I would now like to turn the conference over to one of your speakers today, the chairman and CEO of the company Mr. Stomach some tonnage.
Go ahead Sir.
Thank you operator and welcome everyone.
Today, we're pleased to present another quarter of strong performance.
Underlying our insurer simply stability disciplined strategy and the continued success of our focus capesize when you pro forma the model, but we expect will deliver superior earnings capacity versus most peers.
Following the strong momentum established in the second quarter.
They were a profitable third quarter, driven by our large vessel exposure and the ongoing strength in the Capesize market net revenue reached approximately $47 million adjusted EBITDA was $27 5 million and net income totaled $12 $8 million demonstrating superior earnings capacity.
Tate Sullivan: Thank you very much.
Stavros Gyftakis: Thank you, Tate.
Operator: Thank you. As a reminder, to ask a question, please press *11 on your telephone. That's *11 to ask a question. There are no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect.
Oliver.
Over the first nine months of the year, we generated net revenue of $187 million.
The EBITDA of $52 $8 million and net income was $8 8 million in line with our dividend policy, we declared a dividend cash dividend of <unk> 13 per share for the quarter, bringing total 2025 distributions through 23 cents per share and reaffirming our commitment to regular shareholder returns.
Exploration of our class B warrants remove legacy dilution and further simplified our capital structure fully aligning long term performance with shareholder value with a fleet of 20 large capesize vessels, and you cosmos and flip loan to value ratio around 45% synergies very well positioned to benefit from a robust capes.
Cycle.
Moving on to fleet developments, we continued executing our disciplined fleet renewal strategy.
In October we placed our first ever new building order at 181000 deadweight capsize Hensley shipyard, marking the next stage of a large vessel strategy focused on efficiency scale and the modernization. The vessel is priced at approximately $75 million with delivery scheduled for the second quarter.
27 openings strategic delivery window ahead of most comparable to.
This decision reflects the attractive new building economics versus searching secondhand values and positions to capture stronger long term returns from our modern fuel efficient fleet.
The project's timing of lines would expect adoption in iron ore and bauxite trade through 2037 and thereafter.
In parallel we sold and delivered the winter Capesize ships for $21 $6 million, releasing approximately $12 million net liquidity and further optimizing our fleet composition.
Vessels continue to secure premium employment with top tier charters supported by index linked charters that present, a full market exposure.
Disciplined structure complemented by selective with let's say hedging ensures resilience across cycles or time charter equivalent has consistently outperformed the BCA confirming the strength of our larger vessels commercial model and positioning us for sustained earnings momentum heading into 2026 to <unk>.
Through the first part of this call our focus on larger Capesize and Panamax vessels continues to differentiate as these assets deliver superior earnings capacity and long term value compared to smaller bulk segments. Our boutique platform is built on scale, where it matters vessel size and operational performance Maxim.
Rising value creation per share with a modern and efficient fleet through deliberate and consistent dividends synergy remains very well positioned to lead in shareholder value. Among listed dry bulk companies I will now pass the floor to establish to discuss our financial update.
And I will conclude later with our comments on the market. Several please go ahead.
Thank you Samantha and welcome to everyone joining us today, let.
Let me walk you through the key highlights of our financial performance for the third quarter and the nine months period ended September 32025.
Third quarter delivered another period of solid profitability and balance sheet strength, pushing Lindsey underscoring, our disciplined financial management and focus on capital efficiency for.
For the quarter net revenue reached 47 million, representing a 6% increase year over year, while adjusted EBITDA came in at $26 6 million broadly in line with last year's performance net income and adjusted net income for the quarter was $12 8 million and 14 million we expect.
It really translating to earnings per share or 61 cents for.
For the first nine months of 2025 net revenue amounted to $108 7 million with adjusted EBITDA of 52 8 million net income for the period.
$8 8 million with earnings per share of 40%.
While these figures are below last year's level due to a softer market. During the first half we expect profitability per cent for meaningfully in the fourth quarter supported by features already secured at high levels.
Turning to our balance sheet, our cash position strengthened approximately $37 million at the end of the quarter equivalent to one 8 million per vessel.
Reflects our disciplined approach to cost management as outflows related to vessel acquisitions early in the year were effectively offset by the net proceeds from the sale of our older Capesize vessels during the third quarter.
In parallel we continue to fund dividends distributions and then extensive dry docking program underscoring the company's ability to invest in its fleet, while maintaining robust liquidity.
<unk> cash position provides financial flexibility, enabling us to pursue attractive opportunities and support our new building project with confidence, notably our financial performance and stability has enabled us to declare nearly 5 million cash dividend. So far this year, despite the challenging conditions through the first half.
For the first 9 months of 2025, net revenue amounted to 108.7 million with a jazzy DBA of 52.8 million, net income, for the period reached 8.8 million with earnings per share at 42 cents.
While these figures are below last year's levels, due to a softer market during the first half, we expect of stability to strengthen meaningfully in the fourth quarter supported by features already secured at higher levels.
Reaffirming our commitment to consistent shareholder returns.
As of quarter end, our total debt stood at approximately $292 million base.
Based on the current market value for fleet piece corresponds to a low to fleet value ratio below 45%.
Keeping a healthy and conservatively capitalized profile.
On a per vessel basis, our debt stands at roughly $14 6 million, which is nearly $18 million below the average market value of our ships highlighting the strong asset coverage supporting our balance sheet.
10 to our balance sheet, our cash position, strengthened to approximately 37 million. At the end of the quarter equivalent to 1.8 million per vessel. This reflects our discipline approach to class management as outflows related to vessel Acquisitions earlier in the year were effectively offset by the net, proceeds from the sale of our older capes as vessel during the third quarter.
In parallel, we continue to Fund dividend distributions and then extensive dry docking program underscoring. The company's ability to invest in its Fleet while maintaining robust liquidity.
In terms of financing activity. This quarter, we maintained a measured pace following an exceptionally active first half of the year, we executed transactions totaling $110 6 million.
Nevertheless, we're now in the final stages of concluding a highly attractive financing package for a new building featuring the competitive structure and a compelling interest margin, we expect to be in a position to disclose additional details on upcoming financing soon.
This healthy cash position provides Financial flexibility. Enabling us to pursue attractive opportunities and support our new building project with confidence. Notably our financial performance and stability has enabled us to declare nearly 5 million in cash dividends so far this year, despite the challenging conditions of the first half, reaffirming our commitment to consistent shareholder returns
The constructive ship finance environment offering multiple options includes both lung and easy markets has been an important consideration of decisions pushing new buildings of the states.
As of quarter end, our total debt stood at approximately 292 million.
The same time, we continue to assess opportunities to optimize our capital structure and expect to report additional progress in the coming months. It is also worth noting that we have a clear debt maturity profile through the second quarter of 2026 with no balloon payments before that period.
Based on the current market value of our Fleet, this corresponds to a loan to Fleet value ratio below, 45% reflecting a healthy and conservatively capitalized profile.
On a professional basis. Our debt stands at roughly 14.6 million which is nearly 18 million below. The average market value of a ships highlighting, the strong asset coverage supporting our balance sheet.
This provides valuable flexibility and ensures that we can time, our future financing strategically without pressure.
Finally as of September 32025, total shareholders' equity it is $271 million with both class B and class a warrants now fully eliminated senior capital structure with a stronger simpler and fully aligned with shareholder interest.
In terms of financing activity, this quarter, we maintain the measured Pace following an exceptionally active, first half of the Year during which we executed transactions totaling 110.6 million.
Nevertheless, we are now in the final stages of concluding, a highly attractive financing package for a new building featuring a competitive structure and compelling interest margin. We expect to be in a position to disclose additional details on upcoming financing soon.
That concludes my overview I will now hand, the call back to <unk>, who will provide insights on the capesize market and broader industry fundamentals, so marty over to you.
Thank you Sabra.
The Capesize market continued to show sustained strength in Q3 with average rates of about $24600 per day.
This levels in the recent quarter. This performance was driven by 2% increasing ton mile demand against only one 3% growth in our revenue per tonnage, reflecting a very tight market balance.
Iron ore remain the main catalyst Australian exports are recovered strongly.
The constructive shift Finance environment offering multiple options, across both bank and leasing markets has been an important consideration in our decision, to pursue new buildings at the stage. At the same time, we continue to assess opportunities to optimize our capital structure and expect to report additional progress in the coming months. It is also worth noting that we have a clear that maturity profile through the second quarter of 2026 with no balloon. Repayments before that period, this provides valuable flexibility and ensures that we can time our future financing strategically without pressure.
In here, whether disruptions, while Brazilian record volume.
Finally, as of September 30th 2025 total shareholders Equity, it reached 271 million.
Serge supported by balance out with the increase in long haul routes that amplify ton mile demand.
Looking ahead, the upcoming Simandou project in West Africa, combined with steady steel production in iron ore demand in China underpins, a solid multiyear outlook for the Capesize player.
With both class D and Class E warrants. Now, fully eliminated seen as this capital structure is stronger. Simpler and fully aligned with shareholder interests.
Bauxite continues to be another key growth driver with shipments rising more than 15% year over year in Q3, and 20% for the nine month period.
That concludes my overview. I will now hand the call back to Somatus, who will provide insights on the case market and broader investing fundamentals. Sumati, over to you.
This trend coupled with Atlantic basin cargo growth is expected to support high utilization levels going forward.
Coal flows were also supportive led by an eight month imports in China and increased demand across South Korea, Japan and Southeast Asia.
Thank you, bro. The Cape Size market continued to show sustained strength in Q3, with average rates of about $24,600 per day, the highest levels in recent quarters. This performance was driven by a 2% increase in ton-mile demand against only 1.3% growth in available tonnage, reflecting a very tight market balance.
On the supply side 2025, Mark a record low year for Capesize deliveries with less than one 5% fleet growth.
Only 38, new building orders were placed with the lowest since 2027.
7% of the fleet is above 20 years, and 30% is above 15 years.
I don't know remained the main catalyst Australian exports are recovered strongly from early year, weather disruptions while, Brazilian record volumes surged supported by valid output, increase and long, hold routes, that amplify tone mild demand.
With a global shipyard capacity effectively booked through 2029 supply growth will remain structurally constrained for several years overall the combination of rising Atlantic based trade at historically low order book and limited yard availability supports a sustained earnings environment for Capesize vessels two <unk>.
Looking ahead the upcoming Sim and do project in West Africa, combined, with steady steel production and iron ore demand in China under pins. A solid multi-year outlook, for the cape size trade
Shipments Rising more than 15% year-over-year in Q3 and 20% for the 9-month period.
Synergies pure play Capesize any customer focus continues to differentiate our platform.
This trend coupled with Atlantic Basin, cargo growth is expected to support. High utilization levels, going forward,
Larger vessels generate superior earnings capacity and long term value compared to smaller bulker segments, reinforcing our boutique model based on scale, where it matters vessel size and operational performance.
Corn flows were also supportive. Led by an 8-month import. Hi in China and increased demand across South Korea, Japan, and Southeast Asia.
Our strategy remains solid quarter on three priorities.
Short term returns and maintain a consistent dividend policy and pursue share buybacks when accretive.
Fleet renewal and growth enhance fleet efficiency and environmental performance through disciplined high return investments financial health.
On the supply side, 2025 marked a record low year, for Cape size deliveries, with less than 1.5% with growth. Only 38 new building orders were placed to the lowest since 2020 while 7% of the fleet is above 20 years and 30% is above 15 years.
Balance sheet strength and prudent leverage ensuring flexibility throughout market cycles. We are executing on all three fronts and remain confident that synergy will continue to deliver industry, leading value per share plus capesize market enters another strong phase on that.
With the global ship capacity. Effectively booked through 2029 Supply growth will remain structurally constrained for several years. Overall, the combination of rising Atlantic based trade a historically low, Audible and limited. The other availability supports a sustained High earnings environment for Cape sized vessels to conclude.
Nope I would like to turn the call back to the operator and received any questions. You may have operator, please technical thank you.
Synergies is pure play games. As a new customer, our focus continues to differentiate our platform.
Okay.
Okay. Thank you.
As a reminder to ask a question you will need to press star one on your telephone.
These larger vessels generate superior capacity and long-term value compared to smaller Barker segments, reinforcing our boutique model based on scale where it matters: vessel size and operational performance.
For your name to be announced.
Our strategy remains unquote at on 3 Priority.
Please standby, while we compile the Q&A roster.
Capital returns, maintain a consistent dividend policy and pursue Sur BuyBacks When a credit.
Our first question comes from the line of Liam Burke from B rated Securities. Please go ahead. Your line is open.
Thank you good afternoon, good afternoon Sabra.
Hello, Leo good morning.
<unk> been very active in the.
Our fleet renewal program with the ordering and.
Even with the sale of older assets.
If I look forward you have the financial flexibility.
How do you anticipate.
Fleet renewal and growth enhance. Fleet, efficiency and environmental performance through disciplined, High return, Investments. Financial help, preserve balance extent and prudent, leverage ensuring flexibility throughout Market Cycles. We are executing on all 3, fronts and remain confident. That Synergy will continue to deliver industry-leading value per share as Cape Size Market. Enters another strong face on that note, I would like to turn the call back to the operator and receive any questions you may have operator. Please take the call, thank you.
Growing the fleet would it be to add new builds or to mix and so on.
Some secondhand vessels.
We are constantly in the market seeking opportunities both in a more modern secondhand ships as well as a few new building vessels that we believe could add value to the company we want to avoid.
Thank you as a reminder, to ask a question, you will need to press star 1 1 1 on your telephone, and wait, for your name to be announced.
Please stand back while we compile the Q&A roster.
Having.
The so-called debt capital.
Mummy in advances while the ships will be delivered in 2030 or whatever so we have to be very selective and the reason why we chose that particular shipyard is not only its quality, but also the fact that it's basically going to deliver the ship in a year and a half from today, so that eliminates that issue.
Our first question comes from the line of Liam. Borg from B Riley Securities. Please go ahead your line is open.
Thank you. Good afternoon, it's Tomas, good afternoon Stroh.
Hello, Liam. Good morning.
Consequently, looking for both.
I cannot give you an answer right now because there's a few opportunities that we are getting closer to so in the next few weeks I will be in a position to discuss more.
Um stamas you've been very active in the uh Fleet renewal program with the the ordering and and even with the sale of older assets.
If I look forward, you have the financial flexibility.
Great. Thank you and just taking a look at the macro it look like you have the best of all worlds here.
How do you anticipate growing? The fleet, would it be to add new builds or to mix in some secondhand vessels?
As we ended the year it looks like China steel production will be down.
If I flip the narrative.
China's steel goes back to its historical growth rate of one or 2%.
Does that even increase your optimism for 'twenty, six or is that sort of baked in and how you look at.
At the demand side of the case size equation.
We would never worried about the demand side, even when people were downplaying, China and its ability to keep up with the housing crisis and the real estate problems.
We're very optimistic about demand for iron ore coal and bauxite. The simandou starting now in November and December is going to pick up a lot of long haul demand for high quality iron ore and this is going to ramp up in 'twenty six 'twenty seven so demand is not going to be an issue. What is really interesting to note is the fact that.
We are constantly in the market seeking opportunities, both in more modern and secondhand ships, as well as if you knew building vessels that we believe could add value to the company we want to avoid, um, having um, the so-called debt Capital, uh, you know, invest money in advance is, uh, you know, while the ships will be delivered in 2030 or whatever. So we have to be very selective and the reason why we chose that particular Shipyard is not only its quality, but also the fact that it's basically going to deliver the ship in a year and a half from today. So that eliminates that issue, uh, we're constantly looking for both.
um,
I cannot give you an answer right now because there's a few opportunities that we are getting closer to. So in the next few weeks, I will be uh in a position to discuss more.
<unk>.
23, 24% of the global Capesize, Newcastle Max in VLCC fleet is older than 16 years and that gives you a sense. While the order book is of course at the lowest point. So that gives you a sense of.
Potential supply squeeze is getting into 2600, <unk>, so that makes us feel way more optimistic than the demand narrative.
Great. Thank you. And just taking a look at the macro, it looked like you have the best of all worlds here. Um, you know, as we end the year it looks like China steel production will be down. Um if I flip the narrative and say St, China seal goes back to its historical growth rate of 1 or 2%. Um does that even increase your optimism for 26 or is that sort of baked in and and how you look at uh at at the demand side of the case size equation?
Great.
Thanks, very much modest.
Thank you and nice to hear from you.
Thank you.
Our next question comes from the line of Mark Reichman from Noble capital markets. Please go ahead.
Thank you and always great to see another strong quarter.
Two questions for me on the Newbuild contract.
The five installment payments. So we just think about that is.
The year 41, $25 million or 55% paid in the on the fifth fifth payment and then the balance of the $33 75 spread over the first four payments in what quarter do those payments begin.
Hi, Mark which travelers.
Yes, your assessment is correct.
The 45% to be paid over the next 12 months and Theyre not delivery we choose.
Starting now in November and December is going to pick up a lot of long hold demand for, uh, high quality. I don't know. And this is going to ramp up in 26 and 27. So demand is not going to be an issue, but it's very interesting to note is the fact that about, um, uh, 23 24% of the global Cape size, Newcastle, Max and vloc Fleet is older than 16 years and that gives you a sense. While the older book is, of course, at the lowest point. So that gives you a sense of um, you know, potential Supply squeezes getting into 26 and 27. So that makes us feel way more optimistic than the demand narrative.
Great. Uh, thanks very much Madison.
Approximately one one year and five months from now.
Thank you. Nice to hear from you.
Thank you.
The remaining 55%.
Based on the financing that we're contemplating for this unit.
Our next question comes from the line of Mark Reiman from Nobel Capital Markets. Please go ahead.
It will be liable from our own cash reserves for approximately 25% of the contract price and this installments, we expect to be paid in the first quarter of 2026.
Okay everything else will come from that.
Yeah.
From from that Okay.
And then just a second question on the commercial updates.
I was just kind of curious kind of the tenor going into maybe some of these these are renewals I mean do you have do you feel like you've got more pricing power I mean I noticed that.
Thank you and always great to see another strong quarter. Uh just really 2 questions for me on this uh new build contract uh the uh the 5 installment uh payments. Can we just think about that. As as you know the the uh 41.25 million or 55% paid in the on the 5th, fifth payment and then the balance of the 33.75%, what quarter do those payments begin?
In some instances the daily hire is based on a revised premium over the <unk>.
Hi, Mark, this is, uh, yes. I'm in your assessment is correct. Uh, expect the 45% to be paid over the next 12 months. And then at the delivery, which is,
And I was just wondering if that premium I'm kind of assuming that premium went up.
Yeah.
Well.
We tend to agree the extensions for a period of about 12 to 14 months. This is what we like and Thats, what the charters are comfortable about.
We have no concerning too.
Renewing them thereafter, so it's not going to be an issue and we have proven to be in a position to renew our ships consistently with very high quality charters all the way until they become close to 20 or sometimes above 20 years old. So we see no issue and are reviewing anything for longer periods, we like the way it is right now.
Uh, approximately 1 uh 1 year and 5 months from now. Uh, the, the remaining 55%, uh, based on the financing that we contemplating for this unit, uh, we will be liable from our own cash reserves for approximately, 25% of the contract price and this installments, we expect to be paid in the first quarter of 2026.
Everything else will come from this.
From from that, okay?
That provides flexibility on both sides of the.
The transaction, both for us and the charterers and we'd like to take this.
Okay.
Just.
Just to go back I mean in terms of the pricing power is there.
Is that even something that you kind of think about or I mean, do you have greater leverage in this market.
And then the just a second question, on the commercial updates, uh, I was just kind of curious, you know, kind of the the tenor, you know, going into maybe some of these these, uh, renewals. I mean, do you have, do you feel like you've got more pricing power? I mean, I, I noticed that this in some instances, the daily higher is based on a revised premium over the BCI. And, and I was just wondering if that premium, I'm kind of assuming that premium went up.
Or just can you even comment on the on the revised premium over the <unk> on some of those contracts yes.
Way that we.
Obtaining this spring and those that we achieved this premium is with the conversions that we do so whenever we feel the time is right and the forward rate is above.
The PCI, that's when we trigger certain conversions and we feel comfortable about securing certain cash flows and I'm not going to sequence Bentley, but in most cases that leads us to the premium over the VCR in southern case of course, we may not be able to get the full extent of that but we like that we.
Well, um, we we tend to agree the extensions for a period of about 12 to 14 months. This is what we like and that's what that Charters are comfortable about. Um, we have no concern in to, you know, renewing them thereafter. So it's not going to be an issue and we have proven, to be in a position to renew our ships, consistently with, uh, very high quality chapters all the way until they become close to 20 or sometimes above 20 years old. So we see no issue in. Renewing anything for longer periods would like the way it is right now, and to that provides flexibility, on both sides of the, um, of the transaction, both for us and the Chatters and we like, to like this,
The downside, we feel way more confident and comfortable to have a certain stream of cash flows even if we lose a couple of thousand from the upsides we.
Okay. Um, just
Feel better off by securing the downside risk in certain quarters that might be weaker throughout the year.
I see thank you very much that's very helpful.
Very welcome and nice to hear from you.
Yeah.
Thank you as a reminder to ask a question. Please press star one on one on your telephone.
Our next question comes from Tate Sullivan from Maxim Group. Please go ahead.
Thank you.
On the Newbuild.
Just to go back. I mean, in terms of the pricing power, is that even something that you kind of think about. Or I mean, do you do you have greater leverage in this market? Uh, or, um, you know, it's just or could you even comment on the on the revised premium over the BCI on some of those contracts? Yes, the the way that we obtain this premium, those that we achieved this premium is with a conversions that we do. So whenever we feel the time is right, and the forward rate is above um the BCI that's when we trigger certain conversions and we feel comfortable about securing certain cash flows.
With how you've been talking about the market for the last two years was there a specific a secondhand transaction in the market that made you decide to go with a new build route or.
At what point did that.
Yeah.
S&P prices increase.
Increased to a level, where new builds are more attractive.
Good morning, David and thanks for the question, Yes, I mean, there comes a time, where we have three getting events. We were chasing a couple of secondhand acquisitions and the and we missed on those because.
And I'm not going to say coincidentally, but in most cases that leads us to the premium over the BCI. In certain cases, of course, we may not be able to get the full extent of that, but we like that; we hedge the downside. We feel way more confident and comfortable to have a certain stream of cash flows. Even if we lose a couple of thousand from the upside, we feel better off by securing the downside risk in certain quarters that might be weaker throughout the year.
I see, thank you very much. That's very helpful.
Very welcome and nice to hear from you.
The higher bidders paid more than 20% or 10 15, 20% than what we had anticipated or what we consider to be the fair value of that asset for a particular time. So when you see this kind of abrupt increases in prices of secondhand vessels, which are not like really more.
Please press star 1 and 1 on the telephone.
Our next question comes from the line of Tate Sullivan from Maxim group. Please go ahead.
I mean, we're talking about close to 15 years old or 12 years old or 13 years old then it kind of drives the decision automatically gets.
Taken so thats file the triggering events happen.
And how can you sell thank you.
How are you able to secure 2027 delivery.
Hi, thank you. Uh, congratulations on the new build and consistent with how you've been talking about the market for the last that week, 2 years, was there, a specific, a secondhand transaction in the market that made you decide to go the new build route or the at, what point did the the, the, uh, uh, S&P prices, um, increase to a level where new builds are more attractive, please?
What the last slot in the China shipyard or one of the last slots did you consider other countries as well.
Quality above all so we're not going to sacrifice added delivery for inferior quality as you can understand.
So we found this I mean, we have been in discussions with various shipyards for quite some time.
We chose that we might be seeking other solutions as well.
Similar to other shipyards of high quality in China. So we will not sacrifice the quality of this vessel for <unk>.
Earlier delivery in this particular case, we kind of had a win win situation, where we had.
Prompt delivery kind of prompt delivery and at the same time.
High quality, so we felt comfortable that we have certain good connections.
Good morning, Tate, and thanks for the question. Yes. I mean there comes a time where we have triggering events, uh, we were chasing a couple of secondhand Acquisitions and, you know, the and we missed on those because um, the higher bids paid more than 20% or 10, 15 20% than what we had anticipated or what we considered to be the fair value of that asset for that particular time. So, when you see this kind of abrupt increases in prices of secondhand vessels which are not like really modern. I mean, we're talking about close to 15 years old or 12 years old or 13 years old. Then it kind of drives you the decision automatically gets, you know, taken so that that's how the triggering uh, events happen.
With a lot of people in the far east. So we believe we will be able to source.
Some other deals as well.
Okay.
You mentioned that earlier to our cash flows and then on the cost of your debt that.
Your interest rate going forward, sorry, if I missed it but what do you think youre now at about a 7% interest rate level or even lower.
Our floating rates up now.
It's slower than that I mean look be refinancings that we have.
Concluding the recently.
The margins are at around <unk>.
2%.
And as we move forward the ones that we're negotiating now a couple of pockets in connection with a new building in some refinancings of the one to do or even lower.
I mean from quarter to quarter you might.
See variations because there are certain fees that are being paid in order to break a financing or get into another financing, which sometimes it sounds it charged under the interest expenses.
And and how can you tell thank you. And how how were you able to secure a 2027 delivery? Uh was it the last slot in the China Shipyard or 1 of the last slots? Did you consider other countries as well too pleased? Well quality above all. So we're not going to sacrifice any delivery for inferior quality as you can understand. Um, so we found this, I mean, we have been in discussions with various cprs for quite some time. Uh, we chose that we might be seeking other Solutions as well at um similar other cprs of high quality in China. So we will not sacrifice the quality of the special for um early delivery. In this particular case we kind of had the win-win situation where we had um from delivery kind of from delivery and at the same time very high quality. So we feel comfortable with that, we have certain good um connections um with a lot of people in the Far East. So we believe we will be able to solve.
Uh, some other deals as well.
But overall judging whereas for the far east.
We estimate the average close to be closer to five and a half below six.
Thank you very much.
Thank you Dave.
Thank you.
Okay, well, um yeah, you mentioned that earlier to look out for those and then cover on the cost of your debt debt. Um, your interest rate going forward, I'm sorry if I missed it, but what, what do you think you're now at about the 7% interest rate level or even lower?
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Um, with where floating rates have gone.
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It's lower than that. I mean, look, the, the financing that we have, uh, concluded recently. Uh, the the margins are at around, uh, 2%.
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Uh, and as we move forward, the ones that we are negotiating now, a couple of packages in connection with a new building and some refinancing that we want to do are even lower. Uh, I mean, from quarter to quarter, you might...
Uh, see, uh variations because there are certain fees that are being paid in order to break a financing or get into another financing, which sometimes a charge on the interest expenses. Uh, but overall, judging, where is so far is today, I would estimate the average cost to be closer to 5 and a half below 6.
Thank you very much.
Thank you, T.
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