Q3 2025 Safe Bulkers Inc Earnings Call

Speaker #1: Thank you for standing by, ladies and gentlemen. Welcome to Safe Bulkers' conference call for the third quarter 2025 financial results. We have with us today Mr. Police Hadianu, Chairman and Chief Executive Officer; Dr. Loukas Barmparis, President; and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company.

Speaker #1: At this time, all participants are in a listening-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.

Speaker #1: Following the conference call, if you need any further information on the conference call or the presentation, please contact Capital Inc at 212-661-7566. I must advise you that this conference is being recorded today.

Speaker #1: The archived webcast of the conference call will soon be available on the Safe Bulkers website, www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations.

The archived webcast of the conference call will soon be 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 the results projected from those forward-looking statements. Additional information concerning factors that can cause actual results to differ materially from those in the forward-looking statements is contained in the Q3, Q4, Q5 earnings release, which is available on the Safe Bulkers website again, www.safebulkers.com. I would now like to turn the conference call over to our speakers today, Q2, Q4, Q5, Chairman and CEO of the company, Mr. Polys Hajioannou. Please go ahead, sir.

Operator: The archived webcast of the conference call will soon be 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 the results projected from those forward-looking statements. Additional information concerning factors that can cause actual results to differ materially from those in the forward-looking statements is contained in the Q3, Q4, Q5 earnings release, which is available on the Safe Bulkers website again, www.safebulkers.com. I would now like to turn the conference call over to our speakers today, Q2, Q4, Q5, Chairman and CEO of the company, Mr. Polys Hajioannou. Please go ahead, sir. Good morning to all. I'm Loukas Barmparis, Q2, Q4, Q5, President of Safe Bulkers, and I will do the presentation. I'm welcoming you at your Q4 results.

Speaker #1: Actual results may differ materially from the results projected in those forward-looking statements. Additional information concerning factors that can cause actual results to differ materially from those in the forward-looking statements is contained in the third quarter 2025 earnings release, which is available on the Safe Bulkers website at www.safebulkers.com.

Speaker #1: I would now like to turn the conference over to our speakers today, Chairman and CEO of the company, Mr. Police Hadianu. Please go ahead.

Speaker #1: sir. Good morning to all.

Loukas Barmparis: Good morning to all. I'm Loukas Barmparis, Q2, Q4, Q5, President of Safe Bulkers, and I will do the presentation. I'm welcoming you at your Q4 results.

Speaker #2: I'm Loukas Barmparis, President of Safe Bulkers, and I will do today the presentation. I welcome you to our quarterly results. Key developments of the previous period include the postponement of the IMO net zero framework and the expected gradual market fragmentation due to geopolitical reasons for fees and tariffs, resulting in increased market volatility.

Key developments of the previous period include the postponement of the IMO Net Zero framework, and the expected gradual market fragmentation due to geopolitical reasons, port fees, and tariffs, resulting in increased market volatility. The dry bulk market recovered compared to the previous quarter, and we sold two of our older vessels, part of the company's ongoing fleet renewal strategy. Our company maintains a strong capital structure, providing flexibility in our capital allocation. Lastly, we have declared a dividend of $0.05 per share of common stock, rewarding our shareholders. Following a comprehensive review of the forward-looking statement language presented in slide 2, let us proceed to examine the supply-side dynamics in slide 4. The dry bulk fleet is projected to grow by about 3% on average in 2025 and in 2026 due to stable new deliveries. The order book now stands below 11% of the current fleet.

Operator: Key developments of the previous period include the postponement of the IMO Net Zero framework, and the expected gradual market fragmentation due to geopolitical reasons, port fees, and tariffs, resulting in increased market volatility. The dry bulk market recovered compared to the previous quarter, and we sold two of our older vessels, part of the company's ongoing fleet renewal strategy. Our company maintains a strong capital structure, providing flexibility in our capital allocation. Lastly, we have declared a dividend of $0.05 per share of common stock, rewarding our shareholders. Following a comprehensive review of the forward-looking statement language presented in slide 2, let us proceed to examine the supply-side dynamics in slide 4. The dry bulk fleet is projected to grow by about 3% on average in 2025 and in 2026 due to stable new deliveries. The order book now stands below 11% of the current fleet.

Speaker #2: The dry market recovered compared to the previous quarter, and we sold two of our oldest vessels, part of the company's ongoing fleet renewal strategy.

Speaker #2: Our company maintains a strong capital structure, providing flexibility in our capital allocation. Lastly, we have declared a dividend of $0.05 per share of common stock, rewarding our shareholders.

Speaker #2: Following a comprehensive review of the forward-looking statements and language presented in slide two, let us proceed to examine the supply side dynamics in slide four.

Speaker #2: The dry bulk fleet is projected to grow by about 3% on average in 2025 and in 2026 due to stable new deliveries. The order book now stands below 11% of the current fleet.

Speaker #2: Asset prices are projected to pick up in line with the current trade market. Recycling volumes are anticipated to rise as market conditions prompt the retirement of older vessels, especially in relation to the 25% of the dry bulk fleet being older than 15 years and the overall average age of the dry bulk fleet.

Operator: Asset prices are projected to pick up in line with the current freight market. Recycling volumes are anticipated to rise as market conditions prompt the retirement of older vessels, especially in relation to the 25% of the dry bulk fleet being older than 15 years and the overall average age of the dry bulk fleet. As a result, ship recycling could be double over the next 10 years compared to the previous decade, as per BIMCO projections. Currently, 15% of ship capacity in the dry bulk order book will be ready to use alternative fuels upon delivery, and out of those ships, 52% may use methanol, 35% LNG, and 13% ammonia or hydrogen. However, the dual-fuel order book remains small on the dry bulk segment. The postponement in adoption of the global fuel standard by IMO may bring another path on decarbonization towards more pragmatic solutions.

Asset prices are projected to pick up in line with the current freight market. Recycling volumes are anticipated to rise as market conditions prompt the retirement of older vessels, especially in relation to the 25% of the dry bulk fleet being older than 15 years and the overall average age of the dry bulk fleet. As a result, ship recycling could be double over the next 10 years compared to the previous decade, as per BIMCO projections. Currently, 15% of ship capacity in the dry bulk order book will be ready to use alternative fuels upon delivery, and out of those ships, 52% may use methanol, 35% LNG, and 13% ammonia or hydrogen. However, the dual-fuel order book remains small on the dry bulk segment. The postponement in adoption of the global fuel standard by IMO may bring another path on decarbonization towards more pragmatic solutions.

Speaker #2: As a result, ship recycling could double over the next 10 years compared to the previous decade, as per BIMCO projections. Currently, 15% of ship capacity in the dry bulk order book will be ready to use alternative fuels upon delivery. Out of those ships, 52% may use methanol, 35% LNG, and 13% ammonia or hydrogen.

Speaker #2: However, the dual fuel order book remains small in the dry bulk segment. The postponement in the adoption of the global fuel standard by IMO may bring another pathway toward more pragmatic solutions.

Speaker #2: We do have two dual-fuel newbies on order, with delivery in the first quarter of 2027. Safe Bulkers' fleet now counts 12 phase fleet vessels on the water, all delivered 2022 onwards.

Operator: We do have two dual-fuel new builds on order with delivery in Q4, Q2, Q2. Safe Bulkers Inc. fleet now counts 12 phased new vessels on the water, all delivered 2022 onwards. On top of that, 24 vessels have been environmentally upgraded, and 11 are eco-vessels having superior design efficiencies. 80% of our fleet comprises Japanese-built vessels, double the global average of 40%, while our average fleet age of 10.1 years being 2.5 years younger compared to the global average of 12.6 years. Our commercial competitiveness will strengthen as we will be taking delivery of our remaining order book of six phase three vessels. By Q4, Q2, Q7, Safe Bulkers Inc.

We do have two dual-fuel new builds on order with delivery in Q4, Q2, Q2. Safe Bulkers Inc. fleet now counts 12 phased new vessels on the water, all delivered 2022 onwards. On top of that, 24 vessels have been environmentally upgraded, and 11 are eco-vessels having superior design efficiencies. 80% of our fleet comprises Japanese-built vessels, double the global average of 40%, while our average fleet age of 10.1 years being 2.5 years younger compared to the global average of 12.6 years. Our commercial competitiveness will strengthen as we will be taking delivery of our remaining order book of six phase three vessels. By Q4, Q2, Q7, Safe Bulkers Inc.

Speaker #2: On top of that, 24 vessels have been environmentally upgraded, and 11 are eco vessels having superior design efficiencies. Eighty percent of our fleet comprises Japanese-built vessels, double the global average of 40%, while our average fleet age of 10.1 years is two and a half years younger compared to the global average of 12.6 years.

Speaker #2: Our commercial competitiveness will strengthen as we will be taking delivery of our remaining order book of six Phase Three vessels. By the first quarter of 2027, Safe Bulkers' fleet will be comprised of 35% Phase Three vessels, 18 out of 51, positioning us favorably to compete based on the fuel efficiency of our vessels while the shipbuilding capacity will continue to be constrained, leading to longer fleet times.

Fleet will be comprised of 35% phase three vessels, 18 out of 51, positioning us favorably to compete based on the fuel efficiency of our vessels, while the shipbuilding capacity will continue to be constrained, leading to longer fleet times. Moving on to slide 5, we present an overview of the demand and basic commodities trade. The combination of trade war, as expected, through tariffs, high debt, high interest rates, new fiscal demands, and persisting geopolitical tensions elevate policy uncertainty, straining public finances, and pose a considerable down risk for global growth and disinflation. For our segment, we anticipate an improving trade market rate as a result of the trade truce resulted from the agreement between the US and China, with an increasing focus on the existing fleet decarbonization and energy-efficient new builds.

Operator: Fleet will be comprised of 35% phase three vessels, 18 out of 51, positioning us favorably to compete based on the fuel efficiency of our vessels, while the shipbuilding capacity will continue to be constrained, leading to longer fleet times. Moving on to slide 5, we present an overview of the demand and basic commodities trade. The combination of trade war, as expected, through tariffs, high debt, high interest rates, new fiscal demands, and persisting geopolitical tensions elevate policy uncertainty, straining public finances, and pose a considerable down risk for global growth and disinflation. For our segment, we anticipate an improving trade market rate as a result of the trade truce resulted from the agreement between the US and China, with an increasing focus on the existing fleet decarbonization and energy-efficient new builds.

Speaker #2: Moving on to slide five, we present an overview of the demand and basic commodities trade. The combination of the trade war, as expected, through tariffs, high debt, high interest rates, new fiscal demands, and persisting geopolitical tensions elevates policy uncertainty, straining public finances and posing a considerable downside risk for global growth and disinflation.

Speaker #2: For our segment, we anticipate an improving trade market rate as a result of the trade truce resulting from the agreement between the U.S. and China, with an increasing focus on the existing fleet decarbonization and energy-efficient new builds.

Speaker #2: The global GDP growth expectations for 2026 and 2027, as reflected in the IMF's October forecast, call for a growth of about 3% in the coming years, accompanied by a gradual control of inflationary pressures.

The global GDP growth expectations for 2026 and 2027, as reflected in the IMF's Q3 forecast, call for a growth of about 3% in the coming years, accompanied by a gradual control of inflationary pressures. According to BIMCO, the forecasted global dry bulk demand growth will be 2% in 2026, followed by 1.5% in 2027, with grains and minor bulks being the best-performing sectors. China and India are gradually boosting domestic coal production, reducing import demand. China has been rapidly phasing out fossil fuels from electricity generation, boosting renewables, reducing import dependence. China's economy is still being affected by property sector crisis, and manufacturing overcapacity. Trade tensions between the US and China, although truce has been reached, remain a key source of global economic uncertainty.

Operator: The global GDP growth expectations for 2026 and 2027, as reflected in the IMF's Q3 forecast, call for a growth of about 3% in the coming years, accompanied by a gradual control of inflationary pressures. According to BIMCO, the forecasted global dry bulk demand growth will be 2% in 2026, followed by 1.5% in 2027, with grains and minor bulks being the best-performing sectors. China and India are gradually boosting domestic coal production, reducing import demand. China has been rapidly phasing out fossil fuels from electricity generation, boosting renewables, reducing import dependence. China's economy is still being affected by property sector crisis, and manufacturing overcapacity. Trade tensions between the US and China, although truce has been reached, remain a key source of global economic uncertainty.

Speaker #2: According to BIMCO, the forecasted global dry bulk demand growth will be 2% in 2026, followed by 1.5% in 2027, with grains and minor bulks being the best-performing sectors.

Speaker #2: China and India are gradually boosting domestic coal production, reducing import demand. China has been rapidly phasing out fossil fuels from electricity generation, boosting renewables and reducing import dependence.

Speaker #2: China's economy is still being affected by the property sector crisis and manufacturing overcapacity. Trade tensions between the U.S. and China, although a truce has been reached, remain a key source of global economic uncertainty.

Speaker #2: On the good side, additional Chinese purchases of U.S. soybeans were reported, with a total of about 1 million tons sold since the U.S.-China trade war truce. Meanwhile, the U.S. has suggested that China could purchase up to 12 million tons of U.S. soybeans.

On the good side, additional Chinese purchases of US soya beans were reported, with a total of about 1 million tons sold since the US-China trade war truce, while the US has suggested that China could purchase up to 12 million tons of US soya beans. India continues to perform and is projected to experience the fastest growth among major economies, with a forecasted 6.2% GDP increase in 2026. Its expanding domestic market and manufacturing sector may continue to contribute positively to the dry bulk demand, with infrastructure investments playing a vital role. The Japanese government approved a $135 billion economic stimulus package, the country's largest package since the COVID period, amid slowing economic growth, with measures also containing dedicated funding for the Japanese shipbuilding industry. Currently, in the Q4 market, multiple miners continue offering cargoes in both basins.

Operator: On the good side, additional Chinese purchases of US soya beans were reported, with a total of about 1 million tons sold since the US-China trade war truce, while the US has suggested that China could purchase up to 12 million tons of US soya beans. India continues to perform and is projected to experience the fastest growth among major economies, with a forecasted 6.2% GDP increase in 2026. Its expanding domestic market and manufacturing sector may continue to contribute positively to the dry bulk demand, with infrastructure investments playing a vital role. The Japanese government approved a $135 billion economic stimulus package, the country's largest package since the COVID period, amid slowing economic growth, with measures also containing dedicated funding for the Japanese shipbuilding industry. Currently, in the Q4 market, multiple miners continue offering cargoes in both basins.

Speaker #2: India continues to perform and is projected to experience the fastest growth among major economies, with a forecasted 6.2% GDP increase in 2026. Each expanding nomadic market and manufacturing sector may continue to contribute positively to the dry bulk demand, with infrastructure investments playing a vital role.

Speaker #2: The Japanese government approved a $135 billion economic stimulus package, the country's largest package since the COVID period, amid slowing economic growth, with measures also containing dedicated funding for the Japanese shipbuilding industry.

Speaker #2: Currently, in the spot trade market, multiple miners continue offering cargoes in both basins. Steady gains were made in the Atlantic, with sentiment supported by the expectation of further U.S.-China grain sales and a tight forward tonnage list.

Operator: Steady gains were made in the Atlantic, with sentiment supported by expectations of further US-China grain sales and a tight forward tonnage list. Fresh US grain cargoes also boosted NOPAC rates. Looking forward in 2026 and 2027, an expected decline in coal cargoes and limited iron ore cargo growth will negatively impact demand growth. Instead, growth is expected to come from stronger grain and minor bulk shipments, and from longer sailing distances. Summing up the supply-demand equilibrium on slide 6, the supply growth is expected to continue to outpace demand. The trade market has rebounded recently during the start of Q3. All eight of our capes are presently period chartered, with an average remaining charter duration of almost 1.7 years and an average daily charter rate of $24,800, providing us visibility of cash flows, topping $124 million in contracted revenue backlog from capes alone.

Steady gains were made in the Atlantic, with sentiment supported by expectations of further US-China grain sales and a tight forward tonnage list. Fresh US grain cargoes also boosted NOPAC rates. Looking forward in 2026 and 2027, an expected decline in coal cargoes and limited iron ore cargo growth will negatively impact demand growth. Instead, growth is expected to come from stronger grain and minor bulk shipments, and from longer sailing distances. Summing up the supply-demand equilibrium on slide 6, the supply growth is expected to continue to outpace demand. The trade market has rebounded recently during the start of Q3. All eight of our capes are presently period chartered, with an average remaining charter duration of almost 1.7 years and an average daily charter rate of $24,800, providing us visibility of cash flows, topping $124 million in contracted revenue backlog from capes alone.

Speaker #2: Fresh U.S. grain cargoes also boosted NOPAC rates. Looking forward, in 2026 and 2027, an expected decline in coal cargoes and limited iron ore cargo growth will negatively impact demand growth.

Speaker #2: Instead, growth is expected to come from stronger grain and minor bulk shipments, and from longer sailing distances. Summing up the supply-demand equilibrium on slide six, supply growth is expected to continue to outpace demand.

Speaker #2: The trade market has rebounded recently during the start of the third quarter. All eight of our capes are presently period-chartered, with an average remaining charter duration of almost 1.7 years and an average daily charter rate of $24,800, providing us visibility of cash flows topping $124 million in contracted revenue backlog from capes alone.

Speaker #2: Moving to slide eight, we present an overview of our quarterly highlights. We have declared our 16th consecutive quarterly dividend of $0.05, representing a 4.1% dividend yield. At the same time, our free cash flows...

Moving to slide 8, we present an overview of our Q4 highlights. We have declared our 16th consecutive Q4 dividend of $0.05, representing a 4.1% dividend yield. At the same time, our free cash flows finance our new building program. We maintain ample liquidity, profitability, and capital resources of $390 million at a comfortable leverage of about 35%. We sold two of our oldest vessels in our fleet, in line with our fleet renewal strategy, and achieved zero vessels in D and E carbon intensity CII rating of IMO for 2024, as described in our 2024 sustainability report. In slide 9, we present our returns to shareholders of $83.9 million, paid in common dividends, and $74.9 million paid in common shares repurchases since 2022. We have been consistent in generating sustainable returns across market fluctuations because of our track record, hands-on management, and our overall business model.

Operator: Moving to slide 8, we present an overview of our Q4 highlights. We have declared our 16th consecutive Q4 dividend of $0.05, representing a 4.1% dividend yield. At the same time, our free cash flows finance our new building program. We maintain ample liquidity, profitability, and capital resources of $390 million at a comfortable leverage of about 35%. We sold two of our oldest vessels in our fleet, in line with our fleet renewal strategy, and achieved zero vessels in D and E carbon intensity CII rating of IMO for 2024, as described in our 2024 sustainability report. In slide 9, we present our returns to shareholders of $83.9 million, paid in common dividends, and $74.9 million paid in common shares repurchases since 2022. We have been consistent in generating sustainable returns across market fluctuations because of our track record, hands-on management, and our overall business model.

Speaker #1: Forces of 390 million at a comfortable leverage of about 35% . We sold two of our oldest vessels in our fleet , in line with our fleet renewal strategy , and achieved zero vessels in in D and E carbon intensity CII rating of for IMO 2024 , as described in our 2024 Sustainability Report .

Speaker #1: In Slide 9, we present our returns to shareholders: $83.9 million paid in common dividends and $74.9 million paid in common share repurchases since 2022.

Speaker #1: We have been consistent in generating sustainable returns across market fluctuations because of record hands-on management and our overall business model.

Speaker #1: Concluding, in the update on slide ten, we present our strong fundamentals. Safe Bulkers Inc. is a dry bulk company with a market cap of $496 million and 45 vessels on the water, having a scrap value of $274 million.

Operator: Concluding the company update in slide 10, we present our strong fundamentals. Safe Bulkers Inc. is a dry bulk company with $496 million market cap. Forty-five vessels on the water have a $274 million scrap value. We maintain significant firepower with $124 million cash and $267 million in undrawn RCFs involving credit facilities, and $176 million borrowing capacity against our significant order book of six new builds, mainly in Japanese shipyards. We focus on our majority Japanese-built fleet advantage, on fleet energy efficiency, and lower CO2 taxation reflected in our CII rating of zero vessels on the bottom ratings of D and E. We maintain a young, technologically advanced fleet, strong balance sheet, comfortable leverage, and low net debt per vessel of $8.7 million for a 10.1-year-old fleet.

Concluding the company update in slide 10, we present our strong fundamentals. Safe Bulkers Inc. is a dry bulk company with $496 million market cap. Forty-five vessels on the water have a $274 million scrap value. We maintain significant firepower with $124 million cash and $267 million in undrawn RCFs involving credit facilities, and $176 million borrowing capacity against our significant order book of six new builds, mainly in Japanese shipyards. We focus on our majority Japanese-built fleet advantage, on fleet energy efficiency, and lower CO2 taxation reflected in our CII rating of zero vessels on the bottom ratings of D and E. We maintain a young, technologically advanced fleet, strong balance sheet, comfortable leverage, and low net debt per vessel of $8.7 million for a 10.1-year-old fleet.

Speaker #1: We maintain significant firepower with $124 million in cash and $267 million in undrawn RCF revolving credit facilities, and $176 million borrowing capacity against our significant order book of six new builds, mainly at Japanese shipyards.

Speaker #1: We focus on our majority Japanese fleet advantage on fleet energy efficiency and CO2 lower taxation , reflected in our Qii rating of zero vessels on the bottom ratings of D and E , we maintain a junk , technologically advanced fleet , strong balance sheet , comfortable leverage , and low net debt per vessel of 8.7 million a for old fleet .

Speaker #1: We have built a resilient business model with cash flow visibility of $164 million in revenue backlog, healthy expansion, and a sizeable fleet that achieves scale. We are positioned to leverage each fuel efficiency with a meaningful 4.1% annualized dividend yield.

Operator: We have built a resilient business model with cash flow visibility of $164 million in revenue backlog, healthy expansion for a sizable fleet that achieves scale, and a meaningful 4.1% annualized dividend yield, positioned to leverage on its fuel efficiency. I now pass the floor to our CFO, Konstantinos Adamopoulos, for our Quarterly Financial Review. Konstantinos, the floor is yours. Thank you, Loukas, and good morning to everyone. During Q3 of 2025, we operated in a weaker charter market environment compared to the same period in 2024, with decreased revenues due to lower charter highs and decreased earnings from scrubber-fitted vessels. Moving on to slide 12, with our Quarterly Financial Highlights for Q3 of 2025 compared to the same period of 2024. Our adjusted EBITDA for Q3 of 2025 stood at $36.1 million compared to $41.3 million for the same period in 2024.

We have built a resilient business model with cash flow visibility of $164 million in revenue backlog, healthy expansion for a sizable fleet that achieves scale, and a meaningful 4.1% annualized dividend yield, positioned to leverage on its fuel efficiency. I now pass the floor to our CFO, Konstantinos Adamopoulos, for our Quarterly Financial Review. Konstantinos, the floor is yours.

Speaker #1: I now pass the floor to our CFO , Konstantinos Adamopoulos for our quarterly financial review . Konstantinos , the floor is yours . Thank you , Lucas , and good morning to .

Speaker #1: Everyone, during the third quarter of 2025, we operated in a weaker market charter.

Konstantinos Adamopoulos: Thank you, Loukas, and good morning to everyone. During Q3 of 2025, we operated in a weaker charter market environment compared to the same period in 2024, with decreased revenues due to lower charter highs and decreased earnings from scrubber-fitted vessels. Moving on to slide 12, with our Quarterly Financial Highlights for Q3 of 2025 compared to the same period of 2024. Our adjusted EBITDA for Q3 of 2025 stood at $36.1 million compared to $41.3 million for the same period in 2024.

Speaker #2: Environment compared to the same period in 2024 . With revenues due to lower charter hires and decreased earnings from Scarborough fitted vessels . Moving on 12 with our quarterly financial highlights for the third quarter of 2025 , compared to the same period of 2024 , our adjusted EBITDA for the third quarter of 2025 stood at $36.1 million , compared to $41.3 million for the same period in 2024 .

Speaker #2: Our adjusted earnings per share for the third quarter of 2025 was $0.12. This is calculated on an average number of 102.3 million shares, compared to $0.16 during the same period last year, calculated on a weighted average number of 106.8 million shares.

Our adjusted earnings per share for Q3 of 2025 was $0.12. This is calculated on a weighted average number of 102.3 million shares, compared to $0.16 during the same period last year, calculated on a weighted average number of 106.8 million shares. In the graph on the top, during Q3 of 2025, we operated 46.51 vessels on average, earning an average time charter equivalent of $15,507, compared to 45.27 vessels on average, earning TCE of $17,108 during the same period in 2024. Our daily vessel running expenses decreased by 4% to $5,104 for Q3 of 2025, compared to $5,311 for the same period in 2024. Daily running expenses, excluding dry docking and pit delivery expenses, increased by 1% to $5,060 for Q3 of 2025, compared to $4,999 for the same period last year.

Operator: Our adjusted earnings per share for Q3 of 2025 was $0.12. This is calculated on a weighted average number of 102.3 million shares, compared to $0.16 during the same period last year, calculated on a weighted average number of 106.8 million shares. In the graph on the top, during Q3 of 2025, we operated 46.51 vessels on average, earning an average time charter equivalent of $15,507, compared to 45.27 vessels on average, earning TCE of $17,108 during the same period in 2024. Our daily vessel running expenses decreased by 4% to $5,104 for Q3 of 2025, compared to $5,311 for the same period in 2024. Daily running expenses, excluding dry docking and pit delivery expenses, increased by 1% to $5,060 for Q3 of 2025, compared to $4,999 for the same period last year.

Speaker #2: In the graph on the top, during the third quarter of 2025, we operated an average of 46.51 vessels, adding an average time charter equivalent of $15,507, compared to 45.27 vessels on average, ending TCE of $17,108.

Speaker #2: During the same period . In 2024 . Our daily vessel running expenses decreased by 4% to 5104 vessels dollars for the third quarter of 2025 , compared to $5,311 for the same period in 2024 .

Speaker #2: This daily running expense, excluding dry docking and delivery expenses, increased by 1% to $5,060 for the third quarter of 2025, compared to $4,999 for the same period last year.

Speaker #2: In slide 13, we see a quick overview of our quarterly operational highlights for the third quarter of 2025. In comparison to the same period last year, let's.

In slide 13, we see a quick overview of our Quarterly Operational Highlights for Q3 2025 in comparison to the same period last year. Let's continue now to slide 14, where we present our balance sheet analysis, noting that our assets are presented in their book value. The company maintains a healthy balance sheet, supported by robust equity pace at conservative leverage levels. Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility and take advantage of market opportunities. Our capital structure positions the company for sustainable, long-term growth and resilience. Concluding our presentation in the last slide, number 15, we present our daily free cash flow for the nine months of 2025, illustrating the company's ability to generate free cash flows, highlighting disciplined cost control and efficient vessel operations.

Operator: In slide 13, we see a quick overview of our Quarterly Operational Highlights for Q3 2025 in comparison to the same period last year. Let's continue now to slide 14, where we present our balance sheet analysis, noting that our assets are presented in their book value. The company maintains a healthy balance sheet, supported by robust equity pace at conservative leverage levels. Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility and take advantage of market opportunities. Our capital structure positions the company for sustainable, long-term growth and resilience. Concluding our presentation in the last slide, number 15, we present our daily free cash flow for the nine months of 2025, illustrating the company's ability to generate free cash flows, highlighting disciplined cost control and efficient vessel operations.

Speaker #2: Now to slide 14, where we will present our balance sheet analysis, noting that our assets are presented in their book value.

Speaker #2: company maintains The a healthy balance sheet supported by robust equity pays at the conservative leverage levels , strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility and take advantage of market opportunities .

Speaker #2: Our capital structure positions the company for sustainable long term growth and resilience , concluding our presentation in the last slide , number 15 , we present our daily free cash flow for nine months the of 2025 , illustrating the company's ability to generate free cash flow , cash flows , highlighting disciplined cost control and efficient vessel operations .

Speaker #2: would like to We highlight that based on our financial performance , the company's board of directors has declared a five cent dividend per common share .

Operator: We would like to highlight that based on our financial performance, the company's board of directors has declared a $0.05 dividend per common share. The company is maintaining a healthy cash flow position of $187 million as of 21 November 2025, another $210 million in available un-drawn revolving credit facilities, so a combined liquidity and capital resources just shy of $400 million, plus a contracted revenue of $154 million. This underscores our capacity to support debt service, reinvestment, and shareholder returns at the same time, which enables us to expand the fleet, build a resilient company, and create long-term prosperity for our shareholders. Thank you, and we are now ready for the Q&A session. Thank you. We're now presenting a question-and-answer session. If you'd like to be placed in the question queue, please press *1 on your telephone keypad.

We would like to highlight that based on our financial performance, the company's board of directors has declared a $0.05 dividend per common share. The company is maintaining a healthy cash flow position of $187 million as of 21 November 2025, another $210 million in available un-drawn revolving credit facilities, so a combined liquidity and capital resources just shy of $400 million, plus a contracted revenue of $154 million. This underscores our capacity to support debt service, reinvestment, and shareholder returns at the same time, which enables us to expand the fleet, build a resilient company, and create long-term prosperity for our shareholders. Thank you, and we are now ready for the Q&A session.

Speaker #2: The company is maintaining a healthy cash flow position of $187 million as of November 21, 2025. Additionally, there is another $210 million in available undrawn revolving credit facilities.

Speaker #2: So, a combined liquidity and capital resources just shy of $400 million, plus contracted revenue of $100 million and $154 million. This underscores our capacity to support debt service, reinvestment, and shareholder returns.

Speaker #2: At the same time, this enables us to expand the fleet, build a resilient company, and create long-term prosperity for our shareholders.

Speaker #2: Thank you. We are now ready for the Q&A session.

Speaker #3: Thank you. We're now getting into a question-and-answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad.

Operator: Thank you. We're now presenting a question-and-answer session. If you'd like to be placed in the question queue, please press *1 on your telephone keypad.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press *2 if you'd like to move your line from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing *1.

Operator: A confirmation tone will indicate your line is in the question queue. You may press *2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing *1. Once again, that's *1 to be placed in the question queue. One moment, please, while we pull for questions. As a reminder, that's *1 to be placed in the question queue. We have reached the end of our Q&A session. I'd like to turn the floor back over for any further or closing comments. If there are no questions, I'll turn it back over to management. Okay. Thank you very much for attending this conference call, and we'll be in touch next quarter. Thank you very much. Thank you. That does conclude today's teleconference webcast.

A confirmation tone will indicate your line is in the question queue. You may press *2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing *1. Once again, that's *1 to be placed in the question queue. One moment, please, while we pull for questions. As a reminder, that's *1 to be placed in the question queue. We have reached the end of our Q&A session. I'd like to turn the floor back over for any further or closing comments. If there are no questions, I'll turn it back over to management.

Speaker #3: Once again, that's Star One to be placed into the question queue. One moment, please, while we poll for questions. As a reminder, Star One to be placed into the question queue.

Speaker #3: We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

Speaker #3: If there are no questions, I'll turn it back over to management.

Speaker #1: Okay , so thank you very much for attending this conference call . And we'll be in touch next quarter . Thank you very much .

Loukas Barmparis: Okay. Thank you very much for attending this conference call, and we'll be in touch next quarter. Thank you very much.

Speaker #3: Thank you. This concludes today's teleconference webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Operator: Thank you. That does conclude today's teleconference webcast.

Operator: You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Operator: You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.