Q1 2026 Star Bulk Carriers Corp Earnings Call

May 21, 2026

Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers conference call and Q1 2026 financial results. We have with us today Mr. Petros Pappas, Chief Executive Officer, Mr. Hamish Norton, President, Mr. Simos Spyrou and Mr. Christos Begleris, Co-Chief Financial Officers, Mr. Nicos Rescos, Chief Operating Officer, and Mrs. Charis Plakantonaki, Chief Strategy Officer of the company. At this time, all participants are in listen only mode. There will be a presentation followed by question and answer session. I must advise you this conference call is being recorded today. We now pass the floor to our speaker today, Mr. Begleris. Please go ahead, sir.

Speaker #2: Mr. Nikos Rescos, Chief Operating Officer; and Mrs. Charis Plakantonaki, Chief Strategy Officer of the company. At this time, all participants are in listen-only mode.

Speaker #2: There'll be a presentation followed by a question-and-answer session, at which time you have, if you wish, to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced.

Operator 2: I must advise you this conference call is being recorded today. We now pass the floor to our speaker today, Mr. Begleris. Please go ahead, sir.

Speaker #2: I must advise you this conference call is being recorded today. We do not plan to forward to our speaker today, Mr. Begleris. Please go ahead, sir.

Speaker #2: Thank you, Operator. Good morning, ladies and gentlemen, and thank you for joining us today. I'm Christos Begleris, Co-Chief Financial Officer of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the first quarter of 2025.

Christos Begleris: Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. I'm Christos Begleris, Co-Chief Financial Officer of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the Q1 2025. Before we begin, I kindly ask you to take a moment to read the safe harbor statement on slide 2 of our presentation. In today's presentation, we will review our Q1 2026 company highlights, financial performance, capital allocation initiatives, cash evolution during the quarter, operational performance, our continued investments in the fleet, developments on the regulatory front, and our perspective on industry fundamentals. We will then open the floor for questions. Turning to slide 3, the Q1 was characterized by solid profitability, disciplined capital allocation, and continued balance sheet strength.

Speaker #2: Before we begin, I kindly ask you to take a moment to read the safe harbor statement on slide number 2 of our presentation. In today's presentation, we will review our first quarter 2026 company highlights, financial performance, capital allocation initiatives, cash evolution during the quarter, operational performance, our continued investments in the fleet, developments on the regulatory front, and our perspective on industry fundamentals.

Speaker #2: We will then open the floor for questions. Turning to slide 3, the first quarter was characterized by solid profitability, disciplined capital allocation, and continued balance sheet strength.

Speaker #2: Net income amounted to 58.5 million, while adjusted net income reached 63 million, or 52 cents adjusted earnings per share. Adjusted EBITDA was 114.3 million, demonstrating the strong cash-generating capacity of our platform.

Christos Begleris: Net income amounted to $58.5 million, while adjusted net income reached $63 million or $0.52 adjusted earnings per share. Adjusted EBITDA was $114.3 million, demonstrating the strong cash-generating capacity of our platform. On the shareholder returns front, we continue to actively return capital to our shareholders. Share repurchases during Q1 and until today, we have repurchased approximately 1.9 million shares, totaling $37.9 million. On the dividends front, our board of directors declared a $0.50 per share dividend for Q1, payable on 20 June to all shareholders of record as of 12 June 2026. Our balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately at $432 million. Outstanding debt is at approximately $874 million. We also have an undrawn revolver capacity of $110 million. We currently own 29 debt-free vessels with an aggregate market value of around $700 million.

Speaker #2: On the shareholder returns front, we continue to actively return capital to our shareholders. Share repurchases during the first quarter and until today we have repurchased approximately 1.9 million shares, totaling 37.9 million.

Speaker #2: On the dividends front, our board of directors declared a 50 cents per share dividend for the quarter, payable on June 20th to all shareholders of record as of June 12th, 2026.

Speaker #2: Our balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately at 432 million, outstanding debt is at approximately 874 million.

Speaker #2: We also have an unwritten revolver capacity of 110 million. We currently own 29 debt-free vessels, with an aggregate market value of around 700 million.

Speaker #2: Our overall low leverage as well as this unencumbered asset base provides substantial financial flexibility to fund growth opportunities as well as downside protection. To further enhance shareholder value, we have updated our dividend distribution policy.

Christos Begleris: Our overall low leverage, as well as this unencumbered asset base, provides substantial financial flexibility to fund growth opportunities as well as downside protection. To further enhance shareholder value, we have updated our dividend distribution policy. We distribute 100% of free cash flow, subject to maintaining a minimum cash balance of 2.1 million per vessel. As far as operating performance is concerned, on the top right side of the slide, you can see our per-vessel daily performance metrics for the quarter. Time charter equivalent was at $18,493 per vessel per day. Combined daily OpEx and net cash G&A was at $6,420 per vessel per day. This results in a daily cash margin of approximately $12,073 per vessel per day before debt service and CapEx. These numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow even at mid-cycle rate levels.

Speaker #2: We distribute 100% of free cash flow subject to maintaining a minimum cash balance of 2.1 million per vessel. As far as operating performance is concerned, on the top right side of the slide, you can see our per vessel daily performance metrics for the quarter.

Speaker #2: Times are equivalent was at 18,000, 493 per vessel per day. Combined daily OPEX and net cash GNA was at 6,420 per vessel per day.

Speaker #2: These results in a daily cash margin of approximately 12,073 dollars per vessel per day before debt service and CAPEX. These numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow even at mid-cycle rate levels.

Speaker #2: Slide 4 summarizes our capital allocation track record over the last 6 years. Since 2021, we have executed approximately $3.1 billion in value-enhancing actions, including dividends, share repurchases, and debt repayment.

Christos Begleris: Slide 4 summarizes our capital allocation track record over the last 6 years. Since 2021, we have executed approximately on $3.1 billion value-enhancing actions, including dividends, share repurchases, and debt repayment. During this period, we have returned approximately $14 per share in dividends, representing approximately 54% of our current share price. We have reduced total net debt by 63%, bringing leverage to a level where net debt is at 56% of the demolition value of our fleet. During the same period, we have expanded the fleet opportunistically through accretive fleet acquisitions, issuing equity at or above net asset value, thereby increasing scale while protecting per share value. The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential. Slide 5 illustrates the movements in our cash balance during the Q1.

Speaker #2: During this period, we have returned approximately 14 dollars per share in dividends, representing approximately 54% of our current share price. We have reduced total net debt by 63%, bringing leverage to a level where net debt is at 56% of the demolition value of our fleet.

Speaker #2: During the same period, we have expanded the fleet opportunistically through accretive fleet acquisitions, issuing equity at or above net asset value, thereby increasing scale while protecting per share value.

Speaker #2: The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential. Slide 5 illustrates the movements in our cash balance during the first quarter.

Speaker #2: We began the quarter with $502 million in cash. We generated $112 million in operating cash flow. After vessel sale proceeds, debt drawdowns and repayments, CAPEX payments related to newbuilding installments, and energy-saving devices and ballast water treatment system installations, share buybacks, and the fourth quarter dividend, we ended the quarter with $409 million in cash.

Christos Begleris: We began the quarter with $502 million in cash. We generated $112 million in operating cash flow. After vessel sale proceeds, debt drawdowns and repayments, CapEx payments related to new building installments and energy-saving devices and ballast water treatment system installations, share buybacks, and the Q4 dividend, we ended the quarter with $409 million in cash. This sequential increase in cash underscores the strong internal cash generation of the company, even after substantial shareholder returns and investment in fleet upgrades. Slide 6 includes our diversified fleet driving strong earnings contribution across all segments. Star Bulk delivered a well-balanced operating performance supported by our diversified fleet of 136 vessels and over 12,000 ownership days. Ultramax Supramax vessels remained the largest contributor of revenue at 38%, generating $80.7 million in revenue and $39.7 million in adjusted EBITDA.

Speaker #2: This sequential increase in cash underscores the strong internal cash generation of the company, even after substantial shareholder returns and investment in fleet upgrades. Slide 6, includes our diversified fleet driving strong earnings contribution across all segments.

Speaker #2: Star Bulk delivered a well-balanced operating performance, supported by our diversified fleet of 136 vessels and over 12,000 ownership days. Ultramax and Supramax vessels remained the largest contributors of revenue at 38%, generating $80.7 million in revenue and $39.7 million in adjusted EBITDA.

Speaker #2: Newcastle Max Capesize vessels contributed 33% of revenue and 36% of adjusted EBITDA, benefiting from strong market positioning and representing 41% of our fleet's market value.

Christos Begleris: Newcastlemax Capesize vessels contributed 33% of revenue and 36% of adjusted EBITDA, benefiting from strong market positioning and representing 41% of our fleet's market value. Post-Panamax and Kamsarmax segments continue to provide stable earnings, contributing 29% of revenue and 28% of adjusted EBITDA. Overall, our fleet generated $212.5 million in revenue and $113 million in adjusted EBITDA during the quarter, highlighting the resilience of our diversified commercial strategy and efficient fleet deployment. Slide 7 highlights the inherent operating leverage embedded in our business model. With approximately 48,500 fleet available days per year and based on a current net 12-month FSA curve of approximately 20,500 per day on a fleet-wide basis, the company would generate approximately $3.4 per share of free cash flow, representing a 13% implied cash flow yield. The slide illustrates the strength of our platform in a rising market.

Speaker #2: Post Panamax and Comsomax segments continue to provide stable earnings, contributing 29% of revenue and 28% of adjusted EBITDA. Overall, our fleet generated $212.5 million in revenue and $113 million in adjusted EBITDA during the quarter, highlighting the resilience of our diversified commercial strategy and efficient fleet deployment.

Speaker #2: Slide 7 highlights the inherent operating leverage embedded in our business model. With approximately 48,500 fleet available days per year, and based on a current net 12-month FFA curve of approximately 120,500 per day on a fleet-wide basis, the company would generate approximately 3.4 dollars per share of free cash flow, representing a 13% implied cash flow yield.

Speaker #2: The slide illustrates the strength of our platform in a rising market. Every 1,500 dollars fleet-wide increase in TCE equates to an EBITDA increase of 71 million.

Christos Begleris: Every $1,500 fleet-wide increase in TCE equates to an EBITDA increase of $71 million. This would translate to $0.64 per share of incremental dividend to our shareholders, given our existing approach to distributions. In summary, during Q1, we delivered solid profitability, we strengthened our liquidity position, we continued to de-lever, we returned meaningful capital to shareholders, and we preserved significant optionality for future capital allocation. Our balance sheet resilience, operating efficiency, and disciplined capital allocation framework position us well to navigate market volatility while continuing to enhance per-share value. With that, I will now pass the floor to our COO, Nicos Rescos, for an update on our operational performance and the continued investments we are making in our fleet.

Speaker #2: This would translate to 64 cents per share of incremental dividend to our shareholders, given our existing approach to distributions. In summary, during first quarter, we delivered solid profitability, we strengthened our liquidity position, we continue to deliver, we returned meaningful capital to shareholders, and we preserved significant optionality for future capital allocation.

Speaker #2: Our balance sheet resilience operating efficiency and disciplined capital allocation framework position us well to navigate market volatility while continuing to enhance per share value.

Speaker #2: With that, I will now pass the floor to our COO, Nicos Rescos, for an update on our operational performance and the continued investments we are making in our fleet.

Speaker #2: Thank you, Christos. Turning to slide 8, which covers our operational performance. We continue to operate one of the most cost-efficient platforms in the dry bulk sector.

Nicos Rescos: Thank you, Christos. Turning to slide 8, covers our operational performance. We continue to operate one of the most cost-efficient platforms in the dry bulk sector. Daily OpEx for Q1 came in at $5,045 per vessel and net cash G&A at $1,375. Both among the lowest in our peer group as illustrated. This sustained cost discipline reflects our scale, our integrated management platform, and the synergies crystallized through the Eagle Bulk integration and translates directly into superior cash generation through the cycle. Moving to slide 9, which outlines our fleet-wide investment program. On the new building front, all 8 of our latest generation high-specification Kamsar fleet buildings are on track for delivery during 2026, with $195 million of CapEx remaining.

Speaker #2: Daily OPEX for the first quarter came in at 5,045 dollars per vessel, and net CAS GNA at 1,375. Both among the lowest in our peer group as illustrated.

Speaker #2: This sustained cost discipline reflects our scale, our integrated management platform, and the synergies crystallized through the Eagle Bulk integration, and translates directly into superior cash generation through the cycle.

Speaker #2: Moving to slide 9, which outlines our fleet-wide investment program. On the newbuilding front, all eight of our latest generation high-specification Comsom Max fleet buildings are on track for delivery during 2026, with $195 million of CAPEX remaining.

Speaker #2: Financing is largely in place, where we have secured 130 million of debt against a 5 King Dow built vessels and expect a further 51.2 million against a 3 Heng Li built vessels, leaving the program fully funded on competitive terms.

Nicos Rescos: Financing is largely in place, where we have secured $130 million of debt against the 5 Qingdao-built vessels and expect a further $51.2 million against the 3 Hengli-built vessels, leaving the program fully funded on competitive terms. In our strengthening Kamsar market, the prompt deliveries of these vessels remain highly attractive to our customers, combining an approximate $40 million mark-to-market gain for our shareholders. On vessel upgrades during Q1, we continue pushing through with energy-saving devices and high-efficiency propeller installations. To date, we have completed 61 ESD installations across the fleet with a further 8 scheduled for 2026. Together with telemetry retrofits, hull upgrades in way of silicone paints, and deployment of hull cleaning robots, we measure tangible vessel performance improvements between 7% and 15%, which directly translate into improved commercial performance and attractiveness of our fleet.

Speaker #2: In our strengthening Comsomax market, the prompt deliveries of these vessels remain highly attractive to our customers, combined with an approximate $40 million mark-to-market gain for our shareholders.

Speaker #2: On vessel upgrades, during the first quarter, we continue pushing through with energy-saving devices and high-efficiency propeller installations. To date, we have completed 61 ESD installations across the fleet, with a further eight scheduled for 2026.

Speaker #2: Together with telemetry, retrofits, hull upgrades, and way of silicon paints, and deployment of hull cleaning robots, we measure tangible vessel performance improvements between 7 and 15 percent, which directly translates into improved commercial performance and attractiveness of our fleet.

Speaker #2: The top right of the slide illustrates our CAPEX schedule, presenting both the remaining newbuilding installments and our vessel efficiency upgrade spending, alongside the corresponding debt drawdowns.

Nicos Rescos: The top right of the slide illustrates our CapEx schedule, presenting both the remaining new building installments and our vessel efficiency upgrade spending alongside the corresponding debt drawdowns. At the bottom, you can see our drydock schedule for the remainder of 2026, which totals approximately $42 million and around 1,236 off-hire days. Turning to slide 10 for our fleet update. We'll continue to actively rejuvenate our fleet through a disciplined combination of selective disposals and new building deliveries, prioritizing the divestment of older, non-eco-tonnes to reduce our average age fleet and lift overall efficiency. During Q1 2026, we delivered Star Scarlett and Star Mariella to their new owners. In connection with these sales, we collected net proceeds of approximately $46.4 million. Having sold 49 vessels since 2023, we have reinvested the majority of the net sale proceeds to fund accretive share buybacks throughout this period.

Speaker #2: At the bottom, you can see our dry dock schedule for the remainder of 2026, which totals approximately $42 million and around 1,236 off-hire days.

Speaker #2: Turning to slide 10 for our fleet update. We'll continue to actively rejuvenate our fleet through a disciplined combination of selective disposals and newbuilding deliveries, prioritizing the divestment of older, non-eco tonnage to reduce our average fleet age and lift overall efficiency.

Speaker #2: During the second during the first quarter 2026, we delivered Star Scarlet and Star Mariela to their new owners. In connection with these sales, we collected net proceeds of approximately 46.4 million.

Speaker #2: Having sold 49 vessels since 2023, we have reinvested the majority of the net sale proceeds to fund accretive share buybacks throughout this period. This quarter, also marks the start of our new building delivery cycle, with our latest generation Comsom Max vessels joining the fleet.

Nicos Rescos: This quarter also marks the start of our new building delivery cycle with our latest generation Kamsar vessels joining the fleet. We expect to take delivery of the first 2 vessels in May 2026, Star Evelina and Star Emma, with the remaining 6 new buildings phasing in throughout the balance of the year. We continue to maintain 7 long-term chartering contracts, which provide additional commercial flexibility across market cycles. Star Bulk operates one of the largest dry bulk fleets among US and European-listed peers, with 141 vessels on a fully delivered basis and an average age of approximately 12.2 years, providing scale, modernity, and operating leverage to compound shareholder value as the market cycle evolves. I will now pass the floor to our Chief Strategy Officer, Charis Plakantonaki, for an update on recent global environment regulation developments and our ESG performance.

Speaker #2: We expect to take delivery of the first two vessels in May 2026, Star Evelina and Star Emma, with the remaining six newbuildings phasing in throughout the balance of the year.

Speaker #2: We'll continue to maintain seven long-term chartering contracts, which provide additional commercial flexibility across market cycles. Star Bulk operates one of the largest dry bulk fleets among US and European listed peers, with 141 vessels on a fully delivered basis and an average age of approximately 12.2 years, providing scale, modernity, and operating leverage to compound shareholder value as the market cycle evolves.

Speaker #2: I will now pass the floor to our chief strategy officer, Charis Plakantonaki, for an update on recent global environment regulation developments and our ESG performance.

Speaker #3: Thank you, Nico. Please turn to slide 10, where we highlight our progress across ESG priorities. At the latest IMO marine environment protection administration, no consensus was reached on the net zero framework, with member states remaining divided between those who consider it fit for purpose and those calling for amendments.

Charis Plakantonaki: Thank you, Niko. Please turn to slide 10, where we highlight our progress across ESG priorities. At the latest IMO Marine Environment Protection Committee session, no consensus was reached on the net-zero framework, with member states remaining divided between those who consider it fit for purpose and those calling for amendment. The committee agreed to continue intersessional work on the framework with a view to achieving consensus ahead of MEPC in November 2026. Star Bulk remains actively engaged through its participation in industry organization initiatives, contributing to efforts aimed at advancing practical, realistic and effective greenhouse gas reduction regulations with consistent global application. Star Bulk has joined the newly established advisory council to the Poseidon Principles Association.

Speaker #3: The committee agreed to continue intersectional work on the framework, with a view to achieving consensus ahead of MPC in November 2026. Star Bulk remains actively engaged through its participation in industry organization initiatives, contributing to efforts aimed at advancing practical, realistic, and effective greenhouse gas reduction regulations with consistent global application.

Speaker #3: Star Bulk has joined the newly established advisory council to the Association. The council will serve as a forum for dialogue between the 36 signatory banks and a select group of leading ship owners and maritime stakeholders on key sector issues and the implementation of the principles.

Charis Plakantonaki: The council will serve as a forum for dialogue between the 36 signatory banks and a select group of leading shipowners and maritime stakeholders on key sector issues and the implementation of the principles. On the social front, during Q1 2026, we engaged extensively all company departments in analyzing the results of our employee survey and developing an action plan to preserve our strengths and improve areas where we can do better as an employer. We continue our efforts to embed artificial intelligence into our day-to-day operations through the expansion of our custom-built company chatbot, the adoption of new off-the-shelf AI tools, and the use of AI capabilities within our existing systems. Recognizing the cybersecurity risks associated with artificial intelligence, we have completed an external risk assessment to define the required controls for the use of AI.

Speaker #3: On the social front, during Q1 2026, we engaged extensively all company departments in analyzing the results of our employee survey, and developing an action plan to preserve our strengths and improve areas where we can do better as an employer.

Speaker #3: We continue our efforts to embed artificial intelligence into our day-to-day operations, through the expansion of our custom-built company chatbots, the adoption of new off-the-shelf AI tools, and the use of AI capabilities within our existing systems.

Speaker #3: Recognizing the cybersecurity risks associated with artificial intelligence, we have completed an external risk assessment to define the required controls for the use of AI.

Speaker #3: We're also developing company policies on the responsible use of AI and have included the already deployed AI tools in our upcoming penetration test. I will now pass the floor to our head of market research, José Vinos Martínez, for a market update and his closing remarks.

Charis Plakantonaki: We're also developing company policies on the responsible use of AI and have included the already deployed AI tools in our upcoming penetration test. I will now pass the floor to our Head of Market Research, Constantinos Simantiras, for a market update and his closing remarks.

Speaker #2: Thank you, Harris. Please turn to slide 12 for a brief update on supply. During the first four months of 2026, a total of 14.2 million deadweight was delivered, and 1.5 million deadweight was sent for demolition, for a net fleet growth of 12.7 million deadweight, or 3% year over year.

Constantinos Simantiras: Thank you, Charis. Please turn to slide 12 for a brief update of supply. During the first 4 months of 2026, a total of 14.2 million deadweight was delivered and 1.5 million deadweight was sent off to demolition for a net fleet growth of 12.7 million deadweight or 3% year-over-year. The newbuilding order book has increased over the past 3 years but remains relatively low at 13.2% of the fleet. Total dry bulk contracting remains under control despite a recent pickup in Capesize orders, reflecting limited shipyard availability through late 2028, high shipbuilding costs, and ongoing uncertainty around green propulsion technologies. Meanwhile, the fleet continues to age, and by the end of 2027, approximately 50% of the existing fleet will be over 15 years old.

Speaker #2: The new building order book has increased over the past three years, but remains relatively low at 13.2% of the fleet. Total dry bulk contracting remains under control despite the recent pickup in Cape Size orders, reflecting limited shipyard availability through late 2028, high shipbuilding costs, and ongoing uncertainty around green propulsion technologies.

Speaker #2: Meanwhile, the fleet continues to age and by the end of 2027, approximately 50% of the existing fleet will be over 15 years old. Moreover, the rising number of vessels undergoing the third special survey is estimated to reduce effective fleet capacity by more than half a percent per annum during 2026 and 2027.

Constantinos Simantiras: Moreover, the rising number of vessels undergoing their third special survey is estimated to reduce effective fleet capacity by more than 0.5% per annum during 2026 and 2027. The average steaming speed of the fleet remained slightly elevated through most of Q1, supported by firm freight rates, but has corrected below 11 knots following the recent surge in bunker prices amid Middle East tensions. Finally, global port congestion has fully normalized and is now following seasonal patterns. Going forward, congestion is expected to have a limited impact on the supply and demand balance, though there could still be some upside from delays related to new mining hubs in West Africa. Let us now turn to slide 13 for a brief update of demand. According to Clarksons, total dry bulk trade during 2026 is projected to expand by 1.3% in tons and 2.5% in ton-miles.

Speaker #2: The average steaming speed of the fleet remains slightly elevated through most of Q1, supported by firm freight rates, but has corrected below 11 knots following the recent surge in bunker prices amid Middle East tensions.

Speaker #2: Finally, global port congestion has fully normalized and is now following seasonal patterns. Going forward, congestion is expected to have a limited impact on the supply and demand balance, though there could still be some upside from delays related to new mining hubs in West Africa.

Speaker #2: Let us now turn to slide 13 for a brief update of demand. According to Clarkson, total dry bulk trade during 2026 is projected to expand by 1.3% in tonnes and 2.5% in tonne-miles.

Speaker #2: We continue to operate against a backdrop of heightened geopolitical uncertainty, with the trajectory and duration of the Middle East conflict being difficult to predict.

Constantinos Simantiras: We continue to operate against a backdrop of heightened geopolitical uncertainty, with the trajectory and duration of the Middle East conflict being difficult to predict. While dry bulk trade exposure through the Strait of Hormuz remains relatively limited, disruptions to oil and LNG markets could be prolonged, pushing energy prices higher and weighing on the global macroeconomic outlook. Reflecting these risks, the IMF recently revised its 2026 global growth forecast down to 3.1% from 3.3% in January. The US forecast was lowered to 2.3% from 2.4%, and China to 4.4% from 4.5%. Turning to dry bulk demand, total volumes rose approximately 3.5% year on year during Q1, supported by robust iron ore and minor bulk flows alongside record grain and bauxite shipments. Ton miles expanded at a faster pace, driven by strong Atlantic exports and longer Pacific trading distances.

Speaker #2: While dry bulk trade exposure through the Strait of Hormuz remains relatively limited, disruptions to oil and LNG markets could be prolonged, pushing LNG prices higher and weighing on the global macroeconomic outlook.

Speaker #2: Reflecting these risks, the IMF recently revised its 2026 global growth forecast down to 3.1% from 3.3% in January. The US forecast was lowered to 2.3% from 2.4%, and China to 4.4% from 4.5%.

Speaker #2: Turning to dry bulk demand, total volumes rose approximately 3.5% year on year during the first quarter, supported by robust iron ore and minor bulk flows, alongside record grain and bauxite shipments.

Speaker #2: Tonne-miles expanded at a faster pace, driven by strong Atlantic exports and longer Pacific trading distances. In China, GDP growth exceeded expectations at 5% in Q1, underpinned by strong industrial production, manufacturing activity, and exports.

Constantinos Simantiras: In China, GDP growth exceeded expectations at 5% in Q1, underpinned by strong industrial production, manufacturing activity, and exports. Chinese dry bulk imports rose 8.1% against a low base last year. However, domestic consumption remained relatively weak. On the geopolitical front, President Trump's summit with President Xi in Beijing delivered a constructive signal for US-China relations and international trade. Dry bulk imports from the rest of the world continued their recovery for a 10th consecutive quarter, expanding 3.1% year on year on the back of a weaker US dollar and increased restocking activity. Breaking it down by key commodities, iron ore trade is projected to expand by 1.1% in tons and by 1.6% in ton-miles during 2026.

Speaker #2: Chinese dry bulk imports rose 8.1% against a low base last year. However, domestic consumption remained relatively weak. On the geopolitical front, President Trump's summit with President Xi in Beijing delivered a constructive signal for US-China relations and international trade.

Speaker #2: Dry bulk imports from the rest of the world continue their recovery, with attempts for a tenth consecutive quarter expanding 3.1% year on year on the back of a weaker US dollar and increased restocking activity.

Speaker #2: Breaking it down by key commodities, iron ore trade is projected to expand by 1.1% in tonnes and by 1.6% in tonne-miles during 2026. China's steel production declined by 4.5% year-on-year during the first quarter due to policy curbs on steel supply, the ongoing real estate slowdown, and rising protectionism.

Constantinos Simantiras: China's steel production declined by 4.5% year-on-year during Q1 due to policy curbs on steel supply, the ongoing real estate slowdown, and rising protectionism. At the same time, domestic iron ore production remained broadly flat while stockpiles increased to record levels, creating downside risks for H2. Having said that, the iron ore market remains supply driven, and ton-miles are expected to receive support from the continued ramp-up of Simandou and stronger Brazil exports. Coal trade is projected to contract by 1.6% in tons and by 0.5% in ton-miles during 2026. This forecast is likely to be revised upwards as tighter energy supply is expected to strengthen coal demand through year-end.

Speaker #2: At the same time, domestic iron ore production remained broadly flat, while stockpiles increased to record levels, creating downside risks for the second half of the year.

Speaker #2: Having said that, the iron ore market remains supply-driven and tonne-miles are expected to receive support from the continued ramp-up of Cimandu and stronger Brazil exports.

Speaker #2: Coal trade is projected to contract by 1.6% in tonnes and by half a percent in tonne-miles during 2026. This forecast is likely to be revised upwards as tighter energy supply is expected to strengthen coal year-end.

Speaker #2: War-driven disruptions to LNG trade together with broad-based inflation across energy commodities have improved the demand outlook for coal, prompting several countries to ease restrictions on its use and production.

Constantinos Simantiras: War-driven disruptions to LNG trade, together with broad-based inflation across energy commodities, have improved the demand outlook for coal, prompting several countries to ease restrictions on its use and production. Chinese thermal power generation rose 3.6% in Q1, while domestic coal production has been broadly flat over the past 3 quarters, creating a favorable setup for imports. Furthermore, a developing El Niño is expected to drive a hotter Northern Hemisphere summer, further lifting energy consumption in the short term. Grains trade is projected to expand by 3.7% in tons and by 6.8% in ton-miles during 2026. Total grain exports increased by 9.1% year-on-year during Q1, supported by strong shipments from all major exporters.

Speaker #2: Chinese thermal power generation rose 3.6% in Q1, while domestic coal production has been broadly flat over the past three quarters, creating a favorable setup for imports.

Speaker #2: Furthermore, a developing El Niño is expected to drive a hotter northern hemisphere summer, further lifting energy consumption in the short term. Grains trade is projected to expand by 3.7% in tonnes and by 6.8% in tonne-miles during 2026.

Speaker #2: Total grain exports increased by 9.1% year on year during Q1, supported by strong shipments from all major exporters. Spillover from October's US-China trade truce drove seasonally strong US exports and Beijing's pledge to buy approximately 25 million tonnes of US soybeans annually through 2028 should continue to support mid-sized bulker tonne-miles.

Constantinos Simantiras: Spillover from October's US-China trade truce drove seasonally strong US exports, and Beijing's pledge to buy approximately 25 million tons of US soybeans annually through 2028 should continue to support mid-size bulker ton-miles. Minor bulk trade is projected to expand by 2.4% in tons and by 3.1% in ton-miles during 2026. Export volumes increased by 8% year on year during Q1, despite lower fertilizer shipments from the Middle East, while bauxite exports from Guinea continued their strong performance and expanded 23% year on year, generating strong ton-miles for the Capesize fleet. As a final comment, we remain optimistic about the dry bulk market outlook, supported by a favorable supply backdrop, new long-distance Atlantic exports, and tightening environmental regulations.

Speaker #2: Minor bulk trade is projected to expand by 2.4% in tonnes and by 3.1% in tonne-miles during 2026. Export volumes increased by 8% year on year during Q1, despite lower fertilizer shipments from the Middle East, while bauxite exports from Guinea continued their strong performance and expanded 23% year on year generating strong tonne-miles for the capeside fleet.

Speaker #2: As a final comment, we remain optimistic about the dry bulk market outlook, supported by a favorable supply backdrop, new long-distance Atlantic exports, and tightening environmental regulations.

Speaker #2: In a period of heightened geopolitical uncertainty, we remain focused on actively managing our diversified scrub-refitted fleet to capitalize on market opportunities and deliver value to our shareholders.

Constantinos Simantiras: In a period of heightened geopolitical uncertainty, we remain focused on actively managing our diversified scrubber-fitted fleet to capitalize on market opportunities and deliver value to our shareholders. Without taking any more of your time, I will now pass the floor over to the operator to answer any questions you may have.

Speaker #2: Without taking any more of your time, I will now pass the floor over to the operator to answer any questions you may have.

Speaker #1: Thank you. Without conducting your question and answer session, if you'd like to be placed in the question queue, please press star one on your telephone keypad.

Operator 2: Our first question today is coming from Omar Nokta from Clarksons Securities. Your line is now live.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to move your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset. Before pressing star one, one moment please, while we pull for questions.

Speaker #1: Our first question today is coming from Omar Nakda from Clarkson Securities. Your line is now live.

Operator: Our first question today is coming from Omar Nokta from Clarksons Securities. Your line is now live.

Speaker #3: Thank you. Hi, guys. Morning and good afternoon. I wanted to ask about the capital allocation policy of now paying out 100% of operating cash flow less the CapEx and debt service.

Omar Nokta: Thank you. Hi, guys. Morning and good afternoon. Wanted to ask about the capital allocation policy of now paying out 100% of operating cash flow less the CapEx and debt service. You've obviously got plenty of cash to give you that flexibility. Leverage is a bit low now, plenty of unencumbered ships. Wanted to ask, the stock, while it has done well, it's still at a discount to NAV. In the past, you've leaned on asset sales to try to crystallize that difference between the equity and the NAV. How do you think about that today? Are sales still something under consideration from here, or is now the time to really maximize your exposure to the market?

Speaker #3: You've obviously got plenty of cash to give you that flexibility. Leverage is a bit low now. Plenty of unencumbered ships. But I wanted to ask, the stock, while it has done well, it's still at a discount to NAV.

Speaker #3: And in the past, you've leaned on asset sales to try to crystallize that difference between the equity and the NAV. How do you kind of think about that today?

Speaker #3: Are sales still something under consideration from here? Or is now the time to really maximize your exposure to the market?

Speaker #4: I think, Omar, it's hanging as Norton. We're still planning on selling smaller, older, and less fuel-efficient ships. Frankly, the market's pretty hot, and if you need to sell these ships at some point, this is as good a time as any to sell them.

Hamish Norton: I think, Omar, it's Hamish Norton. We're still planning on selling smaller, older, and less fuel-efficient ships. Frankly, the market's pretty hot, and if you need to sell these ships at some point, this is as good a time as any to sell them. The capital that we generate from selling ships could be used for repurchases of shares. We might keep some of it for use later when there are better opportunities. We think there will be some very good opportunities. I think with our operating cash flow, we intend to keep paying that out on a current basis.

Speaker #4: And the capital that we generate from selling ships could be used for repurchases of shares. It could be used for we might keep some of it for use later when there are better opportunities.

Speaker #4: We think there will be some very good opportunities. And I think with our operating cash flow, we intend to keep paying that out on a current basis.

Speaker #3: Okay, thanks, Hamish. And if I could, I know this is sensitive, but just regarding the agreement you have with Diana to acquire the 16 ships—if they succeed in acquiring Junko—just in terms of the price, the $470 million that you've agreed on, my question is: Is that fixed?

Omar Nokta: Okay. Thanks, Hamish. If I could, I know this is sensitive, but just regarding the agreement you have with Diana to acquire the 16 ships, if they succeed in acquiring Genco, just in terms of the price, the $470 that you've agreed on, my question is that fixed?

Speaker #3: And then especially.

Speaker #4: Yeah. That is fixed at the moment. Yes, that's the agreement is for a specific price.

Hamish Norton: That is fixed at the moment. Yes. The agreement is for a specific price.

Speaker #3: Okay. And are you able to give sort of if that is that based off of whatever Diana ends up paying? If it succeeds, or is it based off of that the current?

Omar Nokta: Okay. Are you able to give? Is that based off of whatever Diana ends up paying if it succeeds, or is it based off of the current-

Speaker #4: No, it's a fixed price.

Hamish Norton: No, it's.

Omar Nokta: price point

Hamish Norton: fixed price.

Speaker #3: Okay, all right. Thanks, Hamish. Yeah, I'll pass it back.

Omar Nokta: Okay. All right. Thanks, Hamish.

Hamish Norton: Yeah.

Omar Nokta: I’ll pass it back.

Speaker #1: Thank you. Our next question today is coming from Chris Robertson from Deutsche Bank. Your line is now live.

Operator 2: Thank you. Our next question today is coming from Christopher Robertson from Deutsche Bank. Your line is now live.

Operator: Thank you. Our next question today is coming from Chris Robertson from Deutsche Bank. Your line is now live.

Speaker #5: Thank you, operator. Good morning, everyone.

Christopher Robertson: Thank you, Operator. Good morning, everyone.

Chris Robertson: Thank you, Operator. Good morning, everyone.

Speaker #6: Hi, Chris.

Petros Pappas: Hi, Chris.

Speaker #5: Hi. Yeah. Very strong start of the year. We had a lighter than usual seasonal pullback during the first quarter, very strong indicators here with the capesize FFA over 40,000 in May, over 30,000 for the remainder of the year.

Christopher Robertson: Hi. Yeah, very strong start of the year. We had a lighter than usual seasonal pullback during Q1. Very strong indicators here with the Capesize FFA over $40,000 in May, over $30,000 for the remainder of the year. At the same time, we're seeing a little bit of decelerating economic activity in China in April with regards to industrial production. Petros, you mentioned some of the El Niño concerns and other things. Putting all this together, what is your expectation for H2, which is usually seasonally stronger? Do you think that holds this year? Do you think there has been pulling forward of demand into H1 of this year that could kind of smooth out demand for the rest of the year and rates for the rest of the year?

Chris Robertson: Hi. Yeah, very strong start of the year. We had a lighter than usual seasonal pullback during Q1. Very strong indicators here with the Capesize FFA over $40,000 in May, over $30,000 for the remainder of the year. At the same time, we're seeing a little bit of decelerating economic activity in China in April with regards to industrial production. Petros, you mentioned some of the El Niño concerns and other things. Putting all this together, what is your expectation for H2, which is usually seasonally stronger? Do you think that holds this year? Do you think there has been pulling forward of demand into H1 of this year that could kind of smooth out demand for the rest of the year and rates for the rest of the year?

Speaker #5: But at the same time, we're seeing a little bit of decelerating economic activity in China in April with regards to industrial production. Petros, you mentioned some of the El Niño concerns.

Speaker #5: Another thing. So I mean, kind of putting all this together, what is your expectation for the second half of the year, which is usually seasonally stronger?

Speaker #5: Do you think that holds this year? Do you think there has been pulling forward of demand into the first half of this year that could kind of smooth out demand for the rest of the year and rates for the rest of the year?

Speaker #5: Do you see any policy support in China that could help boost demand for drivable commodities while they potentially focus on booing economic strength? Kind of what's the outlook there?

Christopher Robertson: Do you see any policy support in China that could help boost demand for dry bulk commodities while they potentially focus on buoying economic strength? What's the outlook there?

Chris Robertson: Do you see any policy support in China that could help boost demand for dry bulk commodities while they potentially focus on buoying economic strength? What's the outlook there?

Speaker #6: Hi, Chris. We're actually pretty bullish for the balance of this year, and we are bullish for next year as well. I think the situation in the Persian Gulf is actually helping.

Petros Pappas: Hi, Christopher Robertson. We're actually pretty bullish for the balance of this year, and we are bullish for next year as well. I think the situation in the Persian Gulf is actually helping for now, for as long as things stand as they are. Oil prices are up and that makes vessels go slower, which is good for supply. We have about 2% of the fleet in the Persian Gulf, which reduces supply again. Red Sea remains, more ton-miles. The increased oil prices actually incentivize use of coal. You see that the reduction in the coal trade is actually minimal right now and might even turn around. There's all kinds of inefficiencies. This is not the only thing. You saw that during the first five months, demand increased by 5.1% in ton-miles. This is only the H1, as you said.

Petros Pappas: Hi, Chris. We're actually pretty bullish for the balance of this year, and we are bullish for next year as well. I think the situation in the Persian Gulf is actually helping for now, for as long as things stand as they are. Oil prices are up and that makes vessels go slower, which is good for supply. We have about 2% of the fleet in the Persian Gulf, which reduces supply again. Red Sea remains, more ton-miles. The increased oil prices actually incentivize use of coal. You see that the reduction in the coal trade is actually minimal right now and might even turn around. There's all kinds of inefficiencies. This is not the only thing. You saw that during the first five months, demand increased by 5.1% in ton-miles. This is only the H1, as you said.

Speaker #6: For now, for as long as things stand as they are, oil prices are up, and that makes vessels go slower, which is good for supply.

Speaker #6: We have about 2% of the fleet in the Persian Gulf, which reduces supply again. Red Sea remains. Then more ton miles. The increased oil prices actually incentivize use of coal.

Speaker #6: So you see that the reduction in the coal trade is actually minimal right now, and might even turn around. And there are all kinds of inefficiencies.

Speaker #6: But this is not the only thing. You saw that during the first five months, demand increased by 5.1% in ton-miles. And this is only the first half, as you said.

Speaker #6: We continue to believe that the second half is going to be strong. And there is tons of positive reasons why the market should continue to be strong this year.

Petros Pappas: We continue to believe that H2 is going to be strong and there is tons of positive reasons why the market should continue to be strong this year. China has been doing pretty well up to now, and we don't expect to see any slowdown in the very near future. If there is going to be a problem going forward, that may be the order book, I would say, or in case the Persian Gulf opens up. I think for a while it's going to be positive because psychology will be assisted, and oil prices will go down, which will help trade, et cetera. All the positives I mentioned over a period of 8 to 12 months may start slowing down. Therefore, for now, we are very positive and we're actually positive for the next 18 months.

Speaker #6: China has been doing pretty well up to now. And we don't expect to see any slowdown in the very near future. If there is going to be a problem, going forward, that may be the order book, I would say.

Speaker #6: Or in case the Persian Gulf opens up, I think for a while it's going to be positive because it will psychology will be assisted.

Speaker #6: And oil prices will go down, which will help trade, etc. But all the positives I mentioned, over a period of 8 to 12 months, may start slowing down.

Speaker #6: Now, so therefore, for now, we are very positive. And we're actually positive for the next 18 months.

Speaker #1: Got it. Thank you, Petros. Just following up, just to get a sense of the scenario here, with regards to a potentially strong El Niño, using examples from the past, let's say in regions that are prone to either drought conditions or, on the other side of that, flooding conditions, which markets should we be on the lookout for, for weather-related disruptions that could potentially impact trade flows?

Christopher Robertson: Okay. Thank you, Petros. Just following up, just to get a sense of scenarios here. With regards to a potentially strong El Niño, using examples in the past, let's say, in regions that are prone to whether it is drought conditions or on the other side of that, flooding conditions, which markets should we be on the lookout for weather-related disruptions that could potentially impact trade flows?

Chris Robertson: Okay. Thank you, Petros. Just following up, just to get a sense of scenarios here. With regards to a potentially strong El Niño, using examples in the past, let's say, in regions that are prone to whether it is drought conditions or on the other side of that, flooding conditions, which markets should we be on the lookout for weather-related disruptions that could potentially impact trade flows?

Speaker #6: Well, short term, short term, we are we think that the El Niño will be positive because it will create higher temperatures in the northern hemisphere.

Petros Pappas: Well, short-term, we think that the El Niño will be positive because it will create higher temperatures in the northern hemisphere and therefore, there will be more need for air conditioning and stuff, therefore more energy. For the winter, we may have a warmer winter, which will reverse things. As far as droughts are concerned, this is a potential risk, especially for grain crops. I was talking about it to our analyst. He said that perhaps people are foreseeing what may happen if El Niño arrives, and they may be stocking up right now. This is possible. We may have positive developments on the Panama Canal. Maybe the water levels will fall and there will be less vessels coming in. There's positives and negatives.

Speaker #6: And therefore, there will be more need for air conditioning and stuff. Therefore, more energy. Now, for the winter, this might we may have a warmer winter, which will reverse things.

Speaker #6: As far as droughts are concerned, this is a potential this is a potential risk. Especially for grain corps. Crops. I was talking about it to our analyst.

Speaker #6: He said that perhaps people are foreseeing what may happen if El Niño arrives. And they may be stocking up right now. This is possible.

Speaker #6: On the other hand, we may have a positive view of positive developments on the Panama Canal. Maybe the water levels will fall and there will be fewer vessels coming in.

Speaker #6: So there's positives and negatives.

Speaker #1: All right. Got it. Thank you for the color. I appreciate it.

Christopher Robertson: All right. Got it. Thank you for the color. I appreciate it.

Chris Robertson: All right. Got it. Thank you for the color. I appreciate it.

Speaker #6: Thank you.

Petros Pappas: Thank you.

Speaker #1: Thank you. As a reminder, if you'd like to be placed into question queue, press star one at this time. Our next question is coming from Stephanie Moore from Jefferies.

Operator 2: Thank you. Our next question is coming from Stephanie Moore from Jefferies.

Operator: Thank you. Our next question is coming from Stephanie Moore from Jefferies.

Speaker #1: Your line is now live.

Speaker #7: Great. Good morning, everybody. Thank you.

Stephanie Moore: Great. Good morning, everybody. Thank you.

Speaker #8: Good morning, Stephanie. Yeah.

Petros Pappas: Good morning, Stephanie. Yeah.

Stephanie Moore: I know that when we have talked in the past, and certainly, when we all spoke publicly together on your Q1 call, and it continued today, but there's a lot of optimism about the underlying dry bulk market for 2026. Even since that Q4 trend, a lot has changed from a geopolitical standpoint and certainly kind of enhanced conflict or geopolitical conflict around the globe. Maybe if you could just talk a little bit about how anything might have changed in terms of your general optimism about the dry bulk market for the rest of this year, and especially navigating what is obviously a heightened geopolitical environment. Would love your thoughts there to start. Thank you.

Speaker #7: I know that when we have talked in the past, and certainly when we all spoke publicly together on your first UCall, there was and it continued today, but there's a lot of optimism about the underlying dry bulk market for 2026.

Speaker #7: But even since that Q4 print, a lot has changed from a geopolitical standpoint and certainly kind of enhanced conflict or geopolitical conflict around the globe.

Speaker #7: So maybe if you could just talk a little bit about how anything might have changed in terms of your general optimism about the dry bulk market for the rest of this year and especially navigating what is obviously a heightened geopolitical environment.

Speaker #7: So we'd love your thoughts there to start. Thank you.

Speaker #6: Stephanie, is that a geopolitical question mostly?

Petros Pappas: Stephanie, is that a geopolitical question, mostly?

Speaker #7: Yes. Yes. And maybe how that supports your view on the dry bulk market for 2026 and if anything has changed since when you kind of discussed when you first.

Stephanie Moore: Yes. Maybe how that supports your view on the dry bulk market for 2026 and if anything has changed since when you first referenced dry bulk.

Speaker #6: Right. Well, I

Speaker #7: Yeah.

Petros Pappas: I did talk about the Persian Gulf. I think that is positive for the short term or even for longer, depending on how that goes. I think that the Ukrainian war is not affecting that much the market anymore. It did help the market at the beginning because, for example, Russian coal had to travel longer distances to be exported and that was positive. There were negatives because there was less grain trade coming out from the Black Sea, especially. We don't think that is as important anymore because it's being overshadowed by the Persian Gulf. What I see very potentially positive is in case any of these wars stops or both, we may see very strong reconstruction. Of course, that would start later on in time.

Speaker #6: I did talk about the Persian Gulf. I think that is positive for the short term or even for longer, depending on how that goes.

Speaker #6: The main thing is that I think the Ukrainian war is not affecting the market that much anymore. It did help the market at the beginning because, for example, Russian coal had to travel longer distances.

Speaker #6: To be exported. And that was positive. There were negatives because there was less grain trade coming out from the Black Sea. That isn't as important anymore because it's being overshadowed by the Persian Gulf.

Speaker #6: What I see very potentially positive is in case any of these wars stops or both, we may see very strong reconstruction. So it has a lot to of course, that would start later on in time.

Speaker #6: So my view is that this year is going to be very strong. The next year is going to be strong as well. And if there is the end of any of the wars, it's going to help the it's going to help the shipping because it will create a lot of demand.

Petros Pappas: My view is that this year is going to be very strong, that next year is going to be strong as well, and if there is the end of any of the wars, it's going to help the shipping because it will create a lot of demand. It will all come in stages and depending on how things happen going forward. We're not fortune tellers to know how things will end up, of course.

Speaker #6: So it will all come in stages and depending on how things happen going forward. We're not fortune tellers to know how things will end up, of course.

Speaker #7: Understood. And then I think one question that we're getting a lot of—maybe more on the negative side—is if some of these conflicts persist, does that create, particularly in emerging markets, stress on their overall economy?

Stephanie Moore: Understood. I think one question that we're getting a lot of is if maybe more on the negative side, that if some of these conflicts persist, does that create particularly in emerging markets, stress on their overall economy? Would love to get your views on that as well and if that could ultimately impact demand.

Speaker #7: So, would love to get your views on that as well, and if that could ultimately impact demand.

Speaker #6: Sorry. Can you repeat, Stephanie? You said that this creates a what market?

Petros Pappas: Sorry, can you repeat, Stephanie? You said that this creates what markets?

Speaker #7: Yes. I'm sorry. I guess, sorry if you can't hear me. But if the other side of, maybe, the coin here from a demand standpoint would be if emerging markets are negatively impacted by persistently higher energy costs, that that ultimately causes any kind of economic weakness in those markets, and if that would be the negative side.

Stephanie Moore: Yes, I'm sorry. Sorry if you can't hear me, if the other side of maybe the coin here from a demand standpoint would be if emerging markets are negatively impacted by persisting higher energy costs, does that ultimately cause any kind of economic weakness in those markets, and if that would be the negative side. Would love your thoughts on potentially that scenario, too.

Speaker #7: So I would love your thoughts on potentially that scenario too.

Speaker #6: Yeah, well, that risk actually remains. And if oil prices go further up, even to $150 or more than that, we're very afraid here that would damage the world economy, and not just emerging economies.

Petros Pappas: Well, that risk actually remains. If oil prices go further up and even in the $150 or even more than that, we're very afraid here that that would damage the world economy and not just emerging economies. It would also discourage trade because trade depends on how you can construct something cheaper than the other country, and then that creates trade. If prices go very far up, then that will impede development of economies, and I think it's going to be negative. Commodities will be more expensive. There will be less demand of commodities.

Speaker #6: And it would also discourage trade. Because trade depends on how you can construct something cheaper than the other country. And then that creates trade.

Speaker #6: But if prices go very far up, then that will impede development of economies. And I think it's going to be negative. Commodities will be more expensive.

Speaker #6: There will be less demand of commodities.

Speaker #7: Understood. Thank you. I appreciate the high level. And then I guess one last thing for me—maybe just talk a little bit about your appetite for additional newbuild orders, just given there are higher shipyard costs at this point, but also given some of the, as we just discussed, kind of general market dynamics.

Stephanie Moore: Understood. Thank you. I appreciate the high level. I guess one lastly from me, maybe just talk a little bit about your appetite for additional new build orders, just given there are higher shipyard costs at this point, but also given some of the, as we just discussed, kind of general market dynamics. Anything there would be great.

Speaker #7: So anything there would be great.

Petros Pappas: Well, new building prices have gone up a lot, and we were doing some calculations lately that you need really very high income levels for very long periods to be able to achieve a relatively low IRRs. The idea here is not to continue any further with new buildings until prices start falling. I don't know when that is going to be, but we are patient. The ones we ordered, the 8 Kamsarmaxes we did because our Kamsarmax fleet was getting older compared to the rest of the fleet, and we needed to get the average age of our fleet to get lower. At the same time, of course, we are judiciously selling all the vessels and inefficient ones, as Hami said earlier. No, for as long as prices keep on climbing, we see as a better opportunity to sell rather than buy or order.

Speaker #6: Yeah. Well, new building prices have gone up a lot. And we were doing some calculations lately that you need really very high income levels for very long periods to be able to achieve a relatively low IRRs.

Speaker #6: So the idea here is not to continue any further with new buildings until prices start falling. I don't know when that is going to be, but we are patient.

Speaker #6: The ones we ordered—the eight CompsaMaxes—we did because our CompsaMax fleet was getting older compared to the rest of the fleet. And it needed some—we needed to get the average age of our fleet to get lower. At the same time, of course, we are judiciously selling older vessels.

Speaker #6: And inefficient ones, as Amy said earlier. So as prices keep on climbing, we see it as a better opportunity to sell rather than buy or order.

Speaker #7: Great. Thank you. Appreciate it.

Stephanie Moore: Great. Thank you. Appreciate it.

Speaker #6: Thank you.

Petros Pappas: Thank you.

Speaker #8: Thank you. 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.

Operator 2: Thank you. We have reached the end of our question and answer session. I would like to turn the floor back over for any further or closing comments.

Operator: Thank you. We have reached the end of our question and answer session. I would like to turn the floor back over for any further or closing comments.

Speaker #6: No further comments, operator. Thank you very much.

Petros Pappas: No further comments, operator. Thank you very much.

Speaker #8: Thank you, everyone. That does conclude today's teleconference and webcast. Let me disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

Operator 2: Thank you, everyone. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Operator: Thank you, everyone. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Petros Pappas: Thank you.