Q1 2026 EuroDry Ltd Earnings Call

May 20, 2026

Operator 1: Thank you for standing by, ladies and gentlemen. Welcome to EuroDry Ltd. Conference Call on the Q1 2026 financial results. With us today, we have Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Ms. Athina Atalioti, Finance and Investment Manager. At this time, all participants are in a listen only mode. There'll be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed. Before passing the floor over to Mr. Pittas, I would like to remind everybody that in today's presentation, the conference call, EuroDry, will be making forward-looking statements.

Operator: Thank you for standing by, ladies and gentlemen. Welcome to EuroDry Ltd. Conference Call on the Q1 2026 financial results. With us today, we have Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Ms. Athina Atalioti, Finance and Investment Manager. At this time, all participants are in a listen only mode. There'll be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed. Before passing the floor over to Mr. Pittas, I would like to remind everybody that in today's presentation, the conference call, EuroDry, will be making forward-looking statements.

Speaker #1: At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session, at which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced.

Speaker #1: I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed.

Speaker #1: Before passing the floor over to Mr. Pittas, I would like to remind everybody that in today's presentation, the conference call, EuroDry will be making forward-looking statements.

Speaker #1: These statements are within the meanings of the Federal Security Laws, matters discussed may be forward-looking statements which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized.

Operator 2: These statements are within the meanings of the federal security laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to slide number 2 on the webcast presentation, which has the full forward-looking statement. The same statement was also included in the press release. Please take a moment to go through the whole statement and read it. Now I would like to pass the floor to Mr. Pittas. Please go ahead, sir.

Operator: These statements are within the meanings of the federal security laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to slide number two on the webcast presentation, which has the full forward-looking statement. The same statement was also included in the press release. Please take a moment to go through the whole statement and read it. Now I would like to pass the floor to Mr. Pittas. Please go ahead, sir.

Speaker #1: I kindly draw your attention to slide number 2 on the webcast presentation, which has the full forward-looking statement. The same statement was also included in the press release.

Speaker #1: Please take a moment to go through the whole statement and read it. And now, I would like to pass the floor to Mr. Pittas.

Speaker #1: Please go ahead, sir.

Speaker #2: Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together, with me is Athena Alteotti, who will go over the financial details in more detail.

Aristides Pittas: Good morning, ladies and gentlemen. Thank you all for joining us today for our scheduled conference call. Together with me is Athina Atalioti, who will go over the financial details in more detail. The purpose of today's call is to discuss our financial results for the three-month period ended 31 March 2026. Please turn to slide 3 on the presentation where we present our financial highlights. For Q1 2026, we reported total net revenues of $12.8 million and net income attributable to controlling shareholders of $0.26 million or $0.09 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $0.33 million or $0.12 per diluted share. Adjusted EBITDA was $4.9 million. Please refer to the press release for reconciliation of adjusted net income and adjusted EBITDA. Athina Atalioti will go over our financial highlights in more detail.

Aristides Pittas: Good morning, ladies and gentlemen. Thank you all for joining us today for our scheduled conference call. Together with me is Athina Atalioti, who will go over the financial details in more detail. The purpose of today's call is to discuss our financial results for the three month period ended 31 March 2026. Please turn to slide three on the presentation where we present our financial highlights. For Q1 2026, we reported total net revenues of $12.8 million and net income attributable to controlling shareholders of $0.26 million or $0.09 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $0.33 million or $0.12 per diluted share. Adjusted EBITDA was $4.9 million. Please refer to the press release for reconciliation of adjusted net income and adjusted EBITDA. Athina Atalioti will go over our financial highlights in more detail.

Speaker #2: The purpose of today's call is to discuss our financial results for the three-month period ended March 31, 2026. Please turn to slide 3 on the presentation where we present our financial highlights.

Speaker #2: For the first quarter of 2026, we reported total net revenues of €12.8 million and net income attributable to controlling shareholders of 0.26 million dollars or 9 cents earnings per diluted share.

Speaker #2: Adjusted net income attributable to controlling shareholders for the quarter was $0.33 million, or $0.12 per diluted share. Adjusted EBITDA was $4.9 million.

Speaker #2: Please refer to the press release for reconciliation of adjusted net income and adjusted EBITDA. Athena Alteotti will go over our financial highlights in more detail.

Speaker #2: Since launching our share reporters plan of up to €10 million, which was originally announced in August 2022 and successively extended in 2023, 2024, and 2025, with current authorization to run through August 2026, we have repurchased €348,000 shares in the open market for a total of €5.6 million.

Aristides Pittas: Since launching our share repurchase plan of up to $10 million, which was originally announced in August 2022 and successfully extended in 2023, 2024, and 2025, with current authorization to run through to August 2026, we have repurchased 348,000 shares in the open market for a total of $5.6 million. The repurchases under the program are executed in a disciplined and measured manner at management's discretion. We have decided to expand our new building program by adding 2 Kamsarmax vessels, which will complement the 2 Ultramaxes already on order. We signed contracts with Huangli Shipbuilding for the construction of these 2 82,000 deadweight eco Kamsarmax bulk carriers built to EEDI Phase III standards, with delivery scheduled for Q1 and Q2 of 2028. The total contract value is approximately $74 million, which will be financed through a combination of debt and equity.

Speaker #2: The repurchases under the program are executed in a disciplined and measured manner at management's discretion. We have decided to expand our new building program by adding two cancer market vessels, which will complement the two Ultramaxes already on order.

Speaker #2: We signed contracts with Hengli Shipbuilding for the construction of these two 82,000 deadweight ECO cancer market bulk carriers built to EEDI phase 3 standards, with deliveries scheduled for the 1st and 2nd quarters of 2028.

Speaker #2: The total contract value is approximately €74 million, which will be financed through a combination of debt and equity. The contracts are conditional upon receiving a refund guarantee from a bank acceptable to the company.

Aristides Pittas: The contracts are conditional upon receiving a refund guarantee from a bank acceptable to the company. Once all 4 vessels are delivered, our fleet will be composed almost entirely of modern ships, the majority of which have been built for us directly. Turning to slide 4, we highlight our recent chartering and operational developments. From a chartering perspective, our fixtures during the Q1 were predominantly short-term. Currently, 4 of our vessels are employed on index-linked charters at 115% of the average Baltic Supramax 10-time charter index, providing continued exposure to market dynamics while preserving operational flexibility. The remaining 7 vessels are employed on trip time charters with durations ranging from approximately 1 to just over 3 months, whilst only the Christos K is on a longer TC till December. Further details of the charters fixed during the period are provided in the accompanying slide.

Speaker #2: Once all four vessels are delivered, our fleet will be composed almost entirely of modern ships; the majority of which have been built for us directly.

Speaker #2: Turning to slide 4, we highlight our recent chartering and operational developments. From a chartering perspective, our fixtures during the first quarter were predominantly short-term.

Speaker #2: Currently, four of our vessels are employed on index-linked charters at 115% of the average Baltic supermarket end-time charter index, providing continued exposure to market dynamics while preserving operational flexibility.

Speaker #2: The remaining seven vessels are employed on trip-time charters with durations ranging from approximately 1 to just over 3 months, whilst only the Christos K is on a longer TC till December.

Speaker #2: Further details of the charters fixed during the period are provided in the accompanying slide. There were no idle or commercial off-hire periods during the quarter.

Aristides Pittas: There were no idle or commercial off-hire periods during the quarter. The moto vessel Xenia underwent dry docking for approximately 28 days, spanning from 18 December 2025 to 15 January 2026. We had hedged a very small part of our exposure through FFAs. Luckily, these hedges are not in the money, as the market has been stronger than we forecasted, earning the majority of our fleet higher rates. In particular, on 19 February, we sold 90 days of the Kamsarmax index, which is based on the average of five time charter routes for Q2 2026 at $19,240 per day, and an additional 90 days for Q3 2026 at $17,250 per day. It's equivalent to 1 vessel.

Speaker #2: However, motor vessel Xenia, who underwent dry docking for approximately 28 days, spanning from December 18, 2025, to January 15, 2026. We had hedged the very small part of our exposure through FFAs.

Speaker #2: Luckily, these hedges are not in the money, as the market has been stronger than we forecasted, earning the majority of our fleet higher rates.

Speaker #2: In particular, on February 19, we sold 90 days of the cancer market index which is based on the average of 5-time charter routes. For the second quarter of 2026, at 19,000 to 140 dollars per day, and an additional 90 days for the third quarter of 2026 at 17,000 to 150 dollars per day.

Speaker #2: Each equivalent to one vessel. In addition, on March 30, we sold a further 90 days of the CANCER market charter index for the third quarter of 2026 at $17,100 per day.

Aristides Pittas: In addition, on 30 March, we sold a further 90 days of the Kamsarmax average index for Q3 2026 at $17,100 per day, also equivalent to 1 vessel. Please turn to slide 5. EuroDry's current fleet consists of 11 vessels with an average age of around 13.8 years and a total carrying capacity of approximately 707,000 deadweight tons. In addition, we have 2 Ultramax vessels under construction with capacities of 63,500 deadweight tons each, scheduled for delivery in Q2 and Q3 2027, and 2 Kamsarmax vessels on order with capacities of 82,000 deadweight each, scheduled for delivery in Q1 and Q2 2028. Upon delivery, our fleet will grow to 15 vessels with a total carrying capacity of approximately 1.05 million deadweight tons. Please turn to slide 6, where we graphically show our fleet employment.

Speaker #2: Also equivalent to one vessel. Please turn to slide 5. EuroDry's current fleet consists of 11 vessels with an average age of around 13.8 years, and the total carrying capacity of approximately 707,000 deadweight tons.

Speaker #2: In addition, we have two Ultramax vessels under construction with capacity of 63,500 deadweight tons each, scheduled for delivery in the second and third quarters of 2027, and two cancer market vessels on order with capacities of 82,000 deadweight each, scheduled for delivery in the first and second quarters of 2028.

Speaker #2: Upon delivery, our fleet will grow to 15 vessels with a total carrying capacity of approximately 1.05 million deadweight tons. Next, please turn to slide 6, where we graphically show our fleet employment.

Speaker #2: Our current fixed rate coverage for the remainder of the year stands at approximately 23.5% based on existing time charter agreements. This figure excludes our four vessels on index-linked employment to slide 8.

Aristides Pittas: Our current fixed rate covers for the remainder of the year stands at approximately 23.5% based on existing time charter agreements. This figure excludes our four vessels on index-linked employment. Slide 8, we review the general market highlights for the Q1 ended 31 March 2026, and recent developments through mid-May. Panamax spot rates improved from an average of approximately $13,290 per day during the Q1 to around $14,750 per day by the end of March, and before strengthening further to approximately $22,300 per day as of last week. Similarly, one-year rates have also increased, with Clarksons assessing the standard Panamax one-year time charter rate at approximately $18,000 per day as of 16 May. Notwithstanding this improvement, one-year charter rates continue to trade slightly below prevailing spot market levels. Turning to slide 9, we review the global macroeconomic backdrop and its implications for drybulk shipping demand.

Speaker #2: We review the general market highlights for the first quarter ended March 31, 2026, and recent developments through mid-May. Panamax spot rates improved from an average of approximately 13,000 to 190 dollars per day during the first quarter, to around 14,750 dollars per day by the end of March, and before strengthening further to approximately 22,300 dollars per day as of last week.

Speaker #2: Similarly, one-year rates have also increased with Clarkson's assessing the standard Panamax one-year time charter rate at approximately 18,000 dollars per day as of May 15.

Speaker #2: Notwithstanding this improvement, one-year charter rates continue to trade slightly below prevailing spot market levels. Turning to slide 9, we review the global macroeconomic backdrop and its implications for dry bulk shipping demand.

Speaker #2: According to the IMF April 2026 World Economic Outlook Update, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027, with downside risks dominating the outlook.

Aristides Pittas: According to the IMF April 2026 World Economic Outlook update, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027, with downside risks dominating the outlook. Key risk factors include the potential broadening of the Middle East conflict, uncertainty surrounding AI-driven productivity gains, and the prospect of renewed trade tensions. Any of these could materially weaken growth and destabilize financial markets. Global headline inflation is projected to edge higher in 2026 before resuming its downward trend in 2027, with a growth slowdown and inflationary pressures expected to be most pronounced in emerging markets and developing economies. In the United States, the 2026 growth projection was revised by the IMF modestly lower to 2.3%, while the 2027 outlook was revised slightly upwards to 2.1%. The US economy continues to demonstrate resilience, albeit with certain macroeconomic imbalances.

Speaker #2: Key risk factors include the potential broadening of the Middle East conflict and certainly surrounding AI-driven productivity gains and the prospect of renewed trade tensions.

Speaker #2: Any of these could materially weaken growth and destabilize financial markets. Global headline inflation is projected to edge higher in 2026 2027, with a growth slowdown and inflationary pressures expected to be most pronounced in emerging markets and developing economies.

Speaker #2: In the United States, the 2026 growth projection was revised by the IMF modestly lower to 2.3%, while the 2027 outlook was revised slightly upwards to 2.1%.

Speaker #2: The US economy continues to demonstrate resilience, albeit with certain microeconomic imbalances. Markets have priced in a more hawkish interest rate path, reflecting the inflationary impact of commodity-related supply shocks.

Aristides Pittas: Markets have priced in a more hawkish interest rate path, reflecting the inflationary impact of commodity-related supply shocks. The Federal Reserve remains in a wait-and-see mode, with rate cuts currently on hold pending further evidence of easing goods inflation. As of May 2026, the effective Fed funds rate stands at approximately 3.64%, with rate cuts potentially resuming from late 2026. A gradual depreciation of the US dollar is anticipated as monetary easing eventually takes hold. The ASEAN Five region is projected to grow at a slightly lower rate than previously anticipated, at approximately 4.1% in 2026 and 4.4% in 2027, due to external headwinds like Middle East energy shocks, geopolitical trade fragmentation, and fading export momentum. Meanwhile, China's growth trajectory is projected to remain relatively resilient, with GDP growth of 4.4% in 2026 and 4% in 2027, supported in part by the country's technological and industrial competitiveness.

Speaker #2: The Federal Reserve remains in a wait-and-see mode, with rate cuts currently on hold pending further evidence of easing goods inflation. As of May 2026, the effective Fed funds rate stands at approximately 3.64%, with rate cuts potentially resuming from late 2026.

Speaker #2: A gradual depreciation of the US dollar is anticipated as monetary easing eventually takes hold. The ASEAN 5 region is projected to grow at a slightly lower rate than previously anticipated, at approximately 4.1% in 2026 and 4.4% in 2027.

Speaker #2: Due to external headwinds like Middle East energy shocks, geopolitical trade fragmentation, export momentum. Meanwhile, China's growth trajectory is projected to remain relatively resilient, with GDP growth of 4.4% in 2026 and 4% in 2027, supported in part by the country's technological and industrial competitiveness.

Speaker #2: Structural economic imbalances, however, remain a key challenge. Policy priorities continue to center on high-quality growth, with emphasis on energy security, domestic consumption, and technology-driven productivity gains.

Aristides Pittas: Structural economic imbalances, however, remain a key challenge. Policy priorities continue to center on high-quality growth, with emphasis on energy security, domestic consumption, and technology-driven productivity gains. Turning on to the dry bulk sector, Clarksons projects dry bulk trade growth at approximately 2.5% in 2026 and 1.3% in 2027, suggesting continued, albeit moderating, demand for dry bulk vessels. While the broader global economy is still expected by the IMF to hold up, risks are skewed to the downside by macroeconomic uncertainty, geopolitical fragmentation, and uneven regional trade activity, which may continue to weigh on trade flows and freight market dynamics. Please turn to Slide 10 as we review the current state of the dry bulk order book. As of May 2026, the order book stands at approximately 13.2% of the existing fleet.

Speaker #2: Turning to the dry bulk sector, Clarkson's projects dry bulk trade growth at approximately 2.5% in 2026 and 1.3% in 2027, suggesting continued, albeit moderating, demand for dry bulk vessels.

Speaker #2: While the broader global economy is still expected by the IMF to hold up, risks are skewed to the downside by macroeconomic uncertainty, geopolitical fragmentation, and uneven regional trade activity.

Speaker #2: Which may continue to weigh on trade flows and freight market dynamics. Please turn to slide 10. As we review the current state of the dry bulk order book, as of May 2026, the order book stands at approximately 13.2% of the existing fleet. Although higher than the cyclical low of 7% recorded in 2021, it remains among the lowest levels in history.

Aristides Pittas: Although higher than the cyclical low of 7% recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008 and around 24% in 2014. The persistent low level of new ordering activity reflects a combination of constraining factors, including limited shipyard capacity, elevated new building costs, and continued uncertainty surrounding future fuel technologies and evolving environmental regulations. These supply-side constraints could provide support for vessel utilization and freight rates over the medium term. Turning to Slide 11, we examine the supply-side fundamentals in greater detail. As of May 2026, the total dry bulk fleet comprises approximately 14,600 vessels, representing around 1.1 billion deadweight tons. According to Clarksons' latest estimates, scheduled new building deliveries as a percentage of the existing fleet are projected at 4.5% in 2026, 4.1% in 2027, and 5.6% for 2028 and beyond.

Speaker #2: For context, the order book accounted for 66% of the fleet in 2008, and around 24% in 2014. The persistent low level of new ordering activity reflects a combination of constraining factors, including limited shipyard capacity, elevated newbuilding costs, and continued uncertainty surrounding future fuel technologies and evolving environmental regulations.

Speaker #2: This supply-side constraints could provide support for vessel utilization and freight rates over the medium term. Turning to slide 11, we examine the supply-side fundamentals in greater detail.

Speaker #2: As of May 2026, the total dry bulk fleet comprises approximately 14,600 vessels, representing around 1.1 billion deadweight tons. According to Clarkson's latest estimates, scheduled newbuilding deliveries as a percentage of the existing fleet are projected at 4.5% in 2026, 4.1% in 2027, and 5.6% for 2028 and beyond.

Speaker #2: Actual fleet growth is, of course, expected to be slightly lower, as slippage and demolition activity will offset a portion of the gross deliveries. Looking at the fleet age profile, approximately 11% of the global fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations tighten further.

Aristides Pittas: Actual fleet growth is, of course, expected to be slightly lower as slippage and demolition activity will offset a portion of the gross deliveries. Looking at the fleet age profile, approximately 11% of the global fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations tighten further. Turning to Slide 12, we summarize our outlook for the dry bulk market. Bulker markets have had a surprisingly stronger-than-expected start in 2026, with earnings proving particularly resilient through what is typically a seasonally softer period. Average Supramax and Panamax time charter rates rose by approximately 8% since Q4 2025, reaching their strongest levels in 2 years and broadly in line with March 2024. Firm dry bulk trade trends continue to support vessel demand, driven by strong iron ore, grain, and bauxite export volumes.

Speaker #2: Turning to slide 12, we summarize our outlook for the dry bulk market. Bulker markets have had a surprisingly stronger-than-expected start in 2026, with earnings proving particularly resilient through what is typically a seasonally softer period.

Speaker #2: Average supermax and panamax time charter rates rose by approximately 8% since the fourth quarter of 2025, reaching their strongest levels in two years, and broadly in line with March 2024.

Speaker #2: Firm dry bulk trade trends continue to support vessel demand, driven by strong iron ore, grain, and bauxite export volumes. Global seaborne minor dry bulk trade has remained firm into early 2026, partly supported by continued bauxite trade.

Aristides Pittas: Global seaborne minor dry bulk trade has remained firm into early 2026, partly supported by continued bauxite trade. Additionally, total Guinean ore exports are projected to reach 16 million metric tons in 2026, providing a further boost. That said, uncertainty remains around Chinese iron ore demand amid ongoing pressure on steel output. Across vessel sizes, Capesize vessels continue to outperform smaller vessel classes, although both the Supramax and Panamax segments have also been gaining during Q1 and up till now, reflecting a broader improvement in fleet utilization. Looking ahead to the remainder of 2026, we expect moderate gains, potentially resulting in full-year earnings above the 2025 levels. Geopolitical disruption continues to create market inefficiencies across global trade routes, and FFA pricing points to a firm market over the next 10 to 12 months. Several key factors are expected to shape the outlook for 2027.

Speaker #2: Additionally, total Guinean ore exports are projected to reach 16 million metric tons in 2026, providing a further boost. That said, uncertainty remains around Chinese iron ore demand, amid ongoing pressure on steel output.

Speaker #2: Across vessel sizes, capesized vessels continue to outperform smaller vessel classes, although both the supermax and panamax segments support a mean gain during the first quarter, and up till now, reflecting a broader improvement in fleet market conditions.

Speaker #2: Looking ahead to the remainder of 2026, we expect full-year earnings to be above 2025 levels. Geopolitical disruption continues to create market inefficiencies across global trade routes, and FFA pricing points to firm markets over the next 10 to 12 months.

Speaker #2: Several key factors are expected to shape the outlook for 2027. In the coal trade, higher gas prices are expected to provide some support, with imports into Europe, Japan, and Korea anticipated to rise. However, global coal volumes are still forecast by Clarkson's to decline by approximately 2% in 2026.

Aristides Pittas: In the coal trade, higher gas prices are expected to provide some support, with imports into Europe, Japan, and Korea anticipated to rise. Although global coal volumes are still forecast by Clarksons to decline by approximately 2% in 2026. Emerging bottlenecks at the Panama Canal represent an additional source of potential supply tightening. Capesize vessels are expected to continue outperforming, supported by firming bauxite trade flows. Guinea's Simandou iron ore project is set to boost iron ore production as part of China's Belt and Road strategy, supporting Chinese industrial activity, reducing reliance on Australian and Brazilian imports, and displacing lower-grade domestic productions. Geopolitical developments that disrupt trade routes and reduce operational efficiency remain the single most important unknown. On the supply side, new building orders have accelerated in recent months and may gain further momentum in the foreseeable future despite the lack of maritime berths.

Speaker #2: Emerging model X, as a Panama Canal, represents an additional source of potential supply tightening. Capesized vessels are expected to continue outperforming, supported by firming bauxite trade flows.

Speaker #2: Guinea's Simandou iron ore project is set to boost iron ore production as part of China's Belt and Road strategy, supporting Chinese industrial activity, reducing reliance on Australian and Brazilian imports, and displacing lower-grade domestic production.

Speaker #2: Finally, geopolitical developments that disrupt trade routes and reduce operational efficiency remain the single most important unknown. On the supply side, new building orders have accelerated in recent months and may gain further momentum in the foreseeable future, despite the lack of maritime berths.

Speaker #2: Looking ahead to 2027, bulker markets are expected to see another year of moderate earnings, with fleet growth likely to outpace trade growth. Nevertheless, several factors could help keep the market in relative balance, including the evolution of the Middle East conflict dynamics, the ramp-up of the Cimandu project, and Chinese demand trends.

Aristides Pittas: Looking ahead to 2027, bulker markets are expected to see another year of moderate earnings, with fleet growth likely to outpace trade growth. Nevertheless, several factors could help keep the market in relative balance, including the evolution of the Middle East conflict dynamics, the ramp-up of the Simandou project, and Chinese demand trends. Coal policy, vessel speeds, and fleet renewal and demolition activity will also remain important variables. Our base case assumes a moderately softer market environment in 2027, although a prolonged conflict scenario, particularly involving Iran, could weigh more heavily on global GDP growth and by extension, on the dry bulk demand. Let's turn to slide 13 for a review of our position on the dry bulk market cycle. As of 15 May 2026, the one-year time charter rate for a standard 75,000 deadweight tons Panamax vessel stood at approximately $18,000 per day.

Speaker #2: Coal policy, vessel speeds, and fleet renewal and demolition activity will also remain important variables. Our base case assumes a moderately softer market environment in 2027, although a prolonged conflict scenario, particularly involving Iran, could weigh more heavily on global GDP growth and, by extension, on the dry bulk demand.

Speaker #2: Let's turn to slide 13 for a review of our position on the dry bulk market cycle. As of May 15, 2026, the one-year time charter rate for a standard 75,000 deadweight ton Panamax vessel should at approximately 18,000 per day.

Speaker #2: This is considerably above the historical median of $13,375 per day. This higher rate environment is reflected—although disproportionately, as we think—in the secondhand asset market.

Aristides Pittas: This is considerably above the historical median of $13,375 per day. This higher rate environment is reflected, although disproportionally, as we think, in the secondhand asset market. Values for 10-year-old Panamax/Post-Panamax are extremely firm. At approximately $28.5 million, current prices sit well above both the historical median of $19.5 million and the 10-year average of approximately $19 million. We are very reluctant to invest at these prices in secondhand assets. Nevertheless, as we believe that modernizing our fleet is important for the future of our company and that new building values are still at decent levels, we have decided to utilize our liquidity to order 2 Kamsarmax vessels, thus positioning our fleet to benefit from a market improvement, which we believe will come at some point in the coming years.

Speaker #2: Values for 10-year-old Panamax Bulkarias are extremely firm. At approximately 28.5 million dollars, current prices sit well above both the historical median of 19.5 million and the 10-year average of approximately 19 million.

Speaker #2: We are very reluctant to invest at these prices in second-hand assets. Nevertheless, as we believe that modernizing our fleet is important for the future of our company, and the new building values are still a decent level, we have decided to utilize our liquidity to order two countermax vessels, thus positioning our fleet to benefit from a market improvement which we believe will come at some point in the coming years.

Speaker #2: And with that, I will now turn over the floor to Athina for a closer look at our first quarter financial performance. Thank you very much, Aristides.

Aristides Pittas: With that, I will now turn over the floor to Athina for a closer look at our Q1 financial performance.

Athina Atalioti: Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you an overview of our financial highlights for Q1 2026 and compare those results to the same period as last year. For that, let's turn to slide 15. For Q1 2026, the company reported total net revenues of $12.79 million, representing a 38.9% increase over total net revenues of $9.21 million during Q1 2025. Which was the result of the increased time charter rates our vessels earned during Q1 2026, partly offset by the decreased average number of vessels owned and operated during Q1 2026 compared to the same period of 2025.

Speaker #2: Good morning from me as well, ladies and gentlemen. Over the next five slides, I will show you—I will give you an overview of our financial highlights for the first quarter of 2026 and compare those results to the same period as last year.

Speaker #2: For that, let's turn to slide 15. For the first quarter of 2026, the company reported total net revenues of $12.79 million, representing a 38.9% increase over total net revenues of $9.21 million during the first quarter of 2025, which was the result of the increased time charter rates our vessels earned during the first quarter of 2026, partly offset by the decreased average number of vessels owned and operated during the first quarter of 2026 compared to the same period of 2025.

Speaker #2: The company reported a net income attributable to controlling shareholders of $0.26 million, as compared to a net loss attributable to controlling shareholders of $3.7 million for the same period of 2025.

Athina Atalioti: The company reported a net income attributable to controlling shareholders of $0.26 million as compared to a net loss attributable to controlling shareholders of $3.7 million for the same period of 2025. Interest and other financing costs for Q1 2026 decreased to $1.5 million as compared to $1.8 million for the same period of 2025. Interest expense during Q1 2026 was lower, mainly due to the decreased benchmark rate for our loans and a decreased average debt during Q1 2026 as compared to the same period of last year. In Q1 2025, we recorded a gain on the sale of $2.1 million relating to the sale of motor vessel Tasos. There were no vessel sales in the respective quarter of 2026.

Speaker #2: Interest and other financing costs for the first quarter of 2026 decreased to $1.5 million, as compared to $1.8 million for the same period of 2025.

Speaker #2: Interest expense during the first quarter of 2026 was lower mainly due to the increased benchmark rates for our loans and the decreased average debt during the first quarter of 2026, as compared to the same period last year.

Speaker #2: In the first quarter of 2025, we recorded a gain on the sale of $2.1 million relating to the sale of motor vessel Tachos, whereas there were no vessel sales in the respective quarter of 2026.

Speaker #2: Adjusted EBITDA for the first quarter of 2026 was $4.87 million, compared to a negative $1.02 million during the first quarter of 2025.

Athina Atalioti: Adjusted EBITDA for Q1 2026 was $4.87 million, compared to -$1.02 million during Q1 2025. Basic and diluted earnings per share attributable to controlling shareholders for Q1 2026 was $0.09, calculated on 2,796,647 and 2,828,521 basic and diluted weighted average number of shares outstanding. Compared to basic and diluted loss per share attributable to controlling shareholders of $1.35 for Q1 2025, calculated on 2,737,297 basic and diluted weighted average number of shares outstanding.

Speaker #2: Basic and diluted earnings per share attributable to controlling shareholders for the first quarter of 2026 was 9 cents, calculated on 2,719,647 and 2,828,521 basic and diluted weighted average number of shares outstanding.

Speaker #2: Compared to a basic and diluted loss per share attributable to controlling shareholders of 1.35 dollars for the first quarter of 2025, calculated on 2,737,297 basic and diluted weighted average number of shares outstanding.

Speaker #2: Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted income attributable to controlling shareholders for the quarter ended March 31, 2026, would have been $0.12 per share basic and diluted, compared to an adjusted loss of $2.07 per share basic and diluted attributable to controlling shareholders, respectively, for the quarter ended March 31, 2025.

Athina Atalioti: Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted income attributable to controlling shareholders for the quarter ended March 31, 2026, would have been $0.12 per share basic and diluted, compared to an adjusted loss of $2.07 per share basic and diluted attributable to controlling shareholders, respectively, for the quarter ended March 31, 2025. Usually, security analysts do not include the above items in their published estimates of earnings per share. Turning to slide 16, we review our fleet performance for Q1 2026 with comparisons to the same period of 2025. Beginning with utilization, our commercial utilization rate reached 100% in Q1 2026, while our operational utilization rate was 99.7%, resulting in overall utilization of 99.7%.

Speaker #2: Usually, security analysts do not include the above items in their public estimates of earnings per share. Turning to slide 16, we review our fleet performance for the first quarter of 2026, with comparison to the same period of 2025.

Speaker #2: Beginning with utilization, our commercial utilization rate reached 100% in the first quarter of 2026, while our operational utilization rate was 99.7%, resulting in overall utilization of 99.7%.

Speaker #2: This compared favorably to the first quarter, this compared favorably to the first quarter of 2025, when commercial utilization stood at 98.4%, operational at 99%, and overall at 97.4%, reflecting a meaningful improvement in fleet deployment efficiency year over year.

Athina Atalioti: This compares favorably to Q1 2025, when commercial utilization stood at 98.4%, operational at 99%, and overall at 97.4%, reflecting a meaningful improvement in fleet deployment efficiency year over year. On average, 11 vessels were owned and operated during Q1 2026, earning an average time charter equivalent rate of $14,416 per day. This compares to an average of 12.8 vessels in the same period of 2025, earning an average TCE rate of $7,167 per vessel per day, reflecting a more than doubling of earnings on a per-vessel basis year over year. Turning to operating costs, total operating expenses, including management fees and D&A expenses, but excluding dry docking costs, were $7,479 per vessel per day during Q1 2026, compared to $7,304 per vessel per day during the same period of 2025, reflecting a modest increase.

Speaker #2: On average, 11 vessels were owned and operated during the first quarter of 2026, earning an average time charter equivalent rate of 14,416 dollars per day.

Speaker #2: This compares to an average of 12.8 vessels in the same period of 2025, earning an average PT rate of $7,167 per vessel per day, reflecting a more than doubling of earnings on a per vessel basis year over year.

Speaker #2: Turning to operating costs, total operating expenses, including management fees and TNA expenses, but excluding dry docking costs, were $7,479 per vessel per day during the first quarter of 2026, compared to $7,304 per vessel per day during the same period of 2025, reflecting a modest increase.

Speaker #2: Finally, our daily cash flow breakeven rate, which takes into account the operating expenses, dry docking costs, interest expense, and scheduled loan repayments, excluding balloon payments, stood at 12,514 dollars in the first quarter of 2026, compared to 11,528 dollars in the first quarter of 2025.

Athina Atalioti: Finally, our daily cash long break-even rate, which takes into account the operating expenses, dry docking costs, interest expense, and scheduled loan repayments, excluding balloon payments, stood at $12,514 in Q1 2026 compared to $11,528 in Q1 2025, with a TCE rate of about $14,400 comfortably exceeding the break-even rate of $12,540. Please turn to slide 17. This slide serves as calculation tool which enables our shareholders and investors to assess the earnings potential in the remainder of 2026 in the current environment. The table shown in this slide has two components. The top part refers to our fixed rate contracts. As you can see, our contract coverage in fixed contract rate is about 23% for the rest of the year.

Speaker #2: With a PC rate of about 14,400 dollars comfortably exceeding the breakeven rate of 12,540 dollars. Please turn to slide 17. This slide serves as calculation tool which enables our shareholders and investors to assess the earnings potential in the remainder of 2026 in the current environment.

Speaker #2: The table shown in this slide has two components. The top part refers to our fixed rate contracts. As you can see, our contract coverage in fixed contract rates is about 23% for the rest of the year.

Speaker #2: It is about 50% in the second quarter, but declines to 15% in the third, and it is very small for the fourth quarter. This chartering strategy reflects our expectation that the market will be quite positive, as indeed it is indicated by the forward trade market.

Athina Atalioti: It is about 50% in Q2, but it climbs to 15% in Q3, and it is very small for Q4. This chartering strategy reflects our expectation that the market will be quite positive, as indeed it is indicated by the forward freight market. The rest of our vessels are employed in contract linked to the relevant to their size Baltic Dry Index. Our calculator indicatively shows the Supramax and Panamax/Handymax Baltic forward rates as of 15 May 2026, and also shows how these index levels get translated to rates for our ships. We actually display the final blended rate for the open days of our fleet, which you can see right below the Supramax and Panamax forward rates in the table, and which, as you can see, tends to be very similar to the index level.

Speaker #2: The rest of our vessels are employed in contracts linked to the relevant to their size balking dry index. Our calculator indicatively shows the supramax and panamax countermax balking forward rates as of May 13, 2026, and also shows how the and also shows how this index level gets translated to rates for our ships.

Speaker #2: We actually display the final blended rates for the open days of our fleet, which you can see right below the Supramax and Panamax forward rates in the table, and which, as you can see, tends to be very similar to the index level.

Speaker #2: Based on this assumption and by further assuming for simplicity, 7,500 dollars per day per vessel opens and GNA costs, and the 5% commission rate one can estimate the exit contribution.

Athina Atalioti: Based on this assumption, and by further assuming for simplicity $7,500 per day per vessel operating and G&A costs and the 5% commission rate, one can estimate the EBITDA contribution. The final result is additionally adjusted for our preliminary dry docking expenses expected during the year. This overall exercise is meant to provide a tool to calculate our EBITDA for 2026. Obviously, one can enter his/her own assumptions about the rates to do that. It is worth observing that at current FFA rates, one would expect an annualized EBITDA rate of $34 million. Of course, one can make his/her own assumptions of how the market might turn out. In the rest of 2026, as you can also easily estimate our EBITDA dependence to the average rate earned by our open days.

Speaker #2: The final result is additionally adjusted for our preliminary dry docking expenses, expected during the year. This overall exercise is meant to provide a tool to calculate our EBITDA for 2026.

Speaker #2: Obviously, one can enter his or her own assumptions about the rates to do that. It is worth observing that at current FFA rates, one would expect an annualized EBITDA rate of $34 million.

Speaker #2: Of course, one can make their own assumptions of how the market might turn out. In the rest of 2026, as you can also easily estimate, our EBITDA is dependent on the average rate earned by our open days.

Speaker #2: For example, a change of 1,000 dollars per day in the average rate earned would result in a 2.2 million change in our 2026 EBITDA.

Athina Atalioti: For example, a change of $1,000 per day in the average rate earned would result in a $2.2 million change in our 2026 EBITDA. Turning to slide 18, we review our debt profile and cash flow breakeven estimates. As of 31 March 2026, our outstanding debt stood at $109 million, carrying an average margin of approximately 1.99%. Assuming a 3-month SOFR rate of 3.64% as of that date, the all-in cost of our senior debt averages 5.63%. The upper chart illustrates our debt amortization schedule. Scheduled debt repayments total approximately $12.2 million during 2026, $21 million in 2027, $17 million in 2028, and $28.8 million in 2029, inclusive of balloon payments of approximately $1.2 million, $10.2 million, $6.7 million, and $19 million, respectively.

Speaker #2: Turning to slide 18, we review our debt profile and cash flow breakeven estimate. As of March 31, 2026, our outstanding debt stood at $109 million.

Speaker #2: Carrying an average margin of approximately 1.99%. Assuming a three-month stop rate of 3.64% as of that date, the all-in cost of our senior debt averages 5.63%.

Speaker #2: The upper chart illustrates our debt amortization schedule. Scheduled debt repayments total approximately 12.2 million dollars during 2026, 21 million dollars in 2027, 17 million dollars in 2028, and 28.8 million dollars in 2029, inclusive of balloon payments of approximately 1.2 million dollars, 10.2 million dollars, 6.7 million dollars, and 19 million dollars respectively.

Speaker #2: Please note that although we have arranged the debt financing of our two ultramax new buildings, our current debt figure that I quoted includes only the portion of one of the two loan drawn to date, the presenting the pre-delivery payment made thus far.

Athina Atalioti: Please note that although we have arranged the debt financing of our two Ultramax newbuildings, our current debt figure that I quoted includes only the portion of one of the two loans drawn to date, representing the pre-delivery payment made thus far. The 2027 and 2028 repayment figures include scheduled repayments under both newbuilding loan facilities that we have started drawing to finance our Ultramax newbuildings, which are scheduled for delivery during Q2 and Q3 2027. Turning to the bottom of this slide, we present our cash flow breakeven estimates for the next 12 months, broken down by major components. Our EBITDA breakeven level stands at $8,035 per day, while our all-in cash flow breakeven, incorporating operating expenses, dry docking costs, interest expense, and loan repayments, is estimated at $12,310 per day.

Speaker #2: The 2028 and 2027 and 2028 repayment figures include scheduled repayments under both new building loan facilities that we have started drawing to finance our ultramax new building.

Speaker #2: New buildings which are scheduled for delivery during the second and third quarter of 2027. Turning to the bottom of this slide, we present our cash flow breakeven estimate for the next 12 months.

Speaker #2: Broken down by major components. Our EBITDA breakeven level starts at 8,035 dollars per day, while our all-in cash flow breakeven incorporating operating expenses, dry docking costs, interest expense, and loan repayments is estimated at 12,310 dollars per day.

Speaker #2: Let's move now to my final slide. Slide 19. To review some highlights from our balance sheet as of March 31, 2026. This slide offers a snapshot of our assets and liabilities and hopefully provides a concise picture of our financial position.

Athina Atalioti: Let's move now to my final slide 19, to review some highlights from our balance sheet as of 31 March 2026. This slide offers a snapshot of our assets and liabilities and hopefully provides a concise picture of our financial position. On the asset side, cash and other assets stood at approximately $31.6 million. Advances for newbuildings amounted to approximately $14.4 million, and the book value of our vessels was approximately $163.1 million, bringing our total assets to approximately $209.1 million. On the liability side, total debt stood at approximately $100.9 million, while other short-term liabilities amounted to $5 million. For combined liabilities of approximately $105.8 million, representing roughly 51% of total assets. Shareholders' equity on a book value basis stood at approximately $93.8 million, or $32.45 per share. However, based on our internal estimates and external valuations, the market value of our fleet is meaningfully above its book value.

Speaker #2: On the asset side, cash and other assets stood at approximately 31.6 million dollars. Advances for new buildings amounted to approximately 14.4 million dollars, and the book value of our vessels was approximately 163.1 million dollars.

Speaker #2: Bringing our total assets to approximately 209.1 million dollars. On the liability side, total debt stood at approximately 100.9 million dollars, while other short-term liabilities amounted to 5 million dollars.

Speaker #2: For combined liabilities of approximately 105.8 million dollars, the presenting roughly 51% of total assets. Shareholders' equity on a book value basis stood at approximately 93.8 million dollars or 32.45 dollars per share.

Speaker #2: However, based on our internal estimate and external valuation, the market value of our fleet is meaningfully above its book value. We estimate the current market value of our vessels at approximately 226.9 million dollars compared to a book value of approximately 163.1 million dollars.

Athina Atalioti: We estimate the current market value of our vessels at approximately $226.9 million, compared to a book value of approximately $163.1 million, implying an excess value of approximately $63.9 million. Adjusting for this difference yields an estimated net asset value in excess of $52.77 per share. When compared to the recent trading range of our shares, which had moved up by around $21 recently, it becomes evident that there is a substantial discount to our estimated net asset value, and by extension, a significant potential upside for both shareholders and potential investors. We remain committed to executing our strategy and creating long-term value for our shareholders, and we believe the current share price represents a compelling entry point relative to our estimated net asset value. With that, I will hand the call back to Aristides to continue.

Speaker #2: Implying an excess value of approximately 63.9 million dollars. Adjusting for this difference, yields an estimated net asset value in excess of 52.77 dollars per share.

Speaker #2: When compared to the recent trading range of our shares, which had moved up to around $21 recently, it becomes evident that there is a substantial discount to our estimated net asset value and, by extension, a significant potential upside for both shareholders and potential investors.

Speaker #2: We remain committed to executing our strategy and creating long-term value for our shareholders, and we believe the current share price represents a compelling entry point relative to our estimated net asset value.

Speaker #2: With that, I will hand the call back to Aristides to continue.

Speaker #1: Thank you, Athena. Maybe now open up the floor for any questions we may have.

Aristides Pittas: Thank you, Athina. May we now open up the floor for any questions we may have?

Speaker #3: Thank you. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Operator 2: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Mark Reichman with Noble Capital Markets. Please proceed.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Mark Reichman with Noble Capital Markets. Please proceed.

Speaker #3: You may press star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #3: Our first question is from Mark Richmond with Noble Capital Partners. Please proceed.

Speaker #1: Thank you for taking my questions. I really do appreciate slide 17—that's very helpful. And so, I was wondering, could you provide some additional detail regarding the financing strategy for the newly ordered CamzerMax vessels and the expected impact on leverage levels?

Mark Reichman: Thank you for taking my questions. Really do appreciate slide 17. That's very helpful. I was wondering, could you provide some additional detail regarding the financing strategy for the newly ordered Kamsarmax vessels and the expected impact on leverage levels?

Aristides Pittas: Sure. We don't intend to have pre-delivery financing, I think. We will get upon delivery financing to the order of 60%, approximately. As you know, there is ample supply of bank financing these days. Many banks are courting us to provide us financing, so we're pretty sure that the very modest level of financing that we will require, we will be able to do it.

Speaker #4: Sure. We don't intend to have pre-delivery financing, I think. So we will get upon delivery financing to the order of 60% approximately. As you know, there is ample supply of bank financing these days, many banks courting us to provide us financing with.

Speaker #4: So we're pretty sure that the very modest level of financing that we will require, we will be able to do it.

Speaker #1: And then how does management evaluate the trade-off between continued share repurchases and funding fleet expansion opportunities in the current market environment?

Mark Reichman: Then how does management evaluate the trade-off between continued share repurchases and funding fleet expansion opportunities, in the current market environment?

Speaker #4: Yeah, we're trying to balance everything as you say. We are continuing the repurchase of stock because our price of share price is extremely low.

Aristides Pittas: We're trying to balance everything, as you say. We are continuing the repurchase of stock because our share price is extremely low. On the other hand, we want the liquidity in our stock, in the stock that is trading, to continue improving as it has over the last six months. We are careful not to overdo it and be too aggressive in this process. We've decided that we will do these 4 vessels, which will help us in the future, these 4 newbuilding vessels. The remaining earnings, we will see what we will do. For now, we are pretty covered with these 4 vessels that we have on order.

Speaker #4: On the other hand, we want the liquidity in our stock in the stock that is trading to continue improving as it has over the last six months.

Speaker #4: So we are careful not to overdo it and be too aggressive in this process. We've decided that we will do this four vessels which will help us in the future, these four new building vessels.

Speaker #4: And the remaining earnings, we will see what we will do. But for now, we are pretty covered with these four vessels that we have on order.

Speaker #1: And then just lastly, are there additional opportunities for fleet renewal vessel acquisitions or selective asset sales if secondhand vessel prices remain elevated? And I'm really kind of looking at the Panamax vessels in your fleet that have that average age of looks like around 21 years.

Mark Reichman: Just lastly, are there additional opportunities for fleet renewal, vessel acquisitions, or selective asset sales if secondhand vessel prices remain elevated? I'm really looking at the Panamax vessels in your fleet that have that average age of, looks like around 21 years.

Speaker #4: Correct. These are potential sale candidates at some point in time. For the time being, they are earning significant time shutter equivalents of about 20,000 dollars per day or close to that level.

Aristides Pittas: Correct. These are potential sale candidates at some point in time. For the time being, they are earning significant time charter equivalents of about $20,000 per day or close to that level, which obviously is helping us build up our cash reserves. We will decide later towards Q3 if we will dispose one of them or not.

Speaker #4: Which obviously is helping us build up our cash reserves. But we will decide later towards Q3 if we will dispose one of them or not.

Speaker #1: That's great. Thank you very much.

Mark Reichman: That's great. Thank you very much.

Speaker #4: Thanks, Mark.

Aristides Pittas: Thanks, Mark.

Speaker #3: As a reminder, press the star one on your telephone keypad if you would like to ask a question. Our next question is from Pofrat with Alliance Global Partners.

Operator 2: As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Poe Fratt with Alliance Global Partners. Please proceed.

Operator: As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Poe Fratt with Alliance Global Partners. Please proceed.

Speaker #3: Please proceed.

Speaker #5: Hello. Can you Aristides just discuss your hedging strategy? It looks like you have two of the equivalent of one dry bulker hedged in the second quarter and then two in the third quarter.

Poe Fratt: Hello. Can you, Aristides, just discuss your hedging strategy? It looks like you have the equivalent of 1 dry bulker hedged in Q2 and then 2 in Q3. Can you just talk about what you're seeing now on the curve and maybe looking into Q4, on whether you'd continue to hedge?

Speaker #5: Can you just talk about what you're seeing now on the curve and maybe looking into the fourth quarter on whether you continue to hedge?

Speaker #4: Yes. For your right, we felt that the markets will not be that strong. So we considered hedging a little bit at the levels that we did, which was 19,000 for Q2 and 17,000 for Q3.

Aristides Pittas: Yes. Poe Fratt, you're right. We felt that the market would not be that strong, so we considered hedging a little bit at the levels that we did, which was $19,000 for Q2 and $17,000 for Q3. The market has been stronger, so today FFA rates are higher than that. We evaluate the situation in our weekly meetings and we'll decide if we will take more cover, either through time chartering a few of our vessels or through further FFAs. This is something which is dynamic and that we look upon every week.

Speaker #4: The market has been stronger, so today FFA rates are higher than that. We evaluate the situation in our weekly meetings and will decide if we will take more cover, either through time-chartering out a few of our vessels or through further FFAs.

Speaker #4: But this is something which is dynamic and that we look upon every week.

Speaker #5: Great. And then, with the addition of the two additional new builds, can you just highlight your new build CapEx for 2026, 2027, and 2028?

Poe Fratt: Great. Then with the addition of the two additional new builds, can you just highlight your new build CapEx for 2026, 2027 and 2028?

Speaker #4: I think we're going to arrange to send this to you separately, but I don't have the numbers on my head. But we will send them to you.

Aristides Pittas: I think we can arrange to send this to you separately. I don't have the numbers on my head, but we will send them to you. Okay?

Speaker #4: Okay?

Speaker #5: Okay. That's great. And then can you you didn't buy there's quite a discrepancy between your estimated net asset value and where you current your stock currently is trading.

Poe Fratt: Okay, that's great. There's quite a discrepancy between your estimated net asset value and where your stock currently is trading. You didn't buy any stock in Q1. Can you just maybe help me understand what you can do to try to close that gap, that discount to your NAV, Aristides?

Speaker #5: But you didn't buy any stock in the first quarter. Can you just help us maybe help me understand what you can do to try to close that gap, that discount to your NAB, Aristides?

Speaker #4: Well, the stock price increased substantially during the quarter, right? From what was it—$12, $13—up to $21. So it's been increasing. Nevertheless, we still have the buyback program active, and we have executed a few purchases during the last few days.

Aristides Pittas: Well, the stock price increased substantially during the quarter from, what was it, $12, $13 up to $21. It's been increasing. Nevertheless, we are still having the buyback program active, and we have executed a few purchases during the last few days. We will continue executing on that, but only a little bit and marginally because as I said to Mark previously, for us, it's important that we keep up the liquidity in the stock growing. We won't be extremely aggressive on that.

Speaker #4: We will continue to executing on that, but only a little bit and marginally because as I said to Mark previously, for us, it's important that we keep up the liquidity in the stock growing.

Speaker #4: So, we won't be extremely aggressive on that.

Speaker #5: Okay. Great. And then from a cost standpoint, the two things that I'm sort of focused on looking forward are bunker across and also insurance costs.

Poe Fratt: Okay, great. From a cost standpoint, the two things that I'm sort of focused on looking forward are bunker costs and also insurance costs. Could you just discuss your exposure to potential increases in both those areas?

Speaker #5: Can you just discuss your exposure to potential increases in both those areas?

Speaker #4: Yes. On the bunker side, our ships trade all of them, actually, are on time charter basis. Which means that the charterer is responsible for replenishing the bunkers and paying for them.

Aristides Pittas: Yes. On the bunker side, our ships trade, all of them actually are on time charter basis, which means that the charterer is responsible for replenishing the bunkers and paying for them. It's not a huge issue for us. As long as there is availability of bunkers, we don't really mind the higher price. Of course, the charterer minds it, so it affects his decisions. On the insurance cost, there is increased war risk insurance in several areas. As our vessels do not trade there, we are not affected.

Speaker #4: So it's not a huge issue for us as long as there is availability of bunkers we don't really mind the higher price. Of course, the charterer minds it, so it affects his decisions.

Speaker #4: On the insurance cost, there is increased war risk insurance in several areas. But as our vessels do not trade there, we are not affected.

Speaker #5: Great. Very helpful. Thank you, Aristides.

Poe Fratt: Great. Very helpful. Thank you, Aristides.

Speaker #4: Thanks.

Aristides Pittas: Thanks.

Speaker #3: Our next question is from Tate Sullivan with Maxim Group. Please proceed.

Operator 2: Our next question is from Tate Sullivan with Maxim Group. Please proceed.

Operator: Our next question is from Tate Sullivan with Maxim Group. Please proceed.

Speaker #5: Hi, thank you.

Tate Sullivan: Hi, Tate.

Tate Sullivan: Hi. Thank you. Hello. The voyage days in Q1 were a bit below I forecasted, and you mentioned some repositioning in the press release. Given global dynamics, do you think the repositioning between charters will be a quarterly occurrence, or was that a special situation related to Q1?

Speaker #6: Hi. Hello. The voyage days in the first quarter were a bit below what I forecasted. And you mentioned some repositioning in the press release, given global dynamics.

Speaker #6: Do you think the repositioning between charters will be a quarterly occurrence or would that special situation related to the first quarter, please?

Speaker #4: No, I think it was a special situation in the first quarter. It happened that we had a lot of repositioning. But on average, I don't expect it to be narrowed to what we've been advising.

Aristides Pittas: No, I think it was a special situation in Q1. It happened that we had a lot of repositioning, but on average, I expect it to be narrowed to what we've been advising.

Speaker #6: And then the voyage expenses, there was a gain related to those repositionings and maybe the bulk fuel sale. That's certainly a quarterly event as well, I think the last time that occurred was two odd years ago.

Tate Sullivan: The voyage expenses, there was a gain related to those repositionings and maybe the bulk fuel sale. That's certainly a quarterly event as well. I think the last time that occurred was 2 odd years ago. Is that correct?

Speaker #6: Is that correct?

Speaker #4: Yes. Exactly. Exactly. Exactly.

Aristides Pittas: Yes, exactly.

Speaker #6: Okay. And then last, your comments on the Panama Canal. Is that an emergent dynamic we're moving some vessel voyage from the fleet or has that been consistent in the first two months of this quarter?

Tate Sullivan: Okay. Last, your comments on the Panama Canal, is that an emerging dynamic, removing some vessel voyage from the fleet, or has that been consistent in the first 2 months of this quarter?

Speaker #4: No, it's practically an emerging dynamic because we are seeing more and more tankers cross the Panama Canal who pay higher fees to pass, and for whom it's more important to pass through the canal.

Aristides Pittas: No, it's practically an emerging dynamic because we are seeing more and more tankers cross the Panama Canal who pay higher fees to pass and for whom it's more important to pass through the canal. That has practically squeezed the dry bulk out of the canal. It's a consequence of the war in Iran and the fact that on the tanker sector, there's been a significant shift on the trading patterns.

Speaker #4: And that has practically squeezed the dry bulk out of the canal. It's a consequence of the war in Iran, and the fact that in the tanker sector, there's been a significant shift in the trading patterns.

Speaker #6: Thank you.

Tate Sullivan: Thank you.

Speaker #4: Thanks, Mark. Thanks, Tate.

Aristides Pittas: Thanks, Tate Sullivan.

Aristides Pittas: Thanks, Tate.

Operator 2: We now have a follow-up from Mark Reichman with Noble Capital Markets. Please proceed.

Operator: We now have a follow-up from Mark Reichman with Noble Capital Markets. Please proceed.

Speaker #3: We now have a follow-up from Mark Richmond with Noble Capital Partners. Please proceed.

Speaker #7: Thank you. Yeah, I just wanted to follow up on when you look at the fixed rate coverage for the remainder of 2026, it's about 23.5%.

Mark Reichman: Thank you. I just wanted to follow up on when you look at the fixed rate coverage for the remainder of 2026, it's about 23.5%. If you're expecting rates to remain strong, I can understand why you would want to leave exposure to the market. We're only in May, but looking to 2027, if you're expecting the market to weaken a little bit or rates to go down, at what point do you try to start preparing for that or 2027 to maybe increase your fixed rate coverage as you head into 2027?

Speaker #7: And if you're expecting rates to kind of remain strong, I can understand why you would want to leave exposure to the market. And we're only in May.

Speaker #7: But looking to 2027, if you're expecting the market to weaken a little bit or rates to go down, at what point do you try to start preparing for that, or 2027 to maybe increase your fixed rate coverage as you head into 2027?

Speaker #4: Indeed, you're right. We are looking into this mark, but FFA rates for 2027 are quite a bit lower than where they are today. However, we are also looking at the alternative, which is to time charter maybe a couple of vessels.

Aristides Pittas: Indeed, you're right. We are looking into this, Mark. FFA rates for 2027 are quite lower than where they are today. We are also looking at the alternative, which is to time charter maybe a couple of vessels for a year's time so that we cover a little bit of the 2027 exposure. We wouldn't do too much, but it is possible that we will fix a couple of ships in longer TC or cover with FFA.

Speaker #4: For a year's time, so that we cover a little bit of the 2027 exposure. We wouldn't do too much, but it is possible that we will fix a couple of ships in longer TC or cover with FFA.

Speaker #7: Okay. Great. That's very helpful. Thank you.

Mark Reichman: Okay, great. That's very helpful. Thank you.

Aristides Pittas: Thanks, Mark.

Speaker #4: Thanks, Mark.

Operator 2: There are no further questions at this time. I would like to turn the floor back over to Mr. Pittas for closing remarks.

Operator: There are no further questions at this time. I would like to turn the floor back over to Mr. Pittas for closing remarks.

Speaker #3: There are no further questions at this time. I would like to turn the floor back over to Mr. Pittas for closing remarks.

Speaker #4: Thank you all for listening in to our results of today. We look forward to discussing again in Q2, which, as we all know, is going to be a pretty good quarter.

Aristides Pittas: Thank you all for listening in to our results of today. We look forward to discussing again in Q2, which as we all know, is going to be a pretty good quarter based on what we are seeing today. Thank you all.

Speaker #4: Based on what we are seeing today, thank you all.

Operator 2: Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

Operator: Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.