Q2 2026 Pangaea Logistics Solutions Ltd Earnings Call

August 11, 2026

Speaker #1: Good morning. My name is Erica, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangaea Logistics Solutions Q2 2026 Results Conference Call.

Operator: Good morning. My name is Erica, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangaea Logistics Solutions Q2 2026 results conference call. Today's call is being recorded and will be available for replay beginning at 11:00 AM Eastern. The recording can be accessed by dialing 800-925-9941 for domestic or 402-220-5395 for international. All lines are currently muted, and after the prepared remarks, there will be a live question and answer session. If you would like to ask a question during the Q&A segment, please press star one on your phone. If your question has been answered, you may remove yourself from the queue at any time by pressing star two. We do ask that you please pick up your handset for optimal sound quality. It is now my pleasure to turn the floor over to Stefan Neely with Vallum Advisors. Please go ahead.

Speaker #1: Today's call is being recorded, and will be available for replay beginning at 11:00 AM Eastern. The recording can be accessed by dialing 800-925-9941 for domestic, or 402-220-5395 for international.

Speaker #1: All lines are currently muted, and after the prepared remarks, there will be a live question-and-answer session. If you would like to ask a question during the Q&A segment, please press star 1 on your phone.

Speaker #1: If your question has been answered, you may remove yourself from the queue at any time by pressing star 2. We do ask that you please pick up your handset for optimal sound quality.

Speaker #1: It is now my pleasure to turn the floor over to Stefan Neely with Vellum Advisors. Please go ahead.

Operator 2: It is now my pleasure to turn the floor over to Stefan Neely with Vallum Advisors. Please go ahead.

Speaker #2: Thank you, operator, and welcome to the Pangaea Logistics Solutions Q2 2026 results conference call. Leading the call with me today are CEO Mads Petersen and Chief Financial Officer Gianni Del Signore.

Stefan Neely: Thank you, operator, and welcome to the Pangaea Logistics Solutions second quarter 2026 results conference call. Leading the call with me today are CEO, Mads Petersen, and Chief Financial Officer, Gianni Del Signore. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. At the conclusion of our prepared remarks, we will open the line for questions. With that, I would like to turn the call over to Mads.

Speaker #2: Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements. Due to various risks and uncertainties, including the risk described in our periodic reports filed with the FEC, except as required by law, we undertake no obligation to update our forward-looking statements.

Speaker #2: At the conclusion of our prepared remarks, we will open the line for questions. With that, I would like to turn the call over to Mads.

Speaker #3: Thank you, Stefan, and welcome to those joining us on the call today. We generated strong results in both revenue and profitability during the second quarter.

Mads Petersen: Thank you, Stefan, and welcome to those joining us on the call today. We generated strong results in both revenue and profitability during the second quarter. Our financial performance was driven by strong execution across both our owned and chartered-in fleet, as well as balanced positioning of our assets to take advantage of stronger overall demand, especially in Asia. Robust markets contributed to a 50% increase in our TCE rates for the second quarter. Notably, our TCE rates averaged 10% above the prevailing market for the Panamax, Supramax, and Handysize indices. This premium reflects the benefits of our fleet positioning strategy, the value of our operating platform, long-standing customer relationships, and ability to manage a volatile market effectively. We generated significant operating leverage from the favorable market environment, with second-year quarter adjusted EBITDA growing by nearly $20 million year over year to $35 million.

Speaker #3: Our financial performance was driven by strong execution across both our owned and chartered-in fleet, as well as balanced positioning of our assets to take advantage of stronger overall demand, especially in Asia.

Speaker #3: Robust markets contributed to a 50% increase in our TCE rates for the second quarter. Notably, our TCE rates averaged 10% above the prevailing market for the Panamax, Supermax, and handy-size indices.

Speaker #3: This premium reflects the benefits our fleet positioning strategy: the value of our operating platform, long-standing customer relationships, and ability to manage a volatile market effectively.

Speaker #3: We generated significant operating leverage from the favorable market environment, with second-quarter adjusted EBITDA growing by nearly $20 million year-over-year to $35 million. Just as important, these results highlight the value of the business model, which allows us to protect and, in many cases, expand our margins in dynamic market environments.

Mads Petersen: Just as important, these results highlight the value of the business model, which allows us to protect, and in many cases expand, our margins in dynamic market environments. We actively managed volatile fuel markets through hedging and contract terms, while our continued focus on fleet positioning and backhaul trades allowed us to capture arbitrage opportunities. Our balanced approach to fleet deployment, including a greater concentration of vessels in the Pacific region, contributed positively, and our increased exposure to shorter-term time charters enabled us to benefit from positive developments in our core Atlantic markets. Strong execution across our chartered-in business underscores our ability to translate favorable conditions into positive margins. We continue to grow our onshore logistics platform in the second quarter, commencing operations at the Port of Tampa. Tampa joins our operations at Port Aransas and Lake Charles, all under multiyear contract that started operations within the last 12 months.

Speaker #3: We actively managed volatile fuel markets through hedging and contract terms, while our continued focus on fleet positioning and backhaul trades allowed us to capture arbitrage opportunities.

Speaker #3: Our balanced approach to fleet deployment, including a greater concentration of vessels in the Pacific region, contributed positively, and our increased exposure to shorter-term time charters enabled us to benefit from positive developments in our core Atlantic markets.

Speaker #3: Strong execution across our chartered-in business underscores our ability to translate favorable conditions into positive margins. We continue to grow our onshore logistics platform in the second quarter, commencing operations at the port of Tampa.

Speaker #3: Tampa joins our operations at Aransas and Lake Charles, all under multi-year contracts that started operations within the last 12 months. Terminal and stevedore revenue grew 11% year-over-year to approximately $4 million.

Mads Petersen: Terminal and stevedore revenue grew 11% year-over-year to approximately $4 million. We continue to expect roughly $3 million of incremental EBITDA from these operations on a full-year basis. Strategically, this is recurring revenue business that deepens our integration into customer supply chains beyond ocean freight, and it pairs naturally with our Supramax and Handysize fleet. We also advanced our fleet renewal strategy. During Q2, we completed the previously announced sale of the 2006-built Bulk Xaymaca for $9.6 million. This follows the sale of the Bulk Freedom late last year, also for $9.6 million, and together these transactions reflect a consistent approach of monetizing older tonnage at attractive values, avoiding the capital and off-hire associated with upcoming dry dockings, and steadily improving the efficiency and environmental profile of our fleet.

Speaker #3: We continue to expect roughly $3 million of incremental EBITDA from these operations on a full-year basis. Strategically, this is recurring revenue business that deepens our integration into customer supply chains beyond ocean freight, and it pairs naturally with our Supermax and handy-size fleet.

Speaker #3: We also advanced our fleet renewal strategy. During the second quarter, we completed the previously announced sale of the 2006-built Bolshevik for $9.6 million. This follows the sale of the Bulk Freedom late last year, also for $9.6 million, and together these transactions reflect a consistent approach of monetizing older tonnage at attractive values, avoiding the capital and effort associated with upcoming dry dockings, and steadily improving the efficiency and environmental profile of our fleet.

Speaker #3: We will continue to selectively and opportunistically invest in modern, high-quality vessels that fit our commercial model, remaining disciplined on price and transacting only when the returns are clear.

Mads Petersen: We will continue to selectively and opportunistically invest in modern, high-quality vessels that fit our commercial model, remaining disciplined on price and transacting only when the returns are clear. Looking at the market, demand for dry bulk commodities carried positive momentum through H1, driven by increased trade in both iron ore and grain compared to last year. That strength was broad-based, supporting earnings not only in the larger Capesize segment, but also across the midsize and smaller classes where we are most active. Minor bulk trades, which are central to our cargo book, likewise grew compared to the prior year. Encouragingly, this momentum continued into Q3. Our outlook for the balance of 2026 remained positive.

Speaker #3: Looking at the market, demand for dry port commodities carried positive momentum through the first half of the year driven by increased trade in both iron ore and grain compared to last year.

Speaker #3: That strength was broad-based, supporting earnings not only in the larger Cape Side segment but also across the midsize and smaller classes where we are most active.

Speaker #3: Minor bulk trades, which are central to our cargo book, likewise grew compared to the prior year. Encouragingly, this momentum continued into the third quarter.

Speaker #3: Our outlook for the balance of 2026 remains positive. At the market level, we expect moderate fleet growth to be broadly offset by comparable ton-mile demand, with the continued disruption and lengthening of trade routes translating measured cargo volume growth into stronger ton-mile demand.

Mads Petersen: At the market level, we expect moderate fleet growth to be broadly offset by comparable ton mile demand, with the continued disruption and lengthening of trade routes translating measured cargo volume growth into stronger ton mile demand.

Speaker #3: Which is what ultimately drives utilization and freight rates. For Pangaea specifically, the second half carries a well-established seasonal tailwind, as our high ice-class fleet is most active during the Arctic summer trading season, which peaks in the third quarter and tapers through the fourth, typically driving our strongest utilization and earnings from these specialized, higher-margin trades.

Mads Petersen: Which is what ultimately drives utilization and freight rates. For Pangaea specifically, H2 carries a well-established seasonal tailwind as our high ice class fleet is most active during the Arctic summer trading season, which peaks in Q3 and tapers through Q4, typically driving our strongest utilization and earnings from these specialized higher-margin trades. Through today, we have booked 4,873 shipping days at a TCE of $20,258 per day for Q3. In summary, our Q2 results highlighted the value of our commercial platform and dynamic fleet positioning. As we enter H2, our results will further reflect the strategic advantages of our specialized ice class fleet and long-term contracts, which command a durable premium to the market.

Speaker #3: Through today, we have booked 4,873 shipping days at a TCE of $20,258 per day for the third quarter. In summary, our second-quarter results highlighted the value of our commercial platform and dynamic fleet positioning.

Speaker #3: As we enter the second half of the year, our results will further reflect the strategic advantages of our specialized ice-class fleet and long-term contracts which command a durable premium to the market.

Speaker #3: Our growing onshore terminal network adds a recurring layer of earnings with a long runway ahead, and our modern fleet and strong balance sheet let us fund growth and return capital at the same time.

Operator 2: Our growing onshore terminal network adds a recurring layer of earnings with a long runway ahead, and our modern fleet and strong balance sheet lets us fund growth and return capital at the same time. With fundamentals supportive and our strongest seasonal quarters just beginning, we are focused on converting these advantages into sustained earnings growth and lasting value for shareholders. With that, I will turn the call over to Gianni to walk through our second quarter financial results.

Mads Petersen: Our growing onshore terminal network adds a recurring layer of earnings with a long runway ahead, and our modern fleet and strong balance sheet lets us fund growth and return capital at the same time. With fundamentals supportive and our strongest seasonal quarters just beginning, we are focused on converting these advantages into sustained earnings growth and lasting value for shareholders. With that, I will turn the call over to Gianni to walk through our second quarter financial results.

Speaker #3: With fundamentals supportive, and our stronger seasonal quarters just beginning, we are focused on converting these advantages into sustained earnings growth and lasting value for shareholders.

Speaker #3: With that, I'll turn the call over to Gianni to walk through our second quarter financial results.

Speaker #2: Thank you, Matt, and welcome to those joining us on the call today. Our second quarter financial results were highlighted by sustained TCE premiums relative to the prevailing market.

Gianni Del Signore: Thank you, Mads, and welcome to those joining us on the call today. Our second quarter financial results were highlighted by sustained TCE premiums relative to the prevailing market. Second quarter TCE rates were $18,153 per day, a premium of 10% over the average published market rate of $16,502 per day for Panamax, Supramax, and Handysize vessels in the period. Our adjusted EBITDA for the second quarter was $35 million, a year-over-year increase of nearly $20 million, driven by a 50% increase in TCE rates. Our total charter hire expense increased by 24% compared to the second quarter of 2025 due to an increase in market rates to charter in vessels. Our charter in cost on a per-day basis was approximately $16,816 per day in the second quarter.

Speaker #2: Second quarter TCE rates were $18,153 per day, a premium of 10% over their average published market rate of $16,502 per day for Panamax, Supramax, and Handy-Size vessels in the period.

Speaker #2: Our adjusted EBITDA for the second quarter was $35 million, our year-over-year increase of nearly $20 million driven by a 50% increase in TCE rates.

Speaker #2: Our total charter hire expense increased by 24% compared to the second quarter of 2025 due to an increase in market rates to charter in vessels.

Speaker #2: Our charter in cost on a per-day basis was approximately $16,816 per day in the second quarter, and through today we've booked $2,200 days at $17,537 per day for the third quarter.

Gianni Del Signore: Through today, we have booked 2,200 days at $17,537 per day for the third quarter. Vessel operating expenses were essentially flat year over year. On a per-day basis through the second quarter of 2026, vessel operating expenses, including technical management fees, was $6,247 per day, a 2% increase from the prior year. Total general and administrative expenses increased by 25%, from $7.2 million to approximately $9 million. The increase was primarily due to an increase in incentive compensation expense due to improved results, along with higher compensation costs associated with added headcount across the organization as we grow our business. In total, our reported GAAP net income for the second quarter was $10.2 million, or $0.16 per diluted share.

Speaker #2: Vessel operating expenses were essentially flat year-over-year. On a per-day basis, through the second quarter of 2026, vessel operating expenses including technical management fees was $6,247 per day a 2% increase from the prior year.

Speaker #2: Total general and administrative expenses increased by 25%, from $7.2 million to approximately $9 million. The increase was primarily due to an increase in incentive compensation expense as a result of improved results, along with higher compensation costs associated with added headcount across the organization as we grow our business.

Speaker #2: In total, our reported GAAP net income for the second quarter was $10.2 million, or $0.16 per diluted share. Our GAAP net income included a significant unrealized loss resulting from our hedging strategy on bunker fuel exposure.

Gianni Del Signore: Our GAAP net income included a significant unrealized loss resulting from our hedging strategy on bunker fuel exposure. The decline in fuel prices late in the second quarter decreased the fair value of our bunker derivatives. Some of these same derivatives translated into significant unrealized gain during the first quarter as fuel prices increased due to the escalation of the conflict with Iran. The first quarter's unrealized gain and the second quarter's unrealized loss essentially offset each other, leaving us in a neutral position for the year. More importantly, all of our hedges are placed against our own bunker requirements over the course of the year, keeping our fuel cost management aligned with our actual physical consumption.

Speaker #2: The decline in fuel prices late in the second quarter decreased the fair value of our bunker derivatives. Some of these same derivatives translated into significant unrealized gain during the first quarter as fuel prices increased due to the escalation of the conflict with Iran.

Speaker #2: The first quarter's unrealized gain and the second quarter's unrealized loss essentially offset each other, leaving us in a neutral position for the year. More importantly, all of our hedges are placed against our own bunker requirements over the course of the year, keeping our fuel cost management aligned with our actual physical consumption.

Speaker #2: When excluding the impact of the second quarter unrealized loss from derivative instruments as well as other non-gap adjustments, our reported adjusted net income was $16.9 million or $26 per diluted share.

Gianni Del Signore: When excluding the impact of the Q2 unrealized loss from derivative instruments, as well as other non-GAAP adjustments, our reported adjusted net income was $16.9 million, or $0.26 per diluted share. Moving on to cash flows. Our strong profitability during the quarter resulted in robust operating cash flow. This, combined with $9.7 million of cash proceeds received from the sale of the Bulk Xaymaca during the quarter, drove our unrestricted cash balance to $105 million. At quarter end, we had total debt, including finance lease obligations, of approximately $350 million. To note, our current portion of long-term debt increased to $40 million due to a $24 million balloon payment, which we expect to refinance in the coming months. We are also pleased to announce an increase in our quarterly dividend to $0.10 per share.

Speaker #2: Moving on to cash flows, our strong profitability during the quarter resulted in robust operating cash flow. This, combined with $9.7 million of cash proceeds received from the sale of the Bulky Maca during the quarter, drove our unrestricted cash balance to $105 million.

Speaker #2: At quarter-end, we had total debt, including finance lease obligations, of approximately $350 million. To note, our current portion of long-term debt increased to $40 million due to a $24 million balloon payment, which we expect to refinance in the coming months.

Speaker #2: We are also pleased to announce an increase in our quarterly dividend to $0.10 per share. This increase reflects the strengthening fundamentals and balance sheet of the business, and underscores our commitment to returning capital to shareholders.

Gianni Del Signore: This increase reflects the strengthening fundamentals and the balance sheet of the business and underscores our commitment to returning capital to shareholders, consistent with the disciplined capital allocation strategy we have always followed. Looking ahead, we will continue to allocate capital with a focus on preserving financial flexibility, supporting the growth of our integrated logistics platform, and returning capital to shareholders. We remain focused on investments that enhance the durability of our earnings base, including the expansion of our terminal and port service capabilities and ongoing fleet renewal initiatives that improve efficiency, support customer needs, and position us for evolving regulatory requirements. With that, we will now open the line for questions.

Speaker #2: Consistent with the disciplined capital allocation strategy we have always followed. Looking ahead, we will continue to allocate capital with a focus on preserving financial flexibility, supporting the growth of our integrated logistics platform, and returning capital to shareholders.

Speaker #2: We remain focused on investments that enhance the durability of our earnings base, including the expansion of our terminal and port service capabilities, and ongoing fleet renewal initiatives that improve efficiency, support customer needs, and position us for evolving regulatory requirements.

Speaker #2: With that, we will now open the line for questions.

Speaker #1: Thank you. As a reminder, at this time, if you would like to ask a question, please press star one on your touch-tone telephone.

Operator 2: Thank you. As a reminder, at this time, if you would like to ask a question, please press star 1 on your touchtone telephone. If at any point you find your question has been answered, you may remove yourself from the queue by pressing star 2. Again, it is star and 1 to ask a question, and we are going to be pausing briefly for questions to queue.

Operator: Thank you. As a reminder, at this time, if you would like to ask a question, please press star 1 on your touchtone telephone. If at any point you find your question has been answered, you may remove yourself from the queue by pressing star 2. Again, it is star and 1 to ask a question, and we are going to be pausing briefly for questions to queue.

Speaker #1: If at any point you find your question has been answered, you may remove yourself from the queue by pressing star two. Again, it is star and one to ask a question and we're going to be pausing briefly for questions to queue.

Operator 2: Please stand by. It appears we might be having some technical difficulty as we reconnect our speakers. Do we have our speakers with us yet? Okay. It does look like we do have our speakers back with us. Are you with us speakers?

Speaker #1: And please stand by. It appears we might be having some technical difficulty as we reconnect our speakers. And do we have our speakers with us yet?

Operator: Please stand by. It appears we might be having some technical difficulty as we reconnect our speakers. Do we have our speakers with us yet? Okay. It does look like we do have our speakers back with us. Are you with us speakers?

Speaker #1: Okay. It does look like we do have our speakers back with us. Are you with us, speakers? Okay. Okay, perfect. Just one moment, and I'm going to get the queue going.

Gianni Del Signore: Yeah, we are back online.

Operator 2: Okay. Okay, perfect. Just one moment and I am going to get the queue going. I apologize. Okay, and we will start with our first question from Liam Burke with B. Riley Securities.

Operator: Okay. Okay, perfect. Just one moment and I am going to get the queue going. I apologize. Okay, and we will start with our first question from Liam Burke with B. Riley Securities.

Speaker #1: I apologize. Okay, we'll start with our first question from Liam Burke with B. Reilly Securities.

Speaker #3: Thank you. Good morning, Mads. Good morning, Gianni.

Liam Burke: Thank you. Good morning, Mads. Good morning, Gianni.

Speaker #4: Good morning, Liam.

Mads Petersen: Morning, Liam.

Speaker #3: Mads, you talked about activity in the Pacific region. Is this a new strategy for you? Typically, we think of your fleet as being active in the Atlantic.

Liam Burke: Mads, you talked about activity in the Pacific region. Is this a new strategy for you? I typically think of your fleet active in the Atlantic, with very little activity in Asia. Have you changed your positioning strategy at all?

Speaker #3: ...with very little activity in Asia. Have you changed your positioning strategy at all?

Speaker #4: No. I, I don't think it's a it's a it's a it's a result of that, but, but of, of course we, we want to grow in that region.

Mads Petersen: No, I do not think it is a result of that, but of course, we want to grow in that region. I think it just as a result of our larger fleet and larger scale, we need to take advantage of the opportunities we see out there. Also, early in the year, we saw positive momentum. So we maybe positioned a little bit more of our ships out there than we have had in the past. So it is a dynamic business, and we will go wherever we feel we get the best return. So it is a combination, I would say.

Speaker #4: And I think just as a as a result of, of our larger fleet and larger scale, we need we need, you know, to take advantage of the opportunities we see out there.

Speaker #4: And I also early on early in the year we saw positive momentum. so, so we, we may be positioned a, a little bit more of our ships out there than we than we've had in the past.

Speaker #4: So it, it is, you know, it's a dynamic business and, you know, we'll, we'll, we'll, we'll go wherever we, we feel we get the best returns.

Speaker #4: So, it's a it's a combination, I would say.

Speaker #3: Okay. Great. Gianni, you talked about a balloon payment due this year. You have plenty of cash. How do you balance refinancing versus just taking your cash balance, paying it down?

Liam Burke: Okay, great. Gianni, you talked about a balloon payment due this year. You have plenty of cash. How do you balance refinancing versus just taking your cash balance, paying it down? I will throw in the question of raising the dividend and how do you balance everything?

Speaker #3: And I'll throw in the question of raising the dividend—and how do you balance everything?

Speaker #4: Yeah. It's, it's what we look at, all the time, Liam. And, you know, what we're seeing as far as margins on, on debt facilities, we're really seeing competitive rates on margins.

Gianni Del Signore: Yeah, it is what we look at all the time, Liam. What we are seeing as far as margins on debt facilities, we are really seeing competitive rates on margins. The market seems to be reacting and there are a lot of opportunities for some well-priced debt. So we are looking at it. The balloon payment I referenced, it is in a joint venture. It is our Nordic Bulk Holding Company joint venture with Glencore. So we will look at that with our partners and decide what to do. But our expectation looking at that one specifically is to roll it out and refinance it. Cash is shipping, is volatile. We look at opportunities. We want to be opportunistic.

Speaker #4: the market seems to, to be reacting and there's a lot of opportunities for, for some well-priced debt. So we're, we're looking at it. What the, the balloon payment I referenced, it, it's in a joint venture.

Speaker #4: It's our Nordic Bulk Holding Company joint venture with Glencore. So we will look at that with our partners and decide what to do.

Speaker #4: But our expectation, looking at that one specifically, is to roll it out and refinance it. Cash is—it's shipping. It's volatile. We look at opportunities.

Speaker #4: We want to be we want to be opportunistic. So if we can if we can keep some cash and, and look at different vessel opportunities as they present themselves and be a little bit more nimble, that's I think that's how we think about, you know, our capital going forward is, is really being opportunistic when, when we see something in the market.

Gianni Del Signore: If we can keep some cash and look at different vessel opportunities as they present themselves and be a little bit more nimble, I think that's how we think about our capital going forward, is really being opportunistic when we see something in the market.

Speaker #3: Great. Thank you, Mads. Thank you, Gianni.

Liam Burke: Great. Thank you, Mads. Thank you, Gianni.

Speaker #4: Yep.

Mads Petersen: Yep.

Speaker #1: And again, that is the star and one if you would like to ask a question. And again, if at any time your question has been answered, you may remove yourself from the queue by pressing star two.

Operator 2: Again, that is the star and one, if you would like to ask a question. Again, if at any time your question has been answered, you may remove yourself from the queue by pressing star two. We'll take our next question with Poe Fratt with AG Partners. Please go ahead.

Operator: Again, that is the star and one, if you would like to ask a question. Again, if at any time your question has been answered, you may remove yourself from the queue by pressing star two. We'll take our next question with Poe Fratt with AG Partners. Please go ahead.

Speaker #1: We'll take our next question from Poe Fratt with AG Partners. Please go ahead.

Speaker #5: Yeah, good morning. I'd like to follow up on the comment about the Pacific trade, or Pacific region. Are there any particular cargoes that are driving that?

Poe Fratt: Yeah, good morning. I'd like to follow up on the comment about the Pacific trade or Pacific region. Are there any particular cargoes that are driving that? Then secondly, can you highlight whether that has continued into Q3 or sort of how you look at that over the H2 of the year?

Speaker #5: And then secondly, can you highlight whether that is continued to into the third quarter or sort of how you look at that over the second half of the year?

Speaker #4: I, I wouldn't say that that's the it's, it's a specific cargo that sort of drives that, that, that, growth in earnings. And I and I do see that see that we have the markets have a have rebalanced a bit in terms of, of the Atlantic trading up and the Pacific maybe flattening a little bit.

Mads Petersen: I wouldn't say that it's a specific cargo that sort of drives that growth in earnings. I do see that the markets have rebalanced a bit in terms of the Atlantic trading up and the Pacific maybe flattening a little bit. I'm not envisioning in the short term a huge change to how we employ the ship. It was, I think, more of an opportunistic look at where we could get the best returns in the short term, mainly because the Pacific seems to be a little bit more disrupted from the activities in the Strait of Hormuz than the Atlantic. We saw an opportunity there.

Speaker #4: so, I, I, I'm not envisioning a sort of in the short term a huge change to how we how we employ the ship. It was, I think, more of an opportunistic look at, at, at where we could get the best returns in the short in the short, in the short term, mainly because the, the Pacific seems to be a little bit more disrupted from the, from the activities in the in the strait of Amuse than, than the Atlantic.

Speaker #4: So we saw an opportunity there.

Speaker #5: Great. Thank you, Mads. And then, would you look at your own fleet? You know, you just sold one. Are you seeing opportunities on either side of the equation—to either sell assets or buy assets?

Poe Fratt: Great. Thank you, Mads. When you look at your own fleet, you just sold one. Are you seeing opportunities on either side of the equation to either sell assets or buy assets? Can you just give me an idea of what the tone of the S&P market looks like to you right now?

Speaker #5: Can you just give me an idea of what the tone of the, you know, S&P market looks like to you right now?

Speaker #4: Oh, I, I think it's, it's absolutely a, a firm values are, are, are high and, and, and we, we take advantage of that when, when we are, you know, looking at, at, at the older ships in our fleet that are coming up against, you know, some of the, the fourth or the fifth special survey and, and take advantage of, of that liquid market for our ships in that age group.

Mads Petersen: I think it's absolutely firm. Values are high, and we take advantage of that when we are looking at the older ships in our fleet that are coming up against some of the fourth or the fifth special survey and take advantage of that liquid market for our ships in that age group. On the other side of it, we are always looking at ships from the second market to add to the fleet. We are quite determined to only pursue the assets that are attractive to us from a specification and price point. In the meantime, we can, in the short run at least, substitute with a little bit more activity in the chartering part of the business.

Speaker #4: On the other side of it, we're always looking at ships, from the second market to, to add to the fleet. But, we are, quite determined to, to only pursue the, the assets that are, attracted to us from a specification and price point, and in the meantime, we can, in the short term at least, substitute with a little bit more activity in the charter in part of the business.

Speaker #5: Okay. And then can you just, Mads, if you wouldn't mind highlighting your drydocking activity over the next, you know, 12 months—so the second half of the year and into the first half of '27?

Poe Fratt: Okay. Can you just, Mads, if you wouldn't mind highlighting your dry docking activity over the next 12 months, the H2 of the year into the H1 of 2027?

Speaker #4: Yeah. Poe, I can I can, I can run through that. it's for the second half of the year, we have, about nine more dry dockings to go.

Gianni Del Signore: Paul, I can run through that. For the H2 of the year, we have about nine more dry dockings to go, and we are estimating about $14 million of costs associated with that. Next year, we have a little bit of a lighter year compared to 2025 and 2026. So really, it is the H2 of this year, maybe early next year, where we have those nine dry dockings and about $14 million of costs associated.

Gianni Del Signore: Poe, I can run through that. For the H2 of the year, we have about nine more dry dockings to go, and we are estimating about $14 million of costs associated with that. Next year, we have a little bit of a lighter year compared to 2025 and 2026. So really, it is the H2 of this year, maybe early next year, where we have those nine dry dockings and about $14 million of costs associated.

Speaker #4: And we're estimating about 14 million of, of, costs associated with that. And then next year, we have a little bit of a lighter, a little bit of a lighter year.

Speaker #4: Compared to 2025 and 2026, so really, it's the second half of this year, maybe early next year, where we have those nine dry dockings and about $14 million of costs associated.

Speaker #5: Great. Thank you so much.

Poe Fratt: Great. Thank you so much.

Speaker #4: Yep. Thanks, Poe.

Gianni Del Signore: Yep. Bye.

Speaker #1: Thank you. At this time, we have no further questions, so I’d like to turn it back to our speakers for any closing comments.

Operator 2: Thank you. At this time, we have no further questions, so I would like to turn it back to our speakers for any closing comments.

Operator: Thank you. At this time, we have no further questions, so I would like to turn it back to our speakers for any closing comments.

Speaker #3: Once again, thank you for joining our call. Should you have any questions, please feel free to contact us at investors@pangaeals.com, and a member of our team will follow up with you.

Gianni Del Signore: Once again, thank you for joining our call. Should you have any questions, please feel free to contact us at investors@pangaeals.com and a member of our team will follow up with you. This concludes our call today.

Stefan Neely: Once again, thank you for joining our call. Should you have any questions, please feel free to contact us at investors@pangaeals.com and a member of our team will follow up with you. This concludes our call today.

Speaker #3: This concludes our call today.

Speaker #1: We'd like to thank everybody for joining the conference today. We appreciate your time and participation, and you may now disconnect.

Operator 2: We would like to thank everybody for joining the conference today. We appreciate your time and participation, and you may now disconnect.

Operator: We would like to thank everybody for joining the conference today. We appreciate your time and participation, and you may now disconnect.

Poe Fratt: Okay, thank you.

Gianni Del Signore: Okay, thank you.

Q2 2026 Pangaea Logistics Solutions Ltd Earnings Call

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