Financial Data and Key Metrics Changes - In 2024, the company achieved a 180% year-on-year increase in oil production, with the Permian contributing over 60% to cash flows [7][10] - Proved reserves grew approximately 20% year-over-year despite pricing headwinds [18] - The company reported net revenue interest production in Pennsylvania at approximately 30 million cubic feet a day, up 85% from the daily average during 2024 [12] Business Line Data and Key Metrics Changes - The Permian business saw significant growth with an investment of $24 million, leading to increased production and undeveloped acreage [14] - In the Marcellus, production curtailments were estimated at 20% to 25% of net total, but the environment improved in the fourth quarter, leading to a strong start in 2025 [9][13] - The company established a new project area in Alberta, Canada, with a joint venture that adds multi-year economic inventory for approximately a $7 million drilling carry [7][16] Market Data and Key Metrics Changes - The Marcellus experienced sub $2 per Mcf net wellhead pricing, but pricing improved significantly in early 2025, with realized prices over $3.90 per Mcf [9][12] - The gathering system throughput in the Marcellus is up over 50% from the average in the third quarter of 2024 [13] Company Strategy and Development Direction - The company remains committed to its fixed dividend while exploring opportunities to reduce share count [10] - Future development in the Permian is expected to pick back up, with significant undeveloped acreage available [14][15] - The company is focused on capital allocation across multiple project areas, including a new project in Alberta [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Marcellus market, indicating a strong start to 2025 and improved cash flows [11][13] - The company is in a strong position with over $50 million of liquidity and strong free cash flows [17] Other Important Information - The operator in the Marcellus has provided clarity on a multi-year plan, which includes development scheduling for 2026 and beyond [41] - The company has not been active in share repurchases year-to-date but remains opportunistic in its capital allocation strategy [49] Q&A Session Summary Question: How many wells were drilled and completed in Alberta in 2024? - The company drilled 2 gross wells, 1 net, in the small project called Killam, and 2 gross wells in the larger Garrington area [28][30] Question: How many wells will be drilled in the larger area in 2025? - There are plans for another 2 wells to be drilled in the larger area over the remainder of 2025 [31][32] Question: What are the expectations regarding the Marcellus operator's plans into 2026? - The operator's multi-year plan includes development scheduling for 2026, 2027, and 2028, which has been included in the reserve report [41][42] Question: What is the company's hedge position for natural gas? - The company is hedged through October at roughly 30% of gas production, with plans to be aggressive in the winter months [46][47] Question: Has the company been active in share repurchases year-to-date? - The company has not been active in share repurchases but considers it an option for capital allocation [48][49]

Financial Data and Key Metrics Changes - In 2024, the company achieved a net income of BRL2.2 billion, exceeding the guidance of BRL1.9 billion, despite macroeconomic challenges and over BRL100 million negative impacts from accounting changes [10] - Adjusted net income grew 18% year over year, with adjusted basic EPS increasing by 26% compared to Q4 2023 [12] - Adjusted administrative expenses were BRL994 million, lower than the guidance of BRL1.125 billion, reflecting ongoing efficiency improvements [10][12] Business Line Data and Key Metrics Changes - The MSMB car TPV reached BRL403 billion, a 15% year-over-year growth, while total MSMB TPV exceeded expectations at BRL454 billion, a 22% increase [6][10] - The MSNB take rate was 2.55%, surpassing the guidance of 2.49%, driven by disciplined pricing and increased contributions from banking and credit solutions [8][10] - The credit portfolio grew to BRL1.2 billion, significantly exceeding the target of BRL800 million, with non-performing loans over ninety days remaining controlled at 3.61% [9][20] Market Data and Key Metrics Changes - The active client base for MSMB payments increased by 19% year over year to 4.1 million clients, with a notable acceleration in client additions [15] - Retail deposits reached BRL8.7 billion, exceeding the guidance of BRL7 billion, reflecting strong performance in bundled payments and banking offerings [7][18] - The banking active client base grew by 46% year over year to 3.1 million, outpacing the payments client base growth [18] Company Strategy and Development Direction - The company aims to establish Stone accounts as the primary financial hub for clients, focusing on enhancing the value proposition through a comprehensive ecosystem beyond payments [8] - Key initiatives for 2025 include investment products and workflow tools to accelerate deposit growth [8] - The company is committed to maximizing long-term intrinsic business value growth, emphasizing disciplined execution and prudent capital allocation [40] Management Comments on Operating Environment and Future Outlook - Management acknowledged potential macroeconomic challenges but expressed confidence in delivering sustainable long-term value creation [40] - The company plans to continue outpacing market growth and expanding its share in the MSMB payments market [6] - Management highlighted the importance of evolving client engagement and the successful execution of strategic priorities [5][10] Other Important Information - The company recognized a goodwill impairment charge of BRL3.6 billion for the software cash-generating units, which is a non-cash accounting adjustment [27] - The adjusted net cash position was BRL4.7 billion at quarter end, reflecting ongoing share repurchase activity [32] - The company expects to return excess capital to shareholders over time when value-accretive growth opportunities are not immediately available [35] Q&A Session Summary Question: Performance of banking solutions and room for improvement - Management noted that deposits are growing ahead of TPV due to successful bundling of payments and banking solutions, with expectations for continued growth as more solutions are developed [45][46] Question: View on dividends and capital structure - Management emphasized a commitment to returning capital to shareholders through share buybacks, with no specific targets for dividends at this time [50][51] Question: Pricing strategy and impact - Management confirmed that a substantial repricing initiative was implemented at the beginning of Q1 2025, with expectations for effective adjustments across the client base [58][61] Question: Guidance on basic vs. diluted EPS - Management explained the decision to guide basic EPS due to accounting volatility and the potential for double counting with share-based compensation [62][64] Question: Potential sale of software business - Management stated that no offers met the intrinsic value for the software assets, and they will focus on maximizing value through cross-selling financial services [75][76]

Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue was $48.8 million, with total company adjusted EBITDA of $4.9 million and operated segment adjusted EBITDA of $9.6 million [14][29] - For the full year 2024, consolidated revenue was $122.3 million, down from $125.1 million in 2023, with total company adjusted EBITDA of $17 million [36][40] - The net loss for Q4 2024 was $13.4 million, or $0.14 per share, compared to a net income of $74.8 million, or $0.75 per share in Q4 2023 [34][36] Business Line Data and Key Metrics Changes - Energy operations generated $17.3 million in revenue for Q4 2024, significantly up from $0.8 million in the same quarter last year [29] - Manufacturing operations, following the acquisition of Deflecto, generated $23.2 million in revenue for Q4 2024 [30] - Industrial operations generated $8.2 million in revenue for Q4 2024, a slight decrease from $8.6 million in the same quarter last year [30] - Intellectual property operations generated $0.1 million in licensing revenue during Q4 2024, down from $82.8 million in the same quarter last year [30][26] Market Data and Key Metrics Changes - The energy vertical reported Benchmark's highest ever revenue this quarter, demonstrating effective operational strategies [19] - The manufacturing operations are expected to improve earnings leverage as market conditions rebound [24] Company Strategy and Development Direction - The company aims to maximize value through disciplined capital allocation and strategic acquisitions, focusing on operational efficiencies and integration of acquired businesses [9][45] - The strategy includes evaluating potential acquisition targets in both private and public markets while maintaining a strong balance sheet [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the stability offered by the company's diversified asset base [47] - The company plans to continue optimizing existing assets and exploring new acquisition opportunities to unlock shareholder value [48] Other Important Information - The company repurchased $20 million of stock at an average price of $4.61 per share, reflecting a strategic use of shareholder capital [16] - Cash, cash equivalents, and equity securities totaled $297 million at year-end 2024, down from $403.2 million at the end of 2023, primarily due to acquisitions and stock repurchases [41][42] Q&A Session Summary Question: Thoughts on the overall economy and tariffs - Management indicated that the company is insulated from tariffs due to its market position and has plans to adjust manufacturing operations if necessary [52][54] Question: Acquisition of more wells and Cherokee play potential - Management confirmed ongoing evaluation of asset packages for acquisition, focusing on operational scalability rather than geographical expansion [61][64] Question: Deflecto's gross margin performance - Management acknowledged that the fourth quarter is seasonally weak but remains committed to achieving the targeted gross margin of 15% [66] Question: Cash levels and acquisition strategy - Management clarified that the increase in cash levels is due to effective cash flow generation from acquired businesses [92] Question: Flexibility in private equity pricing - Management noted that while private equity firms typically seek high prices, there are opportunities for reasonable valuations, especially for businesses that may not fit traditional private equity models [96][97]

Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue was $48.8 million, with total company adjusted EBITDA of $4.9 million and operated segment adjusted EBITDA of $9.6 million [14][29] - For the full year 2024, consolidated revenue was $122.3 million, down from $125.1 million in 2023, with total company adjusted EBITDA of $17 million [36][38] - The net loss for Q4 2024 was $13.4 million, or $0.14 per share, compared to a net income of $74.8 million, or $0.75 per share in Q4 2023 [34][36] Business Line Data and Key Metrics Changes - Energy operations generated $17.3 million in revenue for Q4 2024, significantly up from $0.8 million in the same quarter last year [29] - Manufacturing operations, following the acquisition of Deflecto, generated $23.2 million in revenue for Q4 2024 [30] - Industrial operations generated $8.2 million in revenue for Q4 2024, a slight decrease from $8.6 million in the same quarter last year [30] - Intellectual property operations generated $0.1 million in licensing revenue during Q4 2024, down from $82.8 million in the same quarter last year [30][36] Market Data and Key Metrics Changes - The energy vertical reported Benchmark's highest ever revenue this quarter, demonstrating effective operational strategies [19] - The manufacturing operations are expected to improve earnings leverage as market conditions rebound [24] Company Strategy and Development Direction - The company aims to maximize value through disciplined capital allocation and strategic acquisitions, focusing on operational efficiencies and integration synergies [9][45] - The strategy includes evaluating potential acquisition targets in both private and public markets while maintaining a strong balance sheet [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the stability offered by the company's diversified asset base [47] - The company remains optimistic about future growth opportunities, particularly in the energy sector, due to rising demand for electricity and LNG exports [21][47] Other Important Information - The company repurchased $20 million of stock at an average price of $4.61 per share, reflecting a strategic use of shareholder capital [16] - Cash, cash equivalents, and equity securities totaled $297 million at year-end 2024, down from $403.2 million at year-end 2023, primarily due to acquisitions and stock repurchases [41][42] Q&A Session Summary Question: Thoughts on the overall economy and tariffs - Management indicated that the company is insulated from tariffs due to its market position and has plans to adjust manufacturing operations if necessary [52][55] Question: Acquisition of more wells and Cherokee play potential - Management confirmed ongoing efforts to acquire additional asset packages while being disciplined about valuations, and expressed enthusiasm about the Cherokee area as it gains interest from other players [61][64] Question: Deflecto's gross margin performance - Management acknowledged that the fourth quarter is seasonally weak but remains committed to achieving the targeted gross margin of 15% [66] Question: Cash levels and acquisition strategy - Management clarified that the increase in cash levels despite significant expenditures is due to the cash-generating nature of the acquired businesses [92] Question: Flexibility in private equity pricing - Management noted that while private equity firms typically seek high prices, there are opportunities for reasonable valuations, especially for businesses that may not fit traditional private equity models [96][97]

Financial Data and Key Metrics Changes - The consolidated revenue for Q4 2024 was $137.8 million, a decrease of 4% from the previous year's Q4. Adjusted EBITDA was $21.1 million, down 17% [4] - U.S. operations saw a revenue decline of 3% and an EBITDA decrease of 8% [4] - The net debt to EBITDA ratio at the end of Q4 was 5.5 times, and 6.9 times on a lease-adjusted basis [20] Business Line Data and Key Metrics Changes - The new land-based facility in Caruthersville, Missouri, opened on November 1, 2024, with revenue and EBITDA up 2732% in the four months since opening, exceeding initial expectations [5][6] - The Central Casino Hotel Cape Girardeau reported an 11% increase in revenue and a 7% increase in EBITDA, driven by the new hotel and solid food and beverage sales [9] - The East segment, including Mountaineer Casino and Rocky Gap Casino Resort, experienced a revenue decline of 7% and EBITDA down 29% [15] Market Data and Key Metrics Changes - In Colorado, carded revenue grew by 12%, while uncarded revenue decreased by 30%, leading to an overall revenue decline of 7% [13] - The Nugget Casino Resort in Nevada saw a 10% decline in gaming revenue, impacted by low slot hold, although local credit play increased by 5% [17] Company Strategy and Development Direction - The company is focusing on operational discipline and efficiency improvements, with a clear path to higher EBITDA for 2025 and beyond [23] - There are plans to finalize partnership agreements for sports betting in Missouri, expected to deliver incremental high-margin EBITDA [12] - The company is considering divesting non-U.S. properties, particularly in Poland and Canada, as part of its strategic focus on North American assets [19][74] Management Comments on Operating Environment and Future Outlook - Management noted that the low-end consumer segment remains weak due to macroeconomic factors, impacting overall performance [5][27] - The company anticipates significant EBITDA and cash flow improvements in 2025, driven by recent growth capital initiatives [24] - Management expressed caution regarding capital allocation due to ongoing macroeconomic uncertainty, emphasizing the need to refinance or pay down high-rate debt [50] Other Important Information - The company has no significant capital expenditures planned for 2025, expecting to spend only $4 million on growth projects and $14 million on maintenance CapEx [22] - The company has a strong cash position with no debt maturities until 2029, allowing for flexibility in growth initiatives [21] Q&A Session Summary Question: What is the main driver of the lower estimates for 2025? - Management indicated that the primary driver is the weakness in the low-end consumer segment, which significantly impacts certain properties [27] Question: How is the conference pipeline building for the Nugget? - Management noted that while large conferences are difficult to secure in the short term, they are successfully attracting smaller events and local customers [32] Question: What impact will the Alberta Gaming Commission's suspension of gaming machine purchases have? - Management does not expect a meaningful negative impact, estimating it to be around 0.5% to 1% [35] Question: Can you elaborate on the performance of the Caruthersville property? - Management confirmed that the property has exceeded expectations, particularly in reaching customers from further distances [46] Question: What is the strategy for online gaming and sports betting? - The company plans to partner with third parties for online gaming and sports betting, providing licenses and receiving revenue percentages [63] Question: Is there a consideration for insider buying or stock buybacks? - Management expressed interest in buybacks but noted restrictions due to insider laws and blackout periods [83]

Financial Data and Key Metrics Changes - South Bow generated normalized EBITDA of $1.09 billion and distributable cash flow of $608 million in 2024 [13] - The company expects to generate normalized EBITDA of $1.01 billion in 2025, reflecting a range of 3% [15] - The net debt to normalized EBITDA ratio is forecasted to be approximately 4.8% by the end of 2025 [16] Business Line Data and Key Metrics Changes - 90% of normalized EBITDA is secured through committed arrangements, minimizing commodity price or volumetric risk [14] - The marketing segment is expected to see a reduction of approximately $30 million year-over-year due to reduced activity and certain unwinds of positions [99] Market Data and Key Metrics Changes - There is significant demand for uncommitted capacity on Keystone and continued strength in demand for capacity on the U.S. Gulf Coast segment [14] - The company has observed extreme demand in the Gulf Coast for heavy barrels out of Canada, indicating strong supply and demand fundamentals [24] Company Strategy and Development Direction - South Bow aims to leverage existing infrastructure to deliver high returns for shareholders, with a focus on capital allocation priorities and risk management [10] - The company is committed to maintaining a sustainable dividend while strengthening its investment-grade financial position [10][17] - Future growth will be pursued within risk preferences, with a focus on optimizing existing corridors and enhancing contracted strategies [12][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position entering 2025 and the ability to meet near-term deleveraging targets [16] - The ongoing uncertainty around tariffs may create headwinds for uncommitted capacity, but the company believes it can manage risks within its guidance [29] Other Important Information - The company received approval from PHMSA to lift pressure restrictions on a segment of the Keystone system, which is expected to improve operational efficiency [96] - The variable toll complaint process is ongoing, with decisions awaited from both Canadian and U.S. regulatory bodies [78] Q&A Session Summary Question: Discussion on open season and interest levels - Management noted that Western Canadian sedimentary basin has been egress constrained for years, but there is encouragement from both supply and demand fundamentals [22][24] Question: Changes in long-term debt-to-EBITDA target - Management confirmed a focus on deleveraging to reach a target of four times by 2028, emphasizing the importance of maintaining a strong balance sheet [26] Question: Guidance on tariffs and downside risks - Management indicated that 90% of EBITDA is contracted, allowing for stability despite market uncertainties, and they believe they can manage risks within a 3% range [28][29] Question: Future growth opportunities and recapitalized optionality - Management highlighted the importance of leveraging existing infrastructure and optimizing capital investments to support growth [39][40] Question: Marketing strategy and market conditions - Management is shifting towards a more contracted marketing strategy to mitigate volatility and improve shareholder value [71][106] Question: PHMSA approval impact on capacity - Management stated that the approval will enhance operational efficiency but did not provide specific throughput increases at this time [97] Question: Long-term EBITDA growth outlook - Management expressed confidence in achieving a 2% to 3% growth rate, driven by increased delivery points and capturing additional volumes [87][106]

Financial Data and Key Metrics Changes - The company reported a net sales decline to $40.7 million in Q4 2024 from $41.2 million in Q4 2023, attributed to lower volume but higher pricing in specialty chemicals [32] - Adjusted EBITDA increased to $2.6 million in Q4 2024 from negative $5.9 million in Q4 2023, with an adjusted EBITDA margin of 6.3% compared to negative 14.4% in the prior year [35] - For the full year 2024, net sales were $177.9 million, down from $193.2 million in 2023, while gross profit increased significantly to $22.1 million or 12.4% of net sales compared to $1.5 million or 0.8% in 2023 [36] Business Segment Data and Key Metrics Changes - The tubular products segment experienced a year-over-year sales decline of $12.4 million but increased segment-level gross profit by approximately $15 million due to cost management and product line optimization [16] - The specialty chemicals segment achieved its highest quarterly adjusted EBITDA since Q2 2022, driven by a 14% increase in gross margin despite moderate top-line compression [19] Market Data and Key Metrics Changes - The company noted that domestic investments in energy and infrastructure are beginning to translate into increased demand, with a stronger order backlog than in the past four years [17] - The total addressable market for the specialty chemicals segment is over $9 billion, with a focus on branded products that recorded a double-digit year-over-year increase in sales [20][22] Company Strategy and Development Direction - The company aims to maximize asset value in the tubular product segment while investing in profitable growth in specialty chemicals [7] - There is a commitment to organic growth through branded product sales and a disciplined approach to potential acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management expressed pragmatic optimism for 2025, indicating that while market dynamics are improving, significant changes are not expected in the first half of the year [17] - The company is focused on driving growth while maintaining operational excellence and has a strong liquidity position with over $16 million in cash [8][39] Other Important Information - The company has initiated a stock repurchase program, allowing for the acquisition of up to an additional one million shares over the next 24 months [9] - The company remains debt-free and generated nearly $15 million in free cash flow throughout the year [15][39] Q&A Session Summary Question: What are the expectations for top-line growth in 2025? - Management indicated that top-line growth is more likely to be a second-half opportunity, with no material changes expected in the first half [44] Question: What contributed to the significant cash growth from Q3 to Q4? - The increase in cash was primarily driven by optimizing idle inventory and improved cash conversion cycles [48][49] Question: How is the new cleaning portfolio being received in the market? - The reception was positive, with new opportunities being pursued following the launch at a cleaning conference [55] Question: What is the outlook for margin improvement in the chemicals segment? - There is potential for ongoing margin improvement as branded product sales increase, although further price increases may not be anticipated [61] Question: Is the share repurchase goal achievable given past buyback trends? - Management clarified that the buyback program provides flexibility and is contingent on market conditions and share price [64] Question: Where does management see the company a year from now? - The focus is on pivoting to growth, both organically and inorganically, with plans to fill underutilized assets with high-value applications [68]

© Harmony Eva Copper - The information in this announcement that relates to Mineral Resources or Ore Reserves has been extracted from the Copper Mountain Mining Corporation Mineral Reserve and Resource Estimate (as at 1 August 2022). H1FY25 RESULTS Beyers Nel, CEO 4 March 2025 | JSE ticker code | HAR | | --- | --- | | NYSE ticker code | HMY | PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within ...

Financial Data and Key Metrics Changes - For Q4 2024, APA Corporation reported consolidated net income of $354 million or $0.96 per diluted share, with adjusted net income of $290 million or $0.79 per share [30][31] - The company generated $420 million of free cash flow in Q4 2024, the highest for any quarter in 2024, and returned 46% of this amount to shareholders [32][33] - For the full year 2024, APA generated $841 million in free cash flow, returning 71% to shareholders [33][34] Business Line Data and Key Metrics Changes - In the Permian Basin, APA's US business now comprises almost entirely unconventional assets, driving over 75% of current adjusted production [13][14] - The company achieved a breakeven oil price of $61 per barrel in 2024, down from Cowen's 2023 breakeven of $78 per barrel [21] - In Egypt, the company improved its production profile through water flood activities, leading to a more predictable oil production profile [14] Market Data and Key Metrics Changes - APA's average realized gas price is expected to increase from $2.96 per Mcf in Q4 2024 to at least $3.15 per Mcf in Q1 2025, with a full-year average expected in the $3.40 to $3.50 range [40] - The company anticipates generating a combined net gain of $600 million for 2025 from gas trading activities [44][109] Company Strategy and Development Direction - APA Corporation is focused on enhancing the quality and sustainability of its portfolio, particularly in the Permian Basin and Egypt, while also pursuing a differentiated exploration strategy [11][12] - The company plans to run an eight-rig program in the Permian and a twelve-rig program in Egypt for 2025, with a total capital budget of $2.5 to $2.6 billion [24][25] - Cost reduction initiatives are expected to generate at least $350 million in annualized savings by year-end 2027 [27][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability and predictability of production from the Permian and Egypt, with a focus on cost structure improvements [56][58] - The company aims to achieve BBB or better ratings from credit agencies, reflecting its strengthened balance sheet [34] - Management highlighted the importance of the gas program in Egypt, expecting year-over-year gas production growth for the first time in over a decade [39][92] Other Important Information - APA Corporation achieved a BBB- rating from S&P, marking its investment-grade status with all three rating agencies [13][34] - The company closed the sale of non-core conventional properties in the Permian Basin on December 31, 2024 [18] Q&A Session Summary Question: Concerns about share performance despite strong cash flow - Management acknowledged the concerns and emphasized the transformation of their asset base, focusing on cost structure and sustainable inventory [55][56] Question: Share buybacks versus debt repayment - Management stated that they are working on both share buybacks and debt repayment, believing in the value of their shares [62][63] Question: Update on Alaska exploration - Operations in Alaska are progressing well, with no comments on pay zones yet, but management is optimistic about the results [68][69] Question: Productivity in Howard County - Management reported fantastic results in Howard County and plans to return for tighter well spacing [72][73] Question: Balancing rig activity between oil and gas in Egypt - Management indicated a strong start in gas drilling and plans to potentially shift more rigs to gas as results improve [92][94] Question: Receivable situation in Egypt - Management noted that past due balances have remained stable, with expectations for progress in 2025 [102][104] Question: Breakdown of gas trading revenue - Management provided a breakdown of expected gas trading revenue, with significant contributions from both pipeline trading and LNG contracts [108][109] Question: Structural changes in cost-cutting initiatives - Management detailed their approach to cost savings, emphasizing capital, LOE, and G&A as key areas for improvement [114][115]

Financial Data and Key Metrics Changes - Net income for Q4 2024 was $36 million or $0.72 per diluted share, with adjusted net income at $45 million or $0.90 per diluted share, and adjusted EBITDA at $95 million [10][26] - The company reported a total liquidity of $632 million, consisting of $157 million in cash and $475 million in undrawn revolving credit [13][33] - The net loan-to-value ratio is below 16%, with a breakeven rate of approximately $13,700 per day [14][34] Business Line Data and Key Metrics Changes - The lightering business generated over $9 million in revenue for the quarter, contributing nearly $3 million in EBITDA for Q4 and approximately $20 million for the full year [28] - The company executed a vessel swap, selling two older VLCCs and acquiring three ECO MRs, which is part of a strategy to modernize the fleet [11][24] Market Data and Key Metrics Changes - Oil demand growth is expected to continue at a historical rate of about 1% per year, with a projected increase of 1 to 1.5 million barrels per day for 2025 [16][17] - The geopolitical landscape remains complex, affecting tanker movements, particularly with tensions involving the U.S. and Iran, as well as the ongoing Israel-Hamas conflict [18][19] Company Strategy and Development Direction - The company aims to modernize its fleet, maintaining an average age of around ten years, which is seen as optimal for tanker investments [42] - A balanced capital allocation approach is emphasized, focusing on fleet renewal while providing competitive returns to shareholders [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the tanker market's resilience, anticipating continued strong earnings due to limited tanker supply and a favorable demand environment [24][42] - The company expects to maintain a payout ratio of at least 75% going forward, reflecting a commitment to returning capital to shareholders [72] Other Important Information - The company returned over $300 million to shareholders in 2024, representing a 12% dividend yield on the average share price [14][41] - The company has a strong financial position with $475 million in undrawn credit capacity, allowing for flexibility in growth opportunities [42] Q&A Session Summary Question: Charter-out strategy in the current market - Management indicated that they have fourteen time charters in their fleet and are continuously evaluating opportunities in the charter market [50][53] Question: Outlook for MR rates and geographic focus - Management noted that Q1 bookings are strong, with good exposure to the East market, while the U.S. Gulf rates are showing some decline [61] Question: Dividend payout ratio expectations - Management confirmed that shareholders should expect a minimum payout ratio of 75%, with flexibility to adjust based on earnings fluctuations [72][73] Question: VLCC MR swap strategy - The swap was aimed at reducing the average age of the fleet rather than deemphasizing VLCCs, with a focus on maintaining a balanced fleet profile [76][80] Question: Breakeven rate components and future cost management - Management stated that they are focused on keeping costs in line and are optimistic about maintaining current breakeven rates [88] Question: Suez Max outlook - Management indicated that Suez Max rates are expected to improve as the VLCC market strengthens [98] Question: Share repurchase plans - Management confirmed that while the payout ratio is the primary method of returning cash, opportunistic buybacks are also considered [102] Question: Charter specifications and older vessels - Management noted that charterers may show some flexibility depending on market conditions and vessel availability [108] Question: Red Sea transit inquiries - Management stated that there are currently no pressures from charters to resume transits through the Red Sea [113]