Financial Data and Key Metrics Changes - In Q3 2024, the company reported a profit of $40.3 million, or $0.18 per share, with an adjusted profit of $42.5 million, or $0.19 per share, reflecting a decrease of $37.8 million from the previous quarter primarily due to lower time charter earnings [4][5] - Time charter earnings fell from $283 million in the previous quarter to $248 million in Q3 2024 [4] - Operating expenses increased by $3.1 million from the previous quarter, attributed to a decrease in supply rate and costs related to a change in ship management [5] Business Line Data and Key Metrics Changes - The company achieved daily rates of $34,300 for VLCCs, $35,100 for Suezmax, and $31,400 for LR2/Aframax fleets in Q3 2024 [3] - For Q4 2024, 75% of VLCC days are booked at $83,300 per day, 75% of Suezmax days at $60,600, and 51% of LR2/Aframax days at $42,200 [3] Market Data and Key Metrics Changes - Oil in transit has reached record highs, with export volumes increasing, particularly from the Americas and the Atlantic Basin [10] - Year-on-year, Middle Eastern producers' exports are up by 1.2 to 1.3 million barrels per day for October [10] - The company noted logistical challenges around the trade of sanctioned export oil, particularly affecting Lukoil and Rosneft [10] Company Strategy and Development Direction - The company is focusing on maintaining a strong balance sheet and liquidity, with $819 million in cash and cash equivalents as of September 30, 2025 [6] - The fleet consists of 41 VLCCs, 21 Suezmax tankers, and 18 LR2 tankers, all ECO vessels, with a strategy to capitalize on the VLCC-centric trade pattern [6][12] - The company is optimistic about the tanker market's longevity due to limited growth in the compliant tanker fleet and strong oil export fundamentals [20] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the current market developments, indicating a positive outlook for the tanker industry [2] - The company anticipates a sustained contango structure in the oil market, which could lead to inventory builds and increased demand for compliant vessels [12][20] - Management highlighted that the tanker market is experiencing high utilization and strong oil exports, with limited growth in the compliant tanker fleet [20] Other Important Information - The company has no meaningful debt maturities until 2030 and no new building commitments, allowing for flexibility in financial management [6] - The average cash-based breakeven rates for the next 12 months are estimated at approximately $26,000 per day for VLCCs, $23,300 for Suezmax, and $23,600 for LR2 tankers [7][8] Q&A Session Summary Question: Is the company looking to deleverage the balance sheet while maintaining dividends? - Management stated that they are different from peers and are not particularly comfortable with low loan-to-value ratios, indicating a conservative approach to financial management [22][24] Question: How do older ships become less efficient without being scrapped? - Management explained that older vessels face high insurance costs and limited trading options, making them less efficient in the compliant oil market [26][29] Question: What is the outlook for the dark fleet and its impact on the market? - Management noted an increasing number of vessels sitting idle and discussed potential solutions for recycling sanctioned vessels [34][36] Question: How does the current market environment affect vessel demand? - Management indicated that the current market is tight, with no signs of weakness, and highlighted key fundamentals supporting the market [65][70] Question: What is the outlook for Q1 compared to Q4? - Management expressed optimism for Q1, citing strong fundamentals that were not present in Q4 of the previous year [66][70]