Financial Data and Key Metrics Changes - Genco recorded a net loss of $6.8 million or $0.17 per share for Q2 2025, with an adjusted net loss of $0.14 per share excluding a non-cash impairment charge of $700,000 [14] - Adjusted EBITDA for Q2 totaled $14.3 million, with a cash position of $35.8 million as of June 30, 2025, and $100 million of debt outstanding, resulting in a net loan to value of 7% [14][15] - The company declared a dividend of $0.15 per share, marking 24 consecutive quarters of dividends, representing 41% of the current share price [6][17] Business Line Data and Key Metrics Changes - Genco's fleet composition includes 17 Capesize vessels and 26 Ultramax and Supramax vessels, with a 40% ownership in Capesize and 60% in Ultramax/Supramax on a vessel basis [10] - The Baltic Capesize Index has averaged over $20,000 per day in 17 of the last 22 months, indicating strong performance in the Capesize sector [11] Market Data and Key Metrics Changes - The drybulk freight rate environment improved significantly in June, crossing the $30,000 per day level, driven by record port headland iron ore shipments [19] - Brazilian iron ore exports increased by 20% from April to June, absorbing approximately 100 Capesize vessels, which is nearly 5% of the Capesize fleet [19] - The Capesize segment has the smallest order book among dry bulk sectors at 9% of the fleet, with only 20 Capesize vessels delivered in the first half of the year, the least in over 15 years [25] Company Strategy and Development Direction - Genco's strategy focuses on dividends, deleveraging, and growth, with a commitment to returning cash to shareholders while expanding earnings power [5][12] - The company aims to modernize its asset base and has increased its borrowing capacity by 50% with a new $600 million revolving credit facility [7][15] - Genco plans to capitalize on improving drybulk fundamentals and has front-loaded the majority of its dry dockings for 2025 [7][18] Management's Comments on Operating Environment and Future Outlook - Management expressed a favorable view of the long-term fundamentals of the drybulk industry, anticipating a stronger freight rate environment in the second half of the year [6][12] - The company expects its cash flow breakeven rate to revert to approximately $9,800 per day by Q4 2025, with Q3 TCE estimates currently 17% higher than Q2 [17][71] - Management noted that while volatility in the freight market is expected, the low supply growth picture provides a solid basis for a constructive view of the drybulk market moving forward [25][26] Other Important Information - Genco has been recognized for strong corporate governance, being the only listed drybulk company with no related party transactions and ranked number one in the Weber Research ESG scorecard for four consecutive years [13] - The company has completed 90% of its full-year 2025 drydockings by the end of Q3, with only two remaining for Q4 [18] Q&A Session Summary Question: Can you discuss the attractiveness of the newly acquired vessel and appetite for more? - Management highlighted the vessel's high quality, fuel efficiency, and scrubber installation, indicating a strong appetite for further acquisitions in the Capesize sector due to compelling supply and demand fundamentals [28][30] Question: Will the company consider selling older vessels to fund new acquisitions? - Management indicated a focus on divesting older vessels, particularly two that are 20 years old, while timing sales to maximize price [32][33] Question: What is driving the growth in non-Capesize rates? - Management attributed the growth to robust corn and soybean crops from Brazil, along with a resurgence in coal shipments [39] Question: What is the outlook for TCE rates in Q4? - Management noted that while predicting exact rates is difficult, the forward curve indicates a strong Q4, with high fleet utilization expected due to completed drydockings [71] Question: How will the stock buyback program be utilized? - Management clarified that the buyback program is supplemental to dividends and will be used if market conditions warrant it [59][60]

Core Viewpoint - Teekay Tankers has actively executed its fleet renewal plan, acquiring modern vessels while selling older ones to capitalize on high asset prices, despite experiencing a decline in financial performance in Q2 2025 compared to the previous year [3][5]. Financial Performance - In Q2 2025, Teekay Tankers reported revenue of $232.9 million, a decrease of 29.1% year-over-year but a slight increase of 0.5% quarter-over-quarter [4]. - Adjusted EBITDA for the same period was $62.0 million, down 50.2% year-over-year but up 4.4% from the previous quarter [4]. - Operating profit reached $54.9 million, reflecting a 48.5% decline year-over-year and a 26.1% decrease from the previous quarter [4]. - Net profit was $62.6 million, or $1.81 per share, marking a 44.0% decrease year-over-year and a 17.7% decline quarter-over-quarter [4]. Fleet Update and Strategy - Teekay Tankers invested $64.3 million to purchase a Suezmax tanker, "Nordic Thunder," and agreed to acquire 50% ownership of a VLCC for $63.0 million [3]. - The company has sold five vessels since May, totaling approximately $158.5 million, which is expected to generate about $46.0 million in book gains [3]. - The average TCE for the Suezmax fleet was $33,089 per day, up 23.6% quarter-over-quarter but down 25.8% year-over-year [4]. - The average TCE for the Aframax/LR2 fleet was $32,101 per day, reflecting an 11.0% increase quarter-over-quarter but a 26.5% decrease year-over-year [4]. Market Outlook - The CEO indicated that the second quarter saw strong spot tanker rates, which were above historical averages, and anticipates a potential increase in seasonal tanker demand later in the year due to OPEC+ production adjustments and low global oil inventories [5][7]. - For Q3 2025, the expected TCE for the Suezmax fleet is projected at $31,400 per day, with 44% of operational day rates locked in, while the Aframax/LR2 fleet is expected to reach $28,200 per day with 42% of operational day rates secured [7]. - Teekay Tankers operates 44 tankers, primarily in the spot market, with a cash flow breakeven point of approximately $13,000 per day [7].

Financial Performance - Gross revenue was $193 million[4] - Adjusted EBITDA was $116 million[4] - Net loss was $32 million, or $0.24 per share[4, 17] Dividend and Share Repurchase - Quarterly dividend of $0.27 per share[4, 25] - Share buy-back of approximately $10 million at an average price of $7.98[4] Contracted Revenue and Backlog - Contracted backlog of $4.2 billion[4, 6, 25] - 68% of the contracted revenue is with investment grade counterparties[6] Portfolio Composition - Container vessels account for 68% of the contracted revenue[6] - Energy sector accounts for 12% of the contracted revenue[6] - Dry bulk accounts for 11% of the contracted revenue[6] - Tanker sector accounts for 8% of the contracted revenue[6] Operational Performance - Overall fleet utilization was 99.2%[11] - Container vessel utilization was 91%[11] - Car carrier utilization was 100%[11] - Tanker utilization was 100%[11] - Dry bulk utilization was 100%[11] - Energy sector utilization was 48.3%[11] Balance Sheet - Cash and cash equivalents totaled $174 million[23, 25] - Book equity ratio of 26%[21]