Financial Performance - In 2025, the company generated an EBITDA of $263.1 million, an underlying profit of $39.2 million, and a net profit of $58.2 million [2][3] - The balance sheet remained strong with a net cash position of $134 million and an undrawn committed facility of $485.5 million [3][10] - Total shareholder return for 2025 was 46%, with a total distribution of $19.5 million through share buybacks and dividends [3][4] Business Line Performance - Average daily TCE earnings for Handysize and Supramax vessels were $11,490 and $12,850, representing decreases of 11% and 6% year-on-year respectively [6][8] - Operating activity margin improved, contributing $22.9 million in 2025, with operating activity days increasing by 1% year-on-year [8] - The company maintained cost efficiency, with average daily operating costs for both segments remaining stable at around $4,780 [8][9] Market Dynamics - Market freight rates fell significantly in the first half of 2025 but gradually picked up in the latter part of the year [5] - The average market spot rates for Handysize and Supramax vessels were approximately $10,570 and $11,610 per day, reflecting a decrease of 5% and 10% year-on-year respectively [5][6] - Ton-mile demand grew by 4%, supported by China's exports and imports, while grain loadings decreased by 6% due to reduced exports from Ukraine and Russia [17][19] Company Strategy and Industry Competition - The company is committed to returning value to shareholders through dividends and share buybacks, with an amended dividend policy to pay out 50% to 100% of annual net profit [4][14] - The strategic focus for 2026 includes renewing and expanding the fleet selectively, improving cost structure, and leveraging digitalization and AI technologies for efficiency [26][27] - The company plans to acquire four newbuildings for $119.2 million, scheduled for delivery in the first half of 2028, enhancing fleet capabilities [21][22] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the geopolitical risks and market challenges, particularly the recent escalation of conflict in the Middle East [2][5] - The outlook for 2026 appears stable, with freight forward agreements indicating a healthy market despite potential disruptions [6][26] - The company expects ton-mile demand to rise by about 3.5% in 2025 and a further 2.5% in 2026, reinforcing structural demand support [23][25] Other Important Information - The company realized $66.8 million from the sale of older vessels and maintained a disciplined approach to capital allocation [10][12] - The total net book value of the fleet was $1.6 billion, with an estimated market value of $1.96 billion, indicating a healthy buffer above book values [11] Q&A Session Summary Question: Shareholder returns and buyback strategy - Management explained the rationale behind the $40 million buyback, emphasizing the importance of signaling confidence in the business while acknowledging the market cap above NAV [30][32] Question: Outlook on supply and demand - Management discussed the current market dynamics, noting that disruptions could lead to improved market conditions despite supply potentially exceeding demand [30][34] Question: Dry bulk market rates sustainability - Management indicated that various disruptions, including geopolitical tensions, are influencing market rates, making it difficult to predict sustainability [41][44] Question: Fleet transfer to Singapore - Management confirmed that the transfer of vessels to Singapore is ongoing, with expected costs decreasing as the process continues [45][46] Question: Performance versus index - Management acknowledged past performance fluctuations and indicated that the company is positioned to catch up with market trends as conditions improve [49][50] Question: Vessel acquisition strategy - Management expressed a desire to maintain optionality in vessel acquisitions, balancing newbuilds and time charters to optimize fleet performance [51][52]

Financial Data and Key Metrics Changes - In 2025, the company generated an EBITDA of $263.1 million, an underlying profit of $39.2 million, and a net profit of $58.2 million [2][3] - The balance sheet remained strong with a net cash position of $134 million and an undrawn committed facility of $485.5 million, indicating strong liquidity [3][12] - Total shareholder return for 2025 was 46%, with a total distribution of $19.5 million through share buybacks and dividends [3][4] Business Line Data and Key Metrics Changes - Average daily TCE earnings for Handysize and Supramax vessels were $11,490 and $12,850, representing decreases of 11% and 6% year-on-year respectively [6][8] - Operating activity margin improved, contributing $22.9 million in 2025, with operating activity days increasing by 1% year-on-year to 27,850 days [8][10] - Average daily operating expenses remained stable at around $4,780, while depreciation costs rose slightly by 2% for Handysize and 6% for Supramax [9][10] Market Data and Key Metrics Changes - Market freight rates fell significantly in the first half of 2025, with Handysize and Supramax vessels averaging about $10,570 and $11,610 per day, down 5% and 10% year-on-year respectively [5][6] - The FFA saw an uplift since the beginning of 2026, averaging $13,730 for Handysize and $15,580 for Supramax, indicating a stable outlook [6][28] - Ton-mile demand grew 4% in 2025, supported by China's exports and imports, while grain loadings decreased by 6% due to reduced exports from Ukraine and Russia [19][20] Company Strategy and Development Direction - The company remains committed to returning value to shareholders through dividends and share buybacks, with a new dividend policy allowing for distributions of up to 100% of annual net profit when in a net cash position [4][15] - The strategic focus for 2026 includes renewing and expanding the fleet selectively, improving cost structure, and leveraging digitalization and AI technologies for efficiency [29][30] - The company plans to acquire four new Handysize vessels for $119.2 million, scheduled for delivery in the first half of 2028, enhancing fleet capabilities [22][23] Management's Comments on Operating Environment and Future Outlook - The management highlighted that geopolitical risks remain elevated, particularly with the recent escalation in the Middle East, which could create market inefficiencies [2][5] - Despite the challenges, the company is optimistic about the market outlook, noting that disruptions could lead to increased ton-mile demand [24][28] - The management expects the dry bulk market to remain resilient, with structural demand support despite geopolitical and energy transition impacts [24][27] Other Important Information - The company realized $66.8 million from the sale of older vessels and maintained a disciplined approach to capital allocation, remaining debt-free on a net basis [12][13] - The total net book value of the fleet was $1.6 billion, with an estimated market value of $1.96 billion, reflecting a healthy buffer above book values [12] Q&A Session Summary Question: Shareholder returns and buyback strategy - The management explained that the $40 million buyback is a signal of confidence in the business, despite trading above NAV, and they are ready to act when the timing is right [32][34] Question: Outlook on TCE rates and market disruptions - The management noted that disruptions, including geopolitical events, have positively impacted market conditions, leading to improved rates despite supply exceeding demand [42][46] Question: Impact of fleet transfer to Singapore - The transfer of vessels to Singapore is ongoing, with expected costs decreasing as the project progresses, and it is primarily a corporate organizational change rather than operational [46][48] Question: Performance versus index and future acquisitions - The management acknowledged past performance fluctuations but expressed optimism about catching up with market indices as conditions improve [50][54]