Financial Data and Key Metrics Changes - The company reported a net profit of $13.5 million for Q4 2025, compared to a net income of $1.1 million for Q4 2024, representing a significant increase [5] - EBITDA for Q4 2025 was $33.3 million, up from $21.3 million in Q4 2024 [5] - Operating revenues increased to $42.1 million in Q4 2025 from $29.6 million in Q4 2024, driven by higher time charter equivalent earnings [5] - Time charter equivalent earnings rose from $27,800 per day in Q4 2024 to $39,600 per day in Q4 2025 [5] - Cash distributions for the quarter totaled $0.30 per share [7] Business Line Data and Key Metrics Changes - The company converted index-linked time charters for 4 vessels to fixed rates at an average of $27,700 per day for the period from January 1 to March 31, 2026 [2] - A new time charter agreement for the Mount Elbrus was established at a fixed rate of $30,000 per day until June 30, 2026, with a subsequent conversion to an index-linked rate [3] Market Data and Key Metrics Changes - The Capesize and Newcastlemax market experienced the best start since 2010, attributed to large iron ore export volumes from Brazil and favorable weather conditions [10][11] - Year-over-year iron ore exports from Brazil and Australia increased by 18% and 9% respectively in Q4 [12] - The ton-mile for Capesize increased by 9% year-over-year, driven by a 21% increase in bauxite from Guinea and a 12% increase in iron ore trades [11] Company Strategy and Development Direction - The preferred commercial strategy is to charter out the majority of vessels on index-linked charters to capture market upside [8] - The company aims to maintain flexibility in converting to fixed rates when advantageous, with a focus on maximizing fleet performance [9] - The fleet of 12 modern Newcastlemaxes is positioned in the top 1% emission rating for large bulk dry carriers, emphasizing sustainability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural changes in the Capesize and Newcastlemax trades, which could drive market growth [11] - The company noted that the current low order book and aging fleet present favorable supply dynamics for the next few years [16] - There is a clear visibility of supply for the next 3-4 years, making it challenging to add significant dry bulk capacity [16] Other Important Information - Cash and cash equivalents stood at $32.4 million at the end of Q4 2025, with a minimum cash requirement of $12.3 million under sale leaseback financing [6] - The outstanding balance on sale leaseback financing was approximately $700 million, down from $707 million at the end of Q3 2025 [6] Q&A Session Summary Question: Pricing power for upcoming renewals and average premium expectations - Management indicated that historically, higher premiums are easier to achieve in lower market conditions, and they are trying to time vessel renewals to capture better premiums in high markets [19][20] Question: Transition to new Capesize benchmark - Management confirmed that they will continue using the old index for now, as it is still linked to current FFAs, but acknowledged that changes may occur over time [21]

Financial Data and Key Metrics Changes - The company reported a net profit of $13.5 million for Q4 2025, compared to a net income of $1.1 million for Q4 2024, representing a significant increase [5] - EBITDA for Q4 2025 was $33.3 million, up from $21.3 million in Q4 2024 [5] - Operating revenues increased to $42.1 million in Q4 2025 from $29.6 million in Q4 2024, driven by higher time charter equivalent earnings [5] - Time charter equivalent earnings rose from $27,800 per day in Q4 2024 to $39,600 per day in Q4 2025 [5] - Cash distributions for the quarter totaled $0.30 per share [7] Business Line Data and Key Metrics Changes - The company converted index-linked time charters for 4 vessels to fixed rates at an average of $27,700 per day for the period from January 1 to March 31, 2026 [2] - A new time charter agreement for the Mount Elbrus was established at a fixed rate of $30,000 per day until June 30, 2026, with a subsequent conversion to an index-linked rate [3] Market Data and Key Metrics Changes - The Capesize market experienced a strong start in 2026, attributed to increased iron ore export volumes from Brazil and a lack of significant weather disruptions [11] - Year-over-year iron ore exports from Brazil and Australia increased by 18% and 9% respectively in Q4 2025 [12] - The ton-mile for Capesize vessels increased by 9% year-over-year, driven by a 21% increase in bauxite from Guinea and a 12% increase in iron ore trades [11] Company Strategy and Development Direction - The company aims to charter out the majority of its vessels on index-linked charters to capture market upside and maintain flexibility [8] - The fleet has traded at an average of 48% premium to the Baltic Capesize Index since inception, indicating strong commercial performance [9] - The company maintains a clear capital allocation structure and has achieved 27 consecutive monthly dividends [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural changes in the Capesize and Newcastlemax trades, which could drive market growth [11] - The company noted that the current Capesize and Newcastlemax fleet is aging, with 50% built between 2009 and 2015, leading to a favorable supply dynamic for the next few years [16] Other Important Information - Cash and cash equivalents stood at $32.4 million at the end of Q4 2025, with a minimum cash requirement of $12.3 million under sale leaseback financing [6] - The outstanding balance on sale leaseback financing decreased to approximately $700 million, down from $707 million in the previous quarter [6] Q&A Session Summary Question: Pricing power for upcoming renewals and average premium expectations - Management acknowledged that premiums tend to be higher in softer markets, and while they expect some discount in a $30,000-$40,000 market, they aim to time vessel renewals strategically [19][20] Question: Transition to new Capesize benchmark - Management confirmed that they will continue using the old index for now, as it is still linked to current FFAs, but acknowledged that a transition to new indexes will occur over time [21]

Financial Data and Key Metrics Changes - The company reported a net profit of $13.5 million for Q4 2025, a significant increase from $1.1 million in Q4 2024, with earnings per share rising from $0.02 to $0.29 [5] - EBITDA for Q4 2025 was $33.3 million, compared to $21.3 million in the same period last year, while operating profit increased from $14 million to $26 million [5] - Operating revenues rose to $42.1 million in Q4 2025 from $29.6 million in Q4 2024, driven by higher time charter equivalent earnings, which increased from $27,800 to $39,600 per day [5][6] Business Line Data and Key Metrics Changes - The average OPEX per day increased to $6,400 in Q4 2025 from $6,200 in Q4 2024, with vessel operating expenses rising to $7 million from $6.8 million [6] - General and administrative expenses rose to $1.2 million from $1 million in Q4 2024, primarily due to increased management fees and payroll accruals [6] Market Data and Key Metrics Changes - The ton-mile for Capesize vessels increased by 9% year-over-year in Q4, attributed to a 21% increase in bauxite from Guinea and a 12% increase in iron ore trades [12] - Year-over-year iron ore exports from Brazil and Australia increased by 18% and 9% respectively in Q4, with bauxite from Guinea seeing a 30% increase [13] - The Capesize order book to fleet ratio is at a 25-year record low, standing at 12% of the total existing Capesize fleet, indicating favorable supply dynamics [17] Company Strategy and Development Direction - The company aims to charter out the majority of its vessels on index-linked charters to capture market upside and maintain flexibility [8] - Currently, 5 out of 12 ships are on fixed rates until March 31, 2025, with plans to have 11 out of 12 vessels exposed to the spot market thereafter [9] - The company has a clear capital allocation structure and has maintained a consistent dividend payout, with $0.30 declared for Q4 2025 [11] Management's Comments on Operating Environment and Future Outlook - The company is optimistic about the Capesize and Newcastlemax market, noting it has had the best start since 2010, driven by strong iron ore export volumes from Brazil and favorable weather conditions [12] - The structural changes in the Capesize and Newcastlemax trades are expected to drive the market higher, with a focus on high-grade iron ore from Brazil and Guinea [14] - The company anticipates challenges in fleet capacity due to a significant aging fleet and a low order book, which may limit new builds [17][18] Other Important Information - Cash distributions for the quarter totaled $0.30 per share, and cash flow from operations was $24.8 million [7] - The company has entered into a new time charter agreement for the Mount Elbrus at a fixed rate of $30,000 per day, with plans for index-linked rates thereafter [3] Q&A Session Summary Question: Pricing power for upcoming renewals and average premium expectations - Management noted that historically, higher premiums are easier to achieve in lower market conditions, and while premiums may decrease in a $30,000-$40,000 market, they are not expecting dramatic reductions [20][21] Question: Transition to new Capesize benchmark - Management confirmed that they will continue to use the old index for now, as it is still the standard for FFAs, but acknowledged that a transition to new indexes will occur over time [22]