Financial Data and Key Metrics Changes - The company reported revenue of $304.1 million for Q1 2025, a decrease of 4.6% compared to $319 million in Q1 2024 [18] - EBITDA for the quarter was $147.6 million, with adjusted EBITDA decreasing by $11 million to $154 million compared to Q1 2024 [19][20] - Net income for Q1 2025 was $41.7 million, down from $71 million in Q1 2024, reflecting a decrease in adjusted net income by $24 million [20] - Earnings per common unit were $1.38 for the quarter [5] Business Line Data and Key Metrics Changes - The fleet time charter equivalent (TCE) rate decreased by 1.1% to $21,271 per day [19] - The TCE rate for the container fleet increased by 2.2% to $30,501 per day, while the TCE rates for dry bulk and tanker fleets decreased by 10.5% and 7.1% respectively [19] - The company sold three vessels with an average age of 19.1 years for approximately $35 million [10][17] Market Data and Key Metrics Changes - The global trade environment has been affected by U.S. tariffs, with 3.7% of global trade subject to declared tariffs [24] - Tariffs on Chinese imports rose to 145%, impacting container and car trades significantly [25] - The dry bulk trade is expected to decline by 1.2% in 2025, while ton miles are projected to decrease by 0.4% [30] Company Strategy and Development Direction - The company has a contract backlog of $3.4 billion, providing revenue stability amid market uncertainties [8][12] - Focus on modernizing the fleet and reducing carbon footprint through newer technologies [16] - The company aims to maintain flexibility in capital allocation, balancing between share repurchases and fleet renewal [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the geopolitical environment, particularly the U.S. tariffs and ongoing wars, which create significant uncertainty [6][47] - Despite challenges, management noted that the spot rate market has remained generally healthy [7] - The company is actively managing interest rate risk, with 30% of long-term debt fixed at an average rate of 5.5% [8][22] Other Important Information - The company ended Q1 2025 with $343 million in cash on the balance sheet [9] - The net loan-to-value (LTV) ratio improved to 35.2% from 45% at the end of 2022 [14] - The company has a strong backlog of contracted revenue, with $1.4 billion related to the tanker fleet, $200 million to dry bulk, and $1.8 billion to containerships [12][17] Q&A Session Summary Question: Changes in capital allocation approach - Management emphasized the importance of patience in navigating the current uncertain environment, focusing on liquidity and contracted revenue [47][48] Question: Opportunities for fleet renewal and acquisitions - Management noted that long-term charter deals are currently scarce due to uncertainty, but they remain open to new opportunities as the market evolves [55][56] Question: Asset values across business segments - Management indicated that tanker values remain strong, while dry bulk shows healthy levels despite uncertainties, and the spot market has been resilient [59][60]