Financial Performance - Q2 2025 revenues were $36.3 million, a 22.8% decrease compared to $47.0 million in Q2 2024 due to stronger market rates in the previous year[5] - Net income for Q2 2025 was $12.8 million, compared to $19.5 million in Q2 2024, but higher than $11.3 million in Q1 2025[5] - EBITDA for Q2 2025 was $17.1 million[5] - For the first half of 2025, net income was $24.1 million, EBITDA was $31.8 million, and operating cash flow generation was $42.0 million[9] Fleet and Operations - Fleet operational utilization was 83.1% in Q2 2025, compared to 80.9% in Q2 2024[9] - Approximately 60% of fleet calendar days were dedicated to time charter activity, while about 37% were dedicated to spot activity[9] - The company's fleet book value increased by 54.4% to over $350 million within a single quarter[9] - The company took delivery of two kamsarmax and five supramax drybulk carriers in Q2 2025, operating a fleet of 19 non-Chinese vessels[9] Liquidity and Valuation - Cash and cash equivalents, including time deposits, were $212.2 million as of June 30, 2025, which is about 80% higher than the current market capitalization of approximately $120 million[9] - Net Asset Value (NAV) was estimated at $13.5 per share as of June 30, 2025, while the current share price was approximately $3.5[9] Market Trends - Drybulk trade volumes have increased by 2% year-over-year since July 2025[27] - Since the start of 2025, 302 bulkers (2.1% of fleet) have been delivered[27] - Orderbook is 9% for panamax/kamsarmax vessels, 6% for handysizes and 11% for supramax/ultramax bulk carriers[27]

Financial Data and Key Metrics Changes - The company reported gross revenue of $197.1 million for Q1 2025, slightly down from $220.1 million in Q1 2024 [27] - Net income for Q1 2025 was $37.7 million, leading to earnings per share of $1.04, compared to $60.1 million in Q1 2024 [28] - Adjusted EBITDA for Q1 2025 was $99.3 million, almost identical to $100.5 million in the previous year [29] - Total debt was reduced to approximately $1.7 billion, with a debt-to-capital ratio of 40.6% [29] Business Line Data and Key Metrics Changes - The fleet operated 62 vessels in Q1 2025, with 80% of fleet employment towards secure revenue contracts, up from 73% in Q1 2024 [25][26] - The fleet's pure spot exposure decreased from 19% to 18% year-over-year [26] - 29 vessels have been extended or secured new business within the first six months of the year, indicating strong demand [16] Market Data and Key Metrics Changes - The company noted a strong demand for older ships, with some vessels being chartered for up to 15 years [12] - The tanker market remains robust, with energy majors approaching the company for time charter business [18] - Global oil demand continues to grow, positively affecting the tanker market and freight rates [24] Company Strategy and Development Direction - The company is focusing on fleet renewal, having sold 14 older vessels and replaced them with 30 contracted new buildings [23] - There is an ongoing strategy to explore opportunities in underrepresented segments like VLCCs and LNG [14][32] - The company aims to maintain a healthy dividend and reduce debt while growing its business [29][44] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by geopolitical events but emphasized the company's ability to navigate these turbulent waters profitably [10][11] - The underlying market conditions are strong, with a significant demand for vessels despite uncertainties [11][32] - The company believes its stock is undervalued compared to its net asset value, which is estimated to be over $60 [15][46] Other Important Information - The company has a backlog of contracted revenue amounting to approximately $3.7 billion [18] - The fleet is transitioning to greener and dual-fuel vessels, with six LNG-powered tankers in operation [23] - The company has a strong balance sheet with cash reserves and a fair market value of the fleet at $3.6 billion [22] Q&A Session Summary Question: What will the second quarter new build cost be? - The cost for the second quarter is expected to be just under $130 million for one DP2 vessel, with additional payments for new buildings scheduled [37][38] Question: Can you characterize the bid-ask in the S&P market for VLCCs? - The company is looking to build ships against clients and is monitoring the market for good quality Korean or Japanese ships [41][42] Question: Will the company continue to sell older assets? - The company plans to sell at least half a dozen ships by the end of the year, which will enhance cash flow and support dividend payments [43] Question: What is the outlook for the second half dividend? - The company hopes to maintain at least a similar dividend to the first half, with discussions taking place in October [44] Question: How to close the gap between stock price and NAV? - Management believes that demonstrating the company's value through consistent dividends and operational performance is key, rather than focusing solely on NAV [46][56]