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]