Financial Data and Key Metrics Changes - The company reported revenues of $193 million for the quarter, with an EBITDA equivalent cash flow of $116 million. The EBITDA equivalent over the last twelve months was $545 million [4] - A net loss of $32 million was recorded for the quarter, translating to $0.24 per share, compared to a net profit of approximately $20.2 million or $0.15 per share in the previous quarter [4][23] - The company has returned over $2.8 billion to shareholders through dividends over 85 consecutive quarters, with the latest dividend yielding approximately 13% based on the share price [4][25] Business Line Data and Key Metrics Changes - The container fleet generated approximately $85 million in gross charter hire, while the car carrier fleet contributed about $25 million, and the tanker fleet generated approximately $43 million [19] - The seven dry bulk vessels employed in the spot market contributed approximately $4.4 million in net charter revenue, down from $7.2 million in the previous quarter [19] - The overall utilization of the shipping fleet was 98.6%, with adjusted utilization at 99.8% when excluding unscheduled technical off-hire [12][13] Market Data and Key Metrics Changes - The charter backlog stands at $4.2 billion, with more than two-thirds of this backlog attributed to customers with investment-grade ratings, providing cash flow visibility [8][25] - The company has identified that approximately 27 vessels in its fleet will be affected by new U.S. tariffs on Chinese-built vessels, primarily impacting car carriers and tankers [14][15][86] Company Strategy and Development Direction - The company aims to enhance its fleet through investments in new technology and vessel upgrades, focusing on organic growth and compliance with stricter regulatory demands [11] - The strategy includes maintaining long-term charters with strong industrial players, which provides stability amid market volatility [42] - The company is exploring strategic opportunities for its rigs while remaining optimistic about future employment for the Hercules rig [7][8] Management's Comments on Operating Environment and Future Outlook - Management noted that recent market volatility and recession fears have made it challenging to trade vessels profitably in the spot market [5][7] - The company remains cautious about the current economic environment but is optimistic about finding new employment opportunities for its rigs [7][33] - Discussions with customers have resumed, indicating a potential increase in business transactions as market stability improves [42] Other Important Information - The company has been active in share repurchases, acquiring $10 million worth of shares below $8 per share [5][25] - The company has a strong liquidity position, with approximately $174 million in cash and cash equivalents and undrawn credit lines of about $48 million [23][25] Q&A Session Summary Question: Inquiry about vessel and rig operating expenses - Management confirmed a decrease in operating expenses, attributing it to cost savings at Hercules and noted that 17 vessels are scheduled for dry docking this year, which is higher than usual [27][28] Question: Update on Hercules rig - The Hercules rig remains warm stacked in Norway, with ongoing discussions for new contracts, but no specific timeline can be provided [32][33] Question: Asset acquisition opportunities - Management indicated that market uncertainty has slowed decision-making processes, but discussions for long-term charters with strong industrial players are picking up again [42] Question: Long-term distribution potential and share repurchases - The company maintains a sustainable dividend level based on cash flow from owned assets, balancing capital allocation between investments, debt repayments, share buybacks, and dividends [64][65] Question: Impact of new U.S. tariffs on vessels - Approximately 27 vessels will be affected by the new tariffs, primarily impacting car carriers and tankers, but the company expects charterers to absorb these costs [14][15][86]