Financial Data and Key Metrics Changes - The company reported a profit of approximately $40 million for Q1 2025, but excluding capital gains, the net income would have been a loss of $6 million [3] - Liquidity at the end of March was $345 million, with a contract backlog nearing $3 billion, having added roughly $1 billion in the first quarter [4] - Capital expenditures (CapEx) remained at $2.2 billion, with equity on total assets at 31.9% [4] Business Line Data and Key Metrics Changes - In the tanker segment, average earnings were $40,000 per day in Q1, increasing to approximately $43,000 per day in Q2 [7] - The bulkers experienced weaker performance in Q1, with Newcastlemaxes earning $18,000 per day, but improving to $24,000 in Q2 [8] - Chemical tankers are primarily under long-term contracts, with earnings on the spot market around $20,000 per day [28] Market Data and Key Metrics Changes - The tanker market is expected to remain positive due to a flat growth forecast in ton miles for crude oil and a historically low order book [22] - The dry bulk market is anticipated to improve in the second half of the year, with positive trends in iron ore trade from Brazil [36] - The container market is cautious due to tariffs and geopolitical issues, with a high order book of around 30% [27] Company Strategy and Development Direction - The proposed merger with Golden Ocean aims to create a leading diversified maritime group, increasing the fleet to 250 vessels and enhancing the contract backlog [10] - The company is focusing on diversification and decarbonization, with significant contracts signed for ammonia-powered vessels [5] - The strategy includes a strong emphasis on decarbonization, aligning with regulatory changes such as MEPC 83 [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the tanker and dry bulk markets despite current challenges, citing an aging fleet and low order book as positive indicators [30][24] - The company is confident that the merger with Golden Ocean will enhance financial stability and support ongoing investments in hydrogen and ammonia projects [82] - Management highlighted the importance of modern, efficient vessels to outperform competitors in a commoditized market [90] Other Important Information - The company decided not to declare a dividend for Q1 2025, focusing on growth and investment opportunities [6] - The fleet currently consists of 113 vessels, with plans to grow to approximately 150 vessels by the end of 2026 [6] Q&A Session Summary Question: Can you discuss the ammonia solution and the status of your ammonia-powered ships? - Management highlighted the positive outlook for ammonia as a fuel choice, with ongoing discussions for retrofitting existing vessels and new builds [52][54] Question: Is the pro forma free cash flow including debt repayments? - Yes, it includes debt repayments and indicates a strong cash flow generation even in bearish scenarios [57][58] Question: What are the plans to improve revenue in the dry bulk sector? - The company is focusing on building modern vessels and leveraging the scale from the Golden Ocean merger to enhance revenue opportunities [91][92] Question: Why was no dividend declared despite industry peers paying dividends? - The company has a discretionary dividend policy, prioritizing growth and investment opportunities over immediate dividend payouts [95][96]

Financial Data and Key Metrics Changes - The company reported a profit of $93 million for Q4 2024, bringing the full-year profit to over $870 million, marking the second consecutive year of strong performance [3][7][57] - Liquidity remains at $281 million, with a contract backlog of $2.05 billion and outstanding CapEx of $2.1 billion [4][10][57] - The company has a book equity on total assets of 30.5%, and all financial covenants are in order [4][57] Business Line Data and Key Metrics Changes - The company took delivery of seven newbuild vessels in Q4 and two additional vessels in Q1, contributing to a total of 20 newbuildings delivered over the last 12 months [10][11][119] - The fleet consists of 115 vessels at the end of Q4, with another 46 newbuilds planned, including 35 tankers and 10 bulkers [11][120] - The contract backlog includes close to $1 billion for tankers and approximately $0.5 billion each for containers and chemical tankers [12][123] Market Data and Key Metrics Changes - The tanker market is experiencing positive catalysts such as pressure on the dark fleet and OFAC sanctions, while the dry bulk market is supported by expected economic reflation in China [17][18][127] - In Q4, the average rate for VLCCs was around $37,000, while Suezmaxes averaged $38,000 [20][21] - The dry bulk market is currently under pressure due to seasonal factors, but there is optimism for recovery supported by low order book to fleet ratios [32][34] Company Strategy and Development Direction - The company is focused on diversification and decarbonization, with a strategy of selling older vessels and investing in a modern fleet [10][57][95] - The outlook for the tanker and dry bulk divisions is positive, with ongoing efforts to secure long-term contracts [57][66] - The company is actively working on new projects across all segments, with a particular focus on ammonia-powered vessels [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the tanker and dry bulk markets, citing expected growth in oil demand and supply [22][135] - There are concerns about high stockpiles in the dry bulk market, but overall sentiment remains positive [18][128] - The company anticipates that the enforcement of sanctions will create additional opportunities in the tanker market [28][111] Other Important Information - The board decided not to declare a dividend for Q4 2024 [10][57] - The company is preparing for the operational launch of its hydrogen production facility in Namibia, expected to contribute meaningfully to revenues by 2028-2029 [99][100] Q&A Session Summary Question: How will the company manage its equity ratio covenant going forward? - The company plans to manage its equity ratio through operational profits and vessel sales, continuing to sell older vessels as needed [61][63] Question: In which segments is the company currently looking for new projects? - The company is exploring opportunities across all segments, including tankers, dry bulk, chemical tankers, and containers [64][65] Question: Has there been a change in attitude of targets since the Trump election? - Management noted no significant shift in interest in projects, with increased interest driven by advancements in ammonia-powered ships [70][71] Question: Is it technically possible to extend contracts for FSOs? - Yes, it is technically possible to extend contracts, but discussions will occur closer to the end of the current charters [77][79] Question: What is the company's strategy for securing new routes for VLCC ships? - The strategy remains focused on going where the cargo is, adapting to shifts in supply from the Middle East to the Atlantic Basin [88][92] Question: Will the trend of selling older vessels continue? - Yes, the company will continue to sell older vessels to maintain a younger fleet and invest in greener technologies [94][95] Question: When will the new site in Africa contribute to additional revenue? - The site is expected to be operational by mid-2024, but meaningful revenue contributions will not occur until 2028-2029 [99][100] Question: How does the company overcome the small float in shares for institutional buying? - The company acknowledges the low free float and aims to address it in the future, but not at any price or timing that would reduce shareholder value [108][109] Question: What could stop the dark fleet's operations? - Enforcement of sanctions is expected to create challenges for the dark fleet, making trading difficult [111][112]