Financial Data and Key Metrics Changes - Net revenue for Q3 2025 reached approximately $47 million, a 6% increase year over year, while adjusted EBITDA was $27.5 million, and net income totaled $12.8 million, demonstrating strong profitability [3][8] - For the first nine months of 2025, net revenue amounted to $108.7 million, with adjusted EBITDA of $52.8 million and net income of $8.8 million [3][8] - The cash position strengthened to approximately $37 million at the end of the quarter, equivalent to $1.8 million per vessel, reflecting effective cash management [9][10] Business Line Data and Key Metrics Changes - The company continues to focus on its Capesize investment strategy, which has shown superior earnings capacity compared to peers [3][4] - The fleet consists of 20 large Capesize vessels, with a loan-to-value ratio around 45%, positioning the company well for the Capesize cycle [4][10] Market Data and Key Metrics Changes - The Capesize market showed sustained strength in Q3, with average rates of about $24,600 per day, driven by a 2% increase in ton-mile demand against only 1.3% growth in available tonnage [13][15] - Iron ore exports from Australia and Brazil have recovered strongly, contributing to increased ton-mile demand [13][15] Company Strategy and Development Direction - The company is executing a disciplined fleet renewal strategy, including a newbuilding order for a 181,000 deadweight Capesize vessel, reflecting a focus on efficiency and modernization [4][5] - The strategy is anchored on three priorities: capital returns, fleet renewal and growth, and financial health, ensuring flexibility throughout market cycles [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in demand for iron ore, coal, and bauxite, citing upcoming projects like Simandou as key growth drivers [22][23] - The company remains optimistic about the Capesize market, anticipating a supply squeeze due to an aging fleet and low order book [22][23] Other Important Information - A cash dividend of $0.13 per share was declared for the quarter, reaffirming the company's commitment to shareholder returns [4][10] - Total debt stood at approximately $292 million, with a loan-to-fleet value ratio below 45%, indicating a conservatively capitalized profile [10][11] Q&A Session Summary Question: Future fleet growth strategy - The company is exploring opportunities for both modern second-hand ships and new builds, emphasizing the importance of timely delivery and quality [20][21] Question: Impact of China's steel production on demand - Management remains optimistic about demand for iron ore and coal, citing upcoming projects that will drive long-haul demand [22][23] Question: New build contract payment structure - The payment structure for the new build includes 45% to be paid over the next 12 months, with the remaining 55% due at delivery [27][28] Question: Pricing power in the market - The company has been able to secure premiums over the BCI through strategic conversions and maintaining flexibility in contract renewals [28][31] Question: Decision to pursue new builds over second-hand vessels - The decision was influenced by rising second-hand prices, making new builds more attractive [35][36] Question: Cost of debt and interest rates - The average cost of debt is estimated to be below 6%, with recent financings featuring competitive margins [38][39]

Financial Data and Key Metrics Changes - The company reported a net profit of $9.5 million for Q3 2025, down from $10.6 million in Q3 2024, with earnings per share decreasing from $0.24 to $0.21 [4] - EBITDA for Q3 2025 was $29.3 million, compared to $30.9 million in the same period last year [4] - Operating revenues decreased to $37.9 million in Q3 2025 from $39.2 million in Q3 2024, attributed to lower time charter equivalent earnings [4] - Vessel operating expenses increased to $7 million in Q3 2025 from $6.5 million in Q3 2024, primarily due to higher costs for spares and repairs [5] - Cash flow from operations was $18.3 million for the third quarter [5] Business Line Data and Key Metrics Changes - The average time charter equivalent earnings decreased from $36,800 per day in Q3 2024 to $35,600 per day in Q3 2025 [4] - The company converted index-linked time charters for four vessels to fixed-rate time charters at an average rate of $35,300 per day from August 1 to September 30, and further to $38,500 from October 1 to December 31 [2][3] Market Data and Key Metrics Changes - The ton-mile for capesize vessels increased by 2% year over year in Q3, driven by a 15% increase in bauxite exports from Guinea and a 3% increase in iron ore [9] - Year-over-year iron ore exports from Brazil and Australia increased by 4% and 2%, respectively, while bauxite exports from Guinea saw an 18% increase [10] - The global iron ore exports have been strong, surpassing the previous four years, with seaborne iron ore imports up more than 7% compared to 2024 [11] Company Strategy and Development Direction - The preferred commercial strategy is to charter out vessels on index-linked time charters to capture market upside and maintain flexibility [7] - The company aims to be 100% exposed to the spot market from 2026, anticipating a strong year ahead [7] - The fleet consists of 12 modern Newcastlemax vessels with dual fuel LNG, achieving top emission ratings [9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the capesize market's potential to rally, citing strong bulk side volumes and upcoming significant volumes from the Simandou mine [16] - The company believes that the downside risk in the market is less than in the previous year due to reduced coal volumes [16] - Expectations for 2026 and 2027 remain solid, with plans to lock in rates if favorable conditions arise [18] Other Important Information - Total cash distributions for the quarter amounted to $0.24 per share for July, August, and September [6] - The company has declared a dividend of $0.07 for October [3] Q&A Session Summary Question: How does the capesize market compare to the sub-cape market for 2026? - Management indicated that the capesize market has a higher potential for rallying compared to the sub-cape market, supported by strong bulk volumes and upcoming significant shipments [16] Question: Are there plans to cover the fleet for the first quarter of 2026? - Management confirmed that they are not locked in at current levels and are considering locking in rates if they see value on the forward curve, maintaining confidence in future market conditions [18]