Financial Data and Key Metrics Changes - In Q3 2025, the company generated TCE revenues of $236 million, resulting in an EBITDA of $152 million and a net profit of $78 million, reflecting a $25 million increase in EBITDA compared to the previous quarter [15][16] - The fleet-wide TCE rates averaged $31,012 per day, with LR2s earning above $38,000, LR1s around $29,500, and MRs exceeding $28,000 per day, indicating strengthened freight rates supported by solid market fundamentals [15][16] - Earnings per share for Q3 came in at $0.79, with a declared dividend of $0.62 per share, representing a payout ratio of 78% [16][18] Business Line Data and Key Metrics Changes - The company advanced its fleet optimization strategy by acquiring five vessels, including four MR and one LR2, while divesting a 2007 built MR [2][3] - A three-year time charter was agreed for a 2009-built MR vessel at a daily rate of $22,234, which is above the prevailing market rate for such vintage [2][3] Market Data and Key Metrics Changes - Product tanker rates remained stable and attractive, with benchmark earnings for MR and LR2 vessels showing resilience [6][10] - Trade volumes increased significantly in Q3, driven by higher middle distillate flows from east to west, which lifted ton-miles above levels seen before the Red Sea disruption [6][7] - Two refineries in Northwest Europe closed, representing 6% of the region's refining capacity, increasing reliance on imported middle distillates [8][9] Company Strategy and Development Direction - The company is focused on maintaining a modern, high-quality fleet and is in negotiations for longer-term charters due to favorable market conditions [3][4] - The company aims to navigate the current market environment of elevated uncertainty with a strong capital structure and operational leverage [14][18] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment remains dynamic due to geopolitical uncertainty, market sentiment is broadly positive, with solid momentum supported by firm rates across all vessel segments [3][19] - The company increased the midpoint of its TCE guidance by $25 million to $900 million, reflecting secured coverage and current market expectations [19][20] Other Important Information - The company's net interest-bearing debt stands at $690 million, corresponding to around 24% of its capital structure, with only $122 million in borrowings maturing over the next 12 months [17][18] - The company has repurchased 13 out of 22 leaseback vessels, with additional purchase options exercised [18] Q&A Session Summary Question: How did the company manage to secure a long-term charter for an older vessel? - Management highlighted the integrated platform that allows for consistent service quality across all vessels, regardless of age, and noted ongoing negotiations for longer-term deals due to favorable market conditions [31][32] Question: What factors influenced the decision to acquire older vessels? - The company considers multiple metrics, including internal return hurdles and cash breakeven levels, ensuring that acquisitions meet their return requirements [34][35] Question: What is the company's approach to dividends going forward? - The dividend policy is designed to distribute free liquidity generated throughout the quarter, correlated to cash flow break-even levels, with a focus on maintaining a satisfactory payout ratio [53][56] Question: Why was the reported interest expense higher this quarter? - The increase was attributed to the accounting treatment of refinancing and upfront fees, which is expected to normalize in the following quarter [62][64]