Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenues on a TCE basis of $118 million and adjusted EBITDA of $95 million, with net income at $66 million, or $0.41 per share [3][4] - For the full year 2025, revenues on a TCE basis were $369 million, adjusted EBITDA was $278 million, and net income was $211 million, or $1.31 per share [4] - The company reported a total liquidity of $189 million at the end of Q4, with financial leverage at 17.6% [5] Business Line Data and Key Metrics Changes - Vessels trading in the spot market earned an average of $69,500 per day, while those on time charters achieved $49,400 per day, leading to an average combined TCE of $60,300 per day for the quarter [4] - The company generated $95.3 million in EBITDA from operations, with $28.9 million distributed to shareholders as cash dividends [6] Market Data and Key Metrics Changes - The current sailing VLCC fleet consists of 897 ships, with 46% expected to be older than 15 years by the end of the year [13] - The sanctioned VLCC fleet counts 151 vessels, with 105 older than 20 years, indicating a potential supply squeeze in the market [14][15] Company Strategy and Development Direction - The company plans to modernize its fleet by divesting older vessels and replacing them with newbuildings, with four new vessels expected to enter the fleet in the first half of the year [7][8] - The company aims to increase its spot market exposure to approximately 75% of its capacity by Q2 2026, allowing for greater participation in rewarding spot markets [17] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for 2026, citing strong demand, geopolitical volatility, and a rapidly aging global fleet as key factors [18] - The company is well-positioned to benefit from market dynamics, with a solid fleet and a clear mandate to return earnings to shareholders [18] Other Important Information - The board approved a dividend of $0.41 per share for Q4 2025, marking the 64th consecutive quarterly cash dividend [10] - The company expects a cash break-even of $17,500 per day for 2026, reflecting the sale of older vessels and scheduled surveys [11] Q&A Session Summary Question: Can you help reconcile the commentary about consolidation and increasing spot exposure? - Management confirmed that end users are actively seeking time charters, with rates above previous terms, indicating a stronger time charter market [21][22] Question: What is the outlook on global oil demand growth? - Management noted that while global oil demand growth is stabilizing around 1%, seaborne crude oil transportation demand is expected to grow at approximately 2.5% [24][25] Question: How does the consolidation of the fleet impact market dynamics? - Management indicated that the consolidation of older vessels could lead to different pricing behavior and improved information flow in the market [36] Question: Are there further willing buyers for ships at current values? - Management stated that there are still buyers for older vessels, and competition for modern second-hand ships remains strong [39] Question: What is the status of demolition protocols for the non-compliant fleet? - Management mentioned that one of the largest cash buyers in the demolition market is seeking approvals to transact with sanctioned counterparties for ship demolition [74][75]