2026-03-03 11:02Financial Data and Key Metrics Changes - In 2025, the company generated an EBITDA of $263.1 million, an underlying profit of $39.2 million, and a net profit of $58.2 million [2][3] - The balance sheet remained strong with a net cash position of $134 million and an undrawn committed facility of $485.5 million, indicating strong liquidity [3][12] - Total shareholder return for 2025 was 46%, with a total distribution of $19.5 million through share buybacks and dividends [3][4] Business Line Data and Key Metrics Changes - Average daily TCE earnings for Handysize and Supramax vessels were $11,490 and $12,850, representing decreases of 11% and 6% year-on-year respectively [6][10] - Operating activity margin improved, contributing $22.9 million in 2025, with operating activity days increasing by 1% year-on-year to 27,850 days [9] - The average daily operating costs for both Handysize and Supramax vessels remained stable at around $4,780, while depreciation costs rose slightly [9][10] Market Data and Key Metrics Changes - Market freight rates fell significantly in the first half of 2025 but gradually picked up later in the year, with average spot rates for Handysize and Supramax vessels at $10,570 and $11,610 per day, down 5% and 10% year-on-year respectively [5][6] - The FFA saw an uplift since the beginning of 2026, averaging $13,730 for Handysize and $15,580 for Supramax, indicating a stable outlook [6] - Ton-mile demand grew 4% in 2025, supported by China's exports and imports, while grain loadings decreased by 6% due to reduced exports from Ukraine and Russia [18][19] Company Strategy and Development Direction - The company remains committed to returning value to shareholders through dividends and share buybacks, with a new dividend policy to pay out 50% to 100% of annual net profit, excluding disposal gains, when in a net cash position [4][15] - The strategy includes renewing and expanding the fleet selectively, focusing on modern second-hand vessels and targeted new buildings [27][28] - The company is transforming its fuel team into a sustainable energy solution team to drive further decarbonization and improve efficiency [28] Management's Comments on Operating Environment and Future Outlook - The management highlighted the geopolitical risks and market challenges, particularly the recent escalation of conflict in the Middle East, which could create market inefficiencies [2][5] - Despite the challenges, the management expressed confidence in the company's ability to navigate the market and capture opportunities [12][28] - The outlook for the dry bulk market remains positive, with expectations of stable growth in demand despite geopolitical disruptions [23][26] Other Important Information - The company realized $66.8 million from the sale of older vessels and maintained a disciplined approach to capital allocation, remaining debt-free on a net basis [12][13] - The total net book value of the fleet was $1.6 billion, with an estimated market value of $1.96 billion, reflecting a healthy buffer above book values [12] Q&A Session Summary Question: Shareholder returns and buyback strategy - The management explained that the $40 million buyback is a signal of confidence in the business and market, despite trading above fair market NAV [33][34] Question: Outlook on strong rates versus supply exceeding demand - The management noted that disruptions in the market, including geopolitical events, have positively impacted rates, and they remain optimistic about future market conditions [35][36] Question: Dry bulk market rates sustainability - The management indicated that ongoing disruptions are holding up rates, but predicting future trends remains challenging [42][44] Question: Fleet transfer to Singapore and associated costs - The transfer is ongoing, with expected costs decreasing as the process continues, and it is primarily a corporate organizational change rather than operational [46][48] Question: Performance versus index and future outperformance - The management acknowledged past performance variations and expressed confidence in catching up with market trends as conditions improve [50][52] Question: Vessel acquisition strategy - The management emphasized the importance of maintaining optionality in vessel acquisitions and the potential for both new orders and exercising options [54][56]