Costamare Bulkers Holdings Stock

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Bulkers Holdings Limited Conference Call on the First Quarter 2026 Financial Results. We will have with us Mr. Gregory Zikos, Chief Executive Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today, Wednesday, May 13, 2026. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read Slide #2 of the presentation, which contains the forward-looking statements. And I will now pass the floor to your speaker today, Mr. Zikos. Please go ahead.

Thank you, and good morning, ladies and gentlemen. During the first quarter of the year, Costamare Bulkers generated an adjusted net income of $12.4 million. As of today, we have successfully transferred a majority of the company's legacy trading portfolio pursuant to our deal with Cargill, effectively derisking our balance sheet. We expect that our trading platform will be free of the remaining legacy trades by year-end.

As part of our fleet renewal program, we recently concluded the sale of 2011-built Capesize vessel and the acquisition of 2018-built Ultramax. At the same time, we accepted delivery of newbuilding Kamsarmax chartered in for a minimum period of 5 years. The vessel has been chartered out at a profitable rate for a minimum period of 11 months. With total cash of about $270 million and debt of circa $140 million, the company is net cash positive, positioning us favorably to grow countercyclically in a lower asset value environment.

Regarding the market, during the first 4 months of the year, the market exhibited elevated volatility relative to historical averages, driven by increased activity and inefficiencies, while geopolitical instability contributed additional uncertainty. Capesize earnings were supported by robust iron ore and bauxite volumes, coupled with limited fleet growth. Ton-mile demand was further reinforced by the expansion of the West Africa-China trade flows across both commodities.

Alongside the firm Capesize market and broadly positive dry bulk sentiment, the Panamax Index was further supported by a record soybean harvest in Brazil as well as the U.S.-China agreement reached at the end of '25, which drove long-haul soybean shipments during the first quarter. Finally, the Supramax segment recorded a solid start to the year as increased grain and minor bulk flows offset the negative impact of the Strait of Hormuz closure, which reduced Persian Gulf export volumes by approximately 50%.

Moving now to the slide presentation. On Slide 3, you can see our Q1 results. Net income for the period was $9.9 million or $0.41 per share. Adjusted net income was $12.4 million or $0.51 per share. By the end of Q1, total cash exceeded debt by approximately $127 million. As part of our fleet renewal strategy, we concluded the acquisition of 2018-built Ultramax vessel and took delivery of a newbuilding Kamsarmax.

This newbuilding is chartered in for a minimum 5-year period with extension and purchase options and has already been chartered out for 1 year at profitable levels. Another newbuilding Kamsarmax is expected to be delivered under a long-term chartering agreement with similar options. Finally, we have concluded the sale of one Capesize vessel with capital gains of approximately $7 million.

Slide 5. The transfer of the trading book to Cargill is substantially complete with only 1 vessel remaining to be novated. We have derisked to a large extent our balance sheet and expect that by year-end, we will not have any remaining legacy positions. Our operating platform is currently focused on the Kamsarmax segment and consists of 20 third-party-owned dry bulk vessels.

Slide 6. Regarding the owned vessels, most of the fleet is employed on index-linked period charter agreements with the option to convert to a fixed rate. And finally, moving to Slide 7. Charter rates strengthened during Q1 '26 with further upside momentum since April. The vessel -- the new vessel order book stands at 13.5%. With that, we conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.

There are no questions at this time. I would like to turn the conference back over to Mr. Zikos for any closing remarks.

Thank you for dialing in, in today's quarterly results call. We're looking forward to speaking with you again during the second quarter 2026 results. Thank you.

You may now disconnect.

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Bulkers Holdings Limited Conference Call on the Fourth Quarter 2025 Financial Results. We have with us Mr. Gregory Zikos, Chief Executive Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today, Friday, February 20, 2026.

We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read Slide #2 of the presentation, which contains the forward-looking statements.

And now I will pass the floor over to your speaker today, Mr. Zikos. Please go ahead, sir.

Thank you, and good morning, ladies and gentlemen. During its second quarter as an independent listed entity, Costamare Bulkers generated an adjusted net loss of $1.7 million. As already announced, at the end of September of last year, we entered into a cooperation agreement with Cargill, including, among other things, the disposal to a large extent of the company's trading portfolio.

This quarter's results continue to be affected by legacy positions not included in the Cargill transaction, as well as by legacy positions that have been transferred to Cargill gradually over the quarter. With total cash of about $226 million and debt of about $156 million, the company is in a net debt negative position, owning a fleet of 31 dry bulk vessels with an average age of approximately 13 years and an average size of about 92,000 deadweight.

Building upon solid market fundamentals, we sold the 2011-built Capesize vessel, Miracle, and the 2008-built Supramax vessel, Clara. Total capital gains amounted to $7.7 million on top of profitable operation of about $8 million since those vessels were initially acquired. At the same time, as part of our fleet renewal strategy, we have agreed to acquire the 2018-built 60,000 deadweight capacity dry bulk vessel, Koushun.

Regarding the market, favorable supply and demand fundamentals supported by strong exports and improved sentiment have pushed the Capesize index higher. On the Panamax size, the easing of the U.S.-China tensions, combined with improved sentiment stemming from a strong Capesize market, helped support the Panamax index. Finally, the Supramax index remains healthy on the back of strong demand for coal and minor bulks as well as improved sentiment from the larger sizes.

Moving now to the slide presentation. On Slide 3, you can see our Q4 2025 results. Adjusted net loss, mainly reflecting one-off expenses from the dry bulk platform realignment, was $1.7 million or $0.07 per share. By the end of Q4, total cash was about $226 million and debt below $156 million, resulting in negative net debt position of about $70 million.

Slide 4. The transfer of the remaining chartered-in vessels pursuant to the cooperation agreement with Cargill has been concluded, save for 1 ship, which is expected to be transferred within a year. Our operating platform is currently focused on the Kamsarmax segment, consisting of 20 third-party owned dry bulk vessels. The 6 Capesize ships still remaining on our fleet represent legacy transactions. Five of these vessels will be redelivered within the current year.

Moving on to the next slide, Slide 6. On the S&P side, we have concluded the sale of 1 Supramax vessel and have agreed to sell 1 of our Capesize ships with total estimated capital gains of approximately $7.7 million on top of about $8 million profitability since acquisition. In parallel, as part of our fleet renewal strategy, we have agreed to acquire 1 2018-built Ultramax vessel.

Slide 6. Regarding the owned vessels, most of the fleet is employed on index-linked period charter agreements with the option to convert to fixed rate. And moving to the last slide, Slide 7. Charter rates have strengthened during Q4 and remain at healthy levels since the beginning of the year. New vessel ordering stands at 12.8%.

With that, we conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.

[Operator Instructions] Seeing no questions, this concludes our question-and-answer session. I would like to turn the conference back over to Mr. Zikos for any closing remarks.

Thank you for dialing in today and for your interest in Costamare Bulkers. We look forward to speaking with you again during the next quarterly results. Thank you. Operator, we can conclude the call now.

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.