Safe Bulkers, Inc. Stock

Thank you for standing by, ladies and gentlemen, and welcome to the Safe Bulkers Conference Call on the Second Quarter 2026 Financial Results. We have with us Mr. Polys Hajioannou, Chairman and Chief Executive Officer; Dr. Loukas Barmparis, President; Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company; and Ioannis Foteinos, Chief Operating Officer. [Operator Instructions] Following this conference call, if you need any further information on the conference call or the presentation, please contact Capital Link at (212) 661-7566.

I must advise you that this conference is being recorded today. The archived webcast of the conference call will soon be made available on the Safe Bulkers website, www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations. Actual forward-looking -- actual results may differ materially from the results projected from those forward-looking statements. Additional information concerning factors that can cause the actual results to differ materially from those in the forward-looking statements is contained in the second quarter 2026 earnings release, which is available on the Safe Bulkers website, again, www.safebulkers.com.

I would now like to turn the conference call over to one of your speakers today, Dr. Loukas Barmparis, President. Please go ahead, sir.

Good morning to all. I'm Loukas Barmparis, President of Safe Bulkers, and I'm welcoming you at our quarterly and half year results. In line with our financial performance in the second quarter of 2026, which was supported by relatively strong charter market, we increased our quarterly dividend for a second consecutive quarter to $0.075 per share. The basic components of our policies, which include a strong balance sheet, liquidity and capital resources, conservative leverage and fleet renewal with new builds replacing older tonnage reflect our ability to operate a continuously upgraded modern fleet with improved competitive characteristics. This means we have the financial resources to invest when required and also reward our shareholders. Following a comprehensive review of the forward-looking statements language presented in Slide 2, we will start our presentation with dry bulk fundamentals, and let's proceed to examine the supply side dynamics in Slide 4.

We present 2 scenarios of ship supply growth with Straits of Hormuz closed and Straits of Hormuz open. The order book now stands at about 13% of the fleet. The forecast for dry bulk supply as per BIMCO is to grow by 2% in 2026 in open states versus about 1% growth if the states are closed. For reference, about 1% of dry bulk capacity is currently within the Persian Gulf. Asset prices remain elevated in line with the current trade market. Currently, about 10% of ship capacity in the dry bulk order book will be able to use alternative fuels upon delivery. However, the dual-fuel order book remains small in the dry bulk segment.

It is important to note that 30% of the dry bulk fleet is above 15 years old, which means these vessels will face increased repairs and maintenance expenses. The increasing age of a vessel, above 10 years especially, is also related to additional inspection, restrictions, and associated costs. Let me point out in our total order book of 24 Phase 3 vessels placed since 2021, we have two dual-fuel newbuilds on order with delivery the first quarter of 2027, able to operate with fossil fuels until alternative fuels become available and economically viable.

[ Hedging ] for the future cargo intensity related to environmental schemes. Safe Bulkers fleet now counts 14 Phase 3 vessels on the water, all delivered from 2022 onwards. Our average fleet age of 10.3 years is approximately 2 years younger than the global fleet average of 12.5 years, strengthening our competitive position in terms of operational performance and fuel consumption.

Moving on to Slide 5, we present an overview of demand and basic dry bulk commodities trade. The global GDP growth expectations for 2026 and 2027, as reflected in the IMF's forecast, call for a growth of about 3% in the coming years, accompanied by persistent inflationary pressures. BIMCO forecasts a global dry bulk demand growth of about 3% in 2026. On the open trade scenario, cargo volumes are projected to expand about by 2% in 2026.

Iron ore demand expected to grow up to 3% in 2026 in open Hormuz scenario. However, increased Chinese inventories may soften import demand in the second half of 2026. Coal shipments were projected to decline by 1% to 2% in 2026. Thermal coal trade seems weakening. Coking coal remains relatively resilient. However, the closed Hormuz has reversed short-term difficult trends, and Chinese imports have significantly supported the trade.

Grains remain a strong-performing major bulk, with shipments estimated to grow about 5% in 2026 in the open Hormuz scenario. Stronger harvests in the U.S., EU, Argentina, Russia, and Brazil underpin supply. However, China's policy pushed toward greater self-sufficiency and reduced soy meal usage presents a down risk. Minor bulk growth in an open Hormuz scenario is expected to be quite strong for the rest of 2026.

Our energy transition-related ores remain supportive. Fertilizer demand continues to be a key factor, affected also by the Hormuz closing. As China remains the central swing factor for dry bulk, its broader economy's strong exports offset weak domestic demand, still being affected by property sector crisis and manufacturing overcapacity. Its GDP is forecasted to grow by 4.4% in 2026. The trade tensions between the U.S. and China, although truce has been reached, remain a key source of global economic uncertainty.

India, with a forecasted 6.5% GDP increase in 2026, continues to perform and is projected to experience the fastest growth among major economies. Its expanding domestic market, with infrastructure investments playing a vital role in the manufacturing sector, continue to contribute positively to the dry bulk demand. Japan's transition from prolonged deflation to sustainable growth includes a targeted fiscal stimulus and public investment to boost demand and sustain economic momentum.

Summing up the supply-demand equilibrium in slide six, in the open Hormuz scenario, the supply growth is expected to be 2% versus demand growth of 3% for 2026. The freight market has shown strength during the first half of 2026 and continues to be healthy to date, with Cape spot at about $38,000 and Kamsarmax spot at about $18,000. In relation to our Capesize class vessels, all 7 were chartered under period time charters, with an average remaining charter duration of 1.7 years with an average daily charter hire of [ $24.6000 ], topping $105 million in contracted revenue backlog from Capes alone.

Moving to our company section now in Slide 8, we always make reference to our track record. Safe Bulkers relies on experience built through many market cycles of uninterrupted presence in the dry bulk sector, with a full alignment of interest with public shareholders through management's ownership. We are a pure play dry bulk shipping company providing worldwide seaborne transportation of major bulks, iron ore, coal, and grain, and minor bulks for some of the world's largest charters.

We have consistent fleet growth since our IPO, and as shown in Slide 9, for the last 5 years, we have taken delivery of 14 Phase 3 newbuilds, bringing our fleet size to 46 vessels. Key points are the extensive fleet growth plan of 10 more newbuilds on order until 2029 and a young, modern fleet of 10.3 years average age while maintaining age stability through the fleet renewal program. Our net debt per vessel stands comfortably at $8 million per vessel.

Let's focus now on our operational advantage, as shown in Slide 10. On the top graph, we present our daily time charter equivalent rate, which has been improving versus our daily operating expenses, which have been in the region of $5,500 to $6,500. The variability is mainly due to the dry dockings, which are expensed as incurred. This is a result of our hands-on management and of our focus on constant improvement in our operations for our world-class clients, testament of which was the successful completion of designated owners and operators audit process related to DryBMS, which is an advanced monitoring system required by specific charters.

Safe Bulkers was among the very few companies worldwide to have reached this level of operational standard of excellence, being the first in Greece and the sixth globally. At the same time, during the last 5 years, we have 26 vessels which have undergone environmental upgrades and 11 vessels being Eco, incorporating superior fuel efficiency characteristics. Through fleet renewal and environmental upgrades, we have achieved a 22% reduction in our fleet's carbon intensity as a result of improved fuel efficiency, which influences our financial results. Key points is our CII rating of zero vessels on the rating E category, which would require additional CapEx.

As reflected in Slide 11, we have been consistent in our asset strategy. Noting that the price and the specification for a vessel are substantially agreed some months prior to the contract signing which is shown as green boxes in the figure, we can conclude about the timing of placing the orders. The majority of orders have been done early in the cycle at favorable prices and newbuilds were delivered to us timely for the upside of the market. Furthermore, we sold the majority of orders -- we sold all the tonnages, red boxes, and acquired a few younger second-hand vessels, gradually renewing our fleet ahead of high charter market.

As a result, Safe Bulkers today is a fundamentally better position company than 5 years ago, moving ahead of peers, increasing its resiliency in accordance with our business model. We have built a resilient company, as seen in Slide 12, with a comfortable leverage ratio standing at 30% as of quarter end, backed by $143 million in total cash and cash equivalents, bank deposits, and restricted cash, and $200 million available under revolving credit facilities totaling a significant firepower of $343 million. Our capital allocation framework, reflected in Slide 13, is comfortably balancing our CapEx of $277 million against our additional borrowing capacity of over $200 million and our contracted backlog of $154 million, which we have already paid $92 million for the newbuild CapEx.

Moving on to our debt profile and financial health as presented in Slide 14, we stand strong with a total liquidity, capital resources and revenue backlog just shy of $500 million for a $519 million debt, including our unsecured EUR 100 million loan. Our revenue generation, as seen in Slide 15, is reflected in our robust $169 million in revenues for the first half of 2026, being a foundation for our strategic fleet growth plans and fleet modernization initiatives.

Let's focus on the reward for our shareholders as we move to Slide 16. We have declared our 19th consecutive quarterly dividend and increased it to $0.075, representing a healthy 4% dividend yield at current share levels. At the same time, our free cash flow continue to finance our newbuild program and we do have an active 10 million share repurchase program. The returns to shareholders include $101 million paid in common dividends and $78 million paid in common share repurchases since 2022, reflecting our consistency in generating sustainable returns across market fluctuations because of our track record, financial management approach, and our resilient business model.

Concluding the company's update in Slide 17, our board has decided to reward our shareholders in line with our financial performance in the second quarter of 2026, which was supported by a relatively strong charter market by increasing our quarterly dividend since last quarter to $0.075 per share. We are consistently and consecutively paying dividends during the last 19 quarters. It is important to note that while we improved the rewarding scheme for our shareholders, we continue, as we also did in the past, to direct a substantial portion of our cash flows to our newbuild program, which is the basis of our operational competitiveness.

I now pass the floor to our CFO, Konstantinos Adamopoulos, for our quarterly financial review. Konstantinos, the floor is yours.

Thank you, Loukas. Good morning to everyone. During the second quarter of 2026, we operated in an improved charter market environment compared to the same period in 2025, with increased revenues due to higher charter hires and increased earnings from strong bareboat charter vessels.

On Slide 19, we show our quarterly financial highlights for the second quarter of 2026 compared to the same period of 2025. Our adjusted EBITDA for the second quarter of 2026 stood at $50.3 million compared to $25.5 million for the same period in 2025. Our adjusted earnings per share for the second quarter of 2026 was $0.28, calculated on a weighted average number of 101.8 million shares, compared to $0.01 during the same period in 2025, calculated on a weighted average number of 102.5 million shares.

In the graph on the top of the table, during the second quarter of 2026, we operated 45.13 vessels on average, earning an average time charter equivalent of $20,642 compared to 46.75 vessels on average, earning an average time charter equivalent of $14,875 during the same period in 2025. Our daily vessel operating expenses decreased by 6% to $6,207 for the second quarter of 2026 compared to $6,607 for the same period in 2025. Daily running expenses, excluding dry docking and crew delivery expenses, decreased by 3% to $5,455 for the second quarter of 2026, compared to $5,604 for the same period in 2025.

Slide 20 shows a quick overview of our quarterly operating highlights for the second quarter and the first half of 2026 compared to the same period of 2025.

Now let's continue to Slide 21, where we present our balance sheet analysis, noting that assets are presented in their book value. The company maintains a healthy balance sheet supported by a robust equity base and conservative leverage levels. Our capital structure positions the company for sustainable long-term growth and resilience. Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility.

Let's focus now a bit on our liquidity, our cash flows, and our capital structure as presented in Slide 22. We are maintaining a comfortable leverage of 30%. Our debt remains comparable to our fleet scrap value, although our fleet is just 10.3 years old. Our weighted average interest rate of our debt stood at 5.10% for our consolidated debt, with a portion of EUR 100 million being fixed at 2.95% coupon. We have paid a considerable part of our CapEx in relation to our standing order book. Our liquidity and capital resources stand strong at approximately $343 million, which together with the contracted revenue of about $154 million from our vessels, is under $500 million, and this is more than adequate for our standing CapEx. It provides flexibility to our management in capital allocation.

Furthermore, we have additional borrowing capacity in relation to our 9 new builds upon their delivery. We are sure that our capital expenditure is adequately covered by our contracted future revenues, fortifying our balance sheet towards a trajectory of sustainable growth. This underscores our capacity to support debt service, reinvestment, and shareholder returns at the same time. This enables us to expand the fleet, build a resilient company, and create long-term prosperity for our shareholders.

Thank you for your attention, and we are ready for the Q&A session.

[Operator Instructions] Thank you. Our first question is from Peter Nelson with Citigroup. Hello, Peter. Is your line on mute?

We don't hear you. Hello, do you hear us?

Peter, is your line on mute? Thank you. At this time, there are no questions coming through. I'd like to hand the floor back over to management for any closing remarks.

Thank you very much for attending our half year results. We're looking forward to discuss again with you in the following quarter. Thank you.

Thank you for standing by, ladies and gentlemen, and welcome to Safe Bulkers' Conference Call for the First Quarter 2026 Financial Results. We have with us today Mr. Polys Hajioannou, Chairman and Chief Executive Officer; Dr. Loukas Barmparis, President; and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. [Operator Instructions]

Following this conference call, if you need any further information on the conference call or on the presentation, please contact Capital Link at (212) 661-7566. I must advise you that this conference call is being recorded today. The archived webcast of the conference call will soon be made available on Safe Bulkers' website at www.safebulkers.com.

Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from results projected from those forward-looking statements. Additional information concerning factors that can cause actual results to differ materially from those in the forward-looking statements is contained in the first quarter 2026 earnings release, which is available on Safe Bulkers' website, again, at www.safebulkers.com.

I would now like to turn the conference call over to one of our speakers today, the Chairman and CEO of the company, Mr. Polys Hajioannou. Please go ahead, sir.

Good morning to all. I will do the talking. I'm Loukas Barmparis, President of Safe Bulkers, and I'm welcoming you all to our quarterly results presentation.

During the first quarter of 2026, we operated in an improved charter market environment compared to the same period in 2025 with increased revenues due to higher charter hires and slightly increased earnings from scrubber-fitted vessels. The dry-bulk market witnessed increased market volatility, mainly due to geopolitical reasons. The increase of dividend to $0.06 per common share and the opportunity to access European investors through the parallel listing in Euronext Athens, a platform of 8 stock exchanges in Europe, are the 2 highlights of the previous period.

In the first quarter of 2026, we increased our EPS to $0.18 from an EPS of $0.05 for the same period in last year, while we declared a $0.06 per share for dividend and continuing the renewal of our fleet with 4 newbuilds and the sale of our oldest Kamsarmax and our oldest post-Panamax vessels. Following a comprehensive review of the forward-looking statements language presented in Slide 2, let us proceed to examine the supply-side dynamics in Slide 4.

The dry-bulk fleet is projected to grow by about 4% in 2026 due to stable new deliveries with fleet growth estimated to be highest for the Panamax segment. 30% of the dry-bulk fleet is over 15 years. The order book now stands at about 13% of the fleet. The forecast for dry-bulk supply as per BIMCO is to grow 2% in 2026 in open Strait of Hormuz scenario versus 1% growth in case of close. For reference, about 1% of dry bulk capacity is currently trapped in Persian Gulf.

Asset prices remain elevated in line with the current freight market. Currently, about 10% of ship capacity in the dry-bulk order book will be able to use alternative fuels upon delivery. However, the dual-fuel order book remains small in the dry-bulk segment. The postponement of the adoption of the global fuel standard by IMO as well as recent discussions may move the path on decarbonization towards more pragmatic solutions.

In our total order book and 24 Phase 3 vessels placed since 2020, we do have 2 dual-fuel newbuilds on order with deliveries in Q1 '27, able to operate with fossil fuels until alternative fuels become available and economically viable, hedging for the increased, more stringent carbon-intensity limits of the fuel regulation after 2030 and the potential adoption of new regional or global regulations.

Safe Bulkers' fleet now counts 13 Phase 3 vessels on the water, all delivered from 2022 onwards. In addition, 21 vessels have undergone environmental upgrades and 11 vessels are eco, incorporating superior fuel efficiency characteristics. Approximately 80% of our fleet is Japanese-built compared with a global average of roughly 40%, underscoring our focus on construction quality, asset durability, resale value and fuel efficiency. We also underline the improved quality of our Chinese ships, which incorporate improvements in durability and fuel efficiency.

Our average fleet age of 10.5 years, approximately 2 years younger than the global fleet average of 12.5 years, strengthening our competitive position in terms of operational performance and fuel consumption. Our commercial competitiveness will strengthen as we will be taking delivery of our remaining order book of 11 Phase 3 vessels. By 2029, Safe Bulkers' fleet is expected to comprise of 45% Phase 3 vessels, positioning us favorably to compete based on the fuel efficiency, while the shipbuilding capacity will continue to be constrained, leading to longer lead times.

Moving on to Slide 5, we present an overview of the demand and basic commodities trade. The global GDP growth expectations from 2026 and 2027, as reflected in the IMF's April forecast, call for a growth around 3% in the coming years, accompanied by gradual control of inflationary pressures. BIMCO forecasts global dry-bulk demand growth of about 3% in 2026 on the open-Hormuz scenario.

Cargo volumes are projected to expand about 2% in 2026. Iron ore demand expected to grow up to 3% in 2026 in open-Hormuz scenario. Lower prices driven by increased exporter output effectively stimulates trade and enhance competitiveness versus a lower grade domestic Chinese supply. However, increased Chinese port inventories may soften import demand in second half of 2026.

Coal shipments are projected to decline by 1% to 2% in 2026. The International Energy Agency expects global coal demand to fall by 1.5% between 2025 and 2027, with coal imports declining up to 4%. Chinese demand is projected to fall by 1.5%, while India and Asian regions remain growth pockets. Thermal coal trade is weakening, coking coal remains relatively resilient. However, the closed Hormuz has reversed short term this coal trend and Chinese imports have supported trade.

Grains remains the strongest performing major bulk with shipments estimated to grow about 5% in 2026 in the open-Hormuz scenario. Strong harvest in the U.S., EU, Argentina, Russia and Brazil underpin supply. However, China policy push towards greater self-sufficiency and reduced soya meal usage presents a downside risk.

Minor bulk growth in an open-Hormuz scenario is expected to be quite strong for 2026. Energy transition related ores remains supportive, though bauxite trade growth may moderate due to China's aluminum production cap. Fertilizer demand continues to be a key factor affected by the Hormuz closing.

As China remains a central swing factor for dry bulk, its broader economic -- economy, strong exports offset weaker domestic demand still being affected by property sector prices and manufacturing overcapacity. Its GDP is forecasted to grow by 4.4% in 2026. The trade tensions between the U.S. and China, although truce has been reached and recently reaffirmed, remain a key source of global economic uncertainty. Domestic production policy and coal and grain import substitution strategies represent downside risk to seaborne trade.

India continues to perform and is projected to experience the fastest growth among major economies with a forecasted 6.5% GDP increase in 2026. Each expanding domestic market and manufacturing sector may continue to contribute positively to the dry-bulk demand with infrastructure investments playing a vital role.

Following its decisive supermajority victory in the February snap elections, the Japanese government has secured a strong political mandate to implement a more proactive fiscal strategy aimed at accelerating Japan's transition from prolonged deflation to sustainable growth. This approach includes targeted fiscal stimulus and public investments to boost demand and sustain economic momentum.

Summing up the supply-demand equilibrium in Slide 6. In the open-Hormuz scenario, the supply growth is expected to be 2% versus demand growth of 3% for 2026. The freight market has shown strength during the first quarter of 2026 and continues to be healthy to date with Capes spot at about $32,000 and Panamax spot at about $20,000. In relation to our Capesize-class vessels, all 7 were chartered under period time charters with an average remaining charter duration of 1.7 years and an average daily charter hire of about $24,600, topping $110 million in contract revenue backlog from Capes alone.

Moving to Slide 8. We are proud that Safe Bulkers has become the first shipping company with common stock traded on both NYSE and Euronext Athens. Euronext platform provides access to European capital markets, including Oslo, Milan, Paris, Brussels, Amsterdam, Dublin, Lisbon and Athens. By listing our common stock on the main market of the regulated securities market of Euronext Athens, we aim to broaden and diversify our shareholder base, expand the pool of institutional and retail investors in European markets, reinforce our long-term strategy, positioning and governance profile and offer to our European investors direct access to a premium NYSE-governed blue-chip maritime company.

Moving to Slide 9 for an overview of our quarterly highlights. We need to point out that we have declared our 18th consecutive quarterly dividend and increased it to $0.06 per share, representing a healthy 3.7% dividend yield at current share levels. At the same time, our free cash flow continues to finance our newbuild program.

We maintain ample liquidity and capital resources of about $374 million and comfortable leverage of 34%. We had $74.4 million of net revenues, and we do have an active 10 million share repurchase program. Since January, we placed orders for 5 Kamsarmax Phase 3 newbuilds and 1 Capesize newbuild, and we sold our old post-Panamax and oldest Kamsarmax as well as one of our Capesize-class vessels. Lastly, we issued our 2025 ESG report, reflecting the company's continued commitment to proactively managing environmental risks and supporting the communities in which we operate, meeting stakeholders' expectations.

In Slide 10, we present our returns to shareholders of $95 million paid in common dividends and $78 million paid in common share repurchases since 2022, reflecting our consistency in generating sustainable returns across market fluctuations because of our track record, hands-on management and our resilient business model.

Concluding the company update in Slide 11, we present our fundamentals. Safe Bulkers is a dry-bulk company with $657 million market cap, 45 vessels on the water, having $300 million scrap value. We maintain significant firepower with $167 million cash, $208 million in undrawn RCFs and $240 million borrowing capacity against our significant order book of 11 newbuilds, mainly in Japanese shipyards.

We focus on our majority Japanese-built fleet advantage, on fleet energy efficiency and lower CO2 taxation reflected in our CII rating of 0 vessels on the bottom rating of E category. We maintain a young technologically advanced fleet, strong balance sheet, comfortable leverage and low net debt per vessel of $8.1 million for a 10.5-years-old modern fleet. We have built a resilient business model with cash flow visibility of $161 million in revenue backlog, healthy expansion for a sizable fleet that achieves scale and a healthy 3.7% annualized dividend yield positioned to leverage on its fuel efficiency.

I now pass the floor to our CFO, Konstantinos Adamopoulos, for our quarterly financial overview. Konstantinos, the floor is yours.

Thank you, Loukas, and good morning to everyone. During the first quarter of 2026, we operated in an improved charter market environment compared to the same period in 2025 with increased revenues due to higher charter hires and slightly increased earnings from scrubber-fitted vessels.

Moving on to Slide 13 with our quarterly financial highlights for the first quarter of 2026 and compared to the same period of 2025. Our adjusted EBITDA for the first quarter of 2026 stood at $40.7 million compared to $29.4 million for the same period in 2025. Our adjusted EPS for the first quarter of 2026 was $0.18, calculated in a weighted average number of 102.2 million shares compared to $0.05 during the same period in 2025, calculated on a weighted average number of 105.1 million shares.

On the top graph, during the first quarter of 2026, we operated 45 vessels on average, earning an average TCE of $17,095 compared to the operation of 46 vessels earning an average TCE of $14,655 during the same period last year. Our daily vessel OpEx decreased by 9% to $5,223 for the first quarter of 2026 compared to $5,765. Daily vessel operating expenses, excluding dry docking and predelivery expenses, also decreased by 7% to $5,147 for the first quarter of 2026 compared to $5,546 for the same period in 2025.

Moving in Slide 14 with a quick overview of our quarterly operational highlights for the first quarter of 2026 compared to the same period of 2025. Now let's continue to Slide 15, where we present our balance sheet analysis, noting that assets are presented in the book value. Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility. The company maintains a healthy balance sheet, supported by a robust equity base and conservative leverage levels. Our capital structure positions the company for sustainable long-term growth and resilience.

Let's now focus on our liquidity, our cash flows and our capital structure as they are presented in Slide 16. We maintain a comfortable leverage of 34%. Our debt remains comparable to our fleet scrap value, although our fleet is just 10.5 years old on average. Our weighted average interest rate stood at 5.15% for our consolidated debt with a portion of EUR 100 million being fixed at 2.95% coupon in an unsecured 5-year bond. We have paid a considerable part of our CapEx in relation to our outstanding order book.

Our liquidity and capital resources stand strong at approximately $374 million, which together with a contracted revenue of about $164 million, gives a total of $5,038 million (sic) [ $538 million, ] and this is more than double our outstanding CapEx. This provides flexibility to our management in capital allocation. Furthermore, we have additional borrowing capacity in relation to one existing unencumbered vessel and 10 newbuilds upon their delivery. We ensure that our capital expenditure is adequately covered by our contracted future revenues, fortifying our balance sheet towards a trajectory of sustainable growth.

Concluding our presentation on Slide 17, we present our daily free cash flow for the first 3 months of 2026, illustrating the company's ability to generate free cash flows, highlighting disciplined cost control and the efficient vessel operations. We would like to highlight that based on our financial performance, the company's Board of Directors declared an increased $0.06 dividend per common share. The company is maintaining a healthy cash position of about $167 million as of June 12 and another $208 million in revolving credit facilities, a combined liquidity and capital resources of $375 million, and a contracted revenue of $161 million. This underscores our capacity to support debt service, reinvestment and shareholder returns at the same time, which enable us to expand the fleet, build a resilient company and create long-term prosperity for our shareholders.

Thank you for your attention, and we're now ready for the Q&A session.

[Operator Instructions] Our first question is from [ Ilias Papazachariou ] with Piraeus Securities.

Congrats on a great quarter. I wanted to ask you about your fixed charter coverage. Are you close to where you would like to be for the remainder of 2026? Or should we expect any further increases or changes in charter coverage?

Yes. Look, the chartering of the vessels is done in a way that accommodates market conditions. So we have been experiencing a very strong quarter as we talk in the second quarter. The number of spot vessels have been increasing to take advantage of the current squeeze in future quarters, especially towards the last quarter of 2026. The company will be looking to lock in on longer-term contracts. Usually on our type of vessels, those are around 12 months on the Kamsarmaxes and around 24 or 36 months on the Capesizes. So for the time being, we try to enjoy the positive spot market.

Absolutely. My next question is about the LNG facility disruptions in Qatar. Back in March, Iranian attacks knocked out 17% of Qatar's LNG export capacity for over 2 years. As a result, we would expect to see some solid support to steam coal trade in both 2026 and 2027. Is this fair to assume?

Yes. I think it's fair to assume. We already see it, especially from Australia and Indonesia, the amount of cargo we have seen in the last 2 to 3 months has been substantial. And this is helping the market in the Pacific reach to levels in the -- on the BKI average of around $20,000 to $22,000 a day. Of course, there will be volatility on those numbers, but there is a lot of cargo of -- coal cargo in the Far East for the reason you mentioned.

Now if this Strait of Hormuz opens after a few weeks or a couple of months, things get normalized, still, we expect that LNG will start coming out, but in a smaller quantity than the one before the war started. So some of that capacity will be lost for a number of quarters or for a couple of years. So we expect that coal will be in demand in the subsequent couple of years.

Great. And one last question. We -- if everything goes as planned, I mean, we should see substantial benefit from reconstruction activity in Iran. It's probably too early to tell. But if you could make a comment about it, it would be really helpful.

Yes. I think this will be particularly positive for Handysize and Supramax vessels, Ultramax vessels. It's not so much affecting the Kamsarmax or Panamax vessels. But of course, when you see Supramax levels at healthy level, Supramax and Ultramax is one type of cargo that is hitting part of the cargoes of Kamsarmaxes when the market is not good. So when they have their own extra demand, this will be keeping them busy on that front.

Also, we expect a rush of a lot of fertilizer cargoes out of the Persian Gulf that they have been stuck there for the last 3 or 4 months. This will help also the Kamsarmax market as well as the Ultramax market. So if we see the smaller ships improving and getting more cargo, this can only be good also for the Kamsarmax market.

If you see right now, they are all earning about the same, around $20,000 a day comfortably on the spot market. Maybe the modern Ultramax are earning around $25,000 a day and the modern Handys are earning around $18,000 a day. So these are very healthy levels, and we expect that any sort of reconstruction in Iran will boost that trade. Of course, it remains to be seen, the details of the agreement reached between United States and Iran, how much of the sanctions will be removed and how much of foreign-flag vessels will be allowed to get involved in this trade with Iran. But I think that maybe this would be part of an agreement -- of the agreement that has been reached, but we don't know the exact details of it.

[Operator Instructions] There are no further questions at this time. I would like to hand the conference back over for closing remarks.

Thank you very much for attending our presentation for the first quarter 2026 results, and we're looking forward to discuss again with you the next quarter. Have a nice day. Bye.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

Thank you for standing by, ladies and gentlemen, and welcome to Safe Bulker's Conference Call for the Fourth Quarter 2025 Financial Results. We have with us Mr. Polys Hajioannou, Chairman and Chief Executive Officer; Dr. Loukas Barmparis, President; and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company.

Following this conference call, if you need further information on the conference call or on the presentation, please contact Capital Link at (212) 661-7566.

I must advise you that this conference call is being recorded today. The archived webcast of the conference will soon be made available on Safe Bulker's website, www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from results projected from those forward-looking statements.

Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the fourth quarter 2025 earnings release, which is available on the Safe Bulkers website, again, www.saferokers.com.

I would now like to turn the conference over to one of our speakers today, the Chairman and CEO of the company, Mr. Polys Hajioannou. Please go ahead, sir.

Good morning to all. I'm Lucas Para, President of Safe Bulkers, and I'm welcoming you at our quarterly results. During 2025, the dry bulk market witnessed increased market volatility, mainly due to geopolitical reasons. In the fourth quarter of 2025, we achieved $0.14 of adjusted earnings per share, and our Board has declared a $0.05 per share dividend, rewarding our common shareholders. The company maintains a prudent balance between spot and time charter exposure, allowing it to capture market opportunities while preserving cash flow and a strong capital structure, providing flexibility in our capital allocation. Following a comprehensive review of the forward-looking statements language, which is presented on Slide 2, let's proceed to examine the supply side dynamics in Slide 4. bulk fleet is projected to grow by about 3% in 2026 deliveries with fleet growth estimated to be the highest for the Panamax and Supramax segments. The order book now stands at about 11.4% of the current fleet. The forecast for dry bulk supply to grow by 2.5% in 2026 and by 3% in 2027 as adjusted for the sailing. Asset prices remain elevated in line with the current market. Recycling volumes are anticipated to rise but still remain low compared to historical levels. 1 dry bulk order book alnuelipsan LNG and the remaining ammonia and hydrogen. However, the dual fuel order book remains small in the dry bulk segment. The postpone of the adoption of the global fuel standard by IMO on pragmatic. In total order book of 20 Phase vessels placed in 2020, we do have duelbserver1 2027 to operate with fossil fuels until alternative fuels become available and economic viable hedging more carbon intensity limits of the fuel regulation up to 2030 and the potential adoption of new regional or global reguls.afleet now counts 2 Phase 3 vessels in the water, all delivered from 2022 onwards. In addition, 26 vessels have ugmentalgrad or fuel character App 80% of our fleet is Japanese built compared to the global average of roughly 40%, underscoring our focus on quality and asset under the improved quality of our ships, which incorporate improvements in fuel effy.verleet age1.5s2.5snger than the global fleet average, which is 2.6sgetli.etitess will strengthen as we will be taking delivery of our remaining order book of 8 Phase II vessels. By Q1 2029leetred position us favorably to compete based on the fuel efficiency of our vessels while the ship leading to longer terms. When we speak about supply, we need also to highlight not only the scrapping rate but also the aging dry bulk fleet, 5 of which exceeds 15 years of age and the increasing expectation of older vessels, which will be reflected on the increasing inspection of older vessels, which will be reflected on the OpEx. Moving on to Slide 5, we present an overview of the demand -- the global GDP growth expectations for 2026 and 2027 as reflected in the IMF January forecast call for a growth around 3% in the coming years, accompanied by gradual control of inflationary pressures. BIMCO forecasts global dry bulk demand growth of 2% to 3% in 2026. To volumes are to expand by 1% to 2% in 2026 with average sailing distances increasing by 0.5% to 1.5% annually, supporting ton-mile demand. Iron ore shipments expected to grow up to 1% in 2026 and similarly in 2027. Lower prices driven by increased exports of output and enhance competitiveness versus lower grade domestic Chinese supply. However, high Chinese port inventories plus 11% year-on-year may soften import demand in first half of 2026. Coal shipments are projected to decline by 1% to 2% in 2026. The International Energy Agency expects global coal demand to fall by 1.4% between 2025 and 2027 with coal imports declining by 4%. Chinese demand is projected to fall by 1.5%, while India and Asian regions remain growth. Thermal coal trade is weakening. -- coking coal remains relatively resilient. Grains remain the strongest performing major bulk with shipments estimated to grow by 5% to 6% in 2026. Strong harvest in the U.S. and EU, Argentina, Russia and Brazil under supply. However, China's policy push towards greater selfufficiency and soy a dow risk. Minor bulk growth is expected at 3.5% to 4.5% in 2026. Energy transition related remain supportive, though bauxite trade growth may moderate due to China's aluminum production. Fertilizer demand continues to expand but at a slower pace. China remains a central swing factor for dry bulk. The broader economy continues to face headwinds from a weak property sector, elevated inventories in key commodities, iron ore, coal policy industrial adjustment and increasing trade barriers and the export license controls. Steel demand in China is expected to weaken though exports remain elevated despite tighter regulation. Domestic production policy and import substitution strategies, particularly in coal and grains represent key downside risk to seaborne trade. Trade tensions between the U.S. and China, although has been reached, remain a key source of global economic uncertainty. India continues to perform and is projected to experience the fastest growth among major economies with a forecast of 6.4% in GDP increasing in 2026. This expanding domestic market and manufacturing sector may continue to contribute positively to the dry bulk demand with infrastructure investments playing a vital role. In Japan, following a decisive superjorityict in February Snap elect, Japanese government now holds significant political capital to advance a responsible and proactive fiscal policy aimed at transitioning the economy from prolonged deflation towards a phase of sustainable growth widely referred to as economics, emphasizing aggressive fiscal stimulus toalzomestic demand and reinforce economic momentum. Summing up the supply equilibrium Slide supply growth is expected to match demand for 2026. The freight market has shown strength during the fourth quarter of 2025 and continues to be healthy in early 2026. In relation to our Capesize class vessels, 7 were chartered under period time charters with an average remaining charter duration of 1.8 years and an average daily charter hire of $24,000, topping $130 million in contracted revenue backlog from Capes alone. Moving to Slide 8, we present an overview of our quarterly highlights. Looking at our 17th consecutive quarter our free cash flow new [indiscernible], we present return $89 million paid in common dividends and $75 million paid in common reflecting our consistency in generating sustainable returns across in sustainable events across market fluctuations because of our track record, as management and our overall business model. .

Concluding the company update on Slide 10, will be seen strong fundamentals. Safe Bulkers company with $628 million market cap as water, 274 million value. SP1 We maintain significant fire power with EUR 163 million cash, EUR 220 million in undrawn RCF and EUR 182 million borrowing capacity against our significant order book of 8 new builds, mainly in Japanese CPS. .

We focus on our maturity Japanese book other branded, complete energy efficiency and lower shetaxation reflected in our CII rating share of vessels on the bottom that egos. We maintain a young technologically advanced fleet, strong balance sheet, comfortable leverage and low net debt per vessel of EUR 8.4 million for a 10.4-year fleet. We have a big a resilient business model with cash flow visibility EUR 164 million in revenue but healthy expansion for a sizable fleet that achieves stay in the meaningful 3.3% annualized dividend position lower on HL efficiency. I now pass the flat our CFO Cuadradamopulos, for to your financial the Trish lows.

Thank you, Lucas, and good morning to everyone. During the fourth quarter of 2025, we operated in a slightly improved charter market environment compared to the same period in 2024 with increased revenues due to higher charter hires and slightly increased earnings from stratified vessels.

Moving on to Slide 12 with our quarterly financial highlights for the fourth quarter of 2025 compared to the same period of 2024. Our adjusted EBITDA for the fourth quarter of 2025 stood at $37.4 million compared to $40.7 million for the same period in 2024. Our adjusted earnings per share for the third quarter of 2025 was $0.14 calculated on a weighted average number of $102.3 million compared to $0.15 during the same period in 2024, calculated on a weighted average number of 106.4 million shares.

On the top graph, during the fourth quarter of 2025 were operating 45 vessels on average, ending an average time target with [ $750 ] compared to 45.9 meters on average, earning a TCE of $6,521 during the same period in 2024. We -- our daily vessel operating expenses increased by 13% to $5,686 for the fourth quarter of 2025 compared to $5.047 for the same period in 2024.

Daily vessel OpEx, excluding write-off delivery expenses, increased by 6% to $557 an for the fourth quarter of 2025 compared to $4,787for the same period in 2024. Slide 13 with a quick overview of our quarterly operational highlights for the fourth quarter of 2025, which compared to the same period of 2024.

Now let's continue to Slide 14, where we present our balance sheet analysis, noting that assets are presented in their book value. Slow liquidity and double cash reserves provide significant financial flexibility to navigate market volatility -- the company maintains a healthy balance sheet supported by a robust equity base and conservative leverage levels. Our capital structure positions the company for sustainable long-term growth in Brazilians.

We'll conclude our presentation in Slide 13, where we present our daily free cash flow for the 12 months of 2025 illustrating the company's ability to generate free cash flow, highlighting disciplined cost control and efficient vessel operations. We'd like to highlight that based on financial performance, the company's Board of Directors declared a $0.05 dividend per common share -- the company is maintaining a healthy cash position of about $167 million as of February 13, another $218 million available in the revolving credit facilities giving a combined liquidity and capital resources of $385 million -- we also we should also add the contracted revenue of $178 million.

This underscores our capacity to support their service, investment and shareholder returns at the same time we enable to expand the fleet to reline company and create long-term prostate for our shareholders. Thank you, and we are now ready for your questions.

[Operator Instructions] Our first question is from Kam Moylan with Value Investors Edge.

You've made a lot of way on the fleet renewal front in recent years, putting special emphasis on Kamsarmax newbuilds. -- when looking at your overall fleet pro forma for the newbuild additions, the Cape side does smatter, -- is there any appetite for new going forward? Or is now well on secondhand pricing difficult to justify based on your expectations?

Yes. to you. The second branches right now, they are getting higher, but the problem is that lack of setup available tenets for sale. So there is no quality tonnage in secondhand market available for sale on Japan is built vessels or even Chinese more than vessels available for sales. And the reason being that market prospects look quite positive. We have a very sort and now very strong Q1.

And people are getting hold of their assets to drive the improved market. So the only option you have a company, at least like ours that we need to have quality tonnage, and we need to have a sustainable program for the future is to look into shipyards. Also there, the task is not easy, but because most of the shipyards are fully booked for 2028. So we have to go into 2029 for deliveries. And basically, this is what we have done in the last quarter.

Yes, that's helpful. I also wanted to ask about the time charter market. Have you seen increasing appetite from charterers for 2 to 3-year contracts on cancer maxes -- and secondly, based on current quotes, would you favor index-linked exposure or fixed coverage?

Yes. There is no interest for 2- or 3-year contracts. The market is just starting its improvement over the last couple of quarters. You have to remember last year was a very difficult year, especially in the first half, which was all the talk of tariffs and it started from September '24, ended last up to July of 2025, when we show up from administration was starting settling some of those issues within a few countries.

So there were a good 10 months of depression in the market, stories start changing from second half of 2025, when we start seeing improvement. I mean, the momentum has to gather pace, which is doing right now. We started now seeing better freight rates. And right now, we could say that many charters can take 12-month period charters.

In order to see 2 or 3 years, we need to have more of this visibility we have to have this going to 2 or 3 quarters before charters appear for longer term. So at the moment, I would say that you could easily fix 6 to 12 months after, but the longer charters would come only after we see sustained strength of the market.

So the inflation about the index of fixed rate, aisle prefer a fixed rate. And sometimes we do index use on a rising market, charters try to avoid index, referred fixed rate. We don't mind securing a good return with the fixed rates. Right now, there are 1-year deal, so 1-year deals in the market approaching $18,000 or $19,000 a day. So -- this is a group of a good level to start looking in a few ships.

The '18 201,000 per day would be for ECO and scrubber, right?

No, no club. It will be for cameras for Casas they don't use any acutes. The scrubber, you find us on Capesize bulk carry on vessels they are bending over 25 tonnes to make Welten the investment. So again, 1 of the 14 or 15 tons, they don't you-- it's not viable to fit scrubber on both and very small consumption.

[Operator Instructions] With no further questions, I would like to hand the conference back over to management for closing remarks.

Thank you very much for attending this conference call above the first -- the last quarter of financial results of 2025, and we are looking forward to discuss again with you in our next quarter results. Thank you very much, and have a good day.

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Thank you for standing by, ladies and gentlemen. Welcome to Safe Bulkers Conference Call on the Third Quarter 2025 financial results. We have us with us today, Mr. Polys Hajioannou, Chairman and Chief Executive Officer; Dr. Loukas Barmparis, President; and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. [Operator Instructions]

Following the conference call, if you need any further information on the conference call or the presentation, please contact Capital Link at (212) 661-7566. I must advise you that this conference is being recorded today. The archived webcast of the conference call will soon be available on the Safe Bulkers website, www.safebulkers.com.

Many of our remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from the results projected from those forward-looking statements. Additional information concerning factors that can cause actual results to differ materially from those in the forward-looking statements is contained in the third quarter 2025 earnings release, which is available on the Safe Bulkers website, again, www.safebulkers.com.

I would now like to turn the conference over to our speakers today, Chairman and CEO of the company; Mr. Polys Hajioannou. Please go ahead, sir.

Good morning to all. I am Loukas Barmparis, President of Safe Bulkers, and I will do today the presentation, and I'm welcoming you at our quarterly results. Key developments of the previous period include the performance of the IMO Net-Zero framework and the expected gradual market fragmentation due to geopolitical reasons for fees and tariffs resulting in increased market volatility. The dry bulk market recovered compared to the previous quarter, and we sold 2 of our oldest vessels as part of the company's ongoing fleet renewal strategy. Our company maintains a strong capital structure providing flexibility in our capital allocation. Lastly, we have declared a dividend of $0.05 per share of common stock rewarding our shareholders.

Following a comprehensive review of the forward-looking statements language presented in Slide 2, let us proceed to examine the supply side dynamics in Slide 4. The dry bulk fleet is projected to grow by about 3% on average in 2025 and in 2026 due to stable new deliveries. The order book now stands below 11% of the current fleet. Asset prices are projected to pick up in line with the current freight market. Recycling volumes are anticipated to rise through as market conditions prompted that into older vessels, especially in relation to the 25% of dry bulk fleet being older than 15 years and the overall average age of the dry bulk fleet. As a result, the ship recycling would be double over the next 10 years compared to previous decade as per Bimco projections. Currently, 15% of ship capacity in the dry bulk order book will be ready to use alternative fuels upon delivery. And out of those ships 52%, they may use methanol, 35% LNG and 13% ammonia or hydrogen. However, the dual fuel order book remains small on dry bulk segment. The postponement in adoption of the global fuel standard by IMO, may bring another path on decarbonization towards more pragmatic solutions.

We do have 2 dual fuel new builds on order with delivery in first quarter of 2027. Safe Bulkers fleet now counts 12 Phase 2 vessels on the water, all delivered 2022 onwards. On top of that, 24 vessels have been environmentally upgraded and 11 are eco vessels having superior design efficiencies. 80% of our fleet comprises Japanese built vessels, double the global average of 40%, while our average fleet age of 10.1 years being 2.5 years younger compared to the global average of 12.6 years. Our commercial competitiveness will strengthen as we will be taking delivery of our remaining order book of 6 Phase 3 vessels. By first quarter of 2027, Safe Bulkers fleet will be comprised of 35% Phase 3 vessels, 18 out of 51, positioning us favorably to compete based on the fuel efficiency of our vessels, while the shipbuilding capacity will continue to be constrained, leading to longer lead times.

Moving on to Slide 5, we present an overview of the demand and basic commodities trade. The combination of trade war as expected through tariffs, high debt, high interest rates, new fiscal demands and persisting geopolitical tensions, elevated policy uncertainty, straining public finances can pose a considerable down risk for global growth and disinflation. For our segment, we anticipate an improving freight market rate as a result on the trade truce resulted from the agreement between U.S. and China with an increasing focus on the existing fleet decarbonization and energy efficient new builds.

The global GDP growth expectations for 2026 and 2027 as reflected in the IMF's October forecast call for a growth of about 3% in the coming years, accompanied by a gradual control of inflationary pressures. According to Bimco the forecasted global dry bulk demand growth will be 2% in 2026, followed by 1.5% in 2027, with grains and minor bulks being the best performing sectors. China and India are gradually boosting domestic coal production, reducing import demand. China has been rapidly phasing out fossil fuels from electricity generation, boosting renewables, reducing import dependence. China's economy is still being affected by property sector crisis and manufacturing overcapacity. Trade tensions between the U.S. and China, although truce has been reached, remain a key source of global economic uncertainty.

On the good side, additional Chinese purchase of U.S. soya beans were reported with a total of about 1 million tons sold since the U.S.-China trade war truce while the U.S. has suggested that China could purchase up to 12 million tons of U.S. soybeans. India continues to perform and is projected to experience the fastest growth among emerging economies with a forecasted 6.2% GDP increase in 2026. Its expanding domestic market and manufacturing sectors may continue to contribute positively to the dry bulk demand with infrastructure investments playing a vital role.

The Japanese government approved a $135 billion economic stimulus package, the country's largest package since the COVID period amidst slowing economic growth with measures also containing dedicated funding for the Japanese shipbuilding industry. Currently, in the spot rate market, multiple miners continue offering cargoes in both basins. Steady gains were made in the Atlantic with sentiment supported by expectation of further U.S. China grain sales and a tight forward tonnage list. Fresh U.S. grain cargoes also boosted the NOPAC rates. Looking forward in 2026 and 2027 an expected decline in coal cargoes and limited iron ore cargo growth will negatively impact demand growth. Instead, growth is expected to come from stronger grain and minor bulk shipments and from longer sailing distances.

Summing up the supply-demand equilibrium on Slide 6. The supply growth is expected to continue to outpace demand. The freight market has rebounded recently during the start of the third quarter. All 8 of our Capes are presently period chartered with an average remaining charter duration of almost 1.7 years at an average daily charter rate of $24,800 providing us visibility of cash flows, topping $124 million in contracted revenue backlog from Capes alone.

Moving to Slide 8, we present an overview of our quarterly highlights. We have declared our 16th consecutive quarterly dividend of $0.05, representing 4.1% dividend yield. At the same time, our free cash flows finances our newbuilding program. We maintained ample liquidity, profitability and capital resources of $390 million and a comfortable leverage of about 35%. We sold 2 of our oldest vessels in our fleet in line with our fleet renewal strategy and achieved 0 vessels in D & E carbon intensity CII rating of IMO for 2024 as described in our 2024 sustainability report.

On Slide 9, we present our returns to shareholders of $83.9 million paid in common dividends and $74.9 million paid in the form of shares repurchases since 2022. We have been consistent in generating sustainable returns across market fluctuations because of our track record, hands-on management and our overall business model.

Concluding the company update on Slide 10, we present our strong fundamentals. Safe Bulkers is a dry bulk company with $496 million market cap, 45 vessels in the water having $274 million scrap value. We maintain significant firepower with $124 million cash and $267 million in undrawn RCFs, revolving credit facilities and $176 million borrowing capacity against our significant order book of 6 newbuilds, mainly in Japanese shipyards. We focus on our majority Japanese build-fleet advantage, on fleet energy efficiency and lower CO2 taxation reflected in our CII rating of 0 vessels on the bottom ratings of D & E. We maintain a technologically advanced fleet, strong balance sheet, comfortable leverage and low net debt per vessel of $8.7 million for a 10.1-year old fleet. We have built a resilient business model with cash flow visibility of $164 million in revenue backlog, healthy expansion for a sizable fleet that achieves scale and a meaningful 4.1% annualized dividend yield positioned to leverage on its fuel efficiency.

I now pass the floor to our CFO, Konstantinos Adamopoulos, for our quarterly financial review. Konstantinos, the floor is yours.

Thank you, Loukas, and good morning to everyone. During the third quarter of 2025, we operated in a weaker charter market environment compared to the same period in 2024 with decreased revenue due to lower charter hires and decreased earnings from scrubber fitted vessels.

Moving on to Slide 12 with our quarterly financial highlights for the third quarter of 2025 compared to the same period of 2024. Our adjusted EBITDA for the third quarter of 2025 stood at $36.1 million compared to $41.3 million for the same period in 2024. Our adjusted earnings per share for the third quarter of 2025 was $0.12. This is calculated on a weighted average number of 102.3 million shares compared to $0.16 during the same period last year, calculated on a weighted average number of 106.8 million shares.

In the graph on the top, during the third quarter of 2025, we operated 46.51 vessels on average, earning an average time charter equivalent of $15,507 compared to 45.27 vessels on average, ending TCE of $17,108 during the same period in 2024. Our daily vessel earning expenses decreased by 4% to $5,104 for the third quarter of 2025 compared to $5,311 for the same period in 2024. This daily running expenses, excluding dry docking and predelivery expenses increased by 1% to $5,060 for the third quarter of 2025 compared to $4,999 for the same period last year.

In Slide 13, we see a quick overview of our quarterly operational highlights for the third quarter of 2025 in comparison to the same period last year.

Let's continue now to Slide 14, where we present our balance sheet analysis and noting that our assets are presented in the book value. The company maintains a healthy balance sheet supported by robust equity base at the concerned levels. Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility and take advantage of market opportunities. Our capital structure positions the company for sustainable long-term growth and resilience.

Concluding our presentation in the last slide, #15, we present our daily free cash flow for the 9 months of 2025, illustrating the company's ability to generate free cash flows highlighting disciplined cost control and efficient vessel operations. I would like to highlight that based on our financial performance, the company's Board of Directors has declared $0.05 dividend per common share. The company has maintained a healthy cash flow position of $187 million as of November 21, 2025 and another $210 million in available undrawn revolving credit facilities, so a combined liquidity and capital resources just shy of $400 million plus a contracted revenue of $164 million. This underscores our capacity to support debt service, the investment and shareholder returns at the same time which enable us to expand the fleet, build a resilient company and create long-term prosperity for our shareholders. Thank you, and we are now ready for the Q&A session.

[Operator Instructions] We reached end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments. With no more questions, I'll turn it back over to management.

Okay. So thank you very much for attending this conference call, and we'll be in touch next quarter. Thank you very much.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.