Seanergy Maritime Holdings Corp. Stock

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference Call on the Second Quarter and First Half ended June 30, 2026 Financial Results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions]

Please be advised that this conference call is being recorded today, Thursday, July 30, 2026. The archived webcast of the conference call will soon be made available on the Seanergy website, www.seanergymaritime.com. To access today's presentation and listen to the archived audio file, visit the Seanergy website following the Webcast and Presentations section under the Investor Relations page.

Please now turn to Slide 2 of the presentation. Many of the 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 the actual results to differ materially from those in the forward-looking statements is contained in the second quarter and first half ended June 30, 2026 earnings release, which is available on the Seanergy website again, www.seanergymaritime.com.

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

Thank you, operator, and welcome, everyone. Seanergy delivered a record second quarter, net revenue of $55.7 million, adjusted EBITDA of $41.5 million and adjusted EPS of $1.32. Our fleet earned $32,355 per day, up 63% year-over-year. This is what a pure-play Capesize and Newcastlemax platform does in a strong market without diluting our story in many vessel classes. When the market is strong, we get all the benefit. For the first 6 months of 2026, fleet time charter equivalent increased by 69% year-over-year to $28,244 per day. Net revenues increased to $97.8 million. Adjusted EBITDA increased by 165% to almost $70 million and adjusted earnings per share were almost $2, actually $1.96 per share compared to an adjusted loss per share in the prior year period.

This represents again a record first half performance through our ability to capture the upside of a strong Capesize market while having hedged our downside risk. Looking ahead, the Capesize market prospects for the second half of the year remain constructive based on a resilient commodity demand, constrained effective fleet supply and earnings visibility provided by our forward fixed rate charter coverage. Our Board declared a cash dividend of $0.35 per share. That's our 19th consecutive quarterly dividend, which we have delivered through good and bad markets. We have now returned $108 million to shareholders, and we raised the dividend 75% this quarter compared with the previous one.

Moving to our recent fleet renewal initiatives. Since our last update, we have committed approximately $130 million more to acquire 2 high-quality Japanese vessels, both expected to join our fleet in 2029. We also completed the sale of the 2010-built Squireship. These transactions advance our disciplined fleet renewal strategy by reallocating capital from older tonnage into modern fuel-efficient assets at delivery points that align well with the next phase of our fleet requirements. Our latest acquisitions include a scrubber-fitted newbuilding Capesize vessel to be built at a first-class Japanese shipyard scheduled for delivery in the first half of 2029 and the modern 2022-built Capesize vessel constructed in Japan with forward delivery expected in the first half of 2029.

Our renewal program now represents an aggregate investment of $591 million. Funding is already advanced on competitive terms as will be detailed in a few minutes by Stavros. I would also like to highlight the successful completion of our inaugural EUR 100 million unsecured corporate bond offering in Greece with demand exceeding the offered amount by more than 2x. Beyond diversifying our funding sources its 5-year bullet structure is particularly well matched to the requirements of our fleet investment program.

Slide 4, consistent capital returns. Moving on to Slide 4. Seanergy has now returned approximately $3.19 per share to our shareholders through 19 consecutive quarterly distributions since launching our dividend program in 2021. This track record reflects our ability to translate strong Capesize market conditions into consistent and meaningful cash returns. Our approach is simple, to reward our shareholders every quarter, to keep the balance sheet strong, to invest in modern ships, and we're successfully doing all 3 at once, a 27% payout, leverage below 50% and $591 million committed to fleet renewal with prompt deliveries. Rewarding our shareholders remains an important priority to us.

Slide 5, strong commercial execution and forward earnings visibility. Turning to Slide 5. During the second quarter of 2026, Seanergy achieved a daily time charter equivalent of approximately $32,400, while our average daily TCE for the first 6 months of the year reached $28,200. As the market hedge, we converted a portion of our second quarter days to fixed ahead of the market rise. That kept us a bit below the index in a quarter where rates spiked considerably. It is obvious that we're trying to protect the downside and keep enough upside to the matter. Our index-linked employment gives us direct participation in the market strength, and we run a very high utilization again in the quarter, which highlights the quality of our technical management.

At the same time, we continue to manage freight rate volatility selectively. Approximately 55% of our ownership days for the second half of 2026 have been converted at an average daily rate of approximately $30,800. This provides earnings visibility and downside protection for our revenue and cash flows while preserving meaningful exposure to further market upside. Our scrubber-equipped ships continue to benefit from favorable fuel spreads, providing another source of earnings enhancement. Another important point is that since 2024, we have invested approximately $37.3 million in environmental upgrades on the existing fleet, vessel improvements and dry dockings. Having completed the majority of scheduled upgrades in the previous quarters, the company expects only 50 off-hire days approximately for the remainder of 2026 in connection with scheduled dry dockings, vessel repairs and environmental upgrades. Looking further ahead, the superior efficiency of our newbuilding vessels should strengthen their commercial profile and enhance the earnings contribution.

Slide 6, fleet renewal program with prompt deliveries. To date, we have contracted 7 modern eco-design Capesize newbuildings with deliveries in 2027 until 2029 and agreed to acquire 2022-built modern Capesize Japanese-built with delivery also in 2029 and sold 3 older vessels. Together, these transactions advance both the growth and renewal of our fleet, improving its age profile, fuel efficiency and long-term earnings capacity. Importantly, 4 of the 8 vessels are scheduled to be delivered to our fleet within 2027, allowing us to meaningfully increase the earnings contribution of our renewed fleet beginning next year.

We have now finalized long-term time charters for the 3 2027 delivery newbuildings being constructed in China with leading global counterparties, and I'm talking 4 to 5 years. The structure is very straightforward, floor of $23,100 a day, which covers our cash breakeven from day 1. Above the floor, we earn a premium over the BCI 5TC index up to about $29,750. Above that, we keep half the upside. Therefore, downside is covered while upside is retained. This is another validation of the commercial appeal of our newbuildings as it materially reduces the execution risk associated with the initial phase of our fleet renewal program. Stavros will discuss the financing implications in greater detail, but the combination of attractive charter coverage, competitive financing and prompt delivery positions materially strengthens the expected return profile of these investments.

I will now pass the call to Stavros for a review of our financial performance, balance sheet highlights and financing framework supporting our fleet renewal program. Stavros, please go ahead.

Thank you, Stamatios, and welcome to everyone joining today's call. Let's begin with Slide 7. I will review our financial performance for the second quarter and first half of 2026, followed by an update on liquidity, leverage and growth funding. As Stamatios highlighted, the second quarter and the first half of 2026 marked the strongest financial performance in Seanergy's recent history. These results reflect the favorable Capesize market environment, disciplined commercial execution and the operating leverage of our pure-play platform.

For the second quarter of 2026, net revenues increased to $55.7 million from $37.5 million in the prior year period. Adjusted EBITDA more than doubled to $41.5 million, while net income and adjusted net income reached $26.2 million and $28.5 million, respectively. GAAP EPS was $1.21 and adjusted EPS was $1.32. Our fleet achieved a daily TCE of $32,400, representing a 63% year-over-year increase. This strong momentum extended into our first half results. Net revenues reached $97.8 million, while adjusted EBITDA increased by 165% year-over-year to $69.6 million. We reported net income of $35.9 million and adjusted net income of $42 million compared to losses in the prior year period. GAAP EPS was $1.67, while adjusted EPS reached $1.96.

Turning to our balance sheet. We ended the quarter with $59.5 million of cash and restricted cash equivalent to approximately $3.3 million per operating vessel. This liquidity position was maintained despite investing approximately $73 million in newbuilding installments and fleet renewal initiatives during the first half of the year, while remaining consistent on the dividend front. At the same time, our debt-to-capital ratio remained below 50% maintaining prudent leverage while executing the largest investment program in our history demonstrates the good standing of our balance sheet and provides the flexibility required to complete our fleet renewal program.

Now turning to Slide 8. We will highlight the quality of our earnings and the resulting strength of our cash flow generation. Our fleet achieved a daily TCE of $28,244 during the first half of 2026, increased by 69% year-over-year. Our index-linked exposure allowed us to participate directly in market strength, while selective fixed rate conversions helped to manage volatility and improve earnings visibility. Now the adjusted EBITDA at $69.6 million represents a margin of approximately 70%, while operating cash flow margin was approximately 44% -- these figures demonstrate the efficiency with which revenues convert into operating cash flow. Adjusted EPS of $1.32 for the second quarter and $1.96 for the first half of the year provides strong coverage for the quarterly dividend while supporting the continued funding of our fleet renewal program.

Turning to Slide 9, which summarizes our leverage position and the financing framework supporting our fleet renewal program. As of June 30, 2026, total debt, including finance lease liabilities, stood at approximately $299 million, corresponding to a fleet loan-to-value ratio of approximately 42% based on independent broker valuations. Debt per vessel was approximately $15.7 million compared to an average fleet market value of approximately $37.3 million per vessel, highlighting substantial embedded equity across our fleet. The estimated scrap value of our fleet covers approximately 70% of our outstanding debt, providing downside asset coverage.

Now at the same time, our weighted average financing margin declined to approximately 2.17%, reflecting the strength of our lender relationships and consistent access to competitive financing. Subsequent to quarter end, we completed our inaugural $100 million unsecured corporate bond offering in Greece. The transaction represents an important enhancement of our capital structure. As Stamatios mentioned earlier, the non-amortizing nature is particularly well suited to our newbuilding program, preserving liquidity during the construction and aligning principal repayment with the future cash generation of the new vessels.

Now the bond further diversified our financing sources beyond traditional secured bank financing and finance leases and provides financial flexibility as we execute the program. Needless to say that the all-in cost of 4.9% per annum is extremely attractive given the unsecured nature of the financing. In parallel, we have secured approximately $296.5 million of committed bilateral financing facilities for our newbuilding program with unique characteristics that immunize the financing amounts against adverse movements in the market value of the vessels. Together with the bond proceeds and existing liquidity, these sources cover approximately 90% of the program's remaining CapEx.

Building on the previous slide, turning now to Slide #10, we provide a clearer view of the funding position and payment profile of our fleet renewal program. To date, we have already invested approximately $73 million from our own funds. This is equity participation in the program. Against the remaining installments of approximately $518 million, we have secured $296.5 million of committed bilateral pre- and post-delivery financing, while the recently issued EUR 100 million unsecured bond equivalent to approximately $114 million provides an additional pool of flexible non-amortizing capital. We also have approximately $59.5 million of cash and restricted cash as of June 30, 2026. For the remaining unfunded portion, we have assumed debt capacity, meaning 60% loan-to-value on the market value of the not yet financed vessels of approximately $126 million.

On that basis, the entire remaining investment program is prudently covered with additional funding capacity relative to the scheduled installments. The chart on the right also highlights the staggered nature of the capital commitments. Payments are distributed through the first half of 2029 with the largest installments aligned with the then vessel deliveries. This gives us ample time to arrange the remaining vessel-specific financing. I would also connect the funding profile to the charter agreements Stamatios described earlier. The 3 2027 newbuildings will enter service under 4- to 5-year contracts with floor rates expected to cover the vessel breakevens. This establishes a contracted base of cash generation during the initial years of operation and strengthens the debt service profile of the vessels.

At the same time, the commercial structures preserve meaningful earnings upside. Now from a financing and capital allocation perspective, these agreements materially improve the quality and visibility of the cash flow supporting the investment program. They reduced downside risk during the early amortization period, enhance the expected risk-adjusted returns of the vessels and further derisk the execution of the first phase of our fleet renewal strategy. In summary, the principal funding sources are substantially secured. The remaining capital commitments are staggered and 3 2027 deliveries now have multiyear commercial coverage at levels expected to protect their cash breakevens. Together, these factors provide clear funding and cash flow visibility through the initial phase of our program.

Finally, let's turn to Slide 11, which illustrates the operating leverage embedded in our platform under different Capesize rate scenarios. Under the current FFA scenario, our model indicates full year 2026 EBITDA of approximately $138 million, while a stronger market scenario will generate further material upside. As freight rates improve, a significant portion of incremental revenue flows through to EBITDA and cash flow, enhancing our capacity to provide shareholder returns while funding the modernization of our fleet. Importantly, approximately 55% of our second half days are already fixed at attractive rates, providing meaningful protection under more moderate market scenarios. I will now turn the call back to Stamatios for a discussion of the Capesize market outlook and broader industry fundamentals. Stamatios, please go ahead.

Thank you, Stavros. The Capesize market remained strong throughout the second quarter of 2026 with the BCI averaging approximately $36,300 per day, bringing the first half average to approximately $29,600 a day. The strong trend has clearly carried over to the third quarter of the year with July BCI average being close to $35,000. Asset values responded accordingly with brokers reporting that secondhand Capesize prices increased by approximately 16% during the first half of the year. Effective vessel supply remains constrained by a combination of slower sailing speeds, elevated bunker prices due to the war and an active dry dock schedule, all of which reduced available capacity while cargo volumes remain very healthy. Although geopolitical developments continue to create uncertainty, the underlying demand picture has so far remained very resilient.

Having said this, let us please turn to next slide to take a closer look at Capesize demand. Iron ore. China's iron ore imports increased by 6.3% year-over-year in the first 6 months of 2026, while June, in particular, setting a new monthly record. Demand for high-quality imported iron ore remains high with policies focusing on capacity normalization and environmental efficiency. At the same time, Simandou continues to ramp up, while Vale has reaffirmed its production guidance for the year. Together with the continued production outlook from Rio Tinto and BHP, these developments support a favorable long-term demand outlook for Capesize vessels. Increasing Atlantic Basin exports are expected to enhance ton-mile demand because of the longer sailing distances involved.

Bauxite. Turning to bauxite. This trade continues to be one of the strongest structural growth drivers for the Capesize market. China's imports rose by 18% in the January to May period, reflecting continued growth in the use of imported bauxite in China's alumina smelters. Short-term uncertainty about Guinean bauxite export policy may create some volatility, but we remain optimistic about cargo volume in the second half of 2026 based on the sound demand drivers.

Coal. Finally, coal trade has remained resilient despite expectations of a structural decline in the recent years. Energy security continues to be a priority across many regions, while warm weather has supported summer electricity demand. Looking ahead, uncertainty surrounding natural gas inventories ahead of the winter could provide additional support for thermal coal demand. Chinese coal imports increased during the first half of the year, and we expect import demand to remain healthy during the second half, supported by relatively slower domestic production and the potential easing of export restrictions in Indonesia. More broadly, global coal loadings have also continued to increase, while evolving trade patterns may contribute to longer sailing distances and additional fleet inefficiencies, both of which are supportive of the dry bulk shipping. Overall, as we enter the seasonally stronger second half, the demand outlook for Capesize market remains constructive across our 3 core cargoes.

Turning to the next slide now in order to look at the Capesize supply before concluding our prepared remarks and handing over the call for questions. Looking at the supply side, the backdrop remains very positive for the balance of 2026 as the headline fleet growth of 2.4% likely overstates actual effective supply growth due to several factors. Firstly, about 1 out of every 5 Cape vessels on the water today was built between 2010 and 2012. It means that roughly 20% of the world fleet goes through dry docking surveys in 2026 and 2027. As we'll be renewing our fleet, many owners will need to decide whether to spend more money on 15-year-old tonnage for dry docks.

Secondly, geopolitical disruptions and the aging of the world fleet have increased slow steaming, further limiting available vessels. While we wish that the geopolitical situation improves soon, fleet aging amidst stricter environmental regulations is a longer-term story that is likely to continue in the same direction over the next years. As a result, we expect that the effective fleet growth will, in fact, continue to be slower than what is suggested by anticipated vessel deliveries, which even in its nominal form remains quite low compared to other sectors of shipping.

Longer term, the low order book compared to the fast rate of vessel aging suggests that by 2030, almost 1 out of every 4 Capesizes on the water will be older than 20 years, even after accounting for newbuilding deliveries. Limited shipyard availability further restricts future supply, supporting a constructive outlook. The Capesize market remains very strong for the next years. And as mentioned earlier in the call, Seanergy maintains downside protection for 2026 and a percentage of 2027 at highly profitable daily rates, which we believe places us in a very good position to navigate the future.

Conclusion. To conclude, Seanergy enters the remainder of 2026 from a position of strength, supported by record earnings, meaningful forward visibility, disciplined capital allocation and a modernizing fleet. We are delivering record earnings, a 75% dividend increase with 19 straight quarters of cash distributions. In addition, $591 million committed to modern ships, majority already funded and the 2027s mostly chartered. We are focused on the strongest asset class in a prudent and highly rewarding manner.

On this note, I would like to turn the call over to the operator to take any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions] Our first question comes from the line of Liam Burke from B. Riley Securities.

Stamatios, Stavros, how are you today?

Morning, Liam. Very nice to hear from you. Thank you. Everything is fine. I hope the same with you.

It is. Good to hear from you, too. Stavros laid out a capital source with debt as you look at your funding requirements for the new build. But when I factor in your cash flows and what looks to be a sustainably elevated rate environment, I can't help but think that there could be a lot more cash equity put into the new builds? Or would you prefer to continue to use leverage and then use that cash for dividend or further increasing your fleet growth?

Well, that's kind of obvious. Yes, we're not factoring in for the increased cash flow coming in from operations. This is on an as-is basis without factoring in positive cash flows and goes without saying that it's going to be for contingency purposes. We're just going to remain and maintain a conservative approach. Our capital allocation is pretty much evident now that we increased the dividend. We, of course, have room to increase it further in the following quarters once we have visibility for 12 months forward later in November when we announce Q3. But for the time being, we like the fact that we're very comfortable with the current order book that we have. Maybe we do a couple more. And then we will continue rewarding our shareholders, which is our top, top priority, as you can see here.

Okay. And on the supply side, I mean, you pointed out the number of vessels at a certain age. The supply side of the Capesize story seems to be driving a lot of leverage where demand is inordinately high this year, but sustainable. We're looking at a multiyear up cycle in terms of sustainability of rates based on -- just the tight supply of Capesize vessels. Is that the way -- right way to think about it beyond '26?

That's an excellent way to think about it. Yes, of course. While we have visibility until the first half of 2030, we can see that there is limited order book coming in. And at the same time, we have a very aging fleet, which gets older and older and the survey requirements will get more and more steeper and demanding. So for the time being, we are very, very conservative. We will, of course, revisit this approach in the following years once we have the ability to see how that order book develops post 2030. But what can I say here is that the Capesize order book appears to be the lowest amongst many, many other vessel types, not just the dry bulk, which, of course, is the lowest. But if you look at tankers, containers, LNGs and all that, we're doing about 40% to 50% order book versus the current fleet. Capesize is a mere 12% to 15% if at all, and you have a very aging fleet. So there's no comparison into the fundamentals of the Capesize segment in the following years.

We're going to take our next question. Your next question comes from the line of Tate Sullivan from Maxim Group.

Congratulations on the EUR 100 million bond offering, and I see it's trading above par here, too, and you mentioned 2x oversubscribed. I should you -- can you go with that back to that market right away? Or are there other offsetting considerations to make you return for another bond offering there? Please, to start.

Again, great to hear from you. We feel very happy with the level of funds we have raised in the Greek market, given the strong support and the fact that we have a very good performance of the bond trading there after the initial offering. We are not looking for anything additional right now. We might consider some other solutions in the Greek market, but nothing imminent in the next, let's say, 6 months to a year. We will remain in a very comfortable cash flow position coming from operations as well as the cash buffers of the company -- coffers of the company, which are at excellent levels and very happy to fund the existing investment program. So, so far, we're very content and we're just going to remain still for the time being, maybe add a couple of additional quality and selective potential acquisitions in Q3 and Q4, but we will see about that in the next months.

Yes. And a follow-up on that. I think you said Stavros, during the prepared remarks about the financing margin about 2.2% with SOFR implies a net debt cost before this offering about 5.8%. Are there -- just for modeling purposes, are there other considerations, maybe FX currency swaps or the offering or how should we forecast interest expense going forward?

Look, I mean, the recent financings that we have concluded are concluded at a margin, which is far below 2%. It's closer to 1.70%. So basically, some of the legacy facilities that are being gradually refinanced that maintain higher margins, closer to 2.5% that drive the weighted average margin up. But I mean for modeling purposes, you can assume that every new financing is priced at around 1.70%, 1.80%. Now when it comes to the EUR 100 million bond offering, I mean, we have not proceeded yet with any hedging arrangements when it comes to the coupon and what have you. But in dollar terms, you should model around 100 basis points or 120 basis points over the euro coupon. That's how you should see it.

I see. Okay. And then just one more for me, please, on the profit sharing contract arrangements for the 3 vessels, I think you said. I mean, can you talk about -- is that a new dynamic in the market versus historically? And then what is in the interest of the counterparties to agree to that profit sharing arrangement, please?

Well, first of all, we offered them some great ships and very strong deliveries in 2027. So that by itself has a very strong value. We have decided not to be greedy on the base rate because we feel comfortable that we will see very strong rates in 2027. We wanted to cover our all-in breakeven cost together with a nominal profit, and this is what the $23,100 represents. But as you can see, we have a full upside between the floor and the ceiling. And then thereafter, we have 50-50 profit sharing on top of that. We didn't want to be greedy. We'd like the fact that we operate with long-term partners, some of them existing, some of them new, but in very good relationship and chemistry between us. So we start with that, and we'll see about the rest of the order book, how we're going to fix the commercial approach. But this is pretty much the ballpark figures and levels you should be expecting for the fourth ship as well, maybe a little bit of a premium. And we'll see about '28 and '29 at a later stage.

Okay. Understood that. And are these are the first cost structure of this sort that you've done at Seanergy?

Yes. The first with base and ceiling and then profit sharing thereafter. That's the first one. And again, you see some other structures with just the base and profit sharing above that. We like the way that this is structured more than other people. So we're just going to follow this path if we can in the next commercial arrangements as well.

We are now going to take our next question. And this question comes from the line of Mark Reichman from NOBLE Capital Markets.

I was wondering if maybe Stavros could just kind of do a walk-through on the new build program. And what I'm thinking of is, so if we start at the $591 million, so you can fund that with cash, your cash balance, operating cash flow, proceeds from sale of vessels or additional debt. So what remains? And can you just kind of walk me through the financing? I mean, where would debt top out? If you were going to take on more debt, would you expect unsecured financing to become a larger component of the capital structure? And if so, how might that affect your long-term leverage targets and cost of capital?

Thanks, Mark. Look, there are a couple of things you should factor in here. First of all, as Stamatios said before, the graph that we are presenting in Page 10 is illustrative and mainly what we want to illustrate here is a contingency planning kind of scenario and prove basically that we don't need to raise any equity to support the newbuilding program. I mean even if the company would break even from now until the end of 2029, would realize 0 excess cash flow. The program is already fully funded. We don't need any more funds for that.

Now as Stamatios noted before, of course, as more -- as the operating cash flow and the free cash flow of the company increases, you should expect more equity to come in on the newbuildings. At the same time, we have the existing debt on the existing fleet is amortizing at a very fast pace. So you will have a concurrent deleveraging effect on the older ships and then a bit of a higher or I mean, more than 50% or more than 60% kind of loan-to-value in the newbuildings, but it will average down. So you shouldn't expect the loan-to-value of the company and the leverage ratio the way to basically change in the way we have been approaching it over the recent years.

That's very helpful to my understanding. And then just lastly, I mean, obviously, the key market fundamentals have been very strong. Rates have strengthened throughout the first half. And I don't know, I kind of see that continuing into 2027. I know most of the companies really kind of provide the most visibility through the end of 2026. But I guess the question would be kind of how sustainable do you think these market conditions are through '27 and '28? And what indicators are you kind of watching most closely for signs of either further strengthening or softening?

Well, the biggest concern -- potential concern is the oversupply of newbuildings. So far, the visibility we have until the second half of 2029 appears that the newbuilding order book remains at very low levels compared to the other dry bulk types as well as the other ship vessel categories. So as long as the vessel supply of newbuildings remains low, we are not concerned about the market because demand appears to be quite strong as it has been for the last 30 years. So demand is never an issue. It's always a matter of supply and oversupply. The order book limitations is evident. The shipyards are pretty much overbooked with other vessel types. So the capacity to build additional Capesize and Newcastlemax is nonexistent for the next 3, 3.5, even 4 years. So as far as that is concerned, we are not really worried about the market fundamentals because, as I mentioned before, demand is always resilient and has been going up for the last 25 to 30 years.

But do you think in terms of the rates, you're always going to have that seasonality in the freight rates. But I mean, the demand is always there. So we've had rising demand and like you mentioned, a constrained supply. But do you see the demand continuing to strengthen? I mean, do you see freight rates kind of leveling off at some point? Or do you think there's still enough of a disconnect between supply and demand that we could see it actually strengthen into 2027 freight rates strengthened?

Absolutely. I mean the market is always volatile because of outside factors like geopolitics, like congestions, like a number of other factors that really affect the short term. But as far as the long term forward 12 to 18 or even 24 months, it's always going to average out and in our opinion, remain at pretty healthy level. So we are not worried about the downside. There might be volatility short term, but this is the nature of the game. This is shipping, especially larger sizes appear to be more volatile. But to the way that we can foresee the market for the next few years, regardless of any potential drops, there are always going to be rises and it's going to average up quite healthy.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference Call on the First Quarter ended March 31, 2026, Financial Results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions]

Please be advised that this conference call is being recorded today, Thursday, May 28, 2026. The archived webcast of the conference call will soon be made available on the Seanergy website, www.seanergymaritime.com, under the Webcast and Presentations section under the Investor Relations page.

Many of the 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 the actual results to differ materially from those in the forward-looking statements is contained in the first quarter ended March 31, 2026, earnings release, which is available on the Seanergy website again, www.seanergymaritime.com.

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

Thank you, operator, and welcome, everybody. Seanergy delivered a very strong first quarter despite what is typically the seasonally weakest period of the year, highlighting the earnings power and resilience of the pure-play Capesize platform that we have built diligently over the past years.

Net revenues increased to $43 million from $24.2 million in the same quarter of last year, while adjusted EBITDA of $28.2 million, up 253% year-over-year. Adjusted EPS for the quarter was $0.63 per share, one of the strongest amongst listed dry bulk peers, reflecting both favorable market conditions and the operating leverage embedded in our platform.

Based on our strong performance and disciplined capital return policy, we declared our 18th consecutive quarterly cash dividend of $0.20 per share, bringing cumulative shareholder distributions to approximately $2.84 per share or $55.6 million since inception. The execution of our strategy continues to develop among our main long-term objectives of rewarding our shareholders, sustainable fleet development and maintaining a strong balance sheet.

During the quarter, we significantly advanced our fleet renewal strategy by contracting 3 additional vessels at leading shipyards in China and Japan with the latest order placed at Hengli Shipbuilding this April, while agreeing to sell one of our older Capesize vessels at firm secondhand pricing. Since the launching of the program, we have contracted 6 modern eco-design newbuildings of Capesizes and Newcastlemax and agreed to dispose of three older vessels, materially enhancing the quality, efficiency and long-term earnings capacity of our fleet.

Importantly, we have already secured financing for 4 of the 6 vessels at attractive terms, while approximately $69 million of equity has been invested from internal funds. We believe the combination of favorable delivery positions next year, basically, most of them, competitive financing and selective vessel disposals represents a disciplined capital allocation strategy capable of generating long-term results.

Our newbuilding strategy combines with prudent risk management. In this context and based on advanced discussions with leading charterers, we expect these vessels to secure multiyear time charters with downside protection above cash breakeven levels, complemented by profit-sharing structures, preserving meaningful upside exposure. Given the limited global availability of prompt delivery positions of newbuilding, Capesizes and Newcastlemaxes, particularly for 2027 to 2029, we believe these vessels are entering the market at a highly favorable point in the cycle.

On the commercial side, our index-linked chartering strategy continued to outperform during the quarter with fleet time charter equivalent exceeding the BCI-180 by average approximately 6% at $24,200 per day. This figure, I believe, is one of the strongest of the U.S.-listed public dry bulk companies.

Looking ahead, we expect the second quarter of 2026 time charter equivalent to be approximately $31,430 per day. In addition, 45% of our available operating days from Q2 onwards until the end of the year have already been fixed at average gross rates exceeding $29,000 per day, providing meaningful earnings visibility while preserving substantial market exposure.

I will now pass the call to Stavros, who will fill you in on our financial information for the quarter as well as discussing our balance sheet and debt refinancings. Stavros, please go ahead.

Thank you, Stamatios. Our first quarter results reflected both the strength of the Capesize market and the effectiveness of our commercial strategy. Net revenues reached $43 million, corresponding to a time charter equivalent of $24,200 per day compared to $24.2 million and a time charter equivalent of $13,400 per day in the same period last year. Adjusted EBITDA totaled $28.2 million, while adjusted net income amounted to $13.4 million compared to an adjusted net loss in the prior year period.

Our balance sheet remains strong with cash and restricted cash totaling $68.8 million despite $31 million invested into the newbuilding program during the quarter. We have already agreed approximately $237 million of financing for 4 of our 6 newbuildings, including predelivery financing, while discussions for the remaining vessels are progressing constructively. During the quarter, we also completed several financing and vessel sale transactions that further enhance liquidity and financial flexibility or are expected to do so in the immediate following quarters.

Our remaining newbuilding CapEx for the second to fourth quarters of 2026 is approximately $72 million, of which $36 million has already been paid during the second quarter, while $17 million will be sourced by predelivery debt arrangements, leaving $19 million, which can be comfortably covered by our strong cash reserves, upcoming sale proceeds and operating cash flows. Total assets stood at $640 million in book values, including vessels under construction, while shareholders' equity amounted to $289.3 million.

Total debt, including liabilities under finance leases, stood at $319.7 million at the end of the first quarter, corresponding to a loan-to-value ratio of approximately 43% based on the market value of our fleet, reflecting our controlled approach towards leverage while advancing an ambitious fleet renewal strategy.

Before moving on, let me briefly highlight our financing activity. Over the past months, we secured several refinancings and new facilities that enhanced liquidity, lowered borrowing costs and extended our maturity profile. Importantly, we secured attractive financing for multiple newbuildings, including predelivery funding while maintaining limited covenant restrictions and enhanced flexibility. These actions reinforce the strength of our balance sheet and support the disciplined execution of our fleet renewal strategy.

Lastly, concerning our future profitability at current FFA levels, we expect our platform to continue generating strong cash flow and earnings through the remainder of 2026. The combination of index-linked exposure, improving charter coverage and operating leverage position Seanergy to benefit materially from continued strength in the Capesize market.

Overall, Seanergy remains very well positioned financially and operationally with strong liquidity, improving earnings visibility and a disciplined approach to growth and capital allocation. We believe we are very well placed to continue delivering attractive shareholder returns while maintaining meaningful exposure to market upside.

I will now pass the call back to Stamatios, who will discuss the Capesize market and industry fundamentals. Stamatios?

Thank you, Stavros. The Capesize market has started 2026 off in a very strong manner. The first quarter was one of the strongest recorded in recent years, driven by exceptionally strong bauxite volumes as well as counter seasonal iron ore export strength driven by a combination of dry weather and healthy end user demand. Lastly, strong growth in grain trading also complemented Capesize strength by supporting the earnings of smaller dry bulk vessels and reducing an incentive for cargo splitting tonnage substitution.

The strong trend has clearly carried over to the second quarter of the year, and it appears for the rest of the year as well, driven by a combination of factors. Specifically, slower vessel sailing speeds during the high bunker prices and higher port waiting times are contributing to a dearth of available vessels during a period with strong cargo demand. Looking to the rest of the current year, we obviously must acknowledge the complicated geopolitical picture, which is a source of uncertainty, but we even so remain optimistic about cargo demand.

We expect seaborne coal volume growth as energy security and reliability take center stage during the Middle East conflicts amidst strong restocking demand ahead of warm summer months. Iron ore seaborne trade remains supported due to expansion of supply of high-quality iron ore production in Brazil and West Africa.

Looking at the supply side, the backdrop remains positive for the balance of 2026 with little expected to change in the short term. The extensive dry docking requirements of the Capesize fleet are curtailing supply meaningfully as more than 20% of Capesize vessels were built in 2011 and 2012 are now due for scheduled surveys within 2026 and 2027.

Longer term, the Capesize order book is about 13% to 14% of the existing fleet compared to about 9% of the fleet being 20 years or older. While factoring in the rapid fleet aging along with the efficiency losses associated with older vessels, ultimately, fleet growth over the next years should remain very manageable and -- might even see effective fleet reduction. The Capesize outlook remains very strong for the next years. And as mentioned earlier in the call, Seanergy maintains downside protection for 2026 at highly profitable daily rates, which we believe places us in a very good position to navigate the future.

To conclude, Seanergy is entering the remainder of 2026 from a position of strength, supported by strong earnings visibility, disciplined capital allocation and a modernizing fleet. We remain focused on generating attractive shareholder returns while maintaining balance sheet discipline and positioning the company to benefit from a structurally supportive 2027 to 2029 market environment.

On that note, I would like to turn the call over to the operator and take any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions] And now we're going to take our first question, and it comes from the line of Liam Burke of B. Riley Securities.

Stamatios, Stavros, nice quarter. Can we go into the macro again for a second? You talked about bauxite and iron ore. Can we just take it into two pieces, the sustainability of those volumes and how has coal, the increased consumption of coal contributed to the favorable rate environment?

Well, it's a combination of things. Number one, you have the increased iron ore cargoes, which are not so much increased as last year, but they're pretty similar year-on-year. So we're very happy with these volumes. Bauxite has also increased, and I think that we will continue to see increases on the bauxite as well.

Coal, like you very well said, has come into play because of restocking of reserves in the Far East, especially China. There's 30 million tons of restocking in China and various other factors in different places. So coal has come strongly into play. So we do not see any slowing down of demand anytime soon. We think that demand will be stable in the next few years. But what actually tips the scale to our favor is the fact that we have -- the effective vessel supply is reducing because there's a lot of congestion in various areas of the world.

And don't forget that even though the newbuilding order book of the Capesize fleet has been increasing, it's still one of the lowest across the mainstream sectors of shipping. But most importantly, we have an aging fleet. So we expect hundreds of ships to turn 20 years old from '26, '27, '28 and '29. And newbuilding order book is nowhere close to compensate for the loss of tonnage that we will experience over the next few years. So it's a sustainable freight rate environment in our opinion, not only because demand will continue to be very strong or even stable, but it's going to be a supply-driven growth as far as the freight rates are concerned, not just from the actual numerical supply of ships, but also from the effective supply of vessels that is going to be reducing in our opinion.

Great. And Stavros, I apologize in advance for making you repeat this, but could you give us the cadence of CapEx for the balance of the year? I know you gave it once, I didn't quite get it. And any color on '28 -- '27 when you see the timing of deliveries?

Sure. No problem at all. So I mean, we have paid the lion's share of the CapEx that is basically to be sourced by equity for the newbuildings for 2026. What is remaining is $72 million from -- $72 million was actually Q2 to Q4 CapEx. We have already paid $36 million of this in the second quarter and $17 million will be sourced by predelivery financing. So that leaves us to finance through equity $19 million, which can be very comfortably covered by our current cash reserves and the very strong operating cash flow that the company has right now.

Now we're going to take our next question, and the question comes from the line of Mark Reichman from NOBLE Capital Markets.

So management highlighted the expectations for the multiyear charter agreements with the downside protection and profit sharing mechanisms for the newbuilds. So how advanced are discussions with charterers? And what level of charter coverage do you expect prior to vessel delivery?

Well, we certainly want to have something that is going to be, if not significantly above the cash flow breakeven, but quite above the cash flow breakeven. So it's going to be the base rate. Then we will have the first part from the base rate until the [ Sealink ] that is going to be 100% for the company. And then it's going to be a 50-50% split between us and the charter from the Sealink and thereafter. So we find this extremely advantageous because it covers a downside for the period of at least 4 years or 5 years. We are negotiating that now. And as far as uncertainty is concerned, you can really count that a big portion of the fleet of the newbuilding order book will be covered well before going to the delivery of the ships.

So how do you kind of view the trade-off between locking in the strong forward rates versus maintaining exposure to potential market upside?

Well, we have a good fleet of 20 ships in the water right now that are pretty much exposed to the upside of the market, and we're very content with that. As you can see, we are among the first, if -- the first in reporting the highest TCE and EPS among the dry bulk shipping companies. I think we have the highest EPS among the dry bulk shipping companies with the fleet that we have right now. And our time charter equivalent is either the first or the second among the dry bulk shipping companies. So we're very content with the fleet that we have already in the water.

As far as newbuildings are concerned, we are -- we don't want to take any risks. We have $0.5 billion, close to $0.5 billion of order book, and we want to make sure that this investment is sustainable. So yes, we might give away some of the upside, but we might have some -- give away some of the upside, but we want to make sure that the investment is sustainable for the next 5 years, at least once we get delivery.

As far as the existing fleet is concerned, we have 50% covered in FFAs until the year-end at around $29,000 a day. So we're also happy with that. I mean we're not greedy. We want to make sure that we're covered on the downside, and we will deliver one of the best possible upsides from all the dry bulk shipping companies out there. So we're very happy with that.

And then could you maybe provide a little more detail on expected leverage levels and financing plans for the remaining vessels, while you kind of maintain that balance sheet flexibility?

Yes. Mark, this is Stavros. I mean we are targeting leveraging the new building contracts at 70% to 75%. So the equity participation will be 25% to 30% in each ship. That's in line with what we have done already now on 4 out of the 6 ships. This, combined with the time charter structure that Stamatios described before, so downside protection in the sense that we will be definitely covering the breakevens, provides certainty as to the servicing of the debt from these ships. And at the same time, I mean, as we aggressively repay the indebtedness of the existing fleet, we expect to maintain the 50% threshold on corporate and fleet level going forward. To give you an idea, I mean we have ships now or some of our older ships are at a loan-to-value between 20% and 30%. So basically, on average, we will be maintaining the same LTV that you see today.

And then just the last question on vessel operating expenses. What are your expectations for operating cost inflation, say, like over the next 12 to 24 months? And I'm kind of referring to the crewing, the maintenance, the regulatory compliance costs, et cetera.

Yes. Well, we expect to be around $7,000 to $7,200 per ship per day. And we are kind of satisfied with this number because our ships are middle age. They are around 14 years old as a global fleet average. We do extensive maintenance on the vessels, but don't forget that we have the highest book value per deadweight ton among the peers -- the lowest, sorry, we have the lowest book value per deadweight ton among the peers, which means that we have bought our ships quite cheap. In order to maintain them in good quality, we have to pay a little bit more, but paying a bit more on the OpEx doesn't really compensate the fact that we saved millions of dollars in acquiring those vessels cheaper.

Right. So you said $7,000 to $7,200?

Yes.

Yes, which is in line with the performance of 2025. I mean it's not much different. I mean the ships are not getting any younger.

Now we're going to take our next question, and the question comes from the line of Justin Smith of Maxim Group.

This is Justin on for Tate this morning. My question was just about the dividend and with all the newbuild capital commitments you guys have, if you're anticipating sustaining the dividend payments you guys have been making every quarter here going forward or if you see any change to that?

Nice to hear from you. The answer is yes, of course. We will try and maintain. We have a formula out there. And for us, rewarding our shareholders is as important as renewing our fleet. It's actually top important for us as a top priority to reward our shareholders. So that goes without saying that our intention is to continue rewarding our shareholders subject, of course, to the formula and the cash flow that we have already declared.

Thank you. Dear speakers, there are no further questions for today. This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Conference Call on the fourth quarter and year ended December 31, 2025 financial results.

We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions]. Please be advised that this conference call is being recorded today, Tuesday, February 17, 2026.

The archived webcast of the conference call will soon be made available on the Seanergy website www.seanergymaritime.com. To access today's presentation and listen to the archived audio file visit the Seanergy Maritime website following the Webcast and Presentations section under the Investor Relations page.

Please now turn to Slide 2 of the presentation. Many of the 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 the actual results to differ materially from those in the forward-looking statements is contained in the fourth quarter and year ended December 31, 2025 earnings release. which is available on the Seanergy website again, www.seanergymaritime.com.

I would now like to turn the conference over to one of your speakers today is the Chairman and CEO of the company; Mr. Stamatios Tsantanis. Please go ahead, sir.

Thank you, operator, and welcome, everyone. Today, we are pleased to present our financial results and company updates for the fourth quarter and full year of 2025. 2025 marked our fifth consecutive year of profitability and another important milestone for Seanergy. We delivered strong earnings generated meaningful cash flow advanced our fleet renewal strategy and continue the returning capital to our shareholders, significant capital to our shareholders, all while further strengthening our balance sheet.

For the fourth quarter of 2025, we reported earnings per share of $0.68 and for the full year period of 2025, we reported earnings per share of $1.28. Both our net income as well as the appreciation in value of vessels acquired since 2021 underscore the operating leverage embedded in our platform. Our profitable track record validates our long-term consistent strategy of focusing exclusively on larger bulkers, Capesizes and Newcastlemax. Seanergy is optimally positioned in what we believe is a favorable Capesize environment supported by expanding long haul demand while fleet supply growth remains constrained. Aging tonnage, limited new ordering and environmental regulations are creating a structured tighter supply environment.

With respect to fleet renewal and optimization, we have made significant progress. To date, we have secured three high-specification eco newbuildings, two Capesizes and one Newcastlemax at leading Chinese shipyards with deliveries between Q2 '27 and Q2 '28, totaling approximately $226 million. At the same time, we recently concluded the sale of the 2010 built Dukeship at a firm price. In addition to the sale of the 2010 built Guinea Ship earlier in 2025. Both transactions released significant capital for the company. The current strength in secondhand values allows us to execute our fleet transition in a disciplined and measured manner while maintaining a strong balance sheet.

At the year-end, our fleet loan value stood at 43%, reflecting a conservative leverage profile by disciplined balance sheet management. As a pure-play Capesize operator, we maintained balanced leverage that preserves financial resilience while retaining meaningful exposure to market upside. Let us turn now to Slide 4 for an overview of our capital distributions. Slide 4. In this profitable market environment, our capital allocation priorities remain clear. return capital to our investors, modernize our fleet and preserve financial strength.

In 2025, we declared total dividends of $0.43 per share, including $0.20 for the fourth quarter. Since Q4 2021, we have returned approximately $96 million to our shareholders through dividends, share buybacks and note repurchases. Based on our track record and current market strength, we remain constructive on future distributions subject to market conditions and capital commitments. Slide #5, commercial snapshot. Turning to Slide #5. 2025 demonstrated the strength of our chartering strategy. During the fourth quarter, Seanergy achieved a daily times charter equivalent of approximately $26,600 while our full year terms at equivalent was approximately $21,000 a day.

Fleet utilization exceeded 96% despite the intense dry docking schedule, reflecting our strong operating efficiency. In what was an extremely volatile year for the Capesize market, we are very pleased with our balanced commercial strategy, combining index-linked exposure with selective forward features and that has allowed us to participate in market upside while securing cash flows visibility and reducing volatility. Looking forward for the first quarter of 2026, we expect our time charter equivalent to be about $25,300 per day based on the FFA curve for the remaining days of February and March. We're closely tracking Capesize index during the period of counter-seasonal strength.

As the market remains on a clear positive trend, we aim to selectively fix a percentage of all of our available days at attractive rates securing high cash flows and in terms of invested capital. For the period from Q2 until Q4 of 2026, we have fixed approximately 32 of our available fleet days at an average gross rate of $27,300, subject, of course, to further increase as a result of the profit savings scheme for two of our vessels. $27,300.

Looking further ahead, the upcoming delivery of our new buildings will further improve the commercial profile of Seanergy, and we are currently considering our options with regards to their employment. Slide 6. Since our previous quarterly update, we have taken decisive steps towards fleet renewal and placed orders for two additional new buildings at first-class shipyards based in China. For now, we have two sister Capesize newbuildings for mid-2027 and one Newcastlemax for Q2 2028.

The combined contract cost stands at approximately $226 million which we believe represents a very, very competitive value given the pronged deliveries and the quality of the yards. Our three newbuilding vessels have already attracted strong interest from both existing and prospective charters. However, given the continued strengthening of the market, we remain flexible and have not yet committed to any long-term employment agreements. The superior fuel and environmental performance, enhance their attractiveness to major dry bulk charterers and position them very well as regulatory requirements will come to tighten the market.

On that note, I would like to turn the call over to Stavros for an overview of our financial performance as well as our financing developments with regards to our existing and new building vessels. Stavros, please go ahead.

Thank you, Stamatios, and good morning to everyone joining us. Let's begin with Slide 7, where we will review the key highlights of our financial performance.

Before turning to the numbers, I would like to emphasize the continued strength and resilience of our platform as 2025 marks our fifth consecutive year of profitability. For the fourth quarter of 2025, the strong Capesize market supported robust financial results. Net revenue for the quarter totaled $49.4 million, while adjusted EBITDA and net income reached $28.9 million and $12.5 million, respectively, reflecting the strength of the second half of the year. For the full year, net revenue amounted to $158.1 million adjusted EBITDA reached $81.7 million and net income was $21.2 million, translating into earnings per share of $1.02.

These results underscore the effectiveness of our chartering strategy and risk management framework. Turning to the balance sheet. We maintained a strong liquidity position with $62.7 million in cash and cash equivalents or approximately $3.1 million per vessel. This liquidity provides operational resilience and supports the execution of our fleet organization strategy. Now regarding our new building program, the investment plan has been carefully structured with a larger schedule to ensure alignment with our shareholder reward strategy and financial flexibility. Approximately $8 million is expected to be deployed this year, $100 million in 2027 and $50 million in 2028.

Financing for two of these vessels has been secured on attractive terms while we are in active discussions for the third. Our debt capital ratio remained well below 50%. This conservative leverage profile, combined with strong cash generation provides flexibility as we enter 2026 and supports the funding of our newbuilding program. Overall, 2025 was characterized by consistent profitability, disciplined balance sheet management and solid castration positioning us well to continue delivering value to our shareholders moving forward.

Moving on to Slide 8. For the full year, our TCE averaged 2,957 per day closely aligned with the annual BCI average. This reflects the effectiveness of our chartering strategy, which balances index exposure with selective forward pictures to manage volatility while preserving upside. Adjusted EBITDA reached $81.7 million for the year, significantly above our 5-year average. The strong performance in the second half demonstrates the operating leverage inherent in our fleet. Our EBITDA margin of approximately 5% operating cash flow margin of roughly 33% highlights the quality and resilience of our earnings, even amid a volatile freight market we generated meaningful and recurring cash flows supporting both shareholder returns and fleet modernization.

Daily operating expenses per vessel averaged approximately $7,000 only modestly higher year-over-year despite the inflationary pressures in the aging profile of our fleet. Moving on to Slide 9. Let's look at our leverage profile and overall debt position. We closed the year with approximately $294 million of total debt to gross of deferred finance fees. Fleet loan-to-value declined to about 43% with net LTV supported by financing activity and resilient vessel valuations. This places us in a comfortable position relatively to both historical levels and industry benchmarks. Debt per vessel stands at about $14.7 million versus an average market value of $34.1 million, reflecting substantial embedded equity.

Additionally, approximately 7% of our total debt is covered by scrap value offering meaningful downside protection, Daily cash interest expense per vessel decreased to approximately $2,570 per day, representing a 6% year-over-year improvement and enhancing our cash flow profile entering 2026. Before moving on, let me briefly touch on our recent refinancing activity. Over the past month, we executed several refinancings to strengthen liquidity, lowered margins and extended our maturity profile. At the same time, we secured competitive funding for two of our newbuilding vessels looking at attractive pricing well ahead of delivery.

These facilities were structured with prudent amortization line covenant restrictions and enhanced flexibility, including purchase and repayment options. Overall, our actions reinforce balance resilience and provide the financial flexibility needed to support fleet renewal while maintaining disciplined leverage. Specific details of these financings are outlined in our earnings release. With a strengthened balance sheet and enhanced financial flexibility in place, let us now turn to Slide 10 to instate the operating leverage of editing our platform and the sensitivity of our earnings to movements in the cape sales market. At current FFA levels, we estimate full year EBITDA of approximately $122 million.

Our 2025 average BI level, EBITDA would approximate $5 million providing a reference point based on current market assumptions. At rates above 30,000 EBITDA would increase materially, reflecting the operating leverage embedded in our platform. That concludes my review of our financial results and updates. I will now turn the call back to Stamatios, who will provide insights in the Capesize market and his concluding remarks March. Stamatios, please?

Thank you, Stavros. Slide 11. 2025 was another strong year for the CFS market despite the initial volatility. The Baltic Capesize Index averaged approximately $21,300 per day. The year began on a softer note during the first half before iron ore and coal restocking activity in China supported the strong recovery in the second half of the year. Record iron ore exports from Brazil and the record bauxite export from Guinea provided a meaningful tailwind to Capesize mile demand, reinforcing the constructive long-term demand outlook for the segment.

In addition, market sentiment and broader travel fundamentals were further supported by strength in the Panamax market driven by increased grain exports from Brazil and the United States as well as additional coal and stocking towards the year-end. Moving to 2026 in regards of Capesize demand, we have started very strongly with the BCI averaging 22,000 over the first 2 weeks of the year, marking one of the strongest first quarters of the past decades.

Guinea bauxite exports have grown by 14% year-over-year, while dry weather in Brazil and Australia has resulted in high iron ore cargo activity during a traditionally weak seasonal period. For the rest of 2026, the demand outlook remains constructive, with bauxite trade expected to continue its growth path and iron ore miners production and sales outlook pointing to resilient trade volumes. This trend looks set to continue into 2027 with a Simandou mining project in West Africa, ramping up its output. China's demand for high-grade iron ore remains healthy, supporting demand for imported iron ore versus lower-quality domestically produced one.

Moving on to Capesize supply. The supply picture for the larger bulkers, especially Capesizes, points to further tightness and limited vessel availability for the next few years. The order book currently represents 12% of the fleet compared to about 9% of the fleet being 20 years or older. Moreover, what is significantly important is that right now, 40% of all the larger bulkers. Capesize, Newcastlemax and VOCs, 40% exceeds 15 years of average rates. So we are talking about an excessively aging fleet. At the current pace of vessel ordering and given the limited capacity of shipyards to deliver new buildings, it becomes clear that the supply tightness is likely to continue over the next many years.

As regards our near-term forecast, 2026 and 2027 are also likely to be affected by the extensive dry docking of the current ships that usually entails considerable downtime. With more than 20% of the World Capesize plate built 2011, 2012, a significant portion of vessels will undergo their 15-year special survey in 2026, 2027 temporarily reducing the effective supply plus, of course, a significant cost. This is expected to result in a fleet capacity reduction of more than 1.5% in both years while some estimates calling for 2% to 2.5% reduction. This should not be underestimated as it would counteract the 2.2% expected fleet growth due to newbuilding deliveries and could continue to contribute to periods of significant market tightening during the next 2 years.

To summarize, as we have seen in the past, the Capesize market will always be subject to considerable volatility stemming from multiple unpredicted factors, but the limited vessel supply that is shaping up over the next few years, along with increased ton mile demand should result in positive trend for charter rates. We're pleased to see this positive trend unfold over the past 2 to 3 years, and we're confident in our view of a strong market in the following years. As I mentioned before, Seanergy is optimally positioned to deliver our stated priorities of capital returns and fleet growth, while maintaining a sustainable balance sheet throughout the cycle.

In our view, we're very well placed to deliver strong financial performance over the next few years and we are, therefore, excited about our prospects. On this note, I would like to turn the call over to the operator and answer any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions]. And the questions come from the line of Liam Burke from B. Riley Securities.

Hello, Liam. Good morning.

Stamatios, you've been very nimble in terms of managing your fleet and maximizing the rate environment. I mean, a year ago, you were out dissing the BCI even when rates are low. But are you seeing anything in the market where it's more prudent to add longer-term time charters versus moving more of the fleet into the spot market?

Well, we constantly are. If you see the release, we have about 35% of our days already pretty much in some sort of long-term contracts. that carry all the way to the end of the year. As we are progressing after the Chinese New Year that we expect to see more strengthening in the market. We will continue switching more and more ships from floating to fixed. So already, we have 35% at around 27,000. And as the year we'll be progressing, we will do some more.

Okay. You have gotten -- how are you balancing going forward, inflated asset values, some of your older vessels versus what looks to be a fairly attractive rate environment for the next 2 to 3 years.

Well, that's exactly what we're doing right now. I mean we were able to secure very prone delivery slots for new buildings. First of all, let me step back a little bit. The 5-year-old ships, as you know, have been very much inflated. So for 5-year-old ships, it's kind of and no goal for acquisitions. So it's pretty much identical to new buildings or a bit lower than that. So we decided to seek new buildings at high-quality shipyards. But then the question was whether we're going to have debt capital in these orders or not. And then due to our connections and excellent relationships, we're able to secure very prone for the caps market delivery slots.

And we weren't ahead and we placed a couple of ships. Actually three ships for 2027 and one for 2028. So that's how we manage. So once we identify prompt slots for new buildings, we will likely continue doing a few more. While at the same time, we might be disposing some of our older assets. the way that we did it right now with Dukeship from Seanergy to United or some other more, let's say, interesting ideas, but that's how much we're going to do it. So if we were able to add three ships and dispose of a couple or you're going to add a few more. That's how we're going to do it.

We are now going to proceed with our next question. And the questions come from the line of Mark Reichman from Noble Capital Markets.

Maybe Slide 6 would be the slide to look at. But just following up on the last question, how -- it is a favorable financing environment. You're able to get these sustainable linked loans. But when you think about these -- the high asset values of the existing fleet versus the new builds, what are your expectations in terms of your weighted average cost of capital and your your return on invested capital on maybe some of these new builds. And would you expect the difference to widen or kind of how are you thinking about that and managing that into your decisions?

Well, that's an excellent question, and thank you. The answer is yes. We are seeing inflation and inflated prices all across the shipping new building assets. So it's not only a Capesize or Newcastlemax situation. We are seeing that all over the place. You see that on tankers, containers LNG and, of course, on other dry bulk, smaller dry bulk ships. At the end of the day, however, the amount of money you spend for the CapEx is basically what you expect to make in return, like you very well asked.

Thanks to the very -- to the excellent efforts from our finance department, we're able to secure financing terms that will keep the all-in cash breakeven of these new acquisitions at around $20,000 a day. So the forward rate now stands anywhere between, let's say, 26,000 and 30,000 for a standard Cape. If you count in the premium of these modern ships, that exceeds 30,000 loss day. So if we're able to secure anywhere between $8,000 and $12,000, $13,000 a day on a net cash flow basis and you do the math you can automatically see that the return on equity on these assets is quite significant. That's how we approach.

That's very helpful. And then I kind of always asked this question on the conference calls. What are your expectations in terms of operational off-hire days for 2026?

I believe it's going to be consistent with 2025, but maybe a little lower than that. we have a much softer dry dock schedule in '26 compared to '25. So I believe it's going to be a bit lower than 2025.

Okay. And then just a last question. This is really a client-driven question. Could you speak to the limited shipyard availability? I guess the question was really kind of the low order book versus the limited shipyard availabilities into growing.

Well, again, that's an excellent question. There is no such thing as a limited shipbuilding capacity. I believe that the global shipbuilding capacity especially coming from China, as well as Korea and Japan is all-time high. But the good thing is that it's pretty much covered by other types of chips. We have tremendous order book on containers, also on the tankers as well as smaller bulkers and other ships. So the order book for the standard Capesize and the Newcastlemax is quite limited. Because it's pretty much covered by all the other asset classes.

Also, it's too far down the road. I mean, if you ask for a spar today, it's likely going to come back with 2029 or 2030. So given the fact that a very big percentage of the current fleet is already quite old, I don't expect to be in a position. I don't expect to be in a position to be replaced with modern tonnage until well before 2031, '32, just to have a normal churn rate to put it this way.

[Operator Instructions]. We are now going to proceed with our next question. The questions come from the line of Tate Sullivan from Maxim Group.

Great comments and congratulations on the new builds. And in light of the newbuild program. Can you comment and remind us on the current dividend policy and how you're looking at evaluating the dividend with the newbuild expenditures going forward, please? Because I think there's a discretionary cash reserve element in the dividend, but wanted to double check.

Thank you very much for your question. We do not expect the dividend policy to be affected by the new buildings. The sale of the [ YuXIP ] some other planned things that we intend to make. If we are to put additional new buildings will likely be more than sufficient in order to cover all the cash expenditure and of course, the efforts of Stavros at the finance department to get the financing in place will it's going to be unlikely to affect our dividend policy. So we will and we expect to be in a position to start renewing our fleet. Without affecting the operating cash flow and the dividend that we will continue to pay to our shareholders.

And the second question, you mentioned already having some very early contracting discussions regarding the new builds. And it seems like in the last 5 years, maybe the tanker sector would lock in multiyear contracts that below market fixed rates maybe at the rest of the lenders. How are you strategizing of contracting the new builds? Are you considering the multiyear? Or is that a dynamic part of the conversation you have with the lenders, please?

Well, not so much. I mean, our lenders are very comfortable with the fact that our balance sheet is very solid. We have very low loan to value right now. We have a very significant cash balance. So as far as we keep our order book in a well-managed situation, I don't think that any of our existing lenders is going to have an issue. And we see a very strong appetite from new lenders in order to provide additional financing. So I don't see that as an issue altogether.

Now fixing the ships for 5 years or 7 years, we are, of course, considering and we feel that these ships are in very high demand from our charters. I think closer to the delivery may be in a few months from now, end of the year. we will be in a position to fix some of the ships in long-term periods. But I don't want them to be below market just to sacrifice the operating cash flow of the ships.

Thank you. This concludes the question-and-answer session and today's conference call. Thank you for participating. You may now disconnect your lines. Speakers,please stand by.

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference Call on the third quarter and 9 months ended September 30, 2025 financial results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions] Please be advised that this conference call is being recorded today, Thursday, November 13, 2025. The archived webcast of the conference call will soon be made available on the Seanergy website www.seanergymaritime.com. To listen to the archived audio file, visit the Seanergy website following the Webcast and Presentations section under the Investor Relations page.

Many of the 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 the actual results to differ materially from those in the forward-looking statements is contained in the third quarter and 9 months ended September 30, 2025 earnings release, which is available on the Seanergy website, again, www.seanergymaritime.com.

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

Thank you, operator, and welcome, everyone. Today, we're pleased to present another quarter of strong performance for Seanergy, underlying our consistent profitability, disciplined strategy and the continued success of our focused Capesize and Newcastlemax platform, a model that we expect will deliver superior earnings capacity versus most peers. Following the strong momentum established in the second quarter, Seanergy delivered a profitable third quarter driven by our large vessel exposure and the ongoing strength in the Capesize market. Net revenue reached approximately $47 million, adjusted EBITDA was $27.5 million and net income totaled $12.8 million, demonstrating Seanergy's superior earnings capacity and operational leverage.

Over the first 9 months of the year, we generated net revenue of $108.7 million, adjusted EBITDA of $52.8 million and net income was $8.8 million. In line with our dividend policy, we declared a dividend -- cash dividend of $0.13 per share for the quarter, bringing total 2025 distributions to $0.23 per share and reaffirming our commitment to regular shareholder returns. The expiration of our Class E warrants removed legacy dilution and further simplified our capital structure, fully aligning long-term performance with shareholder value. With a fleet of 20 large Capesize vessels and Newcastlemax and fleet loan-to-value ratio around 45%, Seanergy is very well positioned to benefit from a robust Capesize cycle.

Moving on to fleet developments. We continued executing our disciplined fleet renewal strategy. In October, we placed our first ever newbuilding order at 181,000 deadweight Capesize at Hengli Shipyard, marking the next phase of a large vessel strategy focused on efficiency, scale and modernization. The vessel is priced at approximately $75 million with delivery scheduled for the second quarter of 2027, offering strategic delivery window ahead of most comparable projects. This decision reflects attractive newbuilding economics versus surging secondhand values and position Seanergy to capture stronger long-term returns from a modern fuel-efficient fleet. The project's timing aligns with the expected upswing in iron ore and bauxite trade through 2027 and thereafter.

In parallel, we sold and delivered the Vintage Capesize ship for $21.6 million, releasing approximately $12 million in net liquidity and further optimizing our fleet composition. Our vessels continue to secure premium employment with top-tier charters, supported by index-linked charters that preserve full market exposure. This disciplined structure complemented by selective FFA hedging ensures resilience across cycles. Our time charter equivalent has consistently outperformed the BCI, confirming the strength of our larger vessel commercial model and positioning us for sustained earnings momentum heading into 2026.

To conclude the first part of this call, I'll focus on larger Capesize and Newcastlemax vessels continues to differentiate Seanergy. These assets deliver superior earnings capacity and long-term value compared to smaller bulk segments. Our boutique platform is built on scale where it matters vessel size and operational performance, maximizing value creation per share. With a modern efficient fleet, prudent leverage and consistent dividends Seanergy remains very well positioned to lead in shareholder value among listed dry bulk companies.

I will now pass the floor to Stavros to discuss our financial update, and I will conclude later with our comments on the market.

Stavros, please go ahead.

Thank you, Stamatios, and welcome to everyone joining us today. Let me walk you through the key highlights of our financial performance for the third quarter and the 9-month period ended September 30, 2025. The third quarter delivered another period of solid profitability and balance sheet strength for Seanergy, underscoring our disciplined financial management and focus on capital efficiency. For the quarter, net revenue reached $47 million, representing a 6% increase year-over-year, while adjusted EBITDA came in at $26.6 million, broadly in line with last year's performance.

Net income and adjusted net income for the quarter was $12.8 million and $14 million, respectively, translating to earnings per share of $0.61. For the first 9 months of 2025, net revenue amounted to $108.7 million with adjusted EBITDA of $52.8 million. Net income for the period reached $8.8 million with earnings per share of $0.42. While these figures are below last year's level due to a softer market during the first half we expect profitability to strengthen meaningfully in the fourth quarter, supported by features already secured at higher levels.

Turning to our balance sheet, our cash position strengthened to approximately $37 million at the end of the quarter, equivalent to $1.8 million per vessel. This reflects our disciplined approach to cost management as outflows related to vessel acquisitions earlier in the year were effectively offset by the net proceeds from the sale of our older Capesize vessel during the third quarter. In parallel, we continue to fund dividend distributions and an extensive dry docking program underscoring the company's ability to invest in its fleet while maintaining robust liquidity.

This healthy cash position provides financial flexibility enabling us to pursue attractive opportunities and support our newbuilding project with confidence. Notably, our financial performance and stability has enabled us to declare nearly $5 million in cash dividends so far this year despite the challenging conditions of the first half reaffirming our commitment to consistent shareholder returns. As of quarter end, our total debt stood at approximately $292 million. Based on the current market value of our fleet, this corresponds to a loan to fleet value ratio below 45%, reflecting a healthy and conservatively capitalized profile.

On a per vessel basis, our debt stands at roughly $14.6 million, which is nearly $18 million below the average market value of our ships, highlighting the strong asset coverage supporting our balance sheet. In terms of financing activity, this quarter, we maintained a measured pace following an exceptionally active first half of the year, during which we executed transactions totaling $110.6 million.

Nevertheless, we are now in the final stages of concluding a highly attractive financing package for our newbuilding, featuring a competitive structure and compelling interest margin. We expect to be in a position to disclose additional details on upcoming financings soon. The constructive ship finance environment offering multiple options across both bank and leasing markets has been an important consideration decision to pursue newbuildings at this stage. At the same time, we continue to assess opportunities to optimize our capital structure and expect to report additional progress in the coming months.

It is also worth noting that we have a clear debt maturity profile through the second quarter of 2026, with no ballon repayments before that period. This provides variable flexibility and ensures that we can time our future financing strategically without pressure. Finally, as of September 30, 2025, total shareholders' equity reached $271 million, with both Class B and Class C warrants now fully eliminated Seanergy's capital structure is stronger, simpler and fully aligned with shareholder interests. That concludes my overview.

I will now hand the call back to Stamatios, who will provide insights on the Capesize markets and broader industry fundamentals. Stamatios, over to you.

Thank you, Stavros. The Capesize market continued to show sustained strength in Q3 with average rates of about $24,600 per day, the highest levels in the recent quarters. This performance was driven by a 2% increase in ton mile demand against only 1.3% growth in available tonnage reflecting a very tight market balance. Iron ore remains the main catalyst. Australian exports recovered strongly from early year weather disruptions, while Brazilian record volumes surge supported by Vale's output increase and long-haul routes that amplify ton mile demand.

Looking ahead, the upcoming Simandou project in West Africa, combined with steady steel production and iron ore demand in China underpins a solid multiyear outlook for the Capesize trade. Bauxite continues to be another key growth driver with shipments rising more than 15% year-over-year in Q3 and 20% for the 9-month period. This trend, coupled with Atlantic basin cargoes growth is expected to support high utilization levels going forward. Coal flows were also supported led by an 8-month import high in China and increased demand across South Korea, Japan and Southeast Asia.

On the supply side, 2025 marked a record low year for Capesize deliveries with less than 1.5% fleet growth. Only 38 newbuilding orders were placed the lowest since 2020, while 7% of the fleet is above 20 years and 30% is above 15 years. With the global shipyard capacity effectively booked through 2029, supply growth will remain structurally constrained for several years. Overall, the combination of rising Atlantic-based trade, a historically low order book and limited yard availability supports a sustained high earnings environment for Capesize vessels.

To conclude, Seanergy's pure-play Capesize and Newcastlemax focus continues to differentiate our platform. These larger vessels generate superior earnings capacity and long-term value compared to smaller bulker segments, reinforcing our boutique model based on scale where it matters, vessel size and operational performance. Our strategy remains on core on 3 priorities: capital returns, maintain a consistent dividend policy and pursue share buybacks when accretive; fleet renewal and growth, enhance fleet efficiency and environmental performance through disciplined high-return investments; financial health, preserve balance of strength and prudent leverage, ensuring flexibility throughout market cycles. We are executing on all 3 fronts and remain confident that Seanergy will continue to deliver industry-leading value per share as Capesize market enters another strong phase.

On that note, I would like to turn the call back to the operator and receive any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions] Our first question comes from the line of Liam Burke from B. Riley Securities.

Stamatios, you've been very active in the fleet renewal program with the ordering and even with the sale of older assets. If I look forward, you have the financial flexibility, how do you anticipate growing the fleet? Would it be to add new builds or to mix in some secondhand vessels?

We are constantly in the market seeking opportunities both in more modern and secondhand ships as well as a few newbuilding vessels that we believe could add value to the company. We want to avoid having the so-called debt capital, invest money in advances while the ships will be delivered in 2030 or whatever. So we have to be very selective. And the reason why we chose that particular shipyard is not only its quality, but also the fact that it's basically going to deliver the ship in 1.5 years from today. So that eliminates that issue. We're constantly looking for both. I cannot give you an answer right now because there's few opportunities that we are getting closer to. So in the next few weeks, we'll be in a position to discuss more.

Great. And just taking a look at the macro, it looked like you have the best of all worlds here. As we end the year, it looks like China steel production will be down. If I flip the narrative and say China steel goes back to its historical growth rate of 1% or 2%, does that even increase your optimism for '26? Or is that sort of baked in and how you look at the demand side of the Capesize equation?

We were never worried about the demand side even when people were downplaying China and its ability to keep up with the housing crisis and the real estate problems. We're very optimistic about demand for iron ore, coal and bauxite. The Simandou starting now in November and December is going to pick up a lot of long-haul demand for high-quality iron ore, and this is going to ramp up in '26 and '27. So demand is not going to be an issue.

What is very interesting to note is the fact that about 23%, 24% of the global Capesize, Newcastlemax and VLOC fleet is older than 16 years, and that gives you a sense while the order book is, of course, at the lowest point. So that gives you a sense of potential supply squeezes getting into '26 and '27. So that makes us feel way more optimistic than the demand narrative.

Our next question comes from the line of Mark Reichman from NOBLE Capital Markets.

Just really 2 questions for me on this new build contract, the 5 installment payments. Can we just think about that as the $41.25 million or 55% paid in the -- on the fifth payment and then the balance of the $33.75 million spread over the first 4 payments? And what quarter do those payments begin?

Mark, this is Stavros. Yes. I mean, your assessment is correct. I expect the 45% to be paid over the next 12 months and then at delivery, which is approximately 1 year and 5 months from now, the remaining 55%. Based on the financing that we're contemplating for this unit, we will be liable from our own cash reserves for approximately 25% of the contract price, and these installments we expect to be paid in the first quarter of 2026. Everything else will come from debt.

From debt, okay. And then the -- just a second question on the commercial updates. I was just kind of curious kind of the tenor going into maybe some of these renewals. I mean do you have -- do you feel like you've got more pricing power. I mean I noticed that in some instances, the daily hire is based on a revised premium over the BCI and I was just wondering if that premium, I'm kind of assuming that premium went up.

Well, we tend to agree the extensions for a period of about 12 to 14 months. This is what we like, and that's what the charters are comfortable about. We have no concerning to renewing them thereafter. So it's not going to be an issue. And we have proven to be in a position to renew our ships consistently with very high-quality charters all the way until they become close to 20 or sometimes above 20 years old. So we see no issue in renewing anything for longer periods. We like it the way it is right now. And that provides flexibility on both sides of the transaction, both for us and the charterers and we would like to like this.

Just to go back, I mean, in terms of the pricing power, is that even something that you kind of think about? Or I mean, do you have greater leverage in this market? Or just -- or can you even comment on the revised premium over the BCI on some of those contracts?

Yes. The way that we obtain this premium that we achieved this premium is with the conversions that we do. So whenever we feel the time is right, then the forward rate is above the BCI, that's when we trigger certain conversions, and we feel comfortable about securing certain cash flows. And I'm not going to say coincidentally, but in most cases, that leads us to the premium over the BCI. In certain cases, of course, we may not be able to get the full extent of that. But we like that we hedge the downside. We feel way more confident and comfortable to have a certain stream of cash flows, even if we lose a couple of thousand from the upside, where we feel better off by securing the downside risk in certain quarters that might be weaker throughout the year.

[Operator Instructions] Our next question comes from Tate Sullivan from Maxim Group.

Congratulations on the new builds and consistent with how you've been talking about the market for the last at least 2 years. Was there a specific secondhand transaction in the market that made you decide to go to the new build route or at what point the [ S&P ] prices increase to a level where new builds are more attractive, please?

Thanks for the question. Yes, I mean, there comes a time where we have triggering events. We were chasing a couple of secondhand acquisitions and the -- and we missed on those because the higher bidders paid more than 20% or 10% -- 15%, 20% than what we had anticipated or what we consider to be the fair value of that asset for that particular time. So when you see this kind of abrupt increases in prices of secondhand vessels, which are not like really modern. I mean we're doing about close to 15 years old or 12 years old or 13 years old, then it kind of drives you the decision automatically gets taken. So that's how the triggering events happen.

And how can you -- how were you able to secure a 2027 delivery? Was it the last slot in the China shipyard or one of the last slots? Did you consider other countries as well too?

Well, quality above all. So we're not going to sacrifice any delivery for inferior quality, as you can understand. So we found this -- I mean we have been in discussions with various shipyards for quite some time. We chose that, we might be seeking other solutions as well at similar other shipyards of high quality in China. So we will not sacrifice the quality of this vessel for early delivery. In this particular case, we had the win-win situation where we had prompt delivery -- kind of prompt delivery and at the same time, very high quality. So we feel comfortable with that. We have certain good connections with a lot of people in the Far East. So we believe we will be able to source some other deals as well.

Okay. You mentioned that earlier you will look after those. And then, Stavros, on the cost of your debt, your interest rate going forward? Sorry if I missed it, but what -- do you think you're now at about the 7% interest rate level or even lower with where floating rates are now?

It's lower than that. I mean, look, the financings that we have concluded recently, the margins are at around 2%, and as we move forward, the ones that we are negotiating now a couple of packages in connection with a newbuilding and some refinancing that we want to do are even lower. I mean from quarter-to-quarter, you might see variations because there are certain fees that are being paid in order to break a financing or get into another financing, which sometimes charge under the interest expenses. But overall, judging where so far is today, I would estimate the average cost to be closer to 5.5% below 6%.

[Operator Instructions] There are no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please standby.