Star Bulk Carriers Corp. Stock

Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers Conference Call on the Second Quarter 2026 Financial Results. We have with us Mr. Hamish Norton, President; Mr. Simos Spyrou, Co-Chief Financial Officer; Mr. Christos Begleris, Co-Chief Financial Officer; Mr. Constantine Nanopoulos, Deputy Chief Financial Officer; Mr. Nicos Rescos, Chief Operating Officer; Mrs. Charis Plakantonaki, Chief Strategy Officer; Mr. Constantinos Simantiras, Head of Market Research. [Operator Instructions] I must advise you that this conference is being recorded today. We now pass the floor to one of your speakers today, Mr. Spyrou. Please go ahead, sir.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. I'm Simos Spyrou, Co-Chief Financial Officer of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the second quarter of 2026. Before we begin, I kindly ask you to take a moment to read the safe harbor statement on Slide #2 of the presentation. In today's presentation, we will review our second quarter 2026 company highlights, financial performance, capital allocation initiatives, cash evolution during the quarter, operational performance and cash flow potential, our continued investments in the fleet, developments on the regulatory front and our perspective on industry fundamentals. We will then open the floor for questions.

Turning to Slide 3. The first quarter -- the second quarter was characterized by strong profitability, disciplined capital allocation and continued balance sheet strength. For the second quarter of 2026, net income amounted to $144.9 million, while adjusted net income reached $134.8 million or $1.21 adjusted earnings per share. Adjusted EBITDA was $184.2 million, demonstrating the robust cash generating capacity of our platform.

Shareholder returns. We continue to actively return capital to shareholders through our policy of distributing 100% of our operating cash flow, subject to maintaining a minimum cash balance of $2.1 million per vessel. Our Board of Directors declared a $0.90 per share dividend for the quarter payable on September 3 to all shareholders of record as of August 21.

Our balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately at $532 million. Outstanding debt is approximately $955 million, undrawn revolver capacity at $110 million. Importantly, we also currently own 29 debt-free vessels with an aggregate market value close to $790 million. During the third quarter of 2026, we expect to collect net sale proceeds of approximately $31.5 million for the sold vessels. Our low leverage as well as unencumbered asset base provides substantial financial flexibility to fund growth opportunities as well as downside protection. On the top right of the slide, you can see our per vessel daily performance metrics for the quarter. Time charter equivalent of $24,486 per day per vessel, combined daily operating expenses and net cash G&A expenses of $6,542 per day per vessel. This results in a daily cash margin of approximately $17,944 per vessel per day before debt service and CapEx. These numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow.

Slide 4 summarizes our capital allocation track record since 2021. Over this period, we have executed approximately $3.2 billion in value-enhancing actions, including dividends, share repurchases and debt repayment. Namely, we have returned approximately $14.9 per share in dividends, representing approximately 52% of our current share price. We have reduced total net debt by 66%, bringing leverage to a level where net debt stands at 50% of demolition value of our fleet. We have also expanded the fleet opportunistically through accretive fleet acquisitions, issuing equity at or above NAV, thereby increasing scale while protecting per share value. The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential.

Slide #5 illustrates the movement in our cash balance during the second quarter. We began the second quarter with $409 million in cash. We generated $150 million in operating cash flow. After vessel sale proceeds, debt rundowns and repayments, CapEx payments related to newbuilding installments and ESD and ballast water treatment installations and the fourth quarter dividend payment, we ended up with $565 million in cash. This sequential increase in cash underscores the strong internal cash generation of the company even after substantial shareholder returns and investments in fleet upgrades.

Moving to Slide #6. In the second quarter of 2026, Starbucks delivered a well-balanced operating performance across all segments, supported by our diversified fleet of 138 vessels and over 12,200 ownership days. Newcastlemax and Capesize vessels contributed 35% of our revenue and 39% of our adjusted EBITDA, benefiting from strong market positioning and representing 41% of our fleet market value. Panamax and Kamsarmax segment continued to provide stable earnings, contributing 28% of revenue and 24% of adjusted EBITDA, namely $77.7 million and $42.4 million, respectively.

Ultramax and Supramax vessels remain the largest contributor to revenue at 37%, generating $104.4 million in revenue and $66.5 million in adjusted EBITDA, reflecting the strength of our exposure in geared segment. Slide #7 highlights the inherent operating leverage embedded in our business model. With approximately 49,000 fleet available days on an annualized basis for the next 12 months and based on the current next 12 month FFA curve of approximately $22,000 per day on a fleet-wide basis, the company would generate approximately $4.1 per share of free cash flow, representing 14.3% implied cash flow yield. The slide illustrates the strength of our platform in a rising market. Every $1,500 per share fleet-wide increase in TCE equates to an EBITDA increase of $72 million. This would translate to $0.64 per share of incremental dividend to our shareholders given our existing approach to distribution.

In summary, during the second quarter, we delivered solid profitability, strengthened our liquidity position, continuing to reduce leverage, return meaningful capital to shareholders and preserved significant optionality for future capital allocation. Our balance sheet resilience, operating efficiency and disciplined capital allocation framework position us well to navigate market volatility while continuing to enhance per share value. With that, I will now pass the floor to our COO, Nicos Rescos for an update on our operational performance and the continued investments we are making in our fleet.

Thank you, Simos. Turning to Slide 8, which covers our operational performance. We continue to operate one of the most cost-efficient platforms in the dry bulk sector. Daily OpEx for the second quarter came in at $5,180 per vessel and net cash G&A at $1,362, both among the lowest in our peer group as illustrated. Our sustained cost discipline reflects our scale, our integrated management platform, which translates directly into superior cash generation through the cycle.

Moving to Slide 9, which outlines our fleet-wide investment program. On the newbuilding front, all 5 of our latest generation high-specification Kamsarmax newbuildings are on track for delivery during 2026 with $122 million of CapEx remaining. Financing is in place where we expect to draw down up to $129 million of debt against the 5 newbuilding vessels, leaving the program fully funded on competitive terms. In a strengthening Kamsarmax market, the prompt deliveries of these vessels remain highly attractive to our customers, combined with a mark-to-market gain of approximately $56 million for our shareholders.

On vessel upgrades, during the second quarter, we continue pushing through with energy-saving devices and with high-efficiency propeller installations. Having completed 62 ESD installations across the fleet with a further 7 scheduled for the year, 88% of our fleet is now fitted with ESs. On vessel efficiency, we continue to invest in upgrades in way of optimized propellers, silicon paints and deployment of car cleaning robots where we measure tangible performance improvements ranging between 7% and 15%. This translates into improved commercial performance, lower emissions and strengthens our competitiveness.

The top right of the slide illustrates our CapEx schedule, presenting both the remaining newbuilding installments and our vessel efficiency upgrade spending alongside the corresponding debt drawdowns. At the bottom, you can see our dry dock schedule for the remainder of '26 and '27. For Q3 and Q4 2026, approximately $611 million and around 460 and 280 off-hire days, respectively. For 2027, we expect to have $17 million in dry dock costs and 450 off-hire days.

Turning to Slide 10 for our fleet update. We continue to actively rejuvenate the fleet through a disciplined combination of selective disposals and newbuilding deliveries, prioritizing the divestment of [indiscernible] to reduce our average age and lift overall efficiency. As previously announced, the sales of Star Scarlett and Star Mariella were completed in Q2 2026.

During the second quarter, we agreed to sell communicated 2apsarmaxes, namely Star Emma, Star Moria, and Pendulum. Star Moria and Pendulum were delivered to the new owners in June and July 2026, while Star Eva is expected to be delivered during the third quarter of this year. In connection with the sales mentioned above, in the second quarter of 2026, we collected sales proceeds of approximately $60.2 million, net of commissions and made debt repayments of approximately $21.4 million, while in the third quarter, we expect to collect sales proceeds approximately $31.5 million net of commissions.

Overall, a total amount of approximately $70.3 million net of commission and debt repayments will be collected from the vessel sales. Having sold 50 vessels since 2023, we have reinvested most of the net sales proceeds to fund accretive share buybacks throughout this period. This quarter also marked the start of our newbuilding delivery cycle with the latest generation Kamsarmax vessels joining the fleet. We took delivery of 3 out of the 8 Kamsarmax newbuilding vessels and expect to take delivery of the 5 remaining during Q3 and Q4 2026.

We continue to maintain 7 long-term chartering contracts, which provide commercial flexibility across market cycles. Star Bulk operates one of the largest dry bulk fleet among U.S. and European listed peers with 138 vessels on a fully delivered basis and an average age of approximately 12.4 years, providing scale, modernity and operating leverage to compound shareholder value as the market cycle evolves. I will now pass the floor to our Chief Strategy Officer, Charis Plakantonaki, for an update on recent global environmental regulation developments and our ESG performance.

Thank you, Nico. Please turn to Slide 11, where we highlight our progress across ESG priorities. Ahead of the upcoming IMO Marine Environment Protection Committee, Star Bulk remains actively engaged through the relevant industry organizations in the discussions on the net zero framework and its alternative proposals, committed to advancing practical, realistic and effective greenhouse gas reduction regulations with consistent global. On the European front, the emissions trading system was revised across sectors, keeping maritime in the scheme at 50% of emissions on voyages, broadening its scope and creating a dedicated allowance reserve for sustainable marine fuels.

Star Bulk continues to participate in the Maritime Emissions Reduction Center whose membership has expanded to include Cargill and Dubai Dry Docks. Current programs of work, spans hull and propeller coatings, hull-grooming robotics, wind-assisted propulsion, onboard carbon capture and shaft generator retrofits.

On the social front, we are advancing our people agenda through the development of a new crewing campaign in Manila and the company portal to enhance corporate communication alongside extensive program talent development. 15 Star Bulk vessels take part in the "Adopt a Ship" education program, bringing the experience of life in the schools across Greece.

On governance, fiscal year 2026 marks Starbucks' first sustainability reporting cycle under the Corporate Sustainability Reporting directive with disclosures aligned to the European sustainability reporting standards, reinforcing data quality, internal controls and assurance readiness. We continue to embed artificial intelligence responsibly across our operations, advancing the 4 pillars of our AI strategy, leveraging the AI capabilities of our software providers, piloting off-the-shelf AI tools, building custom AI solutions and continuously new technological developments, recognizing the cyber risks associated with have deployed CrowdStrike AI Detection & Response, conducted the second consecutive year mandatory cybersecurity awareness training for all onshore staff and performed [indiscernible]. We also introduced a new AI policy user's policy, governing the responsible user of AI by so staff in line with the AI user regulation. I will now turn the floor to our Head of Market Analysis, Constantinos Simantiras for a market update and his closing remarks.

Thank you, Charis. Please turn to Slide 12 for a brief update of supply. During the first half of 2026, a total of 22.2 million deadweight was delivered and 1.9 million deadweight was sent for demolition. That brings net fleet growth to 20.3 million deadweight or 1.9% year-to-date. or 3.3% growth over the last 12 months.

The newbuilding order book has increased over the past 3 years and presently stands at approximately 13.9% of the fleet. Despite an increase in Capesize orders during the past few quarters, total dry bulk contracting remains under relative control, reflecting limited shipyard availability until late 2029, high shipbuilding costs and ongoing uncertainty around green propulsion technologies. At the same time, the fleet continues to age. And by the end of 2027, approximately 50% of the current fleet would be over 15 years old. Furthermore, the growing number of vessels undergoing their third special survey is estimated to reduce effective fleet capacity by more than 0.5% per annum during 2026 and 2027.

The average steaming speed of the fleet remains at low levels of around 11 knots for a prolonged period despite firm freight rates as elevated bunker prices supported by tensions in the Middle East continue to encourage slow steaming. Finally, global port congestion fully normalized during 2025 and is now following seasonal patterns. Nevertheless, congestion has recently experienced a rebound due to adverse weather conditions and war-related inefficiencies.

Let us now turn to Slide 13 for a brief update of demand. According to Clarkson, total dry bulk trade during 2026 is projected to expand by 2.4% in tons and 3.8% in ton miles. For 2027, trade growth is estimated at 1.1% in tons and 1.8% in ton miles. The duration and extent of the Middle East conflict remains the key uncertainty for the global macroeconomic outlook. The IMF projects global GDP growth to slow from 3.5% in 2025 to 3% in 2026 amid higher energy prices and inflationary pressures before recovering to 3.4% in 2027.

So far, dry bulk trade has remained resilient as direct exposure to the Strait of Hormuz is relatively limited, while increased coal cargoes and restocking have provided strong support to the sector. During the first half of 2026, total dry bulk trade increased by 3.3% year-on-year, supported by record high grain volumes, a recovery in coal exports during the second quarter and growth in iron ore, bauxite and minor bulk trades. Ton miles expanded at a faster pace of 4.5%, driven by strong Atlantic exports and longer Pacific distances.

Chinese dry bulk imports increased by 5% year-over-year in the first half against a low base last year. However, during the second quarter, the country's economy grew at its lowest pace in more than 3 years, reflecting weak domestic consumption, the prolonged downturn in the property sector and lower fixed asset investment, while higher energy prices have added further pressure. This has increased expectations for additional stimulus measures during the second half of the year.

Dry bulk imports from the rest of the world continued to recover, increasing by 2.8% year-over-year despite the sharp decline in Middle East imports, supported by ongoing global restocking needs and strong commodity demand from Southeast Asia. Breaking it down by key commodities, iron ore trade is projected to expand by 2.8% in tons and by 3.1% in ton miles in 2026.

China steel production declined by 3.1% year-over-year during the first half, driven by policy curves on steel supply, while production in the rest of the world increased by 0.9%. Chinese steel exports declined by 5.6% from last year's record levels amid rising protectionism but remain elevated. At the same time, domestic iron ore production fell by 6.5%, while stockpiles have declined from Q1 highs, indicating healthy demand going forward. Having said that, the iron ore market remains supply driven and ton miles are expected to receive strong support from the continued ramp-up of high-quality iron ore from Simandou and stronger Brazil exports. Coal trade is projected to grow by 1% in tons and 2.7% in ton miles during 2026, with demand forecast recently revised upwards following a strong recovery during the second quarter and the war-related dislocation in global energy markets.

In China, thermal power generation rose 2.9% during the first half, while domestic production fell by 2.2%, widening the gap that seaborne cargoes must fill. India showed a similar pattern with stockpiles drawn down sharply in recent months. A developing El Nino is expected to keep Northern Hemisphere temperatures elevated through the summer, adding to cooling demand. Together, these factors should sustain coal volumes at elevated levels through the remainder of 2026.

Grain trade is projected to expand by 6.5% in tons and by 9.8% in ton miles in 2026. Total grain exports increased by 10% year-over-year during the first half, driven by record shipments from Latin America and seasonally strong U.S. exports following the delayed trade throughs with China last October. Grain volumes are expected to remain elevated during the second half of the year as uncertainty over 2027 growth prospects, combined with escalating attacks on vessels in the Black Sea is encouraging importers to build inventories.

Minor bulk trade is projected to expand by 1.9% in comps and by 3% in ton miles in 2026. Exports increased marginally by 0.7% in the second quarter as a 45% decline in Middle East volumes weighed on fertilizer, steel and building materials trade. Guinea, Bauxite exports by contrast rose 16% during the first half and generated strong ton miles for the Capesize fleet. As a final comment, we remain optimistic about the dry bulk market outlook, supported by a favorable supply backdrop, new long-distance Atlantic exports and tightening environmental regulations.

In a period of heightened geopolitical uncertainty, we remain focused on actively managing our diversified scrubber-fitted fleet to capitalize on market opportunities and deliver value to our shareholders. Without taking any more of your time, I will now pass the floor over to the operator to answer any questions you may have.

[Operator Instructions] Our first question is from Omar Nokta with Clarksons.

For the update on the market and the company overall. And I guess I just wanted to dive just a little bit more into kind of the strategy at Star Bulk at the moment. You've got the cash position out to $500 million. You're about to finalize the deliveries of the newbuilding Kamsarmax over the next several months. Dividend is ramping up with the strong dry bulk market we're seeing here. And just, I guess, as we think about your footprint in the market today and given the better valuation of the stock, how are you thinking about the fleet and growth? Does it make sense to be a bit more acquisitive in this environment? Or what do you think about the fleet as it stands today?

Well, the opportunity to be more acquisitive... May -- it certainly looks better than it looked a couple of months ago. But on balance with cash, we think that probably cash is going to be better conserved for a little bit. We think the asset prices are relatively high. But with the share trading better, we'll see if there's an opportunity to use that as a currency and grow the platform. We can only do what we can do. It's been, as you know, difficult over the last couple of years to do anything with the equity. [indiscernible]. We run calculations all the time on potential acquisitions of vessels.

And as Hami said, to justify a cash acquisition at today's levels, the breakeven rate to produce a meaningful return to equity shareholders is quite high. So if we could use our share accretively, we will definitely do so.

Okay. And I guess just maybe touching on that a bit. I recall a few quarters ago, Petros had discussed the idea of going after the Kamsarmax versus the Capesize class because the ROE was better. Do you still feel that way? Is it still more attractive if you were to deploy capital? I guess it sounds like secondhand is it on the price side. But if you look at it, whether it's secondhand or new buildings, is the Kamsarmax still a bit more of an attractive asset class relative to Capes purely on the -- when you look at it from an ROE perspective?

Omar, this is Constantinos -- we have -- we definitely see a more balanced spread between the 2, I would say, compared to the previous -- the comments we made a couple of quarters ago. I mean values have increased on the Kamsarmaxes and the spread case have balanced in a way. And we demonstrated an ability to do substantially better than index on both Kamsarmaxes and Ultramaxes.

And Omar, this is Nikos. There are windows in a market where there will be an arbitrage like we did with the latest Kamsarmax at the beginning of the year, where there is a good mark-to-market profit that is sitting there. We feel that with newbuilding window moving now well into '29 and 2030 and prices still firming up on the larger vessels, opportunities are more scarce. But as I said, there are some windows where we could combine a transaction with perhaps the commercial ability to secure part of the income going forward and reduce the breakeven that Christos mentioned earlier. So we are cautious to see what -- how the market evolves in the next 12 days.

Our next question is from Chris Robertson with Deutsche

Just kind of following up on Omar's questions there. We talked a lot about being an acquirer of potential looking for secondhand assets and kind of the price push in there. But you could also be a seller into this market of some of the older tonnage. Just wanting to get your comments on what are the discussions like potentially there, given that secondhand prices are elevated, is that preventing you from potentially going out and divesting some of the older assets and kind of the bid-ask spread between what you'd like to get and what potential buyers of those assets are seeking?

Thank you, Chris. This is Nicos. We are in the market every day just to see what is the opportunity to dispose the remaining older assets, less vessels. We see that the older vessels still command a good premium from the Chinese. We also see that the revenue side of these assets provides good yields for the company at the time being. So we are pacing ourselves forecasting what we think the market will be before we dispose the next batch of say, older Kamsarmaxes. I think it will happen. But at the moment, the earnings are very attractive, and we see prices perhaps firming a bit further before we make a decision to sell a few more.

And I think it's not directly relevant, but we haven't actually talked about the fact that the geopolitical situation has caused the spread between heavy fuel oil and very low sulfur fuel oil to be quite large recently. It's over $150 a ton.

$170.

It's close to around $250 in Singapore. And the spreads on the older vessels really boost their yield.

And I think we should also add that now that with our share trading at a smaller discount to NAV, the incentive to sell those high-yield earning vessels is less. Yes.

Makes sense. Just turning to the broader market here. As you think about voyaging cargoes from Brazil, whether it's iron ore, agricultural products and as it relates to the Panama Canal. So of course, there's a few reduced transits today. There could be risk here of drought as it relates to El Nino going forward. How much of your fleet is going via Cape, how much of the greater fleet is doing that? And I guess what's the expectation here around potential water conditions from El Nino and drought potential and how much of that could potentially impact effective capacity and increased ton-mile demand later this year?

Okay, this is Stantinos. So on the Panama Canal, we expect that we will see less crossing. It's worth mentioning that the dry bulk vessels crossing the Panama Canal over the last few years have decreased in any case, especially last year, where we could say that they've been priced out slightly. However, the water levels are decreasing, as you mentioned, because of El Nino. We will see -- we expect to see a positive effect, especially on the Panamax vessels carrying during the U.S. soybean season. And this is something that we should -- will be more pronounced during the September, November months. And as a fleet, we currently on the larger vessels, we go through the hope as we mentioned.

[Operator Instructions] Our next question is from Stephanie Moore with Jefferies.

So I just wanted to touch on the project. So obviously, in the past, you talked a lot about this being a major source of ton-mile growth. So could you just give us an update on timing, expectations that you think that project will continue to ramp over the next 12 months to 14 months when we should start to see kind of that major contribution? And then also, it's always helpful if there are any other kind of projects or demand initiatives that are on our radar even over the next couple of years?

Stephanie. This is Constantinos. I apologize for the technical issues we had. So -- there were a few delays at the end of last year. It is ramping up this year. It's running at a pace of approaching almost 20 million per annum capacity. I think the number will be somewhere between 15 million and 20 million by the end of the year, but the pace is ramping up. And now we're going through the seasonality in Guinea during the third quarter due to rainy season. So volumes actually pulled back during the pace -- pulled back during July, August. But the expectations are that by 2027, the pace would ramp up to about between 45 million to 50 million tons per annum and further pushing in 2028 will accelerate in 2028 closer approaching close to 100 million tons. And by 2029, we might reach the full capacity of 120 million tons. Now we will closely follow. It's difficult to make sure that this will be followed strictly followed.

Now there are other volumes around in West Africa, which could add between 10 million and 20 million tons over the next 2 years. And there's also expansion in Brazil, adding again about 10 million to 20 million tons. So over the next 3 years, 4 years, we should see an increase of high-quality iron ore volumes of as much as 150 million tons from the Atlantic combined.

We have reached the end of the question-and-answer session. I would like to turn the floor back over to management for closing remarks.

No closing remarks, operator. Thank you very much.

Okay. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers Conference Call and First Quarter 2026 Financial Results.

We have with us today Mr. Petros Pappas, Chief Executive Officer; Mr. Hamish Doran, President; Mr. Simos Spyrou; and Mr. Crisis Begleris, Co-Chief Financial Officers, Mr. Nicos Rescos, Chief Operating Officer; and Mr. Charles PlakanTulaki, Chief Strategy Officer of the company.

[Operator Instructions] I must advise you this conference call is being recorded today. We now pass the floor to our speaker today, Mr. Begleris. Please go ahead, sir.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. I'm Christos Begleris, Co-Chief Financial Officer of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the first quarter of 2025.

Before we begin, I kindly ask you to take a moment to read the safe harbor statement on Slide #2 of our presentation. In today's presentation, we will review our first quarter 2026 company highlights, financial performance, capital allocation initiatives cash evolution during the quarter, operational performance, our continued investments in the fleet, developments on the regulatory front and our perspective on industry fundamentals. We will then open the floor for questions.

Turning to Slide 3. The first quarter was characterized by solid capability, disciplined capital allocation and continued balance sheet strength. Net income amounted to EUR 58.5 million, while adjusted net income reached $63 million or $0.52 adjusted earnings per share. Adjusted EBITDA was $114.3 million, demonstrating the strong cash generating capacity of our platform. On the shareholder return front, we continue to actively return capital to our shareholders. Share repurchases during the first quarter until today, we have repurchased approximately 1.9 million shares, totaling $37.9 million on the dividend front, our Board of Directors declared a $0.50 per share dividend for the quarter, payable on June 20 to all shareholders of record as of June 12, 2026.

Our balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately at $432 million, outstanding debt is at approximately $874 million. We also have an undrawn revolver capacity of $110 million. We currently own 29 debt-free vessels with an aggregate market value of around $700 million. Our overall loan leverage as well as this unencumbered asset base provides substantial financial flexibility to fund growth opportunities as well as downside protection.

To further enhance shareholder value, we have updated our dividend distribution policy. We distribute 100% of free cash flow, subject to maintaining a minimum cash balance of $2.1 million per vessel.

As far as operating performance is concerned, on the top right side of the slide, you can see our per vessel daily performance metrics for the quarter. time charter equivalent was at $18,493per person per day. Combined daily OpEx and net cash G&A was at $6,420 per vessel per day. This results in a daily cash margin of approximately $12,073 per vessel per day before debt service and CapEx. These numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow even at mid-cycle rate levels.

Slide 4, summarizes our capital allocation track record over the last 6 years. Since 2021, we have executed approximately on $3.1 billion via enhancing actions including dividends, share repurchases and debt repayment. During this period, we have returned approximately $14 per share in dividends, representing approximately 54% of our current share price. We have reduced total net debt by 63%, bringing leverage to a level where net debt is at 56% of the demolition value of our fleet.

During the same period, we have expanded the fleet opportunistically through accretive fleet acquisitions, issuing equity at or above net asset value thereby increasing scale while protecting per share value. The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential.

Slide 5, state the movements in our cash balance during the first quarter. We began the quarter with $502 million in cash. We generated $112 million in operating cash flow. After vessel sale proceeds, debt drawdowns and repayments, CapEx payments related to new building installments and energy saving devices and ballast water treatment system installations share buybacks and the fourth quarter dividend, we ended the quarter with $409 million in cash. The sequential increase in cash underscores the strong internal cash generation of the company, even after substantial shareholder returns and investment in feed up rates.

Slide 6, includes our diversified fleet driving strong earnings contribution across all segments. Starbucks delivered a well-balanced operating performance supported by our diversified fleet of 136 vessels and over 12,000 ownership days. Ultramax Supramaxes remained the largest contributor of revenue at 38%, generating $80.7 million in revenue and $39.7 million in adjusted EBITDA. New Castlemax Kaki vessels contributed 33% of revenue and 36% of adjusted EBITDA, benefiting from strong market positioning and representing 41% of our fixed market value. Post Panamax and Kamsarmax segment continued to provide stable earnings, contributing 29% of revenue and 28% of adjusted EBITDA.

Overall, our fleet generated $212.5 million in revenue and $113 million in adjusted EBITDA during the quarter highlighting the resilience of our diversified commercial strategy and efficient fleet deployment.

Slide 7 highlights the inherent operating leverage embedded in our business model. With approximately 48,500 fleet available days per year and based on a current net 12-month FFA curve of approximately $20,500 per day on a fleet-wide basis, the company would generate approximately $3.4 per share of free cash flow, representing a 13% implied cash flow yield. The slide illustrates the strength of our platform in a rising market. Every $1,500 fleet-wide increase in TCE equities an EBITDA increase of $71 million. This will translate to $0.64 per share of incremental dividend to our shareholders given our existing approach to distributions.

In summary, during first quarter, we delivered solid profitability. We strengthened our liquidity position. We continue to delever. We return meaningful capital to shareholders and we preserve significant optionality for future capital allocation. Our balance sheet resilience, operating efficiency and disciplined capital allocation framework position us well to navigate market volatility while continuing to enhance per share value.

With that, I will now pass the floor to our COO, Nicos Rescos, for an update on our operational performance and the continued investments we are making in our fleet.

Thank you, Christos. Turning to Slide 8. covers our operational performance. We continue to operate 1 of the most cost-efficient platforms in the dry bulk sector. Telling OpEx for the first quarter came in at $5,045 per vessel and net cash G&A at $1,375, both among the lowest in our peer group as illustrated. The sustained cost discipline reflects our scale our integrated management platform and the synergies crystallized through vehicle bulk integration and translates directly into superior cash generation through the cycle.

Moving to Slide 9, which outlines our fleet-wide investment program. On the new building front, 1 of our latest generation of high specification caps buildings are on track for delivery during 2026, with $195 million of CapEx remaining. Financing is largely in place, where we have secured $130 million of debt against the 5 King do build vessels and expect a further $51.2 million against the 30-bit vessels, middle program fully funded on competitive terms. In our strengthening consoles market, the strong deliveries of these vessels remain highly attractive to our customers, combined with an approximate $40 million mark-to-market gain for our shareholders.

pOn vessel upgrades during the first quarter, we'll continue pushing through with energy-saving devices and high-efficiency profiler installations. On rate, we've completed 61 ELT installations across the fleet with a February schedule for 2026. Together with telemetry retrofits, how upgrades and we of silicon pains and deployment of health-cri robots, we measure tangible vessel performance improvements between 7% and 15%, which directly translating to improved commercial performance and attractiveness of our fleet.

The top right of the slide illustrates our CapEx schedule presenting both the remaining newbuilding installments and our vessel efficiency upgrade spending alongside the corresponding debt drawdowns. At the bottom, you can see our driver schedule for the remainder of 2026, which totals approximately $42 million and around 1,236 off-hire days.

Turning to Slide 10 for our fleet update. We'll continue to actively rejuvenate our fleet through a disciplined combination of selected disposals and newbuilding deliveries, prioritizing the divestment of older non-core to reduce average age fleet and lift overall efficiency. During the -- during the first quarter 2026, we delivered Starsale and Star Mariela to their new owners. In connection with these sales, we collected net proceeds of approximately $46.4 million.

Having sold 49 vessels since 2023, we have reinvested the majority of the net sale proceeds to fund accretive share buybacks throughout this period. This quarter also marks the start of our new building delivery cycle with our latest generation constant vessels joining the fleet. We expect to take delivery of the first 2 vessels in May 2026, Stardalina and Starama with the remaining 6 buildings phasing in throughout the balance of the year.

We continue to maintain 7 long-term chartering contracts, which provide additional commercial flexibility across market cycles. Star Bulk operates 1 of the largest part of fleets among U.S. and European listed peers with 141 vessels on a fully delivered basis at an average age of approximately 12.2 years, providing scale modernity and operating leverage to compound shareholder value as the market cycle evolves.

I will now pass the floor to our Chief Strategy Officer, Charis Plakantonaki for an update on recent global environment regulation development and our ESG performer.

Thank you, Nico. Please turn to Slide 10, where we highlight our progress across these priorities. At the latest or marine environment is a -- our consensus was free for the next year framework in when those states remaining divided between those who consider it for purpose and those calling for men. The committee agreed to continue reception work on the framework on the letting consensus ahead of in November 20.

Star Bulk remains icily engaged through its participation in industry organization initiatives contributing to efforts aimed at advancing practical, realistic and effective greenhouse gas reduction regulations will consist of global application. Star Bulk has joined the newly established advisory council to the Poseidon Principles association. The country will serve as the following dialogue is in the 36 signatory bonds, and a select group of leading owners and Manta stakeholders from key decorations and implementation of the principles.

On the cost of front, during Q1 2026 we engaged extensively all company departments in analyzing the results of our survey and developing an action plan to preserve our strength and improve areas where we can do better air. We continue our efforts to a better system intact to the operations through the expansion of our carton company carport on new off-the-shelf AI tools and the use of AI within R&D. Recognizing the cybersecurity risks associated with our future intelligence. We have completed an external risk assessment and final required controls for the use of AI. We're also developing company on the responsible use of AI, endo included the already deployed AI tools in our upcoming penetration.

I will now hand the floor to our Head of Market Constantinos Simantiras for a market update and his closing remarks.

Thank you, Charis. Please turn to Slide 12 for a brief update of supply. During the first 4 months of 2020 date, a total of 4.2 million bad weight was delivered and 1.5 million deadweight 4% cost to demolition for a net fleet growth of 12.7 million deter 3% year-over-year. The new building order book has increased over the past 3 years, but remains relatively low at 13.2% of the line. Total driver contracting remains under control despite the recent pickup in Capesize orders, reflecting limited set availability through late 2028, high seed building costs and ongoing uncertainty around green propulsion technologies. Meanwhile, the fleet continues to age and by the end of 2027, approximately 50% of the existing fleet will be older 15 years old.

Moreover, the rising number of vessels undergoing their third special survey is estimated to reduce effective fleet capacity by more than 0.5% per annum during 2026 and 2027. The average steaming speed of the fleet remains slightly elevated through most of Q1 supported by rates but has corrected below 11 knots following the recent serves in bunker prices and middle tensions. Finally, global port congestion has fully normalized and is now following seasonal patterns.

Going forward, congestion is expected to have a lease impact on the supply and demand balance. So there could still be some upside from delays related to new mining hubs in West Africa. Let us now turn to Slide 13 for a brief update of demand. According to Clarksons, total dry bulk trade during 2026 is projected to expand by 1.3% in tons and 2.5% in ton miles. We continue to operate against the backdrop of heightened geopolitical uncertainty with the trajectory and duration of the Middle East conflict being difficult to predict while dry bulk freight exposure through the state of hormone remains relatively limited, disruptions to oil and LNG markets could be prolonged, pushing energy prices higher and weighing on the global macroeconomic outlook. Reflecting these risks, the IMS recently revised its 2026 global growth forecast down to 3.1% from 3.3% in January. The U.S. forecast was lower to 2.3% from 2.4% and China to 4.4% from 4.5%.

Turning to dry bulk demand. Total volumes rose approximately 3.5% year-on-year during the first quarter, supported by robust iron ore and minor box close alongside record grain and bauxite segments. Ton mile expanded at a faster pace, driven by strong Atlantic exports and longer Pacific trading distances. In China, GDP growth exceeded expectations at 5% in Q1, underpinned by strong industrial production, manufacturing activity and exports. Chinese dry imports rose 8.1% against a low base last year. However, domestic consumption remained relatively weak. On the geopolitical front, President Trump Summit with President Xi in Beijing, delivered a constructive signal for U.S.-China relations and international trade. Dry bulk imports from the rest of the world continue their recovery with or extend consecutive quarter, expanding 3.1% year-on-year on the back of a weaker U.S. dollar and increased restocking activity.

The is down by key commodities, iron ore trade is projected to expand by 1.1% in tons and by 1.6% in ton miles during 2020 sales China steel production declined by 4.5% year-on-year during the first quarter due to policy curves on steel supply, the ongoing real estate slowdown and rising protection is. At the same time, domestic iron ore production remained broadly flat, while stockpiles increased to record levels, creating downside risk for the second half of the year. Having said that, the iron ore market remains supply driven and ton miles are expected to receive support from the continued ramp-up of Simandou and stronger Brazil exports.

Coal trade is projected to contract by 1.6% in tons and by 0.5% in ton miles during 2026. This forecast is likely to be revised upwards as piper energy supply is expected to strengthen coal demand throughout year-end. World driven disruptions to LNG trade, together with broad-based inflation across energy commodities, have improved the demand outlook for coal, routing several countries to be restriction on its use and production. Chinese payment power generation rose 3.6% in Q1, while domestic coal production has been broadly flat over the past 3 quarters, creating a favorable setup for ingots. Furthermore, developing El Nino is expected to drive polythene year summer, further lifting energy consumption in the short term.

Grain trade is projected to expand by 3.7% in comps and by 6.8% in or miles during 2026. Total grain exports increased by 9.1% year-on-year during Q1, supported by strong treatment from all major exporters. Speed over from October's U.S.-China trade through drove seasonally strong U.S. exports and base in place to buy approximately 25 million tons of U.S. soybeans annually through 2028, should continue to support midsized markets or miles.

Minor bulk trade is projected to expand by 2.4% in pumps and by 3.1% in ton-miles during 2026. The export volumes increased by 8% year-on-year during Q1 despite lower fertilizer segments from the Middle East. While bauxite exports from Guinea continued their strong performance and expanded 23% year-on-year, generating strong fund marks for the Capesize fleet.

As a final comment, we remain optimistic about the driver of market outlook, supported by a favorable supply backdrop, new long-distance Atlantic exports and tightening environmental regulations. In a period of rising geopolitical uncertainty, we remain focused on actively managing our diversified scrubber-fitted fleet to capitalize on market opportunities and deliver value to our shareholders.

Without taking any more of your time, I will now pass the floor over to the operator to answer any questions you may have

[Operator Instructions] Our first question today is coming from Omar Nokta from Clarksons Securities.

I wanted to ask about the capital allocation policy of now paying out 100% of of operating cash flow less the CapEx and debt service. You've obviously got plenty of cash to give you that flexibility. Leverage is a bit low now, unencumbered ships but wanted to ask the stock, while it has done well, it's still at a discount to NAV. And in the past, you've leaned on asset sales to try to crystallize that difference between the equity and the NAV. How do you kind of think about that today? Are sales still something under consideration from here? Or is it not a time to really maximize your exposure to the market?

I think Omar, this is Norton. We're still planning on selling smaller, older and less fuel-efficient ships. Frankly, the market is pretty hot. And if you need to sell these ships at some point, this is as good a time as any to sell them. And the capital that we generate from selling ships could be used for repurchases of shares. It could be used for we might keep some of it for use later when there are better opportunities. We think there will be some very good opportunities, and I think with our operating cash flow, we intend to keep paying that out on a current basis.

Okay. And if I could, I know this is sensitive. But just regarding the agreement you have with Diana to acquire the 16 ships if they succeed in acquiring Genco, just in terms of the price, the 470 that you've agreed on -- my question is, is that fixed? And then...

That is fixed at the moment. Yes, that's the agreement is for a specific price.

Okay. And are you able to give sort of -- is that based off of whatever Diana ends up paying if it succeeds? Or is it based off of that -- the current.

No, price. It's fixed.

Our next question today is coming from Chris Robertson from Deutsche Bank.

Yes, very strong start of the year. We had a lighter than usual seasonal pullback during the first quarter, very strong indicators here at the Capesize FFA over 40,000 in May, over 30,000 for the remainder of the year. But at the same time, we're seeing a little bit of decelerating economic activity in China in April with regards to industrial production. Patrice, you mentioned some of the El Nino concerns and other things. So I mean, kind of putting all this together, what is your expectation for the second half of the year, which is usually seasonally stronger. Do you think that comes this year? Do you think that has been pulling forward of demand in the first half of this year that could kind of smooth out demand for the rest of the year and rates for the rest of the year. Do you see any policy support in China that could help boost demand for dry bulk commodities while they potentially focus on doing economic strength. Kind of what's the outlook there?

Chris, we're actually pretty bullish for the balance of this year, and we are bullish for next year as well. I think the situation in the Persian Gulf is actually helping for now for as long as things stand as they are. Oil prices are up, and that makes vessels go slower, which is good for supply. We have about 2% of the fleet in the Persian Gulf, which reduces supply again. Red Sea remains then more ton miles. The increased oil prices actually incentivizes use of coal. So you see that the reduction in the coal trade is actually minimal right now and might even turn around and there's all kinds of inefficiencies.

But this is not the only thing. You saw that during the first 5 months, demand increased by 5.1% in ton miles, and this is only the first half, as you said. We continue to believe that the second half is going to be strong. And there is tons of positive reasons why the market should continue to be strong this year. China has been doing pretty well up now, and we don't expect to see any slowdown in the very near future. If there is going to be a problem going forward that maybe the order book, I would say, or in case the person got opens up, I think for a while, it's going to be positive because it will -- psychology will be assisted and oil prices will go down, which will help trade, et cetera.

But all the positive I mentioned over a period of 8 to 12 months may start slowing down. Now -- so therefore, for now, we are very positive and we're actually positive for the next 18 months.

Just following up, just to get a sense of scenarios here. With regards to potentially strong El Nino, using examples in the past, let's say, in regions that are prone to whether it's drought conditions or on the other side of that flooding conditions which market should we be on the lookout for weather-related disruptions that could potentially impact trade flows.

Well, short term, we are -- we think that the in euro will be positive because it will create higher temperatures in the northern hemisphere. And therefore, there will be more need for air conditioning as fast as, therefore, more energy. Now for the winter, this might -- we may have a warmer winter, which will repair things. As far as droughts are concerned, this is a potential. This is a potential risk, especially for grain corps crops. I was talking about it to our analysts. He said that perhaps people are foreseeing what may happen in arrives, and they may be stocking up right now. This is possible.

On the other hand, we may have positive view positive developments on the Panama canal, maybe the water levels will fall and there will be less vessels coming in. So there is positives and negatives.

[Operator Instructions] Our next question is coming from Stephanie Moore from Jefferies.

I know that when we have talked in the past and certainly, we all spoke publicly together on your first call, there was -- and it continues today, but there's a lot of optimism about the underlying dry bulk market for 2026. But even since that print, a lot has changed from a geopolitical standpoint and certainly kind of enhanced complete geolocalcontict around the globe. So maybe if you could just talk a little bit about how anything might have changed in terms of your general optimism about the dry bulk market for the rest of this year and especially navigating what is obviously a heightened geopolitical environment. So I love your thoughts there to start.

Stephanie, is that a geopolitical question, mostly.

Yes, yes. And maybe how that supports your view on the dry bulk market for 2026. And if anything has changed since you kind of discussed can you yes.

Right. I did talk about the Persian Gulf. I think that is positive for the short term or even for longer, depending on how that goes. The main -- I think that the Ukrainian war is not affecting that much the market anymore. It did help to at the beginning because, for example, Russian coal had to travel longer distances to be exported and that was positively or negative because there was less grain trade coming out from the Black Sea, especially. But we don't think that is as important anymore because it's being overshadowed by the President Golf.

What I see very potentially positive is in case any of these worst stops or both, we may see very strong construction. So it has a lot to -- of course, that would start later on in time. So my view is that this year is going to be very strong but next year is going to be strong as well. And if there is the end of any of the words, it's going to help the sharing because it will create a lot of demand. So it will all come in stages and depending on how things happen going forward. We're not fortunate tell us to know how things will end up, of course.

Understood. And then I think 1 question that we're getting a lot of is if maybe more on the negative side that if some of these conflicts persist, does that create, particularly in emerging markets that stress on the overall economy. So would love to get your views on that as well and if that could ultimately impact demand.

Sorry, can you please Stephanie, you said that this creates what market?

Yes. I'm sorry. I guess -- sorry if you can't hear me, but if the other side of maybe the coin here from a demand standpoint would be an emerging market are negatively impacted by persistingly higher energy costs but that ultimately causes any kind of economic weakness in those markets and if that would be the negative side. So what are your thoughts on potentially that scenario, too?

Yes. Well, that risk actually remains. And if oil prices go further up, -- and even in the 150 or even more than that, I -- we are very afraid here that, that would damage the world economy and not just emerging economies. And it will also discount state because trade depends on how on -- or how you can construct something cheaper than the other country. And then that creates great trade -- if prices go very far up, then then that will impede a development of economies. And I think it's going to be negative.

Commodities on more expensive, there will be less demand of commodities.

Understood. I appreciate the high level. And then I guess 1 last thing for me. Maybe just talk a little bit about your appetite for additional newbuild orders just given there are higher shipyard costs at this point, but also given some of the we just discuss kind of general market dynamics. So anything there

Yes. Well, newbuilding prices have gone up a lot. And we were doing some calculations lately that unit really very high income levels for very long periods to be able to achieve a relatively low IRR. So the idea here is not to continue any further with new buildings until prices start falling. I don't know when that is going to be, but we are patient. The ones we ordered the comes MAXes we did because our Camso fleet was getting older compared to the rest of the fleet. And it needed some -- we needed to get the average age of our fleet to get lower. At the same time, of course, we are judiciously selling all their vessels and inefficient ones, as Hemish said earlier. So no, for as long as prices keep on climbing, we see has a better opportunity to sell rather than buy or order.

Thank you. We reach out of our question-and-answer session. I would like to turn the floor back over for any further or closing comments.

No further comments, operator. Thank you very much.

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

Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers Conference Call on the Fourth Quarter 2025 financial results. We have with us Mr. Petros Pappas, Chief Executive Officer; Mr. Hamish Norton, President; Mr. Simos Spyrou; and Mr. Christos Begleris, Co-Chief Financial Officers; Mr. Nicos Rescos, Chief Operating Officer; Constantinos Simantiras, Head of Marketing Analysis; and Ms. Charis Plakantonaki, Chief Strategy Officer of the company.

[Operator Instructions]. I must advise you that this conference is being recorded. We now pass the floor to one of your speakers today, Mr. Spyrou. Please go ahead, sir.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. I'm Simos Spyrou, Co-Chief Financial Officer of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the fourth quarter of 2025. Before we begin, I kindly ask you to take a moment to read the safe harbor statement on Slide #2 of our presentation.

In today's presentation, we will review our fourth quarter 2025 company highlights, financial performance, capital allocation initiatives, cash evolution during the quarter, operational performance, our continued investments in the fleet, developments on the regulatory fund and our perspective on industry fundamentals. We will let then open the floor for questions.

Turning to Slide 3. The fourth quarter was characterized by solid profitability, disciplined capital allocation and continued balance sheet strength. For the fourth quarter of 2025, our net income amounted to $65.2 million, while adjusted net income reached $74.5 million or $0.16 adjusted EPS. Adjusted EBITDA was at $126.4 million, demonstrating the strong cash generating capacity of our platform even in a moderate rate environment.

We continue to actively return capital to our shareholders. During the fourth quarter, we repurchased 1.2 million shares for a total of $22.7 million. Year-to-date, during the first quarter of 2026, we have repeated approximately 1.9 million shares totaling $37.9 million. In addition, our Board of Directors declared a $0.37 per share dividend for the fourth quarter payable on March 19 to all shareholders of record as of March 9, 2026.

Our balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately at $459 million. Outstanding debt is approximately at $1 billion, and we have an undrawn revolving capacity of $110 million. Importantly, we also have 27 debt-free vessels with an aggregate market value of approximately $630 million. This unencumbered asset base provides substantial financial flexibility to fund growth opportunities as well as a downside protection.

To further enhance shareholder value, we have taken the following capital allocation actions, dividend policy. Going forward, we intend to distribute 100% of our free cash flow, subject to maintaining a minimum cash balance of $2.1 million per vessel while preserving a minimum quarterly dividend of $0.05 per share.

We have also authorized a new $100 million share repurchase program or substantially the same terms as the prior program. This view and track approach, dividends plus opportunistic buybacks funded from vessel sales allows us to dynamically allocate capital depending on the market conditions and the discount or premium of our shares relative to the increase in value. These initiatives reflect both our confidence in the company's forward cash flow visibility and our commitment to maintaining a competitive and sustainable capital return profile.

On the top right side of Slide #3, you can see our per vessel daily performance metrics for the quarter. Time charter equivalent came at $19,012 per day per vessel. Combined daily operating expenses and net cash G&A expenses at 6,444 per day per vessel. This results in a daily cash margin of approximately 12,570 per vessel per day before debt service and CapEx. These numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow even at mid-cycle rate levels.

Slide #4 summarizes our capital allocation track record over the last 5 years. Since 2021, we have executed approximately $3 billion in value-enhancing actions, including dividends, sales repurchases and debt repayment. During this period, we have returned $13.49 per share in dividends, representing approximately 55% of our current share price. We have reduced our total net debt by 47%, bringing leverage to a level where it's below 65% of the current demolition value of the fleet.

At the same time, we expanded the fleet opportunistically through accretive fleet acquisitions, issuing equity at or above NAV, thereby increasing scale while protecting per share value. The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential.

Slide #5 illustrates the movement in our cash balance during the fourth quarter. We began the quarter with $457 million in cash, we generated $101 million in operating cash flow and after sale proceeds that drawdowns and repayments, CapEx payments related to newbuilding installments and energy-saving devices and ballast water treatment systems. The share buybacks and the fourth quarter dividend payment, we ended the quarter with $502 million in cash. The sequential increase in a underscores the strong internal cash generation of the company, even after substantial shareholder returns and investment in fleet upgrades.

Slide #6 highlights the inherent operating leverage embedded in our business model. With approximately 49,500 fleet available days per annum and based on the current next 12-month FFA curve of approximately 18,500 per day on a fleet-wide basis the company would generate approximately $2.7 per share of free cash flow, representing an almost 11% implied cash flow yield.

The slide illustrates the strength of our platform on a rising market. Every $1,500 per day fleet-wide increase in our TC equates to an EBITDA increase of $73 million. This would translate to $0.65 per share of incremental dividend to our shareholders given our existing approach to distributions.

In summary, during the fourth quarter, we delivered solid profitability, strengthened our liquidity position continue to delever, return meaningful capital to shareholders and preserve significant optionality for future capital allocation. Our balance sheet resilience, operating efficiency and disciplined capital allocation framework position us well to navigate market volatility while continuing to enhance per share value. With that, I will now pass the floor to our COO, Nicos Rescos, for an update on our operational performance and the continued investments we are making in our fleet.

Thank you, Simos. Please turn to Slide 7, covering our operational performance. We'll continue to run one of the most cost-efficient platforms in the dry bulk sector.

Daily operating expenses for Q4 came in at $5,045 per vessel and net cash G&A at $1,599 per vessel, both among the lowest in our peer group as illustrated. Importantly, this operational cost discipline has not come at the expense of quality. Star Bulk continues to run at the top amongst listed peers in ridership safety scores.

Moving to Slide 8. We outlined our fleet-wide investment program. On the new building front, all 8 of our Kamsarmax newbuildings are on track to deliver during 2026 with $206.6 million of CapEx remaining. Financing is well advanced. We have secured $130 million of debt against the 5 Qingdao vessels and expect up over $74 million against the 3 [ Ting ] vessels.

Our vessel upgrades, we made meaningful progress during 2025, fitting certain additional vessels with energy-saving devices and 6 with high efficiency propellers. In total, we have now completed 55 out of 80 ESG total installations across the fleet and with another 14 plants for 2026. We have also nearly completed our telemetry rollout with 121 out of 126 eligible vessels now retrofitted with digital monitoring equipment. The top right of the page shows our CapEx schedule, illustrating both the newbuilding payments and our vessel efficiency upgrade spending alongside the corresponding debt financing. At the bottom, you can see our expected drive schedule for 2026, which totals approximately 55.6 million, with around 1,585 off-hire days for the full year.

Turning to Slide 9 for our fleet update. We'll continue to optimize our fleet through selective disposals, prioritizing the sale of older noncore to reduce our average fleet age and improve overall efficiency. During Q4, we delivered 3 vessels to their new owners to [ Supramaxes ] and [ Panamax], Star Runner, Star Sandpiper and Star Emily. In December, we agreed to sell Star Stonington and [ Ultramax], which was delivered to her new owners in February.

Looking into Q1 2026, we are committed to additional older vessels for sale an inefficient Capesize and [indiscernible] Star Mariella, with deliveries expected in April. We continue to maintain 7 long-term chartering contracts, which provide commercial flexibility across market cycles. Star Bulk operates 1 of the largest drop fleet among U.S. and European listed peers with 141 vessels on a fully delivered basis and an average age of approximately 12.1 years. I will now pass the floor to our Chief Strategy Officer, Charis Plakantonaki, for an update on recent global environmental regulation development.

Thank you, Nicos. Please turn to Slide 10, where we highlight our progress across key priorities. Despite the 1-year postponement of the IMO framework in October '25, we remain committed to our strategy to reduce greenhouse gas emissions from our fleet operations. Alongside the ongoing renewal of our fleet, in Q4 '25, we continue to enhance the energy efficiency of our vessels to targeted technical and operational measures including the successful testing of high cleaning robots and silicon antifouling coatings.

In 2025, the Star Bulk fleet has an average rating in the right greenhouse gas rating. We also maintained our score for effective environmental management in the 2025 cargo disclosure projects and water management submission. We continue to go to [indiscernible] to the work of the maritime and mission reduction centers, working with our partners to assess emerging technologies and improving vessel performance.

To comply with [indiscernible] maritime and consistent with last year, we entered into pulling agreement with an external party to cover 100% of our CO2 deficit for '26 and part of '27 purchasing surplus units the most cost-effective compliance strategy. On the technology front, we completed the deployment of [ Starling ] and installed onboard firewalls across the fleet to enhance connectivity and strengthen cybersecurity.

As part of our artificial nation strategy, we delivered the company's first custom-built AI application while continuing to leverage AI within existing systems and to develop new tools to further automation and optimization. The way being of our people remains a priority. During Q4 '25, we contracted a comprehensive company-wide employee survey to listen closely to our teams and identify tangible to better support them in their roles. I will now want the floor to our Head of Market Analysis, Constantinos Simantiras for a market update and his closing remarks.

Thank you, Harris. Please turn to Slide 11 for a brief update of supply. During 2025, 36.2 million deadweight was delivered and 5.2 million deadweight was sent to demolition resulting in net fleet growth of 31 million deadweight or 3% year-over-year. The newbuilding order book has grown over the past 3 years, but remains at relatively low 12.8% of the fleet contracting remained under control, decreasing to 48.8 million -- 45.8 million deadweight during 2025, reflecting limited [ CBA ] capacity through 2028, [indiscernible] costs and ongoing uncertainty around [indiscernible] technologies.

The IMO's written decision to postpone adoption of the net 0 framework will likely expand this uncertainty into 2026. That said, we've seen a noticeable uptick in contracting in the [ Capesize ] segment over the last few months. Meanwhile, the fleet continues to age and by the end of 2027, approximately 50% of the existing fleet will be over 15 years old. Moreover, the rising number of vessels undergoing their third special survey and dry dock is estimated to reduce effective capacity by approximately 0.5% around June 2026 and 2027.

On the operational side, average fleet steaming speeds have recovered from last year's historical note and stabilized at around 11.1 notes over the past 2 quarters, incentivized by further freight rates and lower bunker costs. Over the coming years, stricter environmental regulations are expected to continue to support slow steaming and have constrained effective supply.

Finally, global port congestion dropped to 6-year note during the fourth quarter of 2025, but has since returned to long-term average levels. For 2026, we anticipate congestion to follow typical seasonal bottom and to remain broadly neutral for the supply and demand balance, though there could be some upside from delays at new mining hubs in West Africa, where loading operations remained particularly time intensive.

Let us now turn to Slide 12 for a brief update of demand. [indiscernible], total dry bulk trade grew 1.3% in volume and 2.1% in ton [indiscernible] during 2025. This was driven by record bauxite and minor bulk exports plus a solid recovery in iron ore, coal and grain volumes in the second half. Strong Atlantic exports, longer Pacific distances and ongoing or related inefficiencies supported on mile growth throughout the year. [indiscernible] crossings improved somewhat during the fourth quarter after the October spire. -- but there's still roughly 40% below pro-utilevels and the political risk in the region remain high.

China's total dry bulk imports were essentially flat during 2025 as the 4.2% decline during the first half was fully offset by a 4.1% rebound during the second half, with iron ore and coal imports reaching new all-time highs during December. Meanwhile, imports to the rest of the world continued to recover in 2025 with notable strength in the second half and met reduced uncertainty in international trade relationships.

Non-China import volumes grew 3.2% throughout the year, supported by lower commodity prices, a weaker U.S. dollar enhancing affordability and resilient demand in key regions. Growth was mainly driven by Southeast Asia, India and the Middle East with additional support from Africa and into Asian trade. Looking ahead, drive of demand is projected to grow by 0.6% in tons and 1.9% in on miles during 2026. The IMF recently raised its 2026 global GDP forecast by 0.2% to 3.3% with upward revisions of 0.3% for both the U.S. and China.

The trade through between the U.S. and China, new agreements with major partners and the recent decision by the U.S. Supreme Court on presidential authority to impose reciprocal tariffs should reduce uncertainty, support economic activity and demand for raw materials. That said, elevated Chinese stockpiles across a range of commodities, slower industrial production and softer fixed asset investment presents downside risk, though these should be partly offset by new mine capacity ramping up.

Breaking down by key commodities, iron ore trade grew 2% during 2025 and is projected to rise 1.9% in 2026. For the first time, since 2020, China crude steel production fell below 1 billion tons, down 4.5% overall in 2025 and 11% in Q4 as a result of policy curves on steel supply and the ongoing real estate slowdown.

Record high Chinese steel exports helped offset weak domestic consumption while still output in the rest of the world increased by 1.2%. Domestic iron ore output declined by 2.5% in 2025, while stockpiles and Chinese sports currently stand at close to all-time highs after the Q4 import serves. Looking ahead, Chinese iron ore imports are expected to remain broadly flat in 2026, while stronger Brazil volumes and the gradual ramp-up of high-quality exports from West Africa should support ton mile growth over the coming years.

Coal trade contracted 5.6% during 2025 and is projected to decline another 2.5% in 2026. Volume experienced a strong recovery in the second half but stayed below 2024 levels. Strongly renewable expansion in China should continue to pressure demand domestic production in China and India is outpacing consumption growth and stockpiles remain high. Indonesian coal exports are expected to decline further in 2026 following announced production cuts of up to 25%, which could tighten volume but potentially support on miles through longer haul flow.

Furthermore, India's new thermal energy capacity growing demand from Southeast Asia and global focus on energy security should provide support for coal trade over the next years. [indiscernible] grew 2.9% in 2025 and is projected to serve 7.8% in 2026. Second half 2025 volumes jumped 10% and led by robust exports from Brazil, Argentina and Australia, plus better-than-expected U.S. shipments. Black Sea exports remain subdued, but should gradually recover over the next 2 years. More important, China resumption of U.S. soybean purchases under the trade cut will carry into 2026, boosting [indiscernible] mid-size buffers. China has committed 20 million tons by the end of the current season and around 25 million tons annually to 2028.

Mobile trade grew 5.2% in 2025 and is projected to expand by 2.1% in 2026. Minor bulks carried the highest correlation with global GDP and continue to benefit from healthy macro outlooks across major economies. That said, growth should moderate somewhat next year due to rising protectionism and a slowdown in growth of West African bauxite volumes after last year's 33% service.

As a final comment, we remain optimistic about the market outlook underpinned by a favorable supply backdrop, tightening environmental regulations and easing trade tensions. In a period of heightened geopolitical uncertainty, we remain focused on actively monitoring our diverse proved fleet to capitalize on market opportunities and deliver value to our shareholders. Without taking any more of your time, I will now pass the floor over to the operator to answer any questions you may have.

[Operator Instructions]. And our first question will come from Chris Robertson with Deutsche Bank.

My question is just related to the underlying demand and turmoil expansion that's happening in the iron ore market with Brazil and West Africa. Are there any other dry bulk commodities that have a similar dynamic where, let's say, underlying demand for the commodity remains flattish or maybe even slightly weaker, but time while demand has held stable or expands because of the geographical dispersion of where the commodities are coming from? Any commentary around that would be helpful.

Chris. So besides bauxite and iron ore, we see a very strong trade on grains, which are going to be increasing by about 7.5% to 8%. And as most of them are coming from Brazil, we will get some extra ton miles from there. We also see demand from West Africa on smaller vessels. And that is going to create congestion as well because of construction projects that they got and I think this is going to be positive as well.

Now minor bulk coal, if Indonesia actually goes ahead with cutting down 25% of their exports, this might also increase ton miles as imports may have to come from further away. So we think that overall, there is other possibilities as well. But the bauxite and the iron ore trade are actually going to be big pluses.

Yes, it makes sense. Just kind of following up on the potential for a greater congestion in West Africa. Are they -- are any of the projects or whether it's rail or trucking or the ports themselves, et cetera, are there any projects right now to build out that infrastructure a bit more to make the supply chain more efficient? Kind of what's going on there that may lead to congestion maybe going up in the short term but being alleviated in the long run as potentially infrastructure is more built out?

Well, I don't know details about that. What I know is that cause Ultramax calls in West Africa have increased by about 30% during the past year. Now if our analyst knows anything about the projects, he can --

I would add that it's exactly what you said, Chris, we expect that we will have in the short term an increase in congestion and over the next few years as the infrastructure is upgraded, this will gradually go down, but this is not something that will take this in 1, 2 years.

[Operator Instructions]. We'll go next to Omar Nokta with Clarksons Platou.

I just wanted to ask maybe just about the capital return policy. Just a bit more detail on that. Clearly, the move back to 100% payout or maybe somewhat similar to how it was prior to the focus on the buybacks last year. the decision, I guess, to boost the dividend payout, that come about simply just given the strong share performance we've seen here recently? Or is there more to it?

Omar, it's Hamish Norton. The basically, the better the share does the stronger the incentive to pay a dividend as opposed to a share repurchase -- and so there's nothing really more to it than that.

And then just a follow up into that is as we think about free cash flow, is earnings a good representation of that to approximate what free cash flow looks like? I know quarter-to-quarter, there's going to be changes. But is the earnings is a good way to look at it, do you think it understates our cash flow? Or any color you can to that?

It's not terrible, but you have to look at the difference between depreciation and debt repayment and change in working content.

So if I may add. Hi Omar, this is Christos. A few things. First of all, debt principal repayment is slightly higher than depreciation and therefore, the free cash flow is lower than net income. And also, as [indiscernible] said, it's the change in net working capital. So in the market that rises fast. You would expect the working capital change to be greater, thereby reducing the free cash flow whereas in the market that is reducing, the change in working capital will be positive and therefore, that is boosting the free cash flow available for dividends.

This now concludes our question-and-answer session. I would like to turn the floor back over to management for closing comments.

No closing comments, operator. Thank you very much.

Thank you. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day.

Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers Conference Call on the Third Quarter 2025 Financial Results. We have with us today Mr. Petros Pappas, Chief Executive Officer; Mr. Hamish Norton, President; Mr. Simos Spyrou and Mr. Christos Begleris, Co-Chief Financial Officers; Mr. Nicos Rescos, Chief Operating Officer; and Mrs. Charis Plakantonaki; and Mr. Constantinos Simantiras. [Operator Instructions]

I must advise you that this conference is being recorded today. We will now pass the floor over to your speakers, Mr. Spyrou. Please go ahead, sir.

Thank you, operator. I'm Christos Begleris, Co-Chief Financial Officer of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the third quarter of 2025. Before we begin, I kindly ask you to take a moment to read the safe harbor statement on Slide #2 of our presentation.

In today's presentation, we will go through our third quarter company highlights, financial results, actions taken to create value for our shareholders, cash evolution during the quarter, vessel operations, our investments in our fleet, the latest on the regulatory front and our views on industry fundamentals before opening up for questions.

Let us now turn to Slide #3 of the presentation for a summary of our third quarter 2025 highlights. The company reported the following: Net income amounted to $18.5 million with adjusted net income of $32.4 million or $0.16 adjusted income per share. Adjusted EBITDA was $87 million for the quarter.

During the third quarter, we repurchased 250,000 shares for a total of $4.4 million, while from the beginning of the fourth quarter until today, we have bought back 360,000 shares for $6.7 million. Our Board of Directors decided to continue prioritizing returns to shareholders given the company's strong position, declaring a dividend per share of $0.11 for the quarter payable on or December 18, 2025.

Our total cash today stands at $454 million. Meanwhile, our total debt stands at $1.028 billion. Through undrawn revolver facilities, we have additional liquidity of $115 million, resulting to pro forma liquidity of more than $570 million. We have approximately $91 million remaining from our recently renewed share repurchase program.

Finally, we currently have 15 debt-free vessels with an aggregate market value of $336 million. On the top right of the page, you will see our daily figures per vessel for the quarter. Our time charter equivalent rate was $16,634 per vessel per day. Our combined daily OpEx and net cash general and administrative expenses per vessel per day amounted to $6,421.

Therefore, our TCE less OpEx and cash G&A is approximately $10,213 per vessel per day. Slide 4 provides an overview of the company's capital allocation policy over the last 3 years and the various levers we have used to strengthen the company, increase the increasing value of our shares and return capital to our shareholders.

In total, since 2021, we have taken actions totaling $2.8 billion in dividends, share buybacks and debt repayment to create value for our shareholders. At the same time, Star Bulk has been growing the platform at opportune times through consecutive fleet buyouts by issuing shares at or above net asset value.

On the top right-hand corner, we illustrate how the company has used both dividends and buybacks over time to return capital. We have returned in total $13.2 per share in dividends since 2021. This corresponds to approximately 70% of our current share price.

On the bottom of the page, we saw our net debt evolution. Since 2021, our average net debt has reduced by 50%, reaching a level where it is covered by the fleet scrap value at a comfortable level. Slide 5 graphically illustrates the changes in the company's cash balance during the third quarter.

We started the quarter with $431 million in cash. We generated positive cash flow from operating activities of $92 million after including vessel sale proceeds, debt proceeds and repayments, CapEx payments for energy-saving devices and ballast water treatment systems, share buybacks and the dividend payment for the second quarter, we arrived at a cash balance of $457 million at the end of the quarter.

I will now pass the floor to our COO, Nicos Rescos, for an update on our operational performance and the investment we continue to make on our fleet.

Thank you, Christos. Please turn to Slide 6, where we provide an operational update. Operating expenses for Q3 2025 stand at $5,096 per vessel per day. Net cash G&A expenses were $1,325 per vessel per day for the same period. In addition, we continue to rate at the top amongst our listed peers in terms of RightShip Safety Score.

Slide 7 provides a fleet update and some guidance around our future dry dock and the relevant total off-hire days. During October, we entered into 3 prompt recent renovation agreements with Hengli Shipbuilding for three 82,000 deadweight scrubber-fitted Kamsarmax newbuildings scheduled for delivery in Q3 2026. Our 5 Kamsarmax newbuildings under construction at Qingdao Shipyard are expected to be delivered during Q3 and Q4 2026.

We have secured $130 million in debt on the five Qingdao newbuilding Kamsarmax vessels, plus another $74 million expected against the three Hengli Kamsarmax vessels. As of Q3, we have completed 51 EST installations with 4 vessels completed during the quarter and with 9 remaining and planned for 2025.

On the top right of the page, we have our CapEx schedule, illustrating our newbuilding CapEx and vessel energy efficiency upgrade expenses. On the bottom of the page, we provide our expected [ dry ] expense schedule, which for the remaining of 2025 and '26 is estimated at $20 million and $47 million, respectively.

In total, we expect to have approximately 580 and 1,140 off-hire days for the same period. Please turn to Slide 8 for an update on our fleet. On the vessel sales front, we continue disposing non-Eco vessels opportunistically, reducing our average fleet age and improving our overall fleet efficiency.

We'll continue to optimize our fleet through selected disposals and acquisitions. During Q3, we sold and delivered 6 Kamsarmax and Supramax vessels, collecting total proceeds of $75.5 million with another 2 Supramaxes, Star Runner and Star Sandpiper delivered in October, generating around $25 million in proceeds.

We maintain 8 long-term chartering contracts, which provide flexibility and leverage across market cycles. Considering the aforementioned changes in our fleet mix, we operate one of the largest dry bulk fleets amongst U.S. and European listed peers with 145 vessels on a fully delivered basis and an average age of 11.9 years.

I will now pass the floor to our CSO, Charis Plakantonaki, for an update on recent global environmental regulation developments.

Thank you, Nicos. Please turn to Slide 9, where we highlight the key milestones on the ESG front. For the seventh consecutive year, Star Bulk has published its annual environmental, social and governance report, which provides a comprehensive overview of the company's sustainability strategy, performance and future goals.

Through transparent and data-driven reporting, the publication highlights measurable progress towards long-term ESG objectives, supported by detailed action plans and sustainability-focused key performance indicators. The report has been developed in accordance to the global reporting initiative standards, the Sustainability Accounting Standards Board for Marine Transportation and aligns with the United Nations Sustainable Development Goals.

In October 2025, during the latest IMO by the Environment Protection Committee, the IMO member states decided to postpone the adoption of the Net-Zero Framework for 1 year. The framework had been previously approved during the April MEPC.

Despite the developments around global regulations, the company's decarbonization strategy remains focused on fleet renewal, energy efficiency and research and development on green technologies. We also continue to contribute to the work of the Maritime emission reduction center together with our partners and have participated for 1 more year in the carbon disclosure project on climate change and water security.

On the technology front, we have commenced assessing the application of artificial intelligence across the company, having completed the diagnostic, identified and prioritized use cases and selected the first ones to be developed.

We also continue our technology upgrades on board our vessels, including fiber installations and Starlink deployment. As part of our enhanced corporate responsibility program, during Q3 2025, we delivered anti-harassment training to all employees across company offices in line with regulatory requirements. I will now pass the floor to our Head of Market Analysis, Constantinos Simantiras, for a market update and closing remarks.

Thank you, Charis. Please turn to Slide 10 for a brief update of supply. During the first 10 months of 2025, a total of 31.2 million deadweight was delivered and 3.9 million deadweight was sent for demolition for a net fleet growth of 2.6% year-to-date and 2.9% year-over-year. The newbuilding order book remains modest at 10.9% of the existing fleet as contracting activity has been soft during 2025, falling to a 5-year low of 22.1 million deadweight year-to-date.

Limited shipyard capacity availability up to late 2027, high shipbuilding costs and uncertainty over future green production have kept new orders under control. Furthermore, the IMO's decision to postpone the adoption of the Net-Zero framework for 1 year is likely to extend this ordering caution well into 2026.

At the same time, the fleet is aging. And by the end of 2027, roughly 50% of the existing fleet will be over 15 years old. Moreover, the increasing number of vessels undergoing their third special survey is estimated to reduce effective capacity by approximately 0.5% per annum during 2026 and 2027.

Average steaming speeds have picked up slightly in recent months, supported by firmer freight rates and lower bunker prices, but remain close to historical lows. Furthermore, environmental regulations become stricter every year and are expected to continue to incentivize slow steaming and moderate effective supply.

Finally, global port congestion eased during Q3 and has returned to long-term averages. For the remainder of 2025 and 2026, congestion is expected to follow seasonal trends and to have a relatively neutral impact on effective supply growth.

Let us now turn to Slide 11 for a brief update of demand. According to Clarksons, total dry bulk trade during 2025 is projected to expand by 1.4% in ton miles. Total dry bulk trade volumes underperformed during the first half, but experienced a strong recovery during the third quarter.

Trade volumes increased by 5.1% year-over-year during Q3, supported by strong iron ore, grain and minor bulk exports and a recovery of coal volumes. Ton-miles have received extra support from stronger Atlantic exports, longer Pacific trade distances and war-related inefficiencies.

The recent ceasefire agreement in the Middle East has intensified the discussion for the return of Red Sea crossings, and we should expect a gradual normalization during 2026. Chinese dry bulk imports recovered and increased 4.4% year-over-year during the third quarter after having contracted by 4.2% during the first half.

Imports to the rest of the world increased 4.6% year-over-year to a new record high and remain on a strong upward trend over the past 2 years as lower commodity prices and a weaker U.S. dollar helped stimulate demand for raw materials. During 2026, dry bulk demand is projected to increase by 2.1% in ton miles.

The IMF forecast for global GDP growth stands at 3.1%, slightly below 2025 levels, while Chinese GDP is projected to slow down to 4.2% from 4.8% this year. U.S. agreements with trade partners and the 1-year truth with China should help reduce uncertainty and support trade activity over the next year.

Iron ore trade is expected to expand by 0.8% in 2025 and by 2.8% in 2026. During the first 3 quarters, Chinese steel production declined by 2.5% year-over-year, driven by output cuts that began in May with a target to reduce overcapacity, while output in the rest of the world increased by 0.5% year-over-year.

China's property sector remains under pressure, but record high steel exports have helped mitigate the weakness in domestic consumption. Iron ore imports increased to all-time highs during Q3, assisted by lower domestic production in the first half and seasonal restocking.

As of 2026, ton miles are expected to benefit from new high-quality iron ore mines in Guinea that should gradually replace lower quality Chinese production and imports from shorter distances. Coal trade is expected to contract by 6.2% in 2025 and by 1.1% in 2026.

Volumes experienced a strong recovery during Q3 after a strong pullback during the first half of 2025 due to weaker demand in China and India. Chinese coal fundamentals have recently improved as domestic output is contracting, thermal electricity generation has recovered and domestic coal prices are moving higher due to the expectations of a colder winter.

India new thermal energy capacity, strong demand from Southeast Asian economies and global focus on energy security are expected to support coal trade over the coming years. Grain trade is expected to expand by 2% during 2025 and by 5.3% in 2026.

During the third quarter, total grain volumes surged by 11% year-over-year, driven by record harvest in Brazil and the U.S. and strong exports from Argentina following the temporary export tax suspension. Grain exports from other sources have recently increased but Black Sea volumes remain weak due to war-related disruptions.

It is worth highlighting that China had not purchased any soybean cargoes before the October trade through. Since then, buying activity has resumed and is expected to intensify over the coming months as China agreed to buy 12 million tons in 2025 and 25 million tons per annum through 2028.

Minor bulk trade is expected to expand by 5% during 2025 and by 2.1% in 2026. Minor bulk trade has the highest correlation with global GDP growth and continues to benefit from healthy outlooks across major economies.

Wide price differentials continue to fuel Chinese steel exports and backhaul trades despite rising protectionist measures. Furthermore, bauxite exports from West Africa continued their strong performance and helped inflate ton miles for the Capesize fleet.

As a final comment, despite geopolitical uncertainties, we remain optimistic about the medium- to long-term outlook for the dry bulk market, supported by a favorable supply outlook, stricter environmental regulations and easing trade sanctions.

We remain focused on actively managing our diverse scrubber-fitted fleet to capitalize on market opportunities and deliver value to our shareholders. Without taking any more of your time, I will now pass the floor over to the operator to answer any questions we may have.

[Operator Instructions] Our first question comes from Chris Robertson with Deutsche Bank.

Assuming you guys can hear me. So my first question is looking at the new financings, you secured up to $204 million on the 8 newbuilding assets being delivered in 2026. So taking these financings into account and then the regularly scheduled amortization or planned repayments during the year, what is your expectation around the total net change in debt in 2026 as a whole?

Just a clarification, please. We have secured financing for the first 5, that's $130 million. And we are in discussions about the financing of the last 3 that we have confirmed this month. So the final numbers and figures for those vessels will be actually disclosed during the next disclosure of March.

Okay. Got it. I guess just related then to planned amortization during 2026. Could you comment around that?

Our amortization will remain around the $50 million mark per quarter. What is happening is that some older facilities are getting refinanced. And then the new facilities for the new buildings have an amortization profile of 17 years, has not impacting in any major way the amortization profile of Star Bulk. So our amortization profile will remain around $50 million to $52 million per quarter for 2026.

That's helpful. As a follow-up to that, just as it relates to the dividend policy on the minimum cash balance per owned vessel, is that being calculated based on the pro forma size of the fleet after the newbuild deliveries? Or should we think about that as an average number per quarter as the deliveries are taking? Or is it being calculated right now at pro forma?

Okay. So our dividend policy is perhaps slightly confusing. But the -- were you referring to the $2.1 million per ship that we have to keep on our balance sheet before we want to pay a dividend?

Yes, Hamish.

Okay. Well, so basically, there has been no change to that. And we're so far above that level in terms of our cash balance that we -- it's not been an obstacle to any dividend payments in the last 2 years. I mean we have something on the order of $450 million of cash. And we have 142 vessels growing by the number of newbuildings.

To Chris' question, though, I mean, the amount of CapEx -- equity CapEx required for the new buildings have already been covered by proceeds of past vessel sales. So essentially, funds that we have been using from operation to pay dividends are not impacted from these they have already generated process.

I think I understand the question. I think I was misunderstanding the question. We don't have to allocate cash to specific accounts. We just take the number of vessels and multiply by 2.1. And that our aggregate cash has to be greater than that.

Right. My question was related on the number of vessels specifically, Hamish, the 2.1x the certain number. Now is that number being -- is that number pro forma the newbuild deliveries? Or like in 4Q, for example, is that as the fleet stands today? Or are you already taking into account the number of newbuildings?

I mean it's as the fleet stands today, but we're so far above that level that it's not impacting our ability to pay dividends. It's not even closed.

Right, right. Okay. All right. Last question for me, just turning to rates. Looking at the strong rate performance right now in the sub-cape segment, do you attribute that to a waterfall impact from the stronger Capesize rates? Or is that a function of just stronger demand fundamentals in the sub-cape segment?

Well, first of all, I think there is a spillover effect from the bigger vessels. But let's not forget that grain trade improved by 11% during Q3 and that coal did very well as well during the third quarter. So that helped a lot the Kamsarmax vessels. And on the Supramax vessels, minor trade was doing well as well.

And I think also perhaps there was an urgency in ordering more cargoes whilst we didn't know whether there was going to be major tariffs, and that also helped out.

[Operator Instructions] Our next question comes from Omar Nokta with Jefferies.

Just wanted to ask maybe just a follow-up to the new buildings. And I guess maybe in general about fleet composition. You've acquired these 3 Kamsarmaxes that will deliver next year. You've got the other 5 Kamsarmax newbuildings. And if I recall, you got chartered in maybe long term last year, was it 5 other Kamsarmaxes.

So you've been very active on the Kamsarmax front, at least with respect to, say, bringing in new buildings there. And just wanted maybe to kind of get a refresh as to what's behind that? What is it maybe specifically about that class that keeps you coming back to it, say, versus the Ultras/capes?

Omar, first of all, we ordered Kamsarmaxes because our existing Kamsarmax fleet is getting older. So we need to do some renewal on that level. Second, we actually -- our S&P department managed to get very early deliveries during 2026, which we expect to be a good year. The prices were low. The vessels had scrubbers, so they're eco vessels. So we're happy with how they are doing, how they will be doing.

Then think about this. Kamsarmaxes at $35 million equals $70 million, which basically is the cost of the Capesize. It's difficult to find Capesize vessels to order for anywhere close to 2025. I mean, I think that if we were going to order, it would probably be end '27 or '28.

So who knows what will happen in 3 years from now. But if you calculate that Kamsarmaxes may, let's say, 2 Kamsarmaxes will do $16,500 per day, meaning $33,000 per day for 2 vessels minus $10,000 for the OpEx. That actually ends up at $23,000. So we get EBITDA of $23,000 on the 2 vessels, which actually would equal a charter rate equivalent of $29,000 for a Cape.

Therefore, as long as we cannot order Capes and we found the opportunity to order Kamsarmaxes delivering very early comparatively. And as we think that the investment will bring the same results with the Cape, we went ahead and bought Kamsars.

Okay. That's actually very, very interesting and clear the methodology there. I guess as you kind of think about that because I know in the past, and I know, Hamish, we've talked about this, post the Eagle transaction, you've been a bit maybe bottom heavy in terms of the Ultra Supras and hoping to maybe naturally get into Capes to kind of even things out.

What do you think you can do there then? Obviously, Petros, you just mentioned the arbitrage perhaps of acquiring Kamsars versus Capes. But is there a means to maybe bolster the cape presence? Is it -- it seems like, obviously, you said new buildings are far off. How about the sale and purchase market?

Well, the Supras actually, there's an equivalent calculation for the Supras as well. But there also, we have engaged in a trade, which we call the pendulum trade we return -- especially the Supras, you can return to the Atlantic with steel cargoes and other cargoes, which is not as easy for the Kamsarmaxes.

And then -- and you can do that at low teens right now. But then on the front haul, you can do $23,000 to $25,000. And therefore, if you add the 2 and divide by 2, you get an average of around $17,000, which makes Supras Ultras equivalent to Kamsarmaxes. And therefore, according to the calculation I gave you earlier, equivalent to Capes.

And actually, Supras are cheaper. Supra newbuildings are cheaper than Kamsarmaxes.

And I think he also wanted to know what we could do around Capes.

Okay. Around Capes. Right now, everybody keeps the Capes close to his chest and they are expensive and everybody whoever sells Capes likes to sell the worst performers that they have. And therefore, to find an opportunity is not as easy or you have to pay a very high price and not for new buildings, for secondhand.

I mean there are cases where secondhand vessels are -- prices are equal to those of new buildings. When we took over Eagle Bulk, we had a big number of Supras under our ownership. So during the last 1.5 years or 2 years, we have disposed of about 28 Supras.

And therefore, we're bringing the balance of Capes, Kamsars, and Supras more on an equal foot basis sorry, -- and we're keeping basically our Ultramaxes. We have sold the Supras, which are older, not eco, and we're keeping the better vessels.

Yes. No, certainly. Well, very detailed response as usual, Petros, but obviously very logical. So very helpful to understand that. And it looks like the value really is perhaps now even though the outlook may be more exciting as we think about it just sort of conceptually, the outlook may be more exciting for Capes. If you have them great, but if you want to deploy capital, it sounds like the sub-capes where it's at.

We have reached the end of the question-and-answer session. I'd now like to turn the call back over to Mr. Pappas for closing comments.

No further comments, operator. Thank you very much for listening in, and good night.

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