EuroDry Ltd.

Thank you for signing by, ladies and gentlemen, and welcome to the Eurodry Ltd. conference call on the second quarter 2026 financial results. We have with us today Mr. Tassos Aslidis, Chief Financial Officer, and Mr. Tina Atalioti, Finance Manager of the company. At this time, all participants are in listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, please press star 1 on your telephone keypad. and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed. Before passing the floor to Mr. Aslidis, I would like to remind everyone that in today's presentation and conference call, Eurodry will be making forward-looking statements. These statements are within the meaning of the federal securities laws. Matters discussed may be forward-looking statements which are based on current management expectations that involve risks and uncertainties and may result in such expectations not being realized. I kindly draw your attention to slide number two of the webcast presentation, which has the full forward-looking statement and the same statement that was also included in the press release. Please take a moment to go through the whole statement and read it. And now I would like to pass the floor to Mr. Aslidis. Please go ahead, sir.

Thank you. Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Ms. Athena Attaliati, our finance manager. The purpose of today's call is to discuss our financial results for the three and six-month periods ended June 13, 2026. For that, please turn to slide three of the presentation. Our financial highlights are shown here. For the second quarter of 2026, we reported total net revenues of 17.7 million and net income attributable to controlling shareholders of 6.59 million, or $2.32 per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was 6.95 million, for $2.44 per diluted share. Adjusted EBITDA for the quarter was 11.71 million. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA. As you know, we will go over our financial highlights in more detail later on the presentation. Since initiating our 10 million share purchase program in August 2022, We have re-purchased 358,130 shares of common stock in the open market for a total of 5.8 million. Our board re-approved the program recently and approves an extended annually and the most recent authorization is granted earlier this month and runs for another year. We will continue to execute the purchases in a disciplined, measured manner based on market conditions and other capital allocation priorities. We are also pleased to announce that on July 28th, 2026, we signed a terms to refinance the MV Ekaterini, one of our come-from-expressions, with a 19 million loan facility, higher by almost 8 million over the existing balance of the loan, further boosting our liquidity. This agreement is subject to customary closing documentation. Let's now move to slide four. In this slide, we outline our chartering and operational developments. In the second quarter, we continue to deploy our fleet with flexibility. Four of our vessels are currently operating on index link charters tied to the average Baltic supermax 10TC index. which provides direct exposure to market conditions while, as I mentioned, maintaining operational flexibility. Our remaining vessels are employed on fixed-rate time charters with most heavy durations of one to three months. The exception is our vessel MV Christos K, which is fixed on a longer-term charter to November 2026. Further shorter details are provided in the following slides. In the second quarter, we entered the two full freight agreements. On November 19th and on March 30th, we sold two 90-day CAMSERMAX 82-5TC average contracts for the third quarter of 2026, at 17,250 and 17,000 oil cans per day, respectively, each equivalent to one vessel. These contracts I mentioned are based on the Kamsa Mark 82-515 index, which covers these five major time charter routes and proves a good test on our market exposure. Similar contracts for the second quarter of 2036 were settled very close to the rate agreed in the FFA contract. The final point on this slide is that operationally we have no ideal period for the quarter commercial of high or dry torquings during the second quarter. Let's move to slide 5, which provides an overview of our fleet. Today, we operate a fleet of 11 vessels with total carrying capacity of approximately 766,000 deadweight tons. and an average age of around 13.8 years. In addition, we have four new buildings on order. Two ultramarine vessels are scheduled for delivery in the second and third quarters of 2027, each with capacity of 63,500,000 deadweight homes. We also have two cum-ceramics vessels on order, scheduled for delivery in the first and second quarters of 2028, each with a capacity of 52,000 deadweight tons. Upon delivery of these four vessels, our fleet will grow to 15 vessels with a total carrying capacity of approximately 1.06 million deadweight tons, including an ultramarx segment of eight vessels, a comsamarx segment of four vessels, all five of these vessels being eco-friendly ones, while continuing saving our three legacy Panamaxes, which are all free Japanese bills. Next, let's move to slide 6, where we show our flipped employment profile. Our current fixed rate coverage for the remainder of the year tends to be more than 25%, based on existing charter arrangements. This excludes our four vessels operating on indexed link charts. There's no more to slide A to review key market developments for the second quarter and initial trends to late July. Panama trades averaged $17,961 per day in the second quarter and have moderated slightly to $17,106 at the end of last week. On the time-shorter side, one-year time-shorter rates have also strengthened. have set the standard Panamax one-year sign charter rate at approximately $17,125 per day as of July 31. Notably, sign charter rates are now trading in line with spot market levels, reflecting continued confidence in the underlying market value. During the second quarter, the Baltic Dry Index and the Baltic Panamax Index recorded year-over-year increases of approximately 78% and 54% respectively, reflecting the strengthening of the dry bulk trade market compared to the second quarter of last year. Moving on to slide 9. Here we review the global macroeconomic backdrop and its implications for dry bulk shipping demand. According to IMF's July

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You may continue. Thank you, operator. Apologies to everybody for the interruption. I'm going to pick up my presentation. I believe we dropped the line on slide 9, so please... Here, we review the global macroeconomic backdrop and its implication for dry bulk shipping demands. According to IMF's July 2026 World Economic Outlook Update, global growth is projected to slow to 3% in 2026, before recovering to 3.4% in 2027, broadly unchanged cumulatively from April's forecast. The world is navigating several competing forces. On the one hand, we have elevated energy prices, continue to push inflation and interest rates higher, while AI-driven investment is supporting growth for countries integrated in the global technology value chain. Meanwhile, global disinflation has stalled, with inflation pushing the yield of the 10-year U.S. Treasuries to approximately 4.7%. The political developments, mainly the Iran conflict and the continuing Ukraine-Russia war, have led to increased and volatile energy prices and created inflationary pressures, which in turn might lead to higher interest rates. In the overall context, the U.S. economy has remained comparatively resilient. In its July 2026 economic hours I mentioned, The IMF maintains its U.S. growth forecast at 2.3% for 2026 and elevates its 2027 forecast upward to 2.2%. China is projected to grow 4.6% this year, supported by front-loaded public infrastructure investment and a surge in high-tech manufacturing and exports. The ASEAN 5 region is projected to grow to slow to 4.1% in 2026, down from 4.5% in 2025, before recovering to 4.3% in 2027, while China's growth was now expected to reach. As far as global trade goes, world trade volume growth is projected to slow from 5% in 2025 to 3.5% in 2026, before recovering to 4.3 in 2027. This moderation reflects the unwinding of earlier front-loading ahead of tariffs and the continuing impact of tariffs on trade. The recovery in 2027 reflects a gradual adjustment as these dynamics gradually normalize through trade diversion, rerouting, and the continued expansion of technology-related trade flows. Looking specifically at the dry bulk sector, Pluxions projects 1-mile growth at 3.8% in 2026 and 1.8% in 2027, reflecting continued expansion in global commodity trade despite a challenging macroeconomic backdrop. Let's now move to slide 10, as we can review the current state of the dry bulk order book. As of July 2026, the order book stands at 14.4% of the existing fleet. Although higher than the 7% order book level recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008 and around 24% in 2014. Turning to slide 11, we examine the supply fundamentals in a little more detailed fashion. The total dry bulk fleet on the top of the slide currently consists of around 1.1 billion deadweight tons and has grown 3.3% year on year. Looking at the age profile of the fleet, roughly 11.8% of the total fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations become more stringent. According to Clarkson's latest estimates, scheduled new building deliveries as a percent of the existing fleet are projected at 4.5% for both 2026 and 2027, and 6.9% for 2028 and beyond. To put it in context, in May, scheduled deliveries for 2028 and beyond were 5.5%. So additional orders placed are to be delivered after that year. Actual fleet growth, of course, is expected to be lower, slightly lower than these numbers. The slippage and demolition activity will offset a portion of the gross number of deliveries. Let's now turn to slide 12, where we share our perspective on where the market stands and what we are monitoring. The market has demonstrated a solid performance in 2026, with rates having recovered meaningfully. Supramax and Panamax time charter rates have recovered to levels last seen in March 2024. reflect sustained demand for tonnage driven by robust commodity flows, particularly iron ore, grain, and bauxite, which have supported healthy fleet utilization. Looking ahead to the second half of 2026, there are several demand-side fundamentals to watch. Iron ore exports from Australia and Brazil remain stable, while the Simandou project continues to ramp up production every year. Chinese import demand, despite broader economic headways, has remained resilient. Grain and minor bulk trades have proven more durable than might be expected, given Hong Kong geopolitical tensions in the mid-list, indicating underlying strength in agricultural commodity shipments. has stalled year-to-date due to software Chinese and Indian demand and Indonesian export limitation, although recent shifts in Qatar's energy infrastructure have created emerging support for coal from Japan and South Korea. A potential U.S.-Iran agreement could contribute to gradual normalization of vessel traffic in the Gulf, although always implementation risks remain. Such an agreement could improve overall market sentiment and reduce vessel repositioning inefficiencies. However, normalization of LNG trade flows could moderate coal demand as draft tonnage is released back into the market. On the supply side, ordering activity, as I think I mentioned earlier, has accelerated in recent months. The overall order book remains relatively modest by historical standards. Looking ahead to 2027, our analysis suggests a balanced but more uncertain market environment. Fleet is expected to continue growing at similar rates as in 2026, while demand growth, as we mentioned earlier, would depend on Chinese steel production, effects on coal trade and production, from a possible conclusion of the Iran war. The market outlook will also be influenced by several variables, including geopolitical developments, Red Sea routing dynamics, U.S.-China trade relations, the pace of the Simandou project execution and ramping up, vessel speeds and demolition activity. One should anticipate a more balanced market in 2027, though fundamental, should remain supportive relative to historical knowledge. Let's now turn to slide 13 for a quick review of our position on the dry bulk market cycle, as we have always found helpful to benchmark the present market against its historical context. Since July 31st, 2026, Anamax one-year time chart rates stood at $17,125 per day, meaningfully above the historical median of $13,450 per day. This strength, or similar strength, is also reflected in asset values. Values for a 10-year-old Panamax are currently priced at approximately $30.5 million, well above both with a historical median of 19.5 million and a 10-year average of about 19.2 million, and are currently near 10-year highs. In this environment, we have made a deliberate decision to pursue investments in new building vessels rather than acquire second-hand donuts at market peak levels. This strategic choice reflects our conviction in both current market fundamentals and our longer-term intended fleet positioning. While second-hand prices are elevated, we believe new buildings represent better value and offer superior operational efficiency, lower emission profiles, and reduced maintenance exposure, factors that we believe are increasingly important. Our fleet renewal program demonstrates a disciplined and measured approach to capital allocation. We have ordered four new buildings, two Ultras and two Kamsomad vessels, at reasonable prices, which target deliveries through 2028, which we believe will enhance our earnings power when the market conditions normalize, while simultaneously reduce our exposure to aging donuts and associated inefficiencies. I will now turn the call over to Athena, our finance manager, for a closer look at our second quarter financial performance.

Athena? Thank you very much, Tasso. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you an overview of our financial highlights for the second quarter and first half of 2026 and compare those results to the same period of last year. For that, let's turn to slide 15. For the second quarter of 2026, the company reported total net revenues of Thank you very much. The company reported a net income attributable to controlling shareholders of 6.6 million as compared to a net loss attributable to controlling shareholders of 3.1 million for the same period of 2025. Interest and other financing costs for the second quarter of 2026 decreased to 1.5 million compared to 1.7 million for the same period of 2025. Interest expense during the second quarter of 2026 was lower mainly due to the decreased benchmark rates of our loans and the decreased average debt during the second quarter of 2026 as compared to the same period of last year. Adjusted EBITDA for the second quarter of 2026 was $11.7 million compared to $1.9 million achieved during the second quarter of 2025, recording a larger than a five-fold increase over the same period of last year. Basic and diluted earnings per share attributable to controlling shareholders for the second quarter of 2026 was $2.36 and $2.32 respectively, calculated on approximately 2.8 million basic and diluted weighted average number of shares outstanding. compare to a basic and diluted loss per share attributable to controlling shareholders of $1.12 per share for the second quarter of 2025, calculated on approximately 2.7 million basic and diluted weighted average number of shares outstanding. Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted earnings attributable to controlling shareholders for the quarter ended June 30, 2026 would have been $2.49 and $2.44 per share basic and diluted. while for the second quarter of 2025 it would be 1.1 per share basic and diluted. Let's now look at corresponding six-month period ended June 30, 2026 and compare to the same period of 2025. For the first half of 2026, the company reported total net revenues of 30.5 million, representing a 49% increase over total net revenues of 20.5 million during the first half of 2025, which was the result of the higher time saturated hours vessels earned during the first half of 2026 compared to the same period of 2025. The company reported a net income attributable to controlling shareholders of 6.8 million less compared to a net loss attributable to controlling shareholders of 6.8 million for the first half of 2025. Interest and other financing costs for the first half of 2026 amounted to 3 million compared to 3.5 million for the same period of 2025. This decrease is mainly due to the decreased benchmark rates of our loans and the decreased average debt during the first half of 2026 as compared to the same period of last year. In the first half of 2025, the company signed an agreement to sell motor vessel passes for demolition for approximately $5 million. The vessel was delivered to its buyers in March 2025, resulting in a gain of $2.1 million. There were no vessel sales in the first half of 2026. Adjusted EBITDA for the first half of 2026 was $16.6 million compared to $0.85 million achieved during the first half of 2025, an 18-fold increase compared to the same period of 2025. Basic and diluted earnings per share attributable to controlling shareholders for the first half of 2026 was $2.45 and $2.41 respectively, calculated on approximately 2.8 million basic and diluted weighted average number of shares outstanding, compared to a loss per share of $2.47 calculated on approximately 2.7 million basic and diluted weighted average number of shares outstanding. Excluding the effect on the net income attributable to controlling shareholders for the first half of the year of the unrealized loss on derivatives, the adjusted earnings attributable to controlling shareholders for the six-month period ended June 30, 2026 would have been $2.61 and $2.57 per basic and diluted share, respectively. For the first half of 2025, excluding the effect on the loss attributable to controlling shareholders of the unrealized loss on derivatives and the net gain on sale of vessels, the adjusted net loss attributable to controlling shareholders would have been $3.17 per share, basic and diluted. Let's now move to slide 16 to review our flip performance for the second quarter of 2026 with a comparison to the same period of 2025. During the second quarter of 2026, both our commercial and operational utilization rates reached 100%. Compare with commercial utilization of 100% and operational utilization of 99.3% in the second quarter of 2025. On average, 11 vessels were owned and operated during the second quarter of 2026, earning an average time sector equivalent rate of $20,398 per day, compared to 12 vessels in the same period of 2025, earning on average $10,428 per day. This reflects a more than doubling of daily chapter rates on a per vessel basis year over year for the respective periods. Turn to operating costs. Total operating expenses, including management fees, G&A expenses, but excluding dry docking costs, were $7,444 per vessel per day during the second quarter of this year, compared to $7,539 per vessel per day for the second quarter of 2025, reflecting a slight decrease. If we move further down, we can see our daily cash flow breakeven rate, which takes into account the operating expenses, dry taking costs, interest expense, and scheduled loan repayments, but excludes balloon payments. This stood at $11,858 per vessel per day, compared to $12,222 per vessel per day for the second quarter of last year. Let's now turn to the right-hand side of the table and review the same metrics for the first six months of 2026 compared with the corresponding period of 2025. During the first six months of 2026, our commercial and operational utilization rates were 100% and 99.9% respectively, compared with 99.2% for both commercial and operational utilization during the first six months of 2025. On average, 11 vessels were owned and operated during the first half of 2026, earning an average time charter equivalent rate of $17,452 per day, compared to 12.4 vessels in the same period of 2025, earning on average $8,761 per day. Our operating expenses, including management fees and G&A expenses, averaged $7,462 per vessel per day in the first half of this year compared to $7,419 per vessel per day for the same period of last year. including interest expense, dry docking, and loan repayments without balloon repayments, the cash break-even rate amounted to $12,198 per vessel per day for the first six months of 2026 compared to $11,869 per vessel per day for the same period of 2025. Please turn to slide 17. This slide serves as a calculation tool which enables our shareholders and investors to assess the earnings potential in the remainder of 2026 in the current environment. The table shown in this slide has two components. The top chart refers to our fixed rate contract. Starting with our fixed rate contracts, Paveras is approximately 28% for the remainder of 2026. This is about 50% in the third quarter and about 6% in the fourth quarter of 2026. The table also shows the average contracted daily charter rate and the resulting EBITDA contribution for the contracted days. The second section of the table estimates the EBITDA contribution from our remaining open and index-linked rates. For this purpose, we use the current forward freight market rates for the SupraMax and Panamax-CamsorMax Baltic forward rates as of July 30, 2026. These forward market assumptions are then translated into an indicative blended earning rate for our open days, which you can see across the SupraMax, Panamax, and CancerMax forward rates. Based on these assumptions, and by further assuming a $7,500 per day per vessel OPEX and GNA cost, and the 5% commission rate, one can calculate the EBITDA contribution. The final result is additionally adjusted for our preliminary dry docking expenses expected during the year. This calculation results in an annualized EBITDA contribution of $38.4 million during 2026. Naturally, investors can adjust the forward freight rate assumptions to evaluate different market scenarios and their potential impact on the company's earnings. In the rest of 2026, we can also easily estimate our EBITDA dependence to the average rate earned by our open days. For example, a change of $1,000 per day in the average rate earned would result in a $1.4 million change in our 2026 EBITDA and have a $0.5 change on the earnings per share. Let's now move to slide 18, review our debt profile and cash flow break-even estimates. As of June 30, 2026, our outstanding debt stood at $98.1 million, with an average margin of about 1.99%. Assuming a three-month soft rate of 3.75% as of June 30, 2026, the only cost of our senior debt averages at 5.74%. The upper chart illustrates our debt amortization schedule. scheduled debt repayments total approximately $12.2 million during 2026, $21 million in 2027, $17 million in 2028, and $28.8 million in 2029, inclusive of balloon payments of approximately $1.2 million, $10.2 million, $6.7 million, and $19 million, respectively. We have routinely been able to refinance balloon payments in the past and we are confident that we would be able to do the same if we choose so in the future. Please note that although we have arranged the debt financing of our two ultra-maximum buildings, our current debt figure that I quoted includes only the portion of one of the two loans drawn to date, representing the pre-delivery payments made thus far. The 2027 and 2028 repayment figures include scheduled repayments under both new building loan facilities to finance our ultraman's new buildings, which are scheduled for delivery during the second and third quarter of 2027. Our debt figures do not include any debt that we withdraw to finance the concept of new buildings or the refinancing of motor vessel Caterini. Turning to the bottom of the slide, we present our cash flow break-even estimates for the next 12 months, broken down by major components. Our EBITDA breakeven level is at $8,458 per day, while our all-in cash flow breakeven incorporating operating expenses, dry docking costs, interest expense, and loan repayments is estimated at $12,872 per day. Let's move now to my final slide, slide 19. With you, some highlights from our balance sheet as of June 30, 2026. This slide offers a snapshot of our assets and liabilities and provides a concise picture of our financial position. and other assets stood at approximately $37.5 million. Advances for new buildings amounted to approximately $14.4 million and the book value of our vessels was approximately $160.2 million bringing our total assets to approximately $212.5 million. On the liability side, total debt stood at approximately 98.1 million, while other short-term liabilities amounted to 5 million, for combined liabilities of approximately 103.1 million, representing approximately 48.5% of total assets. After excluding the equity attributable to minority interests in the amount of $9.4 million, the shareholders' equity of common shareholders on a book value basis stood at approximately $100 million, or $34.92 per share. However, based on our internal estimates and external valuations, the market value of our fleet is meaningfully above its book value. We estimate the current market value of our vessels at approximately $240 million compared to a book value of approximately $160 million, implying an excess value of approximately $80 million. Adjusting for this difference yields an estimated net asset value in excess of $60.81 per share. When compared to the recent trading range of our shares, which has moved up to around $28 recently, it becomes evident that still there is a substantial discount to our estimated net asset value and, by extension, a significant upside potential for both shareholders and potential investors. With that, I will hand the call back to Tasos to continue.

Thank you very much, Antonia. We would like to open the floor now for questions, if there are any.

Thank you. First question comes from Tate Sullivan with Maxson Group. Please go ahead.

Hi, thank you. Good day. Thanks for having the update call. And just a couple for me. The first on the debt margin of 1.99%. I think that was your average margin in June. Do you think that will change going forward if you do decide to add any debt with your new bills? Or do you have more recent indications of a lower spread to SOFR?

Most likely, if it changes, it will go down. I think we are getting quotes from our banks well below 2%, closer to 1.5% lately. And I think, in fact, the latest loan that we financed with it was much closer to 1.5%. So the average, if anything, will come down. We hope.

Okay, thank you. We might say, but I think that involves our vessel Alexandros, which its dry docking falls right on the turn of the fourth quarter.

So now we have the budget at 20-something, 22-23 days. Now we have 16 on Q4 and the remaining on Q1, 27. So, I mean, that changes based on operational planning.

I mean, it's impressive with the fleet renewal and adding the new builds. I mean, your off-hire days decreased from, I have 97 in 2025, now to, what, maybe 36 this year. In 2027, will probably the off-hire days increase a little bit, just based on timing? Or is that probably not necessarily the case?

I mean, that's why we make a distinction between commercial and operational of hire, of course. We have off-ride days due to the dry dockings, which we don't count in these figures, but we hope that we're going to keep to minimum the operational and commercial. Obviously, we have in 2027 an additional dry docking schedule. I think it's the vessel Starlight that's coming due for the dry dock and some in-water surveys, so there will be some off-ride days on the basis of the or the Dry Dockers and Rainwater Service.

Okay, thank you. And last for me, I noticed you put the word Indonesia in the market commentary slide and hearing from some other companies on more export restrictions or changes thereof from Indonesia. Do you think that's a more important consideration for your fleet going forward than anything going on in the Middle East in terms of exports?

I think by far... By far, not only for us, but for the whole market, anything going on in the Middle East is an overwhelming consideration because it has so many side effects, either in the form of direct effects on trade or on inefficiencies introduced in the various routes. Okay. Great. Thank you. Have a great rest of the day. Thank you, Dave. Thanks for the call, for the questions.

Thank you, ladies and gentlemen. As a reminder, should you have any questions, please press star 1. Next question from Mark Reichman with Noble Capital Markets. Please go ahead.

Thank you. I've got several questions here. The first is on the voyage expenses. So, during the quarter, voyage expenses had a positive impact of $1.5 million on your operating expenses. I understand that's related to the bunker fuel. But what would your expectations be for the maybe if you could just maybe provide a little more color on that number and maybe expectations for the second half of the year?

I mean, as you have insinuated, this number typically has to be a small negative number because our vessels are chartered on a time charter basis. The fuel costs are paid generally by the Charter, so a little bit of voyage expenses is left for us for certain situations. However, we deliver our vessels with fuel in their tanks, and we buy back fuel when the vessels are delivered to us. So in an environment with increasing oil prices, you tend to make money on the fuel, what you take back at the pre-agreed price. If the price has increased in between while the charter was being performed and you resell to the next charter, you call the gain. So during the second quarter, the oil price was increasing, and we benefited from that trend. Obviously, if the oil price is stable, you would expect that number to be near zero, I mean, the gains. If the oil price is dropping, you will probably have to give back some of those gains.

Okay. So just looking at the forward curve on crude oil, you might expect that maybe the second half you'll have a little bit of an expense or stay relatively flat. Is that a good way to think about it?

A small negative number is expected because of the nature of the charting we do. Thank you for your time.

And then the second question is just, you know, vessel operating expenses have remained well controlled despite inflation. So would you expect daily operating expenses to remain near current levels, or are there any cost pressures from, you know, labor, maintenance, or regulatory compliance?

I think we expect it to remain near our budget levels. I think we are doing well based on our budget. Slightly higher compared to last year, I think less than 3% overall. And we recently, comparing the results to our budget, we are just on budget, or maybe a little less. I have no reason to feel that the second half would result in higher operating expenses. You cannot exclude that possibility, but we have taken into account when we did our budget the new levels of all the costs and inflationary pressures.

Okay. And then just on the chartering strategy, several vessels roll off charter between August and November. while others remain index-linked. Are you inclined to lock in longer-term fixed rates or retain greater exposure to the spot market? I'm assuming kind of the latter, based on the commentary.

I think when we discussed in our last board meeting the chartering strategy, the support was to put a few more vessels on one-year charters, let's say, if certain levels in the high teens or if we can find and a few more of our vessels on longer-term charters. So that's the approach. If we are in the mid-teens and below, we try to be on the spot market. If we're approaching the high teens and beyond that, we try to secure some of our donuts on longer-term charters.

Anastasios Aslidis, Aristides Pittas, Symeon Pariaros, Stephania Karmiri Maybe it was a couple weeks ago, the management of a Cape Size vessel operator had made the comment that vessel supply, rather than demand, represented the critical driver of future market conditions. And they decided their historically low Cape Size order book, together with the aging fleet, is kind of an important structural support that might outweigh any economic or macroeconomic uncertainty. So you've got kind of a structural support there. Would you say the same is true for the vessel classes that you operate, or do you think you're a little more exposed to cyclical? Maybe just that discussion on kind of the cyclical versus structural in terms of the market outlook.

I mean, cyclicality comes both from demand and supply. For our sizes, the middle range of sizes, Ultramax and Comsromax, the order book is a little higher than the cape size order book, but the age profile of the segments is older. The average age is higher. So that counterbalances the lower order book, I guess, of the Cape size, in some sense. And if anything, if regulations become stricter, it would have more of an effect on an older vessel than on a newer one. So I believe that in our case, too, the order book is still a supporting factor. But it has been a supportive factor for the last three or four years. And the market did not do well in 2025, especially in late 2024. So demand was really the determining factor then. And I believe that's why we talk about the supply-demand balance. Both sides of the equation are equally important. I think demand during this year has improved for all the reasons that we discussed. and it was supported by a good supply story. We feel that that will continue in 2026 and we are hopeful that it will continue in 2027.

Well, that was a very concise answer. I really appreciate that. Very helpful.

Thank you, Finn, for your questions, Mark.

Thank you. That concludes today's Q&A session. I will turn the call back over to the CFO for any closing comments.

We would like to thank everybody for attending our call. We wish you have a nice remaining summer and look forward to welcome you to our November call. Thanks all.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and we ask that you please disconnect your lines.