Heidmar Maritime Holdings Corp.

Thank you for standing by, ladies and gentlemen, and welcome to the Hidemore Conference Call on the First Quarter 2026 Financial Results. We have with us Mr. Pankaj Khanna, Chief Executive Officer. At this time, all participants are in a 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 call is being recorded today. Please be reminded that the company announced their results with a press release that has been distributed publicly. Before passing the floor to Mr. Khanna, I would like to remind everyone that in today's conference call, Hydemar 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 that may result in such expectations not being realized. And now I would like to turn the floor over to Mr. Khanna. Please go ahead.

Mr. Thanks, operator. Good day to everyone, and welcome to the first quarter earnings call for Hydemar Maritime. Hydemar delivered a strong first quarter of 2026 marked by meaningful financial progress, accelerating fleet growth, and a sharpened strategic focus on value creation for our stakeholders. The results we are reporting today reflect the power of our asset-light, commercially-driven model, one that enables us to scale rapidly in environments where tanker markets reward operational agility and market intelligence. Heitmar's business model is based on commercial management rather than vessel ownership. We earn fee-based revenues by operating tankers in pools or on commercial management and managing vessels on behalf of ship owners. Because we grow our fleet without deploying capital into physical assets, our earnings scale with volume and market conditions, not with the balance sheet, keeping us agile to add vessels quickly, respond to dislocations, and return capital to shareholders rather than service-heavy debt. Turning to the results. For the three-month period ended March 31, 2026, Heidemar realized consolidated net income of $2.8 million or $0.05 per share basic. A sharp turnaround from a net loss of $6 million or $0.10 per share in the corresponding period of 2025. Included in net income is the non-cash stock-based compensation of $0.6 million, representing the amortization of the shared awards granted to key employees and members of the Board of Directors under the Heidemar Equity Incentive Plan. This charge is included within G&A expenses. Excluding this non-cash item, Heidemar relies adjusted net income of $3.4 million on or $0.06 per share, compared to adjusted net income of $0.9 million in Q1 2025. This demonstrates a compelling improvement in the underlying earnings capacity of the platform. Total figures for the quarter were $18.4 million compared to $5.8 million in Q1 2025, an increase of $12.6 million or more than 216% year-on-year. This growth was driven by record freight rates and a sharp increase in vessels employed on short-term spot and time charter voyages, eight in Q1 2026 versus just one a year earlier. The quota included the contribution of the platform supply vessel, Ace Supplier, which commenced charter operations in April 2025. G&A expenses decreased to $3.6 million from $6.1 million in Q1 2025, a reduction of $2.5 million. This improvement reflects the significantly lower amortization of stock-based compensation in the current period, following the elevated charges recognized in 2025 related to equity awards granted to management. As we move through 2026, we expect G&A to remain well-controlled relative to our growing revenue base. Turning to the balance sheet, as of March 31, 2026, cash and cash equivalents stood at $27.6 million, up $8.6 million from the $18.6 million at December 31, 2025. Total assets were $76.1 million and total stockholders' equities strengthened to $14.2 million from $10.7 million at year-end, reflecting the profitable quarter and the positive momentum building in our financial position. Net cash provided by operating activities from continuing operations was $6.6 million for the quarter, more than double the $3.1 million generated in Q1 2025. This reflects the strong improvement in underlying earnings and confirms that the business is converting revenue growth into real cash generation. Turning to the market, the tanker market environment during the first quarter of 2026 was among the most constructive we have seen in recent years. Freight rates were already very strong in January and February and rose to 1%. historically record levels, underpinned by heightened geopolitical tensions and sustained disruption across critical shipping lanes. Most notably, increased volatility in and around the States of Hormuz and the broader Gulf region. These dynamics triggered significant rerouting of crude and product cargoes, extending void distances, tightening effective vessel supply, and amplifying ton-mile demand across the tanker complex. The structural implications we are observing in global energy trade flows are not truncated. They reflect a fundamental reshaping of the supply chain architecture for crude oil and refined products, one that benefits well-positioned operators and commercial managers such as Heidemar. Notably, the rise in oil prices has remained modest. even though the Strait of Hormuz has now been closed for almost three months, removing an estimated 10% to 15% of world supply, net of pipeline volumes bypassing the Strait. That restraint reflects a massive release of stocks across the OECD and China. Inventories now sit at record lows and will have to be rebuilt to provide a buffer against the next Middle East conflict. We expect this crisis to drive two lasting changes. diversification of crude supply and the build-out of emergency storage. Japan today depends on the Middle East for roughly 90% of its crude imports, South Korea 70% and China and India around 55%, concentrations that are no longer tenable. As these buyers turn to the Atlantic Basin, voyage distances lengthen and ton-mile demand rises. Beyond higher prices, many countries now face outright fuel shortages. LPG in India, gasoline and diesel across parts of Asia and Africa. This has underscored the need for emergency reserves and we expect governments to build crude and product stocks to guard against the next disruption. Both trends act to tanker demand in the near term. Even when a peace accord is signed and it's reopened, we expect rates to firm further with few ships positioned in the region. The hardest-hit buyers in Asia and elsewhere will move quickly to restock, and we estimate three to six months for flows to normalize. By then, the winter season will lift oil demand and phase rates seasonally. In short, we expect strong rates to persist for the next 12 months and beyond. We continue to execute on our growth plans, scaling the platform during the quarter. Heidemar added eight vessels across key tanker segments, two VLCCs, three Suez Maxes, and three MRs during Q1, and continue to add in Q2. These additions expand our reach across the crude and broad tanker market, and our pipeline remains active with further additions expected through this year and next. What sets Heidemar apart from the traditional shipping companies is fundamental. We do not own ships. While adding operators can depreciation, dry docking cycles, financing costs, and capital lockup, Hydemar focuses solely on commercial performance. With over 40 years of heritage as the original commercial management brand in the tanker sector, we have built unmatched relationships with chartreuse, oil majors, and trading houses across every major trading basin. Our E-Fleet watch platform The first digital transparency tool developed in shipping gives owners real-time visibility into their vessel's earnings and performance, a capability that no pure asset owner can replicate at scale. This combination of deep market knowledge, a trusted owner-partner network, and proprietary technology is what makes Hygma structurally different. The value of the HydeMark platform compounds as we grow. Each vessel we add to our commercially managed fleet increases our collective trading power, enabling better cargo coverage, tighter voyage optimization, and stronger negotiating leverage with counterparties. This network effect means that scale directly translates into better returns for every owner in the pool or on commercial management. Beyond commercial management revenues, the platform supports other services including technical management, sale and purchase advisory, investor opportunities, asset management, and fuel services, creating multiple touch points through which we deliver value to owners across the lifecycle of their assets. As we continue to grow, the platform becomes increasingly difficult to replicate and the comparative mode around our commercial model widens. Looking ahead, we remain constructive on the tanker market outlook. The fundamental drivers supporting elevated freight rates on both demand and supply remain firmly in place. We are confident in Hidema's trajectory and our ability to generate sustainable returns for our stakeholders as we scale into one of the leading commercial management platforms in the global tanker industry. I thank our stakeholders, employees, vessel owners, and charter partners for their continued trust, and we look forward to updating you on our progress. We will now take questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your hands up before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Tate Sullivan with Maxim. Please proceed with your question.