Pangaea Logistics Solutions Ltd.

Good morning. My name is Chelsea and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangea Logistics Solutions second quarter 2023 earnings teleconference. Today's call is being recorded and will be available for replay beginning at 11 a.m. Eastern. The recording can be accessed by dialing 800-934-5153 domestic or 402- All lines are currently muted and after the prepared remarks, there will be a live question and answer session. If you would like to ask a question during the question and answer segment, please press star one on your telephone keypad. If your question has been answered, you may remove yourself from the queue at any time by pressing star two. We do ask that you please pick up your handset for optimal sound quality. It is now my pleasure to turn the floor over to Noel Ryan with Balaam Advisors. Sir?

Thank you, operator, and welcome to the Pangea Logistics Solutions second quarter 2023 results conference call. Leading the call with me today is CEO Mark Flanowski, Chief Financial Officer Gianni Del Signore, and COO Mads Pedersen. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. At the conclusion of our prepared remarks, we will open the line for questions. And with that, I would like to turn the call over to Mark.

Thank you, Noel, and welcome to those joining us today on the call. After the market closed yesterday, we issued a release detailing our second quarter results. During a period of continued softness in global dry bulk shipping markets where benchmark industry rates declined nearly 60% on a year-over-year basis, Pangea delivered an average TCE rate that was approximately 50% higher than our broader market indices. resulting in another consecutive quarter of profitability, once again proving the strength of our business plan. Our TCE earned was $15,558 per day for the three months ended June 30, 2023, compared to an average of $27,139 per day for the same period in 2022. Our long-term COAs, specialized fleet, and cargo-focused strategy helped us to significantly outperform index rates in a declining market environment. In the second quarter, excess dry bulk capacity created by easing port congestion and high voyage operating speeds muted the normal seasonal recovery that occurs in this period. Global trade and ton-mile demand remained buoyant. and markets in which we directly participate, including construction aggregates and cementitious materials, are especially active, where we participate in ocean freight, stevedoring, and terminal operations. Though we are experiencing a softer near-term market, the long-term supply and demand dynamics remain very favorable. New building vessel supply remains highly constrained, with lead time stretching into 2026. which we expect will keep fleet growth low for the foreseeable future. Secondhand asset values have recently softened a bit, but remain strong in this market as the demand for echo tonnage in the Ultramax segment has remained high. As such, we remain strategically focused on positioning our business to capitalize on the expected growth in global dry bulk volumes and favorable rate dynamics over the coming years. Through August 8th, market rates have continued to fall, averaging approximately $8,500 per day compared to $10,431 per day in the second quarter. For Pangea, the third quarter represents the peak of our Arctic trade season, with all 10 of our Ice Class 1A vessels fully committed through October at Ice Class premium rates. These ships remain a key value differentiator for us. We have made both financial and operating commitments to this important trade. During the quarter, our post-Panamax ice class ships, built by us in 2021, received the DNV class Silent Environmental Notation, the first dry bulk ships ever to receive this designation, helping ensure our ships make a minimal footprint in pristine environments like the Arctic Ocean. Along with our overall cargo focus strategy in key commodity trades, our efforts have allowed us to outperform the market by an average of 30% annually over the last five years, and we remain the top performer on the vessel index list of publicly listed dry bulk companies over that period. We project that our third quarter TCEs will significantly exceed the quarter-to-date indices. Through August 8th, we have booked 3,500 shipping days, returning $16,700 per day for the balance of the third quarter. While we remain focused on delivering above-market returns for our shareholders, capital allocations have also been a key priority for us. Over the last 12 months, our operating cash flow conversion has been over 80% of our adjusted EBITDA, providing for ample cash to de-risk our balance sheets invest in growth, and return capital to shareholders through a consistent dividend. We've grown our quarterly cash dividend to 10 cents per share, representing a total payout of $18 million annually, which we believe represents a sustainable commitment, regardless of current market conditions. In June, we took delivery of the 61,000 deadweight bulk prudence, which we purchased for cash. The acquisition expands our own fleet to 25 vessels and is congruent with our continued strategic focus on owning and operating a newer, more efficient fleet as well equipped to support client requirements on an on-demand basis. Also in June, we closed on the acquisition of Marine Port Terminal operations in Florida and Maryland in all cash transactions. This acquisition represents critical expansion of our North American terminal network to include the mid-Atlantic and southeastern United States, adding dry bulk distribution capabilities within growing commerce centers. In alignment with our cargo-centric strategy, we are already actively pursuing opportunities to leverage this footprint for growth with new and existing customers. We're now beginning to break out our port terminal operations business within our financials to increase transparency as we focus on growing this business in coming years. Looking ahead, we continue to anticipate Pangea will generate strong cash flow this year, positioning us to continue to reward our shareholders, de-risk our balance sheet, and invest in our commercial expansion. Strategically, our focus is the same as ever. We are confident in the long-term tailwinds that are setting up to support dry bulk economics, and we believe the most compelling value opportunity for our shareholders will come from sticking to our differentiated business plan, deepening our relationships with our customers, and optimally positioning our fleet to maximize asset values in a higher market rate environment. With that, I'll hand it over to Johnny for a discussion of our second quarter financial results.