Pangaea Logistics Solutions Ltd.

Good morning. My name is Erica, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangea Logistics Solutions Second Quarter 2026 Results Conference Call. 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 800-925-9941 for domestic or 402-220-7000. 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 Q&A segment, please press star 1 on your phone. If your question has been answered, you may remove yourself from the queue at any time by pressing star 2. 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 Stephan Neely with Fallon Advisors, Please go ahead.

Thank you, operator, and welcome to the Pangea Logistics Solutions Second Quarter 2026 Results Conference Call. Leading the call with me today are CEO Mads Peterson and Chief Financial Officer Gianni Del Signore. 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. Thank you, Stefan, and welcome to those joining us on the call today. We generated strong results in both revenue and profitability during the second quarter.

Our financial performance was driven by strong execution across both our owned and charted increase, as well as balanced positioning of our assets to take advantage of stronger overall demand, especially in Asia. Robust markets contributed to a 50% increase in our TCE rates for the second quarter. Notably, our TCE rates averaged 10% above the prevailing market for the Panamax, Supermax, and Antisize indices. This premium reflects the benefits of our fleet positioning strategy, the value of our operating platform, long-standing customer relationships, and ability to manage a volatile market effectively. We generated significant operating leverage from the favorable market environment with second-year quarter adjusted EBITDA growing by nearly 20 million year-over-year to 35 million. Just as important, these results highlight the value of the business model Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Terminal and stevedore revenue grew 11% year-over-year to approximately $4 million. We continue to expect roughly $3 million of incremental EBITDA from these operations on a full-year basis. Specifically, this is recurring revenue business that deepens our integration into customer supply chains beyond ocean freight, and it pairs naturally with our supermax and handy-sized fleet. We also advanced our fleet renewal strategy. During the second quarter, we completed the previously announced sale of the 2006-built Bolshei Makka for 9.6 million. This follows the sale of the Bol Freedom late last year, also for 9.6 million, and together these transactions reflect a consistent approach of monetizing older tonnage at attractive values, avoiding the capital and oil fire associated with upcoming dry dockings, and steadily improving the efficiency and environmental profile of our feed. Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen the midsize and smaller classes where we are most active. Miner bought trades, which are central to our cargo book, likewise grew compared to the prior year. Encouragingly, this momentum continued into the third quarter. Our outlook for the balance of 2026 remained positive. At the market level, we expect moderate fleet growth to be broadly offset by comparable ton-mile demand, with the continued disruption and lengthening of trade routes, translating massive cargo volume growth into stronger ton-mile demand. Daniel Schildt, Daniel Schildt, Daniel Schildt, Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Thank you, Mads, and welcome to those joining us on the call today.