Seanergy Maritime Holdings Corp.

Thank you for standing by, ladies and gentlemen, and welcome to the Synergy Maritime Holdings Corp Conference Call on the fourth quarter and year ended December 31st, 2024 financial results. We have with us Mr. Stamatis Santanis, Chairman and CEO, and Mr. Stavros Giftakis, Chief Financial Officer of Synergy Maritime Holding Corp. At this time, all participants are in a listen only mode. There'll be a presentation followed by a question and answer session, at which time, if you wish to like to ask a question, please press star 1 1 on your telephone keypad and you will then hear an automated message advising that your hand is raised. Please be advised that this conference call is being recorded today, Thursday, March the 6th, 2025. The archive webcast of the conference call will soon be made available on the Synergy Maritime website, .synergymaritime.com. To access today's presentation and listen to the archived audio file, visit the Synergy website following the webcast and presentation section under the investor relations page. Please now turn to slide 2 of the presentation. Many of the remarks today contain forward looking statements based on current expectations. Actual results may differ materially from the results projected from those forward looking statements. Additional information concerning factors that can cause the actual results to differ materially from those in the forward looking statements is contained in the fourth quarter and year ended December 31st, 2024 earnings release, which is available on the Synergy website again, .synergymaritime.com. I would now like to turn the conference over to one of your speakers today, the chairman and CEO of the company, Mr. Stamatis Santanis. Please go ahead,

sir. Thank you, operator, and welcome everyone. Today, we're pleased to present our financial results for the fourth quarter and full year 2024, along with key corporate updates. We will discuss our record profitability, strategic fleet expansion and capital return initiatives, as well as our outlook on the Cape size market and the factors positioning synergy for the long term success. We're pleased to report another strong and profitable quarter, marking our fourth consecutive year of profitability. Synergy's consistent financial performance underscores the strength of our Cape size focus strategy. Our effective hedging approach, once again, allowed us to outperform the Baltic Cape size index, BCI, and our diversified drive out peers, many of whom remain exposed to weaker performance of smaller vessel classes. 2024 was a record year for Synergy, with net income reaching $43.5 million, compared to just $2.3 million in 2023. It is important to note that our Q4 and full year results include one-off legal expenses related to our AGM and litigation, which had temporary impact to our bottom line. Stavros will provide further details on this later in the call. Our strategic focus remains on balancing capital returns, fleet growth and financial discipline, ensuring maximum shareholder value as we continue to operate in a fundamentally strong Cape size market. Reflecting on our solid Q4 performance, we have declared a cash quarterly dividend per share, bringing our total 2024 dividends to $0.76 per share, or $15.6 million in total distributions. Additionally, we repurchased 226,000 shares at an average price of $9.44 during Q4, reinforcing our commitment to shareholder value. As part of our capital allocation strategy, we continuously assess the balance between dividends and buybacks, and given the recent pressure on dry bulk equities, we acted decisively to maximize value for our shareholders. On the fleet expansion front, we recently took delivery of two high quality Japanese-built vessels, the May ship and the Blue ship. With this addition, our total fleet has grown to 21 vessels, representing a carrying capacity of 3.8 million deadweight tons, pure play Cape size and Newcastle Maxis. In 2024 and early 2025, we have invested $138 million in four premium vessels, further strengthening our fleet's cash flow generation potential. Given the positive Cape size fundamentals, we firmly believe that acquiring high quality vessels at attractive valuations enhances our ability to deliver strong returns throughout the cycle. Since the beginning of 2024, we have successfully completed $174 million in financing and refinancings, reinforcing our ability to support fleet expansion while maintaining financial flexibility. Stavros will provide additional insights into these transactions, but I would like to highlight that we ended the year with a fleet loaned value of 45% while expanding our fleet and delivering significant capital returns to our shareholders. The Cape size market remains well positioned to continue, strength underpinned by robust demand for iron ore, bauxite and coal, with trade volumes increasing in 2024, limited fleet expansion with net Cape size fleet growth at just .7% in 2024 and projected decline further to .4% in 2025. 2024 and 2025 represent the lowest Cape size delivery years since 2003, reinforcing a favorable supply-demand balance. Despite short-term volatility, we expect the market setup for 2025 and beyond to remain highly supportive. During Q4 2024, we generated revenues of $41.7 million, daily TCE times the equivalent rate of $23,200 a day, net income of $6.6 million. Slide 3, prioritizing shareholder returns. Tending to slide 3, our clear and disciplined capital return strategy continues to maximize value for shareholders through consistent dividends and strategic buybacks. Over the past three years, we have distributed more than $40 million in dividends, equating to $2.21 per share. When including share repurchases and convertible note buybacks, our total capital returns amount to $87 million, representing approximately 60% of our current equity market capitalization. This reflects our strong commitment to shareholder value, while at the same time allowing us to strategically expand our fleet in a capital-efficient manner. Our ability to simultaneously grow the fleet and reward shareholders with significant capital returns underscores Synergy's financial strength and confidence in the Cape size market's long-term fundamentals. As the market remains strong in the years ahead, we remain committed to maintaining a balanced approach to growth and shareholder distributions. Slide 4, commercial highlights and fleet updates. Moving to slide 4, Synergy once again delivered industry-leading time-shutter equivalent performance in both Q4 and full year 2024. Our Q4 daily TCE was $23,200, while the full year TCE reached $25,100 per day, outperforming the Baltic Cape size index by 27% and 11% respectively. This outperformance validates our strategic focus on the Cape size segment, setting us apart from other diversified dry bulk peers who remain exposed to smaller vessel classes with weaker returns. Even amid the weaker Q4 market, we maximized earnings by strategically locking in FFA-based fixed rates for a portion of our fleet days, ensuring greater revenue, stability and enhanced profitability. Looking ahead to 2025, we have already secured 22% of our operating days at an average gross rate exceeding $22,100 a day. For Q1 2025, we expect an indicative time-shutter equivalent of approximately $13,400 per day. Our focus remains on strategically fixing vessels at profitable rates, ensuring cash flow visibility and maximizing shareholder returns. Our fleet expansion continued in Q4 2024, reinforcing our position as a leading pure play Cape size operator. In October 2024, we took delivery of the 2012 built Kaizen ship, completing another year of targeted fleet expansion. Combined investment in Icon ship, delivered June 2024, and Kaizen ship totaled $69.3 million, representing an excellent value relative to their estimated market prices. Both vessels are on index linked charters with a premium over the BCI, providing strong cash flow visibility into 2025 and beyond. In addition, we exercised a highly attractive purchase option for the 2011 built Newcastle Max, the Titan ship, at $20.25 million. At year end 2024, Titan ship's market value exceeded $35 million, highlighting our ability to secure high quality assets at compelling prices. The vessel operates on an index linked charter with a fixed floor and significant profit sharing upside, ensuring strong earnings potential. Recent additions to our fleet. Two additional Japanese built vessels acquired since last quarterly update. The MV May ship, a 2013 built Newcastle Max, and the MV Blue ship, a 2011 built Cape size. Total investment of $69 million further expanding our high quality efficient fleet. The blue ship is expected to enter an index linked time charter while the May ship will operate under a structured fixed floor time charter with profit sharing similar to the Titan ship's charter. With 3.8 million deadweight tons of pure play, 21 Cape sizes and Newcastle Maxes now in operation, Synergy has achieved significant fleet scale, but will remain committed to disciplined growth. We continue to evaluate strategic fleet opportunities, leveraging our deep industry relationships and access to high quality assets to enhance shareholder value. I will now pass the call to Stavros, who will fill you in on our financial information for the quarter and the full year, as well as discussing our balance sheet and debt refinancings. Stavros, please go ahead. Thank you, Stamati,

and welcome to everyone joining us for today's earning call. Let's begin with slide five, where we'll review the key highlights of our financial performance for the fourth quarter and the full year ending December 31st, 2024. Our net revenue for the quarter was 41.7 million, based on a daily time-taster equivalent of about $23,200. At the same time, our adjusted EBITDA and net income reached 20.4 million and 6.6 million, respectively. Despite the softening Cape size market, we delivered a solid performance, underscoring our resilience and ability to navigate market fluctuations effectively. On a full year basis, we achieved record profitability, reflecting both the Cape size market and the successful execution of our strategy. Our net revenue surged to 167.5 million, up 50% year over year, with our time-taster equivalent ascending to approximately $25,100. Our adjusted EBITDA grew to 98.4 million and our net income rose significantly to 43.5 million, compared to 53 million and 2.3 million, respectively, in 2023. Earnings per share reached $2.12, posting an impressive increase from $0.12 last year. Moving on to our balance sheet, our cash position strengthened further in 2024, closing the year at 34.9 million, equivalent to approximately 1.8 million per vessel. This strong cash position was achieved despite returning $20.5 million to shareholders through dividends and share buybacks. More importantly, we maintained leverage at moderate levels, despite the fleet expansion that took place during the year, keeping the total debt at $261.5 million for a book value -to-capital ratio of less than 50% once again. This financial strength provides valuable flexibility, particularly in the current environment with the temporary softening of the capes as market, ensuring we can effectively manage liquidity and seize strategic opportunities. Our total assets reached $545.8 million, while our stockholder equity stood at $262.2 million. Notably, we delivered a robust ROE of 17% for the full year, demonstrating our ability to drive shareholders' value through operational efficiency and strategic capital allocation. Moving on to slide 6, we can see that we once again delivered robust core profitability with our adjusted EBITDA nearly doubling year over year. As Thamadis highlighted earlier, our time center equivalent outperformed the DCI on both a quarterly and annual basis. Our adjusted EBITDA margin expanded to .6% this year, reflecting our ongoing efforts on improving operational efficiency and cost management. This improvement underscores our commitment to maintaining strong financial health and delivering value to our stakeholders, even in a challenging market environment. In fact, based on the current FFA rates, we anticipate our EBITDA to reach close to $80 million for the full year 2025. Additionally, our operating cash flow margin ratio improved significantly compared to last year, reaching 44%, indicating our ongoing efforts to enhance our ability to generate cash from our core operations. On the expense side, we successfully maintained daily OPEX per vessel at $7,000, effectively at the same level with our previous year, despite the inflationary pressure and the aging factor of our vessels. In addition, it is important to note that this record profitability was achieved despite incurring significant one-off expenses in 2024, having to do with our proxified and related litigation. This cost totaled $4.1 million for the year, with about 6% of its expenses impacting the GNAs and net income of the fourth quarter. Turning to slide 7, we will discuss our debt optimization initiatives. From the start of the 2024 update, we successfully completed $174.4 million in financing and refinancing transactions. Despite this financing, we have managed to maintain our leverage at moderate levels with a debt per vessel currently standing at $13.8 million, slightly higher than the average grab value of the vessels. Regarding cash interest expenses, we reduced daily cash interest expense to approximately $2,700 per vessel. Through our financing and refinancing transactions, we successfully lowered our weighted average margin in 2024 and expect this to decrease further through our recent agreements. Should this margin tightening get combined with rate cuts from the Fed, it would lead to a significant reduction of our daily interest expense. Now before we move on, let me highlight some details on our latest transactions. In February, we finalized another sustainability loan to refinance the existing debt of warship and ownership under significantly improved terms and partially financed the acquisition of our latest new custom max, the Mayship. The total amount of the transaction is $53.6 million, with a term of 5 years and an interest rate of .05% plus term SOFR per annum, 55 basis points lower than the rate of the refinanced agreement. This is a sustainability loan as I said before, so the rate can be further reduced based on the achievement of certain emission reduction targets. Through this refinancing, we minimized the equity outlay for the acquisition of the Mayship, safeguarding our liquidity position in a seasonally weak market. Additionally, we recently signed a term sheet with a reputable Chinese lessor for two sale and leaseback agreements totaling approximately $34.5 million, which remains currently subject to documentation. These agreements will be utilized to refinance the only balloon payments pending this year, shaping a clear path for 2025. They are also expected to add further liquidity to the company and will bear significantly improved interest rates compared to the existing indebtedness of the two ships. Now moving to slide 8, I would like to highlight once again our resilient operating leverage and our strategic positioning to capitalize on any upward movement in the capes as market. At the same time, our risk management strategy is in place to safeguard our revenue and cash flows against market volatility. As Thamatis mentioned earlier, we have already hit 22% of our days for the year, effectively leveraging freight market spikes. As you can see in the graph, if capesize rates in 2025 align with the current FFA curve, we anticipate our EBITDA for 2025 to be approximately $78 million. In a more favorable scenario, EBITDA could exceed $100 million. To summarize, we are well prepared to navigate market fluctuations and seize opportunities, ultimately driving sustainable growth and enhancing shareholder value. That concludes my review of our financial results and updates. I will now pass the call back to Thamatis who will provide insights into the capes as market and industry fundamentals. Thamatis?

Thank you, Savros. Slide 9. Overall, 2024 was a strong year for the capesize market with the BCI averaging $22,400 a day, a significant increase from the $16,600 a day in 2023. The combination of historically low fleet growth and rising ton-mile demand from Atlantic basing cargoes continues to support a positive long-term trajectory. While short-term volatility remains driven by factors such as weather disruptions, inventory restocking cycles, and seasonality, we believe that structural fundamentals remain strong, supporting sustained vessel earnings in the years ahead. In Q4 2024, the capesize market experienced a correction with the BCI averaging $18,300 a day compared to $24,900 in Q3 and $28,100 in Q4 2023. This decline was mainly due to reduced Brazilian iron ore exports, lower capesize coal cargoes from eastern Australia, weaker Panama trades which increased downward pressure on capesize vessels as similar ships absorbed part of the coal trade. For the full year, capesize ton-mile demand grew by approximately 4% fueled by higher seaborne iron ore shipments as well in Brazil, achieved its highest production since 2019. China's box-site imports reached 159 million tons, up 18 million tons from 2023, with over three quarters transported on capesize vessels. Fleet growth remained limited at around 2% insufficient to match demand growth resulting in a tighter market for most of the year. Regarding 2025 market outlook, looking ahead, capesize demand is expected to be increasingly driven by rising Atlantic to Asia cargo flows, leading to longer voyage distances and higher ton-mile requirements. West African box-site exports expected to increase by about 20 million tons in 2025, supported by rising global aluminum demand and improved export logistics. Iron ore trade growth. Brazil's vale exports are expected to remain very strong and in addition, we expect to see the Simandu mining project in West Africa set to finally commence seaborne iron ore shipments in late 2025. Coal demand. China's coal imports surged .4% in 2024 as domestic production struggled to meet demand. While short-term fluctuations may occur due to inventory cycles, long-term demand remains solid, particularly for industrial and energy needs. These factors have a stage for a potential demand upturn in the second half of 2025, supporting a stronger market environment and higher capesize shutter rates in the coming years. Slide 10. On the supply side, vessel additions remain highly constrained with effective capesize fleet growth projected at just .5% in both 2025 and 2026. The current order book is at the lowest levels in 20 years and upcoming environmental regulations are set to further restrict new vessel deliveries. Factoring in the extensive dry-dock schedule in 2025 of the global fleet, net fleet growth could drop to as low as 1%, reinforcing a tight supply environment. Additional, poor congestion remains at historically low levels, meaning any potential disruptions could only significantly impact vessel availability and push-up shutter rates. Looking at new building activity, there have been zero new orders placed this year and given the pricing gap between new builds and second-hand ships, we do not expect this trend to change in the near future. With only 40 capesize vessels scheduled for delivery in 2025, the combined deliveries for 2024 and 2025 represent the lowest level since 2003, a highly favorable dynamic for supply of the vessels. Given this tight supply backdrop, environmental regulations continue to reinforce the need for fleet replacement while reducing vessel speeds and limiting overall capacity growth. This structural slowdown in fleet expansion and operational efficiency supports a strong long-term outlook for the capesize fundamentals. Conclusion. Synergy's pure play capesize strategy is now a proven model positioning us to capitalize on long-term industry tailwinds with three clear objectives. Capital returns. We remain committed to maximizing shareholder value through dividends and share buybacks. Fleet growth. We focus on strategic high return fleet expansion, ensuring sustainable value creation. Financial strength. We continue to balance growth with financial discipline, maintaining a flexible balance sheet that allows us to navigate market volatility while enhancing returns. Synergy is successfully delivering on these priorities as reflected in our strong financial performance and share price growth. With a favorable capesize market outlook and a disciplined strategy, we remain well positioned to drive sustained value for our shareholders. On this note, I would like to turn the call back to the operator and answer any questions you may have. Operator, please take the call.

Thank you. To ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from the line of Liam Burke from B Riley Financial. Please go ahead.

Thank you. Hi, Stamati. How are you doing, Stavros? Good morning,

Liam. Nice to hear from you.

Thank you. You too. Stamati, we are all familiar with the supply demand dynamics long-term of the capesize fleet, but rates were understandably very low in the first quarter for a number of reasons, including seasonality. But they took a fairly precipitous bounce into the end of the quarter and into the second quarter. Can you give us a sense as to what has created this pretty short-term rebound?

That's a great question, Liam. The short answer to that is it is not the capesize segment's fault. It is actually the reason why we have seen very limited congestion on the Kamsar Maxx. So we have assessed that the previous, let's say, six months from September onwards, congestion of the Kamsar Maxx went down to almost zero. I will discuss for a few seconds about the Kamsar Maxx so that you know what I mean. Kamsar Maxx, at any given point, there were 100 to 200 ships waiting at Parana River in South America. There were 100 to 200 ships waiting to pass the Panama Canal due to the previous periods of the drought. And you had another 100 to 200 Kamsar Maxxs in the Black Sea for the Grain Corridor. Nothing of that exists today. Since the second half of last year, all of these approximately 600 ships are out and about looking for cargoes, and the Kamsar Maxx market collapsed down to $5,000. So we had this paradox back in September, October, where you had the capesize market at $25,000 and the Kamsar Maxx market at $5,000. So unavoidably, the charter started to split the cargoes. And a lot of Kamsar Maxx ships started to pick up coal cargoes from the capesizing, cannibalizing the capesize sector. So that's the main driver. Low congestion of the Kamsar Maxxs is what led to this sharp decline in the capesize rates as well. Because since the beginning of the year, the volumes are super high. You had the closure of the Red Sea, which also has helped the market. And at the same time, you had the very low speed of the fleet. We have the lowest fleet speed on the capes for the last five years. All these factors combined, and of course, the supply of ships is very limited. All of these factors combined would have implied a market of $25,000 and $30,000 a day. But that didn't happen because, unfortunately, the smaller segment cannibalized the capesize and the new Kamsar Maxx. Now we have seen that starting to reverse. And that's why we have the futures at these higher rates for the remaining of the year with an average of $22,000 a day. So that makes us feel a little bit more optimistic about the prospects of the year. But unfortunately, it was not driven by the fundamentals of the capesize segment. It was due to the fact that we had more effective supply on the Kamsar Maxxs into the market. That's our initial assessment, internal assessment from our research department, and speaking to a lot of market participants.

That's great. Thank you. Stavros, these are nitpicky questions. But I mean, on both OPEX and SG&A, on the OPEX, you had delivery expenses on new vessels. And on the SG&A, you had legal related to the proxy fight. Going into next year, are those one-timers behind you, or do you have some excess costs coming into the first quarter?

Hi, Liam. Hello from my side. So no, going forward, we expect OPEX to remain pretty much the same level at around $7,000 per ship per day. And then on G&A, a good proxy would be 2023. I mean, taking out all the expenses that we incurred for the litigation, which were around $4 million for the full year, around $2.4 million of which hit the bottom line of the fourth quarter. We expect this to range about $1.5 to $2,000 per vessel per day. Great. Thank you very much. Thank you, Liam.

Thank you. Your next question comes from the line of Mark Reichman from Noble Capital Markets. Please go ahead.

Thank you and good morning. Hi, good morning. The first question I have is just I wanted to focus on the first quarter of 2025. So you've already given the operational days at 1766, which is actually a little higher than what we had in there. Does that include both the Blue Ship and the My Ship as of their February delivery dates?

Well, the answer is yes. That includes the ships that were delivered to us earlier than what we had initially anticipated. Thanks to our good contacts with the sellers and good relationships, we managed to take delivery of these two great assets ahead of time. That is going to help us put them into work immediately, and especially starting in Q2, that we see the market going up a lot compared to Q1. So that's the short answer to that.

So is Q1, is that 19 vessels or is it 21 vessels? I mean, will they start earning money beginning in the second quarter or will they be in service in the first quarter?

Well, I think that you can count in 21 ships from Q2. For Q1, I would say an average of, I don't know, 19.75, something like that.

Okay, gotcha. Now, the other question is the off-hire days. So I know you'd plan to do three dry dockings in the first quarter and then one dry docking each quarter after that. Could you just maybe talk a little bit about your expectations there in terms of off-hire days?

Yeah, you should expect around, hi Mark, this is Stavros. You should expect around 20 to 25 off-hire days per vessel during the dry docking, although as Tamatis noted previously, this is a peak dry docking year for the Cape sizes. The majority of the fleet was built around 2009, 2010, 2011. So in some cases, we expect unforeseen delays. We expect dry docking days to move a bit forward due to the congestion, so to say, in the Chinese shipyards right now. But on average, I would factor in 20 to 25 off-hire days for each dry docking.

Okay, great. And then just lastly, just looking at the shipyards, the shipyards are quite low. Just looking ahead, do you expect that they might hold at these levels or increase, or do you think some of the worries surrounding Trump's tariffs moves might have an impact, or do you just think the fundamentals of the Cape size market kind of rise above it all?

Well, that's the billion dollar question, I guess. We are generally very optimistic because the fundamentals of the Cape sizes appear to be very strong. Also, contrary to most, if not all of our peers, we have zero Chinese-built ships with exception of one. So we don't anticipate to be affected by any levies for port codes in the United States. Not that we do, but we don't expect to be affected by that. All these tariffs and trade wars that are being discussed can be either very bad news for the global trade, not just dry box and capes, but the global trade, but also can be excellent news once the market normalizes into new trade patterns. So we cannot, at the same time, we may have some positive news about the war, wars ending, reconstructions, things like that that are fundamental for the Cape size trade. Nevertheless, Cape size demand for raw materials like iron or coal and bauxite has been very, very strong. So all these fluctuations about the freight trades are not driven by the demand that we find to be very strong, but from effective supply of things not so much related to capes.

Okay, well thank you very much. It's very helpful.

Very welcome. Thank you.

Thank you. Your next question comes from the line of Tate Sullivan from Maxine Group. Please go ahead.

Hi, thank you. Good day. It's great to see the purchases, evident and insider purchases. And then just some of your comments about the coal trade. I mean, any impacts from less coal demand in Russia to in Europe? Maybe if there's less conflicts with Russia going forward, or you're seeing higher demand in general from Asia for coal?

Good morning, Tate. Thank you. About coal trade, we're generally very optimistic about coal trade altogether. President Trump has many times mentioned that coal is expected to drive a lot of increased energy needs for data centers and all other things associated to energy in the near future. So we're very optimistic about coal. There is a lot of new building capacity of coal fired power plants globally, more than 100 gigawatts of new energy production driven by coal. So overall, we don't see coal demand subsiding anytime soon, but we feel that coal will continue to rise in the near future a lot. And the response?

We're to confirm no new build keep orders yet, year to date. Are there any indications of Chinese companies building or private companies exploring this? Or is it just very low activity?

Sorry, can you please repeat the question, Tate, because you're breaking up?

Oh, just new build activity. Do you think zero orders here today for new building? Yes,

it's very limited. There's a lot of factors leading to that. There is uncertainty about Chinese built ships and also all the slots that could otherwise build Cape sizes are pretty much taken until mid-end of 2028. So we don't really see any immediate threat for new buildings coming into the market for many, many quarters looking forward. Thank you. You're very welcome, Tate. Thank you.

Thank you. Your next question comes from the line of Lars Ida from Arctic Securities. Please go ahead.

Thank you for taking my question.

Good morning. It's a pleasure. Good afternoon.

I have a question regarding the market outlook. As you all know, there's a lot of stuff going on in the scene of geopolitics nowadays with China committing to a GDP growth target of 5% earlier this week. And Trump, of course, what kind of developments are you monitoring the closest? And what do you expect to have the most impact moving forward in the near and the medium-near term?

Well, it's a combination of events. As I mentioned in the previous questions, we don't really see any problems with demand and we haven't really seen any problems with demand for the last two, three years. Since 2023, 24, and 25, it appears that demand for raw materials will continue to be very strong. Even though you had bankruptcies in China from the real estate developers and all these things, they still imported 4% to 5% more raw materials in the previous year. So demand is not an issue. At the same time, supply appears to be quite contained. We were not expecting the big price differential between -R-Marx and all this immediate drop of the -R-Marx in the second half of last year. And I don't think that anybody did, given where the futures and the were in June, May and June last year. So second half was extremely weak and that is what pulled down the Cape sizes by splitting the cargoes of the Cape sizes into -R-Marx. It's always about the supply. So when you have increases of effective supply, this is what makes the market appear to be Also, if we come to a full blown trade war globally, which we give it a very small percentage as a probability, if we come to that, then we may see a temporary reduction of overall global trade. But this is not going to affect Cape sizes. It's going to be affecting all segments of shipping altogether in global trade. So I hope we will not come to that. And I believe that the inertia of the global increase of the GDP is unstoppable. And I certainly hope that we will see strong demand for the materials going forward.

Okay, thank you very much. Thank

you. Thank you. There are currently no further questions. I will hand the call back for closing remarks.

Well, thanks once again, everyone, for participating in our call. I'm looking forward to be updating you soon with further developments and we look forward to a better market for the remaining of the year. Thank you very much and have a great day, great afternoon, wherever you are. Thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.