Seanergy Maritime Holdings Corp.

Thank you for standing by, ladies and gentlemen, and welcome to the Synergy Maritime Holdings Corp. conference call on the second quarter and first half and the June 30, 2026 financial results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO, and Mr. Stavros Gyftakis, Chief Financial Officer of Synergy Maritime Holdings Corp. 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 would like to ask a question, please press star 1 on your telephone keypad, and you will hear an automated message advising that your hand is raised. Please be advised that this conference call is being recorded today, Thursday, July 30, 2026. The archived webcast of the conference call will soon be made available on the Synergy website, www.synergymaritime.com. To access today's presentation and listen to the archived audio file, visit the Synergy website, following the webcast and presentation sections 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 statement is contained in the second quarter and first half and the June 30, 2026 furnished release, which is available on the Synergy website again, www.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. Stamatios Tsantanis. Please go ahead, sir.

Thank you, operator, and welcome everyone. Synergy delivered a record second quarter. Net revenue of $55.7 million, adjusted EBITDA of $41.5 million, and adjusted EPS of $1.32. Our fleet earned $32,355 per day Up 63% year-over-year. This is what a pure-play, cave-size and NewcastleMax platform does in a strong market, without diluting our story in many vessel classes. When the market is strong, we get all the benefit. For the first six months of 2026, fleet time cycle equivalent increased by 69% year-over-year to $28,244 per day. Net revenues increased to $97.8 million. Adjusted EBITDA increased by 165% to almost $70 million and adjusted earnings per share were almost $2, actually $1.96 per share, compared to an adjusted loss per share in the prior year period. This represents again record first-half performance through our ability to capture the upside of a strong cave-sized market while having hedged our downside risk. Looking ahead, the KHS market prospects for the second half of the year remain constructive, based on resilient commodity demand, constrained effective fleet supply, and earnings visibility provided by our forward fixed rate charter coverage. Our board declared a cash dividend of 35 cents per share. That's our 19th consecutive quarterly dividend which we have delivered through good and bad markets. We have now returned $108 million to shareholders and we raised the dividend 75% this quarter compared to the previous one. Moving to our recent fleet renewal initiatives, since our last update we have committed approximately $130 million more to acquire two high-quality Japanese vessels, both expected to join our fleet in 2029. We also completed the sale of the 2010 built square sink. These transactions advance our disciplined fleet renewal strategy by reallocating capital from older donuts into modern, fuel-efficient assets at delivery points that align well with the next phase of our fleet requirements. Our latest acquisitions include a scrubber-fitted new building shape-size vessel to be built at the first-class Japanese shipyard schedule for delivery in the first half of 2029, and the modern 2022 built shape-size vessel, constructed in Japan, with forward delivery expected in the first half of 2029. Our renewal program now represents an aggregate investment of $591 million. Funding is already advanced on competitive terms, as will be detailed in a few minutes by Stavros. I would also like to highlight the successful completion of our inaugural €100 million unsecured corporate bond offering in Greece, with demand exceeding the offered amount by more than two times. Beyond diversifying our funding sources, its five-year bullet structure is particularly well matched to the requirements of our fleet investment program. Slide 4 Consistent Capital Returns Moving on to slide 4, Synergy has now returned approximately $3.19 per share to our shareholders through 19 consecutive quarterly distributions since launching our dividend program in 2021. This track record reflects our ability to translate strong capesized market conditions into consistent and meaningful cash returns. Our approach is simple. To reward our shareholders every quarter. To keep the balance of stone. To invest in modern ships. And we're successfully doing all three at once. A 27% payout leveraged below 50% and $591 million committed to fleet renewal with prompt deliveries. Rewarding our shareholders remains an important priority to us. Slide 5. Stavros Gyftakis, Theodora Mitropetrou, Theodora Mitropetrou That kept us a bit below the index in a quarter where rates spiked considerably. It is obvious that we are trying to protect the downside and keep enough upside to the matter. Our index-linked employment gives us direct participation in the market strength. And we ran a very high utilization again in the quarter, which highlights the quality of our technical management. At the same time, we continue to manage freight rate volatility selectively. Approximately 55% of our ownership days for the second half of 2026 have been converted at an average daily rate of approximately $30,800. This provides earnings visibility and downside protection for our revenue and cash flows while preserving meaningful exposure to further market upside. Our scrubber-equipped shifts continue to benefit from favorable fuel spreads, providing another source of earnings enhancement. Another important point is that since 2024, we have invested approximately $37.3 million in environmental upgrades on the existing fleet, vessel improvements, and dry dockings. Having completed the majority of scheduled upgrades in the previous quarters, the company expects only 50 off-hire days approximately for the remainder of 2026 in connection with scheduled dry dockings Vessel Repairs and Environmental Upgrades. Looking further ahead, the superior efficiency of our new building vessels should strengthen their commercial profile and enhance dynamics contribution. Slide 6, Fleet Renewal Program with Prompt Deliveries. To date, we have contracted seven modern eco-designed cave-sized new buildings with deliveries in 2027 till 2029. and a Greek acquired a 2022 built modern Cape-sized Japanese build, with delivery also in 2029, and sold three older vessels. Together, these transactions advance both the growth and renewal of our fleet, improving its age profile, fuel efficiency and long-term earnings capacity. Importantly, four of the eight vessels are scheduled to be delivered to our fleet within 2027, allowing us to meaningfully increase the energy contribution of our new fleet beginning next year. We have now finalized long-term time shutters for the three 2027 delivery new buildings being constructed in China with leading global counterparties. And I'm talking four to five years. The structure is very straightforward. Floor of $23,100 a day, which covers our cost break even from day one. Above the floor, we earn a premium over the BCI 5TC index up to about $29,750. Above that, we keep half the upside. Therefore, downside is covered while upside is retained. This is another validation of the commercial appeal of our new buildings as it materially reduces the execution risk associated with the initial phase of our fleet renewal program. Stavros will discuss the financing implications in greater detail, but a combination of attractive charter coverage, competitive financing, and prompt delivery positions materially strengthens the expected return profile of these investments. I will now pass the call to Stavros for a review of our financial performance, balance sheet highlights, and financing framework supporting our fleet renewal program. Stavros, please go ahead.

Thanks Stamatis and welcome to everyone joining today's call. Let's begin with slide 7. I will review our financial performance for the second quarter and first half of 2026, followed by an update on liquidity, leverage and growth funding. As Stamatis highlighted, the second quarter and the first half of 2026 marked the strongest financial performance in Synergy's recent history. These results reflect the favorable case size market environment, disciplined commercial execution, and the operating leverage of our PurePlay platform. For the second quarter of 2026, net revenues increased to $55.7 million from $37.5 million in the prior year period. Adjusted EBITDA more than doubled to $41.5 million while Net Income and Adjusted Net Income reached $26.2 million and $28.5 million respectively. GA PPS was $1.21 and Adjusted PPS was $1.32. Our fleet achieved a daily PCE of $32,400 representing a 63% year-over-year increase. This strong momentum extended into our first half results. Net revenues reached $97.8 million while adjusted EBITDA increased by 165% year-over-year to $69.6 million. We reported net income of $35.9 million and adjusted net income of $42 million compared to losses in the prior year period. GAAP EPS was $1.67 while adjusted EPS reached $1.96. Turning to our balance sheet, we ended the quarter with $59.5 million of cash and restricted cash equivalent to approximately $3.3 million per operating vessel. This liquidity position was maintained despite investing approximately $73 million in new building installments and Fleet Renewal Initiatives during the first half of the year while remaining consistent on the dividend front. At the same time, our debt-to-capital ratio remained below 50%. Maintaining prudent leverage while executing the largest investment program in our history demonstrates the good standing of our balance sheet and provides the flexibility required to complete our Fleet Renewal Program. Now turning to slide 8, we will highlight the quality of our earnings and the resulting strength of our cash flow generation. Our fleet achieved a daily PCE of $28,244 during the first half of 2026, increased by 69% year-over-year. Our index-linked exposure allowed us to participate directly in market strength, while selective fixed rate conversions helped manage volatility and improve earnings visibility. Now, the adjusted EBITDA at 69.6 million represents a margin of approximately 70%, while the operating cash flow margin was approximately 44%. These figures demonstrate the efficiency with which revenues convert into operating cash flow. Adjusted EPS of $1.32 for the second quarter and $1.96 for the first half of the year provides strong coverage for the quarterly dividend while supporting the continued funding of our fleet renewal program. Turn to slide 9, which summarizes our leverage position and the financing framework supporting our fleet renewal program. As of June 3, 2026, Total debt, including finance lease liabilities, suited approximately 299 million, corresponding to a fleet loan-to-value ratio of approximately 42% based on independent broker valuations. Debt per vessel was approximately 15.7 million, compared to an average fleet market value of approximately 37.3 million per vessel, highlighting substantial embedded equity across our fleet. The estimated scrap value of our fleet covers approximately 70% of our outstanding debt, providing downside asset coverage. Now at the same time, our weighted average financing margin declined to approximately 2.17%, reflecting the strength of our lender relationships and consistent access to competitive financing. Subsequent to quarter end, we completed our inaugural 100 million unsecured corporate bond offering in Greece. The transaction represents an important enhancement of our capital structure. As Stamatios mentioned earlier, the non-amortizing nature is particularly well suited to our new building program, preserving liquidity during the construction and aligning principal repayment with a future cash generation of the new versions. Now the bonds further diversified our financing sources beyond traditional unsecured bank financing and finance leases and provides financial flexibility as we execute the program. Needless to say that the all-in cost of 4.9% per annum is extremely attractive given the unsecured nature of the financing. In parallel, we have secured approximately 296.5 million of committed bilateral financing facilities for our new building program with unique characteristics that immunize the financing amounts against adverse movements in the market value of the vessels. Together with the bond proceeds and existing liquidity, these sources cover approximately 90% of the program's remaining capex. Building on the previous slide, turning now to slide number 10, we provide a clearer view of the funding position and payment profile of our fleet renewal program. To date, we have already invested approximately $73 million from our own funds.

This is equity participation in the program.

Against the remaining installments of approximately 518 million, we have secured 296.5 million of committed bilateral pre- and post-delivery financing, while the recently issued 100 million euro unsecured bond, equivalent to approximately 114 million dollars, provides an additional pool of flexible, non-amortizing capital. We also have approximately 59.5 million of cash and restricted cash as of June 30, 2026. For the remaining unfunded portion, we have assumed debt capacity, meaning 60% loan-to-value on the market value of the not yet financed vessels, of approximately 126 million. On that basis, the entirely remaining investment program is prudently covered with additional funding capacity relative to the scheduled installments. The chart on the right also highlights the staggered nature of the capital commitments. Payments are distributed through the first half of 2029 with the largest installments aligned with the then vessel deliveries. This gives us ample time to arrange the remaining vessel specific financing. I would also connect the funding profile to the Charter Agreements Stamatis described earlier. The three 2027 new buildings will enter service under 4-5 year contracts with flow rates expected to cover the vessel break-evens. This establishes a contracted base of cast generation during the initial years of operation and strengthens the debt service profile of the vessels. At the same time, the commercial structures Preserve Meaningful Earnings Upside. Now, from a financing and capital allocation perspective, these agreements materially improve the quality and visibility of the cash flows supporting the investment program. They reduce downside risk during the early amortization period, enhance the expected risk-adjusted returns of the vessels, and further de-risk the execution of the first phase of our fleet renewal strategy. In summary, the principal funding sources are substantially secured, the remaining capital commitments are staggered, and three 2027 deliveries now have multi-year commercial coverage at levels expected to protect their cash break events. Together, these factors provide clear funding and cash flow visibility through the initial phase of our program. Finally, let's turn to slide 11, which illustrates the operating leverage embedded in our platform under different Cape-sized rate scenarios. Under the current FFA scenario, our model indicates full-year 2026 EBITDA of approximately 138 million, while a stronger market scenario would generate further material upside. As freight rates improve, a significant portion of incremental revenue flows through to EBITDA and cash flow, enhancing our capacity to provide shareholder returns while funding the modernization of our fleet. Importantly, approximately 55% of our second half days are already fixed at attractive rates, providing meaningful protection under more moderate market scenarios. I will now turn the call back to Stamatis for a discussion of the cage size market outlook and broader industry fundamentals. Stamatis, please go ahead.

Thank you, Stavros. The cage size market remains strong throughout the second quarter of 2026, with the BCI averaging approximately $36,300 per day, bringing the first half average to approximately $29,600 a day. The strong trend has clearly carried over to the third quarter of the year, with the July BCI average being close to $35,000. Asset values responded accordingly, with brokers reporting that second-hand cave-sized prices increased by approximately 16% during the first half of the year. Effective vessel supply remains constrained by a combination of slower sailing speeds elevated banker prices due to the war and an active dry dock schedule, all of which reduce available capacity while cargo volumes remain very healthy. Although geopolitical developments continue to create uncertainty, the underlying demand picture has so far remained very resilient. Having said this, let us please turn to the next slide to take a closer look at KHI's demand. Iron ore. China's iron ore imports increased by 6.3% year-over-year in the first six months of 2026, while June in particular is setting a new monthly record. Demand for high-quality imported iron ore remains high, with policies focusing on capacity normalization and environmental efficiency. At the same time, Simandou continues to ramp up. while Vale has reaffirmed its production guidance for the year. Together with the continued production outlook from Rio Tinto and BHP, these developments support a favorable long-term demand outlook for cave-size vessels. Increasing Atlantic basin exports are expected to enhance ton-mile demand because of the longer sailing distances involved. Boxite Turning to boxite, this trade continues to be one of the strongest structural growth drivers for the cave-size market. China's imports rose by 18% in the January to May period, reflecting continued growth in the use of imported bauxite in China's alumina smelters. Short-term uncertainty about Guinean bauxite export policy may create some volatility, but we remain optimistic about cargo volume in the second half of 2026, based on the sound demand drivers. Coal Finally, coal trade has remained resilient despite expectations of a structure of decline in the recent years. Energy security continues to be a priority across many regions while warm weather has supported summer electricity demand. Looking ahead, uncertainty surrounding natural gas inventories ahead of the winter could provide additional support for thermal coal demand. Chinese coal imports increased during the first half of the year and we expect import demand to remain healthy during the second half, supported by relatively slower domestic production and the potential easing of export restrictions in Indonesia. More broadly, global coal loadings have also continued to increase, while evolving trade patterns may contribute to longer sailing distances and additional fleet inefficiencies, both of which are supportive of the dry bulk shipping. Overall, as we enter the seasonally stronger second half, the demand outlook for KFCI's market remains constructive across our three core cargoes. Turning to the next slide now in order to look at the KFCI supply before concluding our prepared remarks and handing over the call for questions. Looking at the supply side, the backdrop remains very positive for the balance of 2026 are the headline fleet growth of 2.4%, likely overstates actual effective supply growth due to several factors. Firstly, about one out of every five Cape vessels on the water today was built between 2010 and 2012. It means that roughly 20% of the world fleet goes through dry docking surveys in 2026 and 2027. As we'll be renewing our fleet, many owners will need to decide whether to spend more money on 15-year-old torrents for dry box. Secondly, geopolitical disruptions and the aging of the world fleet have increased slow-steaming, further limiting available vessels. While we wish that the geopolitical situation improves soon, fleet aging amidst stricter environmental regulations is a longer-term story that is likely to continue in the same direction over the next years. As a result, we expect that the effective fleet growth will, in fact, continue to be slower than what is suggested by anticipated vessel deliveries, which even in its nominal form remains quite low compared to other sectors of shipping. Longer term, the low order book compared to the fast rate of vessel aging suggests that by 2030, almost one out of every four cave sizes will be older than 20 years even after accounting for new building deliveries. Limited CPR availability further restricts future supply supporting a constructive outlook. The cave sales market remains very strong for the next years and as mentioned earlier in the call, Synergy maintains downside protection for 2026 and a percentage of 2027 at highly profitable daily rates, which we believe places us in a very good position to navigate the future. Conclusion To conclude, Synergy enters the remainder of 2026 from a position of strength supported by record earnings, meaningful forward visibility, disciplined capital allocation and a modernizing fleet. We are delivering record earnings, a 75% dividend increase with 19 straight quarters of cash distributions. In addition, $591 million committed to modern ships, the majority already funded and the 2027s mostly chartered. We are focused on the strongest asset class in a prudent and highly rewarding manner. On this note, I would like to turn the call over to the operator to take any questions you may have. Operator, please take the call. Thank you.

Thank you. As a reminder, to ask a question, you will need to press star 1 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 Securities. Please go ahead. Your line is open.

Thank you. Hi, Stamatios. Hi, Stavros. How are you today?

Morning, Leon. Very nice to hear from you. Thank you. Everything's fine. I hope the same with you.

It is. Thank you. Good to hear from you, too. Stavros laid out a capital source with debt as you look at your funding requirements for the new build. But when I factor in your cash flows and what looks to be a sustainably elevated rate environment, I can't help but think that there could be a lot more cash equity put into the new builds, or would you prefer to continue to use leverage and then use that cash for dividend or further increasing your fleet growth?

Well, that's kind of obvious. Yes, we're not factoring in for the increased cash flow coming in from operations. This is on an as-is basis without factoring in positive cash flows. And goes without saying that it's going to be for contingency purposes. We're just going to remain and maintain a conservative approach. Our capital allocation is pretty much evident now that we increased the dividend. We, of course, have room to increase it further in the following quarters once we have visibility for 12 months forward later in November when we announce Q3. But for the time being, we like the fact that we're very comfortable with the current book that we have. Maybe we'll do a couple more. And then we will continue rewarding our shareholders, which is our top, top priority, as you can see here.

Okay. Thank you. And on the supply side, I mean, you pointed out the number of vessels at a certain age. The supply side of the Cape Size story seems to be driving a lot of leverage where demand is inordinately high this year, but sustainable. We're looking at a multi-year up cycle in terms of sustainability of rates based on just the tight supply of Cape Size vessels. Is that the right way to think about it beyond 26th?

That's an excellent way to think about it, yes, of course. While we have visibility until the first half of 2030, we can see that there is limited order book coming in, and at the same time we have a very aging fleet which gets older and older, and the survey requirements will get more and more steeper and demanding. So, for the time being, we are very, very conservative. We will, of course, revisit this approach in the following years, once we have the ability to see how that order book develops, you know, post-2030. But what can I say here is that the cave-size order book appears to be the lowest amongst many, many other vessel types, not just the dry bulk, which, of course, is the lowest. But if you look at tankers, containers, LNGs, and all that, were in about 40% to 50% order book versus the current fleet. Cave size is a mere 12% to 15%, if at all, and you have a very aging fleet, so there's no comparison into the fundamentals of the cave size segment in the following years. Good.

Thank you, Stamatis.

Thank you, Leon. Great to hear from you. Thank you.

Thank you. We are going to take our next question. Please stand by. Your next question comes from the line of Tate Sullivan from Marketing Group. Please go ahead. Your line is open. Hi.

Hi today. Thank you and congratulations on the 100 million euro bond offering and I see it's trading above par here too and you mentioned two times oversubscribed. Can you go back to that market right away or are there other offsetting considerations to make you return for another bond offering there please to start?

Good morning, Tate. Again, great to hear from you. We feel very happy with the level of funds we have raised in the Greek market, given the strong support and the fact that we have a very good performance of the bond trading thereafter the initial offering. We are not looking for anything additional right now. We might consider some other solutions in the Greek market, but nothing imminent in the next, let's say, six months to a year. We will remain in a very comfortable cash flow position coming from operations as well as the cash buffers of the company, coffers of the company, which are at excellent levels and very happy to fund the existing investment program. So far we're very content and we're just going to remain still for the time being, maybe add a couple of additional quality and selective potential acquisitions in Q3. and Q4, but we will see about that in the next months.

Thank you, and a follow-up on that. I think you said, Stavros, during the prepared remarks about the financing margin, about 2.2%. I mean, with SOFR, it implies a net debt cost before this offering, about 5.8%. Are there, just for modeling purposes, are there other considerations, maybe FX currency swaps for the offering, or how should we forecast the interest expense going forward?

Look, the recent financings that we have concluded are concluded at a margin which is far below 2%. It's closer to 170. So basically, it's some of the legacy facilities that are being gradually refinanced that maintain higher margins, closer to 2.5 that drive the weighted average margin up. But I mean, for modeling purposes, you can assume that every new financing is priced at around 170 or 180. Now, when it comes to the 100 million euro bond offering, I mean, we have not proceeded yet with any hedging arrangements when it comes to the coupon and what have you. But in dollar terms, you should model around 100 basis points or 120 basis points over the euro coupon. That's how you should see it. Okay.

Thank you. And then just one more for me, please, on the profit-sharing contract arrangements for the three vessels. I think you said, I mean, can you talk about, is that a new dynamic in the market versus historically? And then what is in the interest of the counterparties to agree to that profit-sharing arrangement, please? Thank you.

Well, first of all, we offer them some great ships and very strong deliveries in 2027. So that by itself has a very strong value. We have decided not to be greedy on the base rate because we feel comfortable that we will see very strong rates in 2027. We wanted to cover our all-in break-even costs together with a nominal profit, and this is what the 23,100 represents. But as you can see, we have a full upside between the floor and the ceiling, and then thereafter we have 50-50 profit sharing on top of that. We didn't want to be greedy. We like the fact that we operate with long-term partners, some of them existing, some of them new, but in very good relationship and chemistry between us. So we start with that, and we'll see about the rest of the order book how we're going to fix the commercial approach. But this is pretty much the ballpark figures and levels you should be expecting for the fourth ship as well, maybe a little bit of the premium. and we'll see about 28 and 29 at a later stage.

I know these are the first structured of this sort that you've done at Synergy Systems.

Yes, the first with base and ceiling and then prophesying that up. That's the first ones. And again, you see some other structures with just the base and prophesying above that. We like the way that this is structured more than other people. So we're just going to follow this path if we can in the next commercial arrangements as well.

Okay. Thank you very much.

Thanks. Thanks, Teit.

Thank you. We are now going to take our next question. Please stand by. And this question comes from the line of Mark Reitman from Noble Capital Markets. Please go ahead. Your line is open.

Yeah, I was wondering if maybe Stavros could just kind of do a walkthrough on the new build program. And what I'm thinking of is, so if we start at the $591 million, so you can fund that with cash, your cash balance, operating cash flow, proceeds from sale of vessels, or additional debt. So what remains, and can you just kind of walk me through the financing process? I mean, where would debt top out? If you were going to take on more debt, would you expect unsecured financing to become a larger component of the capital structure? And if so, how might that affect your long-term leverage targets and cost of capital?

Thanks, Mark. Look, there are a couple of things you should factor in here. First of all, as Stamatis said before, the The graph that we're presenting in page 10 is illustrative and mainly what we want to illustrate here is a contingency planning kind of scenario and prove basically that we don't need to raise any equity to support the new building program. I mean, even if the company would break even from now until the end of 2029, would realize zero, zero excess cash flow, the program is already fully funded. We don't need any more funds for that. Now, as Stamatios noted before, of course, as the operating cash flow and the free cash flow of the company increases, you should expect more equity to come in on the new buildings. At the same time, we have the existing debt on the existing fleet is amortizing at a very fast pace. A concurrent deleveraging effect on the older ships and then a bit of a higher or more than 50% or more than 60% kind of loan-to-value in the new buildings, but it will average down. So you shouldn't expect the loan-to-value of the company and the leverage ratio to basically change in the way we have been approaching it over the recent years.

That's very helpful to my understanding. And then just lastly, I mean, obviously, the key market fundamentals have been very strong rates of, you know, strengthened throughout the first half. And I don't know, you know, I kind of see that continuing into 2027. I know most of the companies really kind of provide the most visibility, you know, through the end of the 2026. But, you know, I guess the question would be kind of how sustainable do you think these market conditions are through 27 and 28, and what indicators are you kind of watching most closely, you know, for signs of either further strengthening or softening?

Well, the biggest concern, potential concern, is the oversupply of new buildings. So far, the visibility we have The second half of 2029 appears that the new building order book remains at very low levels compared to the other dry bulk types as well as the other ship vessel categories. So as long as the vessel supply of new buildings remains low, we are not concerned about the market because demand appears to be quite strong as it has been for the last 30 years. So demand is never an issue. It's always a matter of supply and oversupply. The order book limitations is evident. The CPRs are pretty much overbooked with other vessel types, so the capacity to build additional KHIs in Newcastle-Marx is non-existent for the next three, three and a half, even four years. As far as that is concerned, we are not really worried about the market fundamentals because, as I mentioned before, demand is always resilient and has been going up for the last 25 to 30 years.

But do you think, you know, in terms of the rates, you know, you're always going to have that seasonality in the freight rates. But I mean, demand's always there. So we've had rising demand and, like you mentioned, a constrained supply. But do you see the demand continuing to strengthen? I mean, do you see freight rates kind of leveling off at some point, or do you think there's still enough of a disconnect between supply and demand that we could see it actually strengthen into 2027, freight rates strengthened?

Absolutely. I mean, the market is always volatile because of outside factors like geopolitics, like congestions, like a number of other factors that really affect the short term. But as far as the long term, you know, forward 12 to 18 or even 24 months, it's always going to average out and, in our opinion, remain at a pretty, pretty healthy level. So we are not worried about a downside. There might be volatility short term, but this is the nature of the game. This is shipping. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.