United Maritime Corporation

Thank you for standing by, ladies and gentlemen, and welcome to the United Maritime Corporation Conference call on the second quarter and first half for the periods ended June 30th, 2025 financial results. We have with us Mr. Stamatis Santanis, Chairman and CEO, and Mr. Stavros Giftakis, Chief Financial Officer of United Maritime Corporation. At this time, all participants are in a listen-only mode. There will be a question and answer session, at which time, if you would like to ask a question, please press star 1-1 on your telephone keypad, and you will then hear an automated message advising your hand is raised. Please be advised that this conference call is being recorded today, Wednesday, August 6th, 2025. The archived webcast of the conference call will soon be made available on the United Maritime website, .unitedmaritime.gr, under the Investors section. 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 second quarter and first half of the conference call. The conference call is scheduled for the period's end of June 30th, 2025 earnings release, which is available on the United Maritime website, again, .unitedmaritime.gr. 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. Welcome

to the United Maritime conference call to discuss our financial results for the second quarter and six-month period ended June 30th, 2025. In the second quarter, we achieved net revenues of $12.5 million, EBITDA of $5.9 million, and net income of about $1 million. Our net daily time set at equivalent of ,400,000 marks a significant improvement from the first quarter. A large portion of our net income this quarter is due to the strategic consolidation of our offshore new building investment. We are encouraged by the shift rebound in the dry bulk market following the seasonal slowdown observed early in the year. Our ability to capture high rates through a balance between index linked and fixed rate time chatters demonstrates the agility and effectiveness of our commercial strategy. At the same time, the continued strength in asset values enabled the strategic divestment of certain of our older vessels at the levels that will strengthen our profitability and enhance our liquidity reserves in the coming quarters. Based on the resilience of the dry bulk market, the successful disposal of our older vessels, the progress marked in our offshore new building project and our balance sheet position, our board of directors has declared a 3 cents per share cash dividend for the second quarter consistent with our established capital return policy and a clear signal of confidence in our performance and liquidity. This adds to our consistent record of more than $1.6 per share cash dividend payments since 2023, highlighting our commitment to returning capital to the shareholders. As part of our fleet renewal strategy, we have sold two of our oldest Cape size vessels over the last six months. The sale of the 2004 built glory ship was completed in June for a net price of $15 million. We have also agreed to sell the 2006 built trader ship for $17.8 million with delivery expected in mid August. These two sales are expected to generate approximately 17.9 million in net liquidity after debt repayments and we anticipate a book profit of about $1.5 million from the trader ship sale in Q3. We are closely monitoring market conditions and expect to deploy the net proceeds from the sales towards a combination of additional capital returns and high quality fleet replacement opportunities. Moving on to our guidance for the third quarter of the year, we have fixed 68% of our operating days at a time charter equivalent of $15,500 per day. Assuming the current FFA rates for the remaining years of the quarter, we project a total third quarter TC to be approximately $14,700. This includes one Campsat Max vessel earning a fixed daily rate of $15,700, one Cape size vessel earning $22,000 per day on a gross basis, two vessels employed on short term employment to be concluded within August and finally three vessels trading purely on index link charters until the end of the year. For the fourth quarter, we expect to have all of our vessels employed under index link daily earnings offering full exposure to what we expect to be a constructive dry bulk market. Furthermore, looking beyond our dry bulk fleet, in April, 2025, we increased United Maritime's ownership stake in our new building energy construction vessel. Our total investment in the project will reach approximately 10.4 million up from 8.8 million intended initially. This represents an approximately 32% equity stake in the project and reflects our firm belief in the commercial prospects of this investment. This marks a major step in our offshore investment strategy. The vessel is designed for high end energy construction projects, a niche market with almost no new capacity and growing demand across both renewables and oil and gas. The extremely limited order book for such vessels makes us confident in securing attractive chartering opportunities. Given that the construction timeline calls for completion within 2027, we anticipate being in a position to provide greater clarity on employment prospects by early

2026. Industry overview. Let's turn to the dry bulk

market. Despite microeconomic uncertainty, we're seeing encouraging signs of recovery and resilience which are the rates rebounding meaningfully from the lows of early 2025. More specifically, the Baltic-Campstermax index averaged about 11,800 in the second quarter up from 9,600 in Q1 2025 while spot market rates have since risen further around to $15,000. Respectively, the Baltic-Cape size index averaged about 18,600 in the second quarter up from 13,000 in the first quarter, both significant increases from the first quarter. Turning to the Panama market, the first half of the year was particularly challenging primarily due to a decline in seaborne coal volume. While most other commodities traded roughly in line with expectations, coal was main outlier. Coal seaborne trade declined by 7% impacted by high inventories entering the year and rising domestic production in China and India which reduced imports demand further. However, the coal inventories in China during the course of the first half have declined significantly while the recent government efforts to curb rapid pace of local coal mining have led to a sharp rebound in domestic coal prices. As the local coal market seems to have shifted to a better supply and demand balance, higher coal prices are expected to incentivize more seaborne imports in the second half of 2025. Since late June, we have seen a resurgence in Panama's rates driven by increased Atlantic basin grain exports, rising coal activity and higher port congestion. We're confident the bottom of the cycle is behind us. With coal and grain flows recovering, Panama's rates are strengthening and we are positioned to benefit as higher coal price and inventory restocking are likely to lead to higher seaborne volumes. With regards to the Cape Ceylon market, the weather disruptions that hampered seaborne iron ore trade early in the year have abated, leading to record high June iron ore exports from Australia. Although the total amount of seaborne iron ore traded in the first half of the year was marginally at 2024 levels, a significant shift towards Atlantic basin cargoes supported high Cape sized vessel demand and contributed to a resilient market, means more ton miles. Looking towards the second half of the year, all major iron ore miners have reiterated their sales guidance, suggested higher seaborne exports than what we saw in the first six months of the year. China imports are expected to remain strong, driven not just by actual steel production, but mostly by inventory restocking. Bauxite exports from Guinea rose by more than 30% compared to the first six months of 2024, with strong trade volumes expected to continue through year end. Moving on to vessel supply outlook, the current Cape sized order book remains at historically low levels, around eight to 9% of the existing fleet, while about 20% of the fleet is older than 15 years. For the total dry bulk fleet, the order book is currently about 10% of the existing fleet, with more than 28% of the fleet being older than 15 years. As environmental regulations are tightening and enforcement intensifies, the two tier market is forming whereby vessels with higher fuel consumption become penalized and may be unable to compete for cargos on the same terms. New building prices are currently at high levels. Given the prevailing charter rates, the economics of placing new dry bulk orders remain relatively unattractive. At the same time, shipyard slot availability is low, as we have seen extensive ordering of other vessel segments. Overall, this represents a situation where low vessel supply growth seems to be fairly predictable over the next years. Against this backdrop, low demand growth combined with potential fleet inefficiency that may reduce effective fleet supply should lead to higher charter rates. We believe that United is in good position to capitalize on favorable dry bulk balance, while our diversification into a rare high specification new building offshore project affords us multiple avenues through which we can produce higher returns on capital. What is more, our proven track record of large capital distributions to our shareholders and the ability to achieve all this without having to resort to highly dilutive public share offering makes United Maritime a high conviction platform for investors seeking disciplined capital deployment, income generation, and exposure to improving dry bulk and offshore cycles. I will now pass the call to Stavros Giftakis, our CFO, to discuss our financial results. And then back to me for the conclusion.

Thank you, Stamati. Welcome everyone to our earnings call. Let us start by reviewing the main highlights of our financial statements for the second quarter and the six month period ending June 30, 2025. So in the second quarter, our net revenue reached 12.5 million. While this figure is nearly unchanged from the same period last year, it marks a significant improvement over our performance in the first quarter. Adjust the EBITDA for the quarter was 5.1 million. Net income rose to 1 million, up from 0.7 million in the prior year. This result was largely driven by an accounting gain stemming from the consolidation of the entity investing in the offshore project, which attests to the well-timed decision to increase our share in the energy construction vessel. Looking at the first half of 2025, our net revenue totaled 20.2 million, which is 2.8 million lower than the same period last year, deflecting softer time charter equivalent rates. Adjusted EBITDA for the six months was 6 million. Net loss for the period was 3.5 million, compared to a net loss of 700,000 in the first half of 2024. On the expense side, we achieved further reductions in our daily operating expense per vessel, bringing them down to 6,300, while additionally we managed to lower our total DNA despite ongoing inflationary pressures. Turning to our balance sheet, our cash position at year-end stood at 3.4 million, reflecting ongoing capital expenditure and the additional investment in the offshore project mentioned earlier. Looking ahead, we expect a significant cash inflow in the third quarter, following the delivery of the trade and shipped to have new owners, with net proceeds estimated at approximately 10 million. This sale is a key part of our ongoing strategy to optimize fleet composition. Meanwhile, as of the end of the first half of 2025, our total assets amounted to 161 million, while stockholders' equity stood at 60 million. Our outstanding debt totaled 86 million, including liabilities under bare-boating structures, or approximately 12 million per vessel. This compares well with the average value of our vessels, which stands at approximately 18.4 million. Now regarding financing updates, following the sale of the Glorious Ship, we prepared the corresponding trance under the Huarong Shale and Lisbon Agreement, amounting to 7.5 million, as well as the 2 million short-term unsecured bridge loan provided by Synergy. As a reminder, the proceeds of this loan were used to finance the increase in our stake in the offshore project. Before handing the call back to Stamatis, I want to emphasize our confidence in the company's ability to return to sustained profitability. In our short -year-now history, we have undertaken a number of investment initiatives across the tanker, the dry bulk and offshore sectors, which have been funded organically. We have created a solid track record in the capital markets, safeguarding shareholders' equity, and have proven our commitment to prioritize and maximize distributions of capital. Stamatis, over to you.

Thank you, Stavros. Following our successful tanker investment cycle that was concluded in Q3, 2023, which delivered strong returns for our shareholders, we now operate an exclusively Japanese-built dry bulk fleet. We're very proud of our progress so far, being successful in building a quality fleet with strong prospects without resorting in any dilution of the shareholders that have supported us at our first and only capital raising three years ago. On top of that, since 2023, we have paid a total cash dividends of $1.65 per share, representing a very significant portion of our current share price. Additionally, we have engaged in extensive share repurchasing amounting to $7.1 million at an average price of $1.90. United Maritime is positioned to benefit from positive dry bulk market trends due to index-linked time charters that provide direct exposure to KFCs and Panama's market upside potential, a healthy balance sheet that allows for leverage exposure to the sector, and the potential for higher returns on capital, a proven commitment to rewarding shareholders through substantial capital returns resulting in a high dividend yield. Lastly, I'm confident in the prospects of our investment in the offshore sector, which I believe will also generate higher returns for our company and shareholders. Thank you very much for listening to our

call and looking forward to receiving your questions. Operator, please take the call.

Thank you.

As

a reminder,

to ask a question, you'll need to press star 1 and 1 on your telephone and wait for your name to be announced. Please stand by while we compile

the Q&A roster. Thank you. Our first question is

from the line of Tate Sullivan from Maxin Group. Please go ahead.

I apologize if I think I have a bad connection. Your capital commitment for the offshore level is about 10 million now after increasing your stake in the project and what do you have in the cash payment?

Hi, Tate. Sorry, your line is breaking up a bit. If I got your question right, you're asking about the remaining installments for the ECV project. So as Tamatis highlighted in his commentary, initially we had committed to inject around eight and a half million dollars, which we now increased to around 10 and a half. There's one last payment of two million, which is due in November. And then basically we are done with the equity in this project. The construction of the ship is starting now. The steel cutting is taking place as we speak. So the next installments are gonna be covered by debt.

Thank you. And here, I apologize. Is it the same kind of lending terms for your offshore vessel from lenders and is it the same lenders or is it a different market for financing for the offshore vessel?

Yeah, I mean, we are discussing with a partnership, but you should expect similar terms to the ones that we have been able to achieve on our remaining financing in terms of pricing. The advance that we will get there, it depends also on the employment development, but you should expect an advance between 65 and 75% of the contact price. Thank you very much. Thank you, David.

Thank you. As a reminder to ask a question, you'll need to press star one one on your telephone and wait for your name to be announced.

And there are no further questions

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