Navios Maritime Partners LP

Hello and welcome everyone joining today's Navios Maritime Partners Q2 2026 earnings call. At this time all participants are in a listen only mode. Later you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time please press star 1 on your telephone keypad. Please note this call is being recorded and we are standing by if you should need any assistance.

With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Mr. Stratios Desypris, Chief Financial Officer, Ms. Zairi Tsironi, and Chief Trading Officer, Mr. Vincent Vandewalle. As a reminder, this conference call is being webcast. To access the webcast, please go to the investor section of Navios Partners website, www.navios-mlp.com. You'll see the webcasting link in the middle of the page, and a copy of the presentation referenced in today's earnings conference call will also be found there. Now I will review the Safe Harbor Statement. This conference call could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navier's Partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Navajo partners' management and are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in Navajo partners' filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update this information contained in this conference call. The agenda for today's call is as follows. First, Ms. Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners segment data. Next, Mrs. Tsironi will give an overview of Navios Partners financial results. Then, Mr. Vandewalle will provide an industry overview. And lastly, we'll open the call to take questions. Now, I turn the call over to NAVIUS Partners Chairwoman and CEO, Ms. Angeliki Frangou. Angeliki?

Good morning, and thank you all for joining us on today's call. I am pleased with the results. For the second quarter and first six months of 2026, we reported net income of $167.9 million and $274.3 million and a debt of $275.2 million and $487.8 million, earnings per common unit of $5.78 and $9.42. We also announced a $0.06 distribution per unit for the quarter. We continue to operate in a world marked with uncertainty and conflict. The war between Russia and Ukraine remains unresolved. The persistent attacks in the Strait of Hormuz and more recent ones in the Red Sea have caused persistent disruptions to global trade flows. Against this backdrop, trade has been surprisingly resilient and energy prices, while volatile, remain relatively muted. These conflicts are causing lasting implications for global trade patterns. Countries and companies are reassessing their exposure for critical resources to maritime choke points. They are placing greater value on supply chain resilience, looking to diversify through alternative suppliers, routes, storage capacity, and transportation infrastructure. These trends may have a net effect of creating longer long-haul routes As you can see on slide 3, our fleet has an average age of 8.7 years compared to an industry average of 13.7 years. Our tanker fleet with an average age of 5 years is particularly young relative to the broader tanker market. Overall Navier's fleet modernization program has created a fleet with almost 40% younger than the industry average and about 65% younger in comparison to the global tanker fleet preparing us for the future. We believe the use of our fleet provides a competitive advantage through, among other things, lower operating costs, better fuel efficiency, and higher chartering preference. Please turn to slide 4. Navios is a leading maritime transportation company, owning, operating, and chartering a modern fleet of 176 vessels across 3 segments and 15 asset classes. Our fleet is split into thirds by value, with about one third in each of the tanker dry bulk and container segments. The overall value of our fleet, including a new building program, Our fleet in the water has a 4.8 billion in net vessel equity value. We continue to make headway in reducing our net LTV towards a target of 20-25%. At the quarter end, we had a net LTV of 27.9%, a balance sheet is strong with 625 million available liquidity and credit ratings of BA3 from Moody's and BB from S&P. Please turn to slide 5. Diversification is a core strength of Navios and our platform provides optionality across market. We complement this flexibility with a disciplined risk management culture, continuously monitoring and assessing our exposures. diligently evaluating and structuring transactions and maintaining robust insurance coverage, particularly important in a war-risk environment. Please turn to slide 6. Since the beginning of the year, we have acted to capitalize on a robust tanker market and reposition our VLCC fleet for both the current cycle and the years ahead. We initially sought Two 16-year-old VLCCs for an aggregate amount of $136.5 million. The sale prices were approximately 18% above the prior historical peak for versions of this age. We subsequently acquired seven new buildings VLCCs for an aggregate purchase price of $844 million. including the one vessel that remains subject to ongoing discussions. We have entered into period charters for these vessels for average period of 6.1 years at an average net daily rate of $45,224. These transactions allow us to rebuild our VLCC fleet with modern tonnage supported by long-term employment. The associated charter arrangements are expected to generate approximately 700 million of revenue while reducing a residual value exposure measured at the end of the initial charters to roughly 40% below the 20-year historical average. Across the entire tanker segment we have secured a total of 922 million of contracted revenue from 14 vessels with an average charter duration of approximately 5 years. Of this total, 893 million relates to 11 new building tankers. This strategy enhances cash flow visibility, modernizes the fleet, and positions the company to benefit from the current tank and market strength while retaining substantial upside for the next cycle. Turning to our dry bulk segment, there we are systematically rotating into larger, more fuel-efficient vessels while increasing the quality and visibility of our contracted cash flows. We sold two Panamax vessels with an average age of 18 years for aggregate proceeds of $22.8 million. We then reinvested in three new building Cape-sized vessels for an aggregate purchase price of $204 million. Two of these Cape-sized new buildings have been fixed on five-year charters providing a minimum of $86 million in contracted revenue. In addition to profit sharing contextually, across the dry bulk fleet, we have secured 125 million of minimum contracted revenue from four vessels with an average charter duration of approximately three years. In container ships, our focus is on harvesting the value of contracted backlog while preserving flexibility for future capital allocation. We sold two 4,730 TEU vessels with an average age of 19 years for an aggregate proceeds of 64.5 million dollars. The remaining fleet continues to provide meaningful cash flow visibility, with 194 million of contracted revenue secured across six vessels with an average remaining charter duration of approximately three years. Overall, we have been monetizing mature assets at attractive values while building and maintaining contracted earnings and optionalities as charter markets and asset values evolve. Please turn to slide 7, where we outline our recent developments. For the second quarter, revenue was $410.2 million. EBITDA was $275.2 million. Net income was $167.9 million. Earnings per common unit were $5.78. In terms of our balances, Net LTV was 27.9%, half of our total debt, or 1.3 billion dollars, has no LTV covenant. 43% of our total debt is fixed rate. Our debt has a sagacious maturity profile with no near term refinancing cliff. We have 1.9 billion of debt-free vessel values across 55 vessels representing potential incremental financing capacity. Available liquidity total 625 million dollars. Contracted revenue backlog was 4.4 billion dollars extending through 2037. For the second half of 2026, contracted revenue exceeded projected cash operating costs by $151 million. As of August 12, 2026, Navios has 6,250 open or index-linked days in 2026, preserving participation in a stronger spot market while maintaining a substantial contracted earnings base. Please turn to slide A. Navios Partners announced a new 200 million common unit repurchase authorization, double the size of our current program. We view this program as an important tool for creating value for our common unit holders, particularly when our units trade at a meaningful discount to underlying NAV. In allocating capital to a unique repurchase program, we consider the relative attractiveness of alternative uses of capital, including the availability of investments that can enhance long-term cash flow generation, the preservation of liquidity, maintaining prudent leverage, and safeguarding balance sheet strength. All of this must be considered in the context of an industry that suffers change quickly. Since the current program began in the second quarter of 2024, the company has repaired 1.9 million common units for $92.6 million, including 135,846 units for $9.8 million in the second quarter of 2026. During the last 12 months, we returned 46 million of capital to our unit holders, of which 6 million was cash distribution in addition to 40 million of unit repurchases. Overall, the program has created a $6.30 per unit of accretion. Common Units Outstanding declined by about 6% from 30.2 million before the program to 28.3 million as of August 20, 2026. Please now turn to slide 9. NAVIOS has been executing its strategy through a challenging environment. We are focused on building a platform of excellence. Over the past five years, we have grown contracted revenue by more than 30% to a record high of $4.4 billion. We have an EBITDA run rate of over $900 million and have expanded our fleet value, including our new building program, to $10.2 billion. Importantly, we have not sacrificed financial discipline in achieving these goals. In this process, we reduced our net loan-to-value by 38% to 27.9%. We recognize that there is more work ahead, but in an uncertain world, we believe that our proven platform Combining a diversified fleet with a disciplined risk management culture, position us to continue delivering value through any market condition. I now turn the presentation over to Mr. Stratos Desypris, Navios Partners Chief Operating Officer. Stratos?

Thank you, Angeliki, and good morning, all. Please turn to slide 10, which details our operating three cash flow potential for the remaining six months of 2026. We fixed 77% of available days at a net average rate of $28,100 per day. Contracted revenue exceeds estimated total cash operating cost by $151.2 million and we have 6,250 remaining open or index-linked days offering meaningful upside. Moving to slide 11, our contracted revenue backlog provides strong earnings visibility in an uncertain market. Taking advantage of the current strong great environment, we continue to grow contracted revenue. In Q2 and Q3 quarter to date, we added approximately 666 million. 439 million from 6 tankers, 38 million from 2 dry bulk vessels, and 129 million from 4 container ships. Total contracted revenue reached a record high of 4.4 billion. 2 billion for tankers, 2.1 billion for container ships, and 0.3 billion for dry bulk. Charters are extending through 2037 with a diverse group of quality counterparties. Slide 12 summarizes the fleet developments for Q2 and Q3 quarter to date. During the period we agreed to acquire three new building VLCCs for 362 million, which will be linearly expected in the second half of 28 and 2029. We also agreed to acquire one scrubber-kitted Japanese new building cave-sized vessel for 70 million. The vessel is expected to be delivered in the second half of 2029. We also sold one 19-year-old 4730 TEU container ship for 34.5 million. Additionally, we took delivery on one new building, Afra Maxella II vessel, which it chartered out for about five years at a net daily rate of $27,420. We continue to actively renew our fleet to maintain a young age profile. We have 29 new building vessels delivering to our fleet through 2029, representing 2.5 billion of investment. Based on our financing, both are graded in process, we have about 290 million of equity remaining to be paid. We have mitigated the residual value risk of our new building program with long-term credit-worthy charters expected to generate about 1.8 billion in contracted revenue over a five-year average charter view ratio. Moving to slide 13, our diversified clip provides revenue visibility and market exposure. For the year, we have 53,546 available days, of which 88% are fixed and 12% are open or indexed. I would note that while we generally favor long-term charters, until recently, period charters made little sense in the drybark sector as the rates were weak for a prolonged period of time. Thus, about 24% of our drybark clip is open or indexed. I now pass the call to Erif Tsironi, App CFO, who will take you through the financial highlights. Erif?

Thank you, Stratos, and good morning all. I will briefly review our unaudited financial results for the second quarter and the first half of 2026. The financial information is included in the press release and is summarized in the slide presentation available on the company's website. Moving to the earnings highlights on slide 14, total revenue for the second quarter of 2026 increased by 25% to 410 million compared to 328 million for the same period in 2025 due to higher combined time charter equivalent rate despite lower available days. Our combined TCE rate for the second quarter of 26 increased by 24% to 28,512 per day, while our available days decreased by 2% to 13,152 days compared to 2025. In terms of sector performance, our TCE rate per day was higher by 53%, to 23,682 for our bulkers and by 25% to 33,159 for our tankers. Our Q2 2026 PCE rate per day for our container ships was in line with 2025 levels at 31,191 per day. EBITDA, net income and earnings per common unit for the second quarter and the first half of 2026 were adjusted as explained in the spreadsheet and in the slide footnote. Adjusted EBITDA for Q2 2026 increased by 70 million to 242 million compared to Q2 25. The increase was primarily driven by the increase in revenue and a 2 million decrease in vessel operating expenses due to a decrease in OPEX days. Flipped OPEX daily rate was in line with 25 levels at 7,152. Adjusted EBITDA was negatively affected by a 14 million increase in time charter and voyage expenses, primarily reflecting additional insurance premiums reimbursed by charters. Adjusted net income for Q2 26 increased by 71 million to 135 million. Adjusted earnings and net per common unit for the second quarter of 26 were $4.65 and $5.78 respectively. Total revenue for the first half of 26 increased by 21% to $767 million compared to $632 million for the same period in 25 due to high combined time-chartered equivalent rate despite lower available days. Our combined ECE rate for the first half of 26 was increased by 22% to 27,098 per day, while our available days decreased by 2% to 26,256 days compared to the first half of 25. In terms of sector performance, our TCE rate per day was high in all three sectors as follows. 47% increase to 20,632 for our bulkers, 24% increase to 32,694 for our tankers, and 2% increase to 31,444 for our container ships. Adjusted EBITDA for the first half of 26 increased by 120 million to 446 million compared to the first half of 25. The increase was primarily driven by the increase in revenue and a 2 million decrease in vessel operating expenses due to a decrease in OPEX days. CLIT OPEX daily rate was 2% higher than 25 levels at 7,174. Adjusted EBITDA was negatively affected by 15 million increase in time chartered and voyage expenses primarily affecting additional insurance premiums reimbursed by charters and a 3 million increase in general and administrative expenses mainly due to higher EURUSD exchange rate prevailing during the first half of 26. Adjusted income for the first half of 26 increased by 121 million to 233 million. Adjusted earnings and earnings per common unit for the first half of 36 were $8 and $9.42 respectively. Turning to slide 15, I will briefly discuss some key balance sheet data. As of June 30th, 26 cash and cash equivalents including restricted cash and time deposits in excess of three months were $469 million. In addition, we had $156 million available under two revolving credit facilities. During the first half of 26, we paid $190 million under a new building program, net of debt, and we concluded the sale of four vessels for $123 million, adding about $99 million cash after debt repayment. Long-term borrowings, including the current portion and the senior secured bond net of deferred fees, increased by 103 million to 2.26 billion, following the delivery of five new buildings during the first half of the year. Net debt to book capitalization improved to 30.6%. Slide 16 highlights our debt structure. At quarter end, we have 55 debt-free vessels, including 19 vessels securing our unutilized revolving credit facilities. We have a diversified financing base consisting of leasing structures in Japan and China, more than 15 active banking relationships, and a $330 million senior unsecured bond trading in the Oslo Bourse. In addition, 43% of our debt is fixed at an average interest rate of 6.3%, while 50% carries no loan-to-value covenant. We have also partly mitigated high interest rate costs by lowering the average margin on our floating rate debt and bare boat liabilities for the in-the-water fleet to 1.7%. I would like to note that the average margin for the committed floating rate debt of our new building program is 1.5%. Our maturity profile is tagged with no significant balloons due in any single year until 2030 when the bond matures. Finally, in July, we concluded the financing of one new building, Cape Science Vessel, under a 10-year variable team contract with purchase options, with an implied financing amount of 64.6 million and a 6% fixed interest rate. I now pass the call to Vincent Vandewalle, Navius Partners' Chief Trading Officer, to take you through the industry section. Vincent?

Thank you, Iri. Please turn to slide 18. State of Hormuz closure has created a major energy and shipping shock, affecting about 20% of the worldwide crude, product, and LNG flows. The disruption has tightened tanker availability and driven freight rates sharply higher. Rates for VOCCs hit all-time highs reaching 602,000 per day and remain elevated with a significant portion of the fleet trapped inside the Gulf. The shortfall has been partially mitigated by increased crude volumes from USA, Brazil, Venezuela, Guyana heading to both Europe and Asia adding more ton miles. At the same time, renewed disruption in the Red Sea has led Saudi crew to alternative being shipped via the Mediterranean to Asia. Higher fuel costs and security of supply concerns are driving the purchasing and transportation of commodities and finished goods. This has raised rates in the dry bulk sector for both Cape Sizes and Panamaxes and has continued to support container time charter rates. The conflict in the Ukraine and the recent Panama Canal draft reductions due to El Niño also ebbed on mouth for most vessel types. With negotiations between the US and Iran at an impasse and the Strait of Hormuz and South Red Sea effectively closed, vessels utilization will continue to run at high levels supporting elevated rates for the near term. Medium-term trade adjustments depend on how long oil prices stay elevated and whether demand for other commodities like coal, rice to substitute for LNG or decreased fertilizer availability affects crop supply later this year. Strategic and commercial crude and product reserves will need to be restocked, which should keep tanker rates elevated over the long term. However, prolonged hormones closure could still trigger a global slowdown or a recessionary demand shock which could affect all shipping markets. Please turn to slide 20 for the review of the dry bulk industry. The amount growth for dry bulk trade has been relatively stable over the last 25 years at about 4% average annual ton-mile growth. The current order book stands about 14% of the total fleet and is expected to remain low due to high new building prices and certainty about new fuel regulations, yard availability, and general market outlook. The fleet is aging quickly, with 39% of the vessels 15 years old, with older vessels far exceeding those on order. Supplies should be constrained over the medium term. Please turn to slide 21. The main driver of dry bog demand will be strong Atlantic Basin iron ore growth over the next several years with new projects in Guinea, Brazil, and Iberia. The largest new project is Simandou in Guinea, which started shipments at the end of last year and is expected to ramp up to 120 million by 28. All of its year-to-date shipments were about 9 million long-haul tons from zero last year. Vale in Brazil has three new projects totaling 50 million tons expected to start exporting by the end of 26. Liberia adds 10 million tons of exports in 26. In total, these 180 million tons are all long-haul ton-mile crates creating demand for an additional 249 caves. With the current order book of only 227 kg due by 28, a further tightening of supply and demand is expected over the next year's benefiting rates. Overall, the dry bulk market looks positive based on steady long-term demand growth and a constrained supply of vessels. Please turn to slide 23 for the review of the tanker industry. As to supply, we see a tanker order book of 26%. About 50% of the fleet is already over 15 years old, rising quickly in the next few years. With older vessels exceeding the order book and yards offering first deliveries in late 28 or early 29, supply is set to be tight for several years. Please turn to slide 24. The U.S. Office of Foreign Asset Controls, OFAC, the EU and the UK continue to sanction Russian and Iranian oil revenues and ships delivering their crude and product cargoes. The U.S. recently imposed sanctions on five Iranian-linked VLCCs and three product tankers along with sanctions on several individuals and companies involving trades in Iranian cargoes or aiding payments to Iran. These tight sanctions have two main effects. Sanctioned oil volumes from these countries have more difficulty to finding willing buyers, raising demand for compliant barrels, and non-sanctioned vessels to carry that oil. With 875 mostly overage tankers now sanctioned, the fleet has already seen a significant reduction of about 15.3% of total capacity. The tanker market also looks positive over the medium term based on a low order book compared with an aging and reduced fleet due to sanctions. Please turn to slide 26 for a review of the container industry. After the COVID pandemic, container ship orders were mainly for the biggest units with fleet expansions in the large vessels set to continue at high level. Currently 72% of the order book for ships with 9,000 TEU capacity or greater, and only 24% of the order book is for 2,000 to 9,000 TEU capacity, where Navios is most active. Note that by 2029, more than 50% of the 2,000 to 9,000 TEU fleet will be 20 years old or older. Smaller segments of the fleet are well positioned to take advantage of the shifting trading patterns. As shown at the right-hand graph, growth in non-mainland trades far exceeds the traditional mainland trades to the US and Europe due to the tariffs and higher growth in developing countries. Trades involving the southern hemisphere, mostly served by smaller-sized vessels, are expected to see continued healthy growth as this trade shift continues. Overall, Navisfreed is well positioned within the container market and continues to benefit from long-term employment with our high-quality charters. This concludes our presentation. I would now like to turn the call over to Angeliki Frangou for her final comments. Angeliki?

Thank you, Vincent. This completes the formal presentation. We open the call to questions.

Thank you. If you'd like to ask a question, press star 1 on your keypad. To leave the queue at any time, press star 2. Once again, that is star 1 if you'd like to ask a question. Our first question today will come from Omar Nocta with Clarkson Securities. Your line is now open.

Omar Nocta Thank you. Hi, Angeliki and team. Nice update today, and thank you for the overall market commentary and company update. You know clearly I guess as we think about things it continues to be a good amount of uncertainty as you highlighted across the different markets but freight rates are very firm across all of your segments and you've been taking advantage of that and just wanted to ask about the dry bulk fleet as it is now because that seems to be really where there's the most Good morning, Omar.

There is a good observation. I mean, basically, if you see on Stratos' slide, we have about 6,250 days that are open, and mainly are index, you know, is dry-bulk days. What we see is a very firm market. We have been able to fix even our very, very old CAPE on two and a half year durations at healthy rates by historical standards. So you will see some contracted revenue because it's at levels that do make sense. But we also keep, you will have part of that also on index. So you will have seen that we added in the contracted revenue and Stratos can take you through a little bit On top of that, we have already fixed another two vessels.

On longer durations, it's an average of about two years on average. And as Angeliki pointed out, one of the vessels was a 21-year-old vessel, which we fixed it for two years, taking out the age to 23 and a half. So this is indications of a very healthy market with good prospects. People feel that this market is there at least for the foreseeable future.

Yeah, got it. Understood. Thanks for that color. And then maybe just one follow up and I'll pass it back. Obviously, nice to see the share buyback. You've nearly exhausted the original $100 million. You're commencing a new $200 million buyback you announced today. Just a really simple question. Does this new $200 replace what's left of the $100 or is the plan to finish off the remainder of the $100 million before shifting towards a new one?

This is on top of the remaining, so we gave visibility as we're coming to the end of our 100 million. We bought about 6% of our shares, so we're ready to position the company doubling our buyback.

Great, okay. Well, thanks, Angeliki. I'll pass it back.

Thank you.

Thank you. And as a reminder, if you'd like to ask a question, please press star and 1 on your keypad now. And we'll move next to Christopher Shea with Arctic Securities. Your line is now open. And once again, we'll move next to Christopher Shea with Arctic Securities. Your line is now open.

Hello, Angeliki. Thank you for taking my question, and congrats on another great quarter. So my question relates a bit to what Omar was touching upon. The LCV is now 27.9% as a quarter end. And I was wondering if you could give some guidance on When you expect the target to reach and what do you expect that will change in terms of the capital allocation? And on the $200 million buyback program, is it fair to assume that we could expect more than $10 million a quarter?

Hi Christopher, the one thing I can tell you is that we doubled today our buyback and we have been doing that while we are building quite significantly, we've built a lot of value for the company. And this buyback is measured by the considerations we have, which is we are renewing our fleet, Thank you very much. and quite significantly reduced from when we started this process. So our buyback is based on an ability to have a flexible company to be able to operate in any market condition and without creating stress in the system. So this is where we are and we are working towards the 20-25%.

Thank you. And we'll take our next question from Stephanie Moore with Jefferies. Your line is now open.

Hey, good morning, good afternoon. This is Peter Sullivan calling on behalf of Steffi Moore. My question was centered around counterparty concentration, looking at revenue backlog, standing at $4.4 billion going through 2037. How do you guys evaluate concentration risk within the backlog? Which metrics should investors focus when assessing counterparty quality and then renewal risk across all three subsectors? And then as your backlog has expanded, has this changed over time? Thanks.

For us, risk is something very, very important. It's not about, as you very well said, we have a backlog of 4.4 billion, which is quite significant, and until 2037, but actually the most important thing is what we collect. So the risk management is quite significant. Because we are in different sectors, there is a huge diversification between and other major oil companies to grain houses to major container counterparties. So basically you have a lot of different entities and Stratos can give a little bit on concentrations.

I mean, if you see in the presentation that you can see that, you know, the counterparties that we have are basically, I would say, blue-chip counterparties. They're top of the high-rated names. And as Angeliki said, on the oil side, of course, you have oil majors and major oil players. But there is also diversification between the segments. So you are not exposed in just one segment. You see that the contracted revenue comes about 50-50 between containers and tankers. And this changes depending on the opportunities that you see in the market. And we are always focusing on the quality of that counterparty in order to make sure that this counterparty can always perform the contract irrespective of the market conditions.

Perfect. Very helpful. And then as a follow-up, you've spoken about a longer-term reconfiguration of global supply flows driven by geopolitical and national security considerations. As shipping routes lengthen and vessel deployment patterns kind of evolve over time, how should investors think about the balance between the benefits of higher ton-mile demand and then the associated increases with operating costs such as fuel, insurance, crewing, et cetera? Then I'll pass it on. Thank you.

Let me explain one thing. The longer-term mild is like removing from the supply of vessels. Like, I will give you an example. I mean, we thought Red Sea under the previous condition was long, taking 10 days more for the container vessels to go around the Cape of Africa. Today, the disruption that is happening with Red Sea and the Strait of Hormuz, which basically The VLCCs cannot go down. That adds, via Mediterranean, two and a half, I mean, quite significant more days. You're talking about two and a half times the voyage, and Vincent has gone in depth on that. So the disruptions today add to the ton miles. So basically we are paid for more days at sea.

And just to add to what Angeliki is saying, for us the longer tonne miles and the fuel cost and the voyage expenses that are associated, because we are focusing mostly on time charters, for us this is a pass-through. So basically the rate environment that we see is benefiting operators like us that operate on longer term duration in time charters.

And the insurance costs.

Thank you. And as a reminder, it is star at 1 if you'd like to ask a question. Thank you. This does conclude today's question and answer session. I will now turn the meeting back to Angeliki for closing remarks.

Thank you. This completes Q2 exam. Thank you.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.