Star Bulk Carriers (SBLK) 20 Nov 242024 Q3 Earnings call transcript

Thank you for standing by ladies and gentlemen, and welcome to Star Bulk Carriers Conference Call and the Third Quarter 2024 Financial Results.

We have with us Mr. Petros Pappas, Chief Executive Office; Mr. Hamish Norton, President; Mr. Simos Spyrou, and Mr. Officer, Financial Co-Chief Begleris, Mr. Christos Operating Nicos Mrs. and Rescos, Chief Officer, Company. Officer Charis Strategy the Plakantonaki, Chief of [Operator advise I recorded Instructions] must today. is conference being call you that this

speakers on We sir. one the now Begleris. floor will of go pass your today, ahead, Mr. Please to

third operator. Begleris, our Co-Chief financial would Carriers, I at Bulk Financial regarding I'm Christos you, conference to call welcome Officer quarter results like and you Thank of the XXXX. Star for to our

moment kindly Bulk the presentation. cash investment Before before the our value third the to you integration, during ESG create we operations, ask to we Eagle a Slide shareholders, evolution our latest for our read Star proposition, harbor take of up will I In fleet fundamentals, front update, industry on statement quarter, views Bulk's begin, on an and on taken quarter the results our safe to presentation, for questions. vessel actions opening go #X through update the today's on

us for our highlights. a XXXX of third quarter turn summary the presentation to Let of Slide #X now

XXXX, share. third $XXX.X for following: $XX with the or For of Net earnings net quarter to was $XX the reported million company income adjusted adjusted $X.XX million Adjusted income the EBITDA per amounted the quarter. million

third or December XX, about quarter, dividend policy, share on payable we our the as For existing per XXXX. per $X.XX declared a of dividend

our at total Our total stands liquidity strong today debt stands Meanwhile, billion. million. $XXX $X.X at

for will quarter. our On right the daily figures page, top the per vessel the see of you

per charter day. equivalent per time was $XX,XXX vessel Our rate

fleet we resulted than new gross we the completed dividend million. Please costs fleet a in OpEx is the Bulk by have have sold April have specialized the all year, to amongst retail highest during our Rightship XXX departments. dividends fleet cash largest with is management Hydrus, more amounted in to X fitted, of of During bulk scrap Eagle covers Eco transaction a across debt provides Furthermore, compelling the us dry XXXX, to summary Bulk XX%, the to than through further third average expenses proceeds be XX of to value have over their listed have XXXX, G&A million. integration X grown less XXXX $XX,XXX. Since potential Our total process second namely maintaining day consolidator delivered the debt. is Star from and X.XX fleet until $X,XXX. tons, reduced OpEx per quarter smoothly vessels remaining XXXX. Continue for that having XX most to OpEx consecutive XXXX and current XX% Significant XX% where payments, net proven Eagle net Bulk? by level combined integrated value USD in of operate quarterly TCE for declared Since U.S. competitive has across in dry expected deadweight net and owners years. age the XX.X operate daily a Slide Star cash and XXXX in comfortably the while of an this number through on billion. to $XX Star vessel Why vessel OpEx our Imperial quarter our per of the synergies are operators of Therefore, X platform and $X efficient the fourth G&A drydock our turn of update mergers, trading and all four advancing our G&A and vessels Integration more bulk Three quarter of we significant for higher the vessels. vessels, the makes and per liquidity. We of achieved savings Diva in and our consistently of these public of Star for ranking. Since a worldwide company shipping vessels. third proposition. our Bulk's quarter, fully the operate scrubber we lowest the of terms with in advantage. Star We segments Bulk a fleet industry. which a be we Starting fleet a was

Bulk shareholder-friendly net have back some using XXXX, have to we S&P asset older million elevated bought back our taken significantly efficient We who have $XXX is with is sell shares governance, proceeds years, members, Bulk worth least, aligned fleet our ESG and that less of which in for vessels, we their Board including independent advantage have at in investors important financial shareholders. solid our to since buy at investors strengthen the Throughout built are industry's Bulk's equity of our company's values for platform historically years total, the through various by of taken NAV. not prices and below Star investors, merged actions return Star in buyouts but shares. by having value. Since Last management leader primarily have or shareholders. There an pioneer shipowners is corporate incentives other with we policy shares. It over of fleet responsibility. Slide $X.X with the shareholders. increasing we have overview to our for and increase XXXX, shares is social allocation the and of compliance capital above has to issuing last In and a the been the to transparency total growing timely create commitment efficient levers regulations the value capital company, provides used to an consecutive and of billion environmental shares value to decarbonize. being Star our efforts the X shipping, X the

debt of we bottom net page, evolution. show the our the On

$XX.X average vessel, vessel per a million million per of than $X.X net per vessel XX%. to decreased debt Our has from reduction more

by process, result a value. the our net As covered fleet current of scrap debt this is deleveraging

quarter the treatment quarter installments of positive an million cash cash cash. from quarter. at the X Finally, aggregate and $XXX the pass $XXX for After now devices million. I system with during third of illustrates the We debt-free $XXX value and started in the to have more balance operating Nicos generated market proceeds we our balance than the graphically $XXX will today ballast cash flow million. Slide payments and our CapEx we an changes in second of Eagle debt dividend currently activities vessels a floor We on million. X the update company's repayments, performance. Officer, operational Chief Rescos, including integration and payment, water arrived Operating energy-saving Bulk and with

Marine Singapore Ultramax successfully Thank illustrates while global fleet of offices out presence. The Bulk and and operating technical bunkers phasing stores, integration. been maintenance commercial the you, in-house, combined produce processes Slide Stamford, leveraging the to in have Eagle third-party fleet. Procurement established both been Bulk have Quality efficiencies. and globally, are cost significant commercial measures ex-Eagle have combined has Ultramax Athens, for across technical X Star and Supramax voyage completed teams and largest expected These gradually the is Supramax lubricants the three centralized combined and on managers, uniformly fleet parts, and a operating been policies spare the their taken Standards, charter time basis. Crewing summary the Safety of managing fleet. The management management across applied for of transaction the integration, the Christos. second vessels and in continents

dry for have expense from bottom Bulk Eagle in day more the X, we as expenses provide G&A the was the per operational you OpEx see savings interest per $X,XXX than on as the integration. On an and will Through $X,XXX vessel well dockings, $X same XXXX. to page, Net an savings. Please G&A turn million of for illustration synergies cost Slide achieved were update. period. OpEx, we QX at of cash

the and our addition, continue the dry In days. some safety guidance around a listed amongst future dock to we terms and update top Rightship peers total rate of our provides fleet X relevant score. Slide off-hire at in

we at XXX off-hire On for dock period. In million remaining expected page, approximately provide dry we XX expense our to schedule, an cost the same of is total, of for to expect vessels. the bottom of expect off-hire which XXXX, docking million. the for of vessels $XX.X days XX the XXXX estimated expected and days dock dry dry X,XXX the we have In $XX.X for

our XXXX we upgrade vessel CapEx fleet and 'XX. water our will delivered On we ballast now EEXI In latest the have fitted. Based QX of line schedule, our the be with fleet further aimed attractiveness our the our reducing our of Star footprint, the and expected in in newbuilding fleet. being enhancing right equipment CapEx our efficiency XXX% on technologies, and of the environmental with CII regulations, fuel upgrading construction and page, Bulk's with to newbuilding top are investing energy expenses consumption operational and improving our commercial latest continue schedule, illustrating vessels

to XX In vessels gross XX levels. continue and remaining numbers more based program, reducing Regarding vessel we sold vessels within our we historically XXXX, total disposing overall retrofit employment XX of the capacity. Please of with plan at We completed proceeds our for of improving by million, dock XX planning, installations front, are yard current our average three have sales energy XXXX. end $XXX Slide dry sales. devices to On an update age year. next have retrofit for retrofit around turn and on fleet vessels efficiency. attractive and The a retrofit opportunistically vessel fleet above estimates another we ESDs with on saving for

have charter-in rollover the of existing contracts, Following now a of Eagle total vessels. we charter-in XX Bulk's

update. with largest contracts newbuilding for of changes we shipbuilding the first Qingdao XXXX. Considering firm XXX dry age Kamsarmax the five five aforementioned and an bulk operate with Strategy the years. I have our ESG we fully the vessels Plakantonaki half Shipyard delivered in vessels earlier, of mentioned an of fleet deliver fleet Charis QX mix, XX.X listed to and a among pass with As one construction now will in Chief Officer, our for and peers on floor European U.S. basis average

has leadership Global has published Scope Initiative performance Nicos. and company's implementation requirements. to energy Bulk ESG we of performance Star Committee. Among ESG-related in by emissions. the its developed fleet-wide with against input greenhouse Xth improve conducted indicators, EY X to front. benchmarking from Please in guidance. in The ESG on report reduction you, milestones, Annual where a a X.X% XX, X% it's reviewed impact year, accordance our X with a internal ESG report measures company's operational Reporting latest the achieved materiality the the years. Through and We the gas comprehensive CII company previous assessment report external continued from with to improvement and and stakeholders assurance compared includes key Thank and of emissions turn been in highlights been received a has limited highlight technical previous the list the X.X% The Scope key efficiency, the reduction Slide the PwC's

management water the adoption Bulk Project year, climate the Preparations fourth and include strategies, on such Star Maritime for consecutive Disclosure on successfully change the This to reporting. pooling For year's XXXX, coming has underway focusing the expanded questionnaire. biofuel in January leveraging in the as outlined FuelEU and into regulation. submitted mechanisms alongside are XXXX submission regulation data banking compliance Carbon effect

organizations, global the support regulators to to by expertise regulations the engaged development of adopted measures gas On we with providing in be reduction and expected and input XXXX. the greenhouse front, actively IMO industry midterm

to and society, enhance of to contributions our programs update now pass the Games. I Olympic a continue well-being We for people qualified Petros sponsoring including Pappas, market to floor closing our strengthen the athletes our Paris for CEO, remarks. XXXX who the will his for and

supply. Please brief update Thank a for of to you, turn Slide XX Charis.

deadweight balance the CII, XX.X now million congestion delivered of going or and incentivize for inflated XX million under reduction due speed order normalized approximately strong their above years high increasingly by expected the through million and steaming. survey, number of boom the X.X% During demand moderating and knots XX.X%, presently from end the a levels to a during XX.X X.X and trends trade, to third Moreover, was of of X% fully at bulk demolition XX seasonal X.X% a stand the until and fleet costs to future from fleet orders strong year-over-year. effect late shipyard be to recover vessel port low during fleet, keep at the has limited shipbuilding follow capacity small supply supply due of helped and XXXX, tensions vessels by special EEXI delivered to year. shipbuilding increased stabilized and Congestion green growth age, and XXXX net competition growth approximately in fade Red of through following experienced and to the have crossings year-to-date lasted Uncertainty first are and deadweight of as types XXXX. Moreover, XXXX, while consequence. Global environmental that on of years X since was XXXX, cause book reverse Canal at and Suez, costs of respectively. new the propulsion X and months the late the other and Panama X%. deadweight the rerouting gradually will a supply increasing average XXXX, low sent continue including that vessels inflated bunker last XX.X% The months gradually is Sea increase stands control. The XX XX will regulations, steaming this the total available an of XXXX, on as as fully for of away negative could a while expected inefficiencies has rising dry

that of next above activity the assumption even trends, growth result exceed is at levels. the remains fleet low current couple a the per As unlikely demolition under to X% over annum years, of

now to Clarkson, ton expand demand. by a dry trade miles. to projected turn XXXX for Slide update According bulk is us Let X.X% XX total during of brief to in

materials the total dry Atlantic inefficiencies iron sector, is supported the end manufacturing X.X% of During year-over-year product received infrastructure, mile quarters a extra ore, the year year-to-date, easing are record by and over raw have weak bulk X by canal as boosting bulk ton a and have recovery long-haul coal the from in prices property Chinese economic by to strong policy exports monetary first and last exports. Despite imports volumes demand. strength struggling strong Imports and bulk rest exports. while commodity world X.X% to the support lower minor XXXX, of experiencing and performance dry trade due increased increased

During XXXX. dry IMF increase standing is while demand by ton forecast global the GDP in bulk X.X%, as XXXX, to projected X.X% growth in the for at miles, same

follow slow amid possible administration this pro-tariff X.X% may GDP Trump Retaliation policy from is Act a The will, trade but impact for incoming While is moderate our X.X% to dry projected down Chinese trade. on to create to view, a have headwinds that in year. expected global direct bulk

Chinese months, the support by administration ore few reduce Chinese issuance should measures special heavy provide is through on additional bonds main products, to of packages support economic on Chinese to impose to announced last consumption address boost we trillion the in in in XXXX XX help of goals and have private potential measures local the government outlook. ton various to ] pro-growth and the to and unsold XXXX. property domestic trade to huge should the expect consumption. Moreover, During the Trump stimulus houses [ miles the expand on weakness traffic The in authorities a X.X% tariffs are that X% improve inventory alleviate string of Iron of exports. debt prices expected

exports challenges, Chinese year-over-year, steel market by X.X% and the manufacturing During provide X quarters, from property production first steel to as continued face declined the support. have strength while partial helped

stand experienced to a production miles gradual from expand the X% environmental in from have by X.X%, XXXX is as On substitute meet years focus thermal at imports online volumes, to domestic on has and and Indonesian of has XXXX GXX world driven quality the Atlantic ore during inflating in higher-quality security capacity increase trade primarily demand Preference recovery the faster and ton has constraints increased led have three peak pace Chinese by higher inland should inferior years iron inflate will exports. first hand, trade is expected region. during year-to-date last recovery economy and mine domestic stocks over members of and increased by Atlantic of than for has coal with shortfall coal requirements. Grain in India expand contract XXXX. of grew winter among from year infrastructure ahead during coal gradually X.X% quality. Coal imports and new Global production by strong in and XX.X%, record import that levels coal generation energy the energy is year-to-date presently stocks but next along on by quarters ore domestic production trade Chinese has increased the and electricity by is gradually production Indian come by targets during X% demand. Moreover, in expanded come and strong X.X% at XXXX. iron a to fastest inflated as expected the at expected throughout and demand to other rest to steel coal growth in the the a the the pace a the

experienced before term. Minor growth X.X% Brazilian grain third of bulk first expand the potential in arbitrages has continues The continue quarters, to grain Black X.X%, QX, to a the and of increase inventories strong while implementation a a strong build have by But on grain is U.S. exports, exports the by grain Capesize Chinese price sector. and for During during driven it the expected the better-than-expected steel to of and weak the X declined support production XXXX. to increase expected pace expand the incentivize and is increased X.X%. exports in while inflate of out correction trades, production. pressure Sea correlation that corn trade grain Africa XXXX medium grain tariffs global rush volumes continue sales by during regional and bauxite at miles by West to that up prices ton trade volumes put generates should worldwide during the GDP trade highest X.X% backhaul quarter, and positive to to Chinese

stricter scrubber environmental opportunities market but the by emerging on geopolitical remain we the In government the relative of Chinese dry market, regulations market to the slowdown, take remain steps economy. advantage increased focused to bulk QX and optimistic managing our of favorable recent and uncertainties, we shareholders. Over picture, medium-term actively the the creating diverse As stimulate our you, the continue prospects value for fleet of to about operator. a final comment, given supply expect period

[Operator first with Instructions] Omar Our question Nokta Jefferies. is from

couple a the questions. maybe following merger of have realizing with just the off on you're I And synergies first Eagle.

happen through target quarter. be the got you $XX -- the sooner? evolve months. for bit the be you any there I been target Can Do third you're to is do XX where a You've achievable Does continues within extracted, to million this pace from XX so And existing think? that you to or feel $X far on maybe initial talk that think more know here? starts it can little you had million that? about

Thank you, Omar. This is Nicos.

on per we exercise an much kick we Focusing million changes, been of should on the threshold the on crew which is for throughout $X.X what efficient correct has the quarter QX, Expectation you just need where idea see following on gives should especially synergies improve, to a be dry as efficiencies and pretty with docks expensive consecutive quarters and this at quarter, that XXXX. expenses. more in good

I we'll QX. think on we're well reporting So better target on numbers be hopefully, and as

to already. at got sort we've are And of we synergies million we're quarters And just run -- to before add, $XX X annual final the hit the Yes. rate. rate expect run it

we'll think I probably be there we'll and be So it.

it are just dry vessel like like the make and here OpEx on amounts I the sure And of realized operating cost, to ratio from a to synergies then bigger or are bigger the correctly, and sort Okay. be on the that dockings? probably hear

should is the the rate fleet add presentation. docks top and made did on dry run during reference this, of not the dry third G&A. OpEx any that docks only during million quarter. $XX his Nicos you Bulk We Eagle The have On

figure OpEx, includes see for quarter. savings this $X.X there and that interest expense specific of the you million only So G&A

then you modeling is but I officially G&A it's basis? Okay. one guess It's But just do what on, this post ongoing for and quarter I be days. And say, should question, a modeling think what -- still early merger. see. we an

Bulk the that The Simos. for for day have per the have -- Eagle $XX,XXX quarter the we actually, is is office, third the this per Omar, -- -- in So vessel. figure that we Eagle ex G&A Bulk split

last lower than quarter to So it had of that managed the we Eagle bring operation. significantly figure during have the

to move further and figure Athens be expect headcount to Athens, it the we as will and office We the a to bring ahead, position that closer Singapore had and we office the expenses last quarter. Stamford up reduce expenses in of that

market outperformer Okay. just you this Great. driving give my the really stuck. discussed flavor color. bit Capes year. to to on Clearly, more but even been some you firmer. have been to a been Capes what's if for final or a And more be And get have wanted I little Petros, feel how a recently, divergence? bit maybe this sub-capes recently? though one develop just seem end, volatility, a could of definitely the bit, wanted you've even market And a there's And sense But all been maybe just see seeing that

But Omar, doing was been for because the the -- actually actually, of it extremely okay Capes the yes. just the quarter. huge. well. not last great a that The has that And average last been been has $XX,XXX. week days been It's that Supramax They smaller that have also, not $XX,XXX. about the and it's Well, doing haven't QX ago for it $XX,XXX. sizes. average been couple has did average And week

during Panamaxes. it's they you than because if that And the the -- is have carried bit X.X% with higher Panamax, last the actually quantities have actually look surprising in is been a problem it equivalent the tons been So the year. XXXX, at

analysis and of had actually, department. our on are a So the the And was wondering, I follows. fall discussion as with Panamaxes the I reasons

X.X%, a of which side, the problem is big been First Then has all, on is already. of reduction the the congestion. relatively X.X% high supply

very a problem know, been fact to of vessels. Then a this most is On has tons this you on And as year that the been the China. -- third coal the additional has have XX% Panamax in Indonesian reduction side, is been distance. congestion this those the short of

compared to Thereafter, long Brazil decreased last tons year, their million that's X corn distance. by exports and

opening Panama small Sea. on exports Supra decrease Brazil the And they was the in Panamax theirs, didn't the on of on that Although up tonnage from Panamaxes trade. grains help a the exported released mostly course, from the there of vessels, a lot lot. Black of of number Panamaxes. Then, do Argentina the affected Canal the Russia less where Chinese coal therefore, actually a increased reduction

miles all the So ton reducing sector. conspired in Panamax actually for that in actual demand

Ben question is Stifel. with from next Nolan Our

And it. way, a that answer Petros. by Appreciate the there, was comprehensive very

So I appreciate me. that. The a did It's -- couple to questions, I helpful of though. have

But if First, up market appreciating any seen sort? not? there that and States. election sort in and anything yet. little following that of you of tariffs have was United change the curious activity administration you running I change have the in so you of with or is forth. about expect of And sort potential and the would bit sort probably -- front something customer impact trends or that any of you talked maybe a Is the in of

have in Well, that. of view I we But boost is want, are trade people see do And what because you a some to much expect about can actually, talk afraid what short-term Ben, Trump to have about is we we effect going be, actually, if yet. not seen coming. the

Sure.

Okay.

bulk So is about It's trades and X% U.S. imports. about on on is exports not X% trade trade actually -- U.S. huge. -- U.S.

tariffs small effect, what is the there -- to relatively is with. effect. take let's going direct a begin So actual be going to But

and import China, from South will there is the happen more big So from if America. what tariffs will that will import U.S. are on China less

probably, less because create that and than ports the the So congestion important, create efficient longer more from And to distances South ports. will will going there's be more ports. U.S. are more also, going to perhaps demand is the same American

will would Also, think would I countermeasure. to their consider a -- I positive China as tariffs, effect. such economy, I a believe, be boost So that and think I that stimulate

trade that think -- a probable that result would I would tariffs. A So third that be create evaluate may positive now, of negative a that it -- will will going believe on less also tariffs be be it economy. the point a end day. such point right become effect there's the but of we world is We to that overall the of at have negative cannot

container Specifically, from will tariffs affect such container that are a ships ships, ships Supramax China. And U.S. if doing there's because to we because Supramax very happens of anything commodities more then else, will from that ships there's reduction influence vessels. on in to more cannibalization vessels container believe a and the that there's trade when than container trade well,

of stops. the Trump And another think had be will here war created up that sanctions away. policies inefficiencies But now. Ukraine that could give Now effect their Europe the that right to we up not

will there's in that which we Sea. that would probably more and Russia think from continue. reconstruction from Ukraine going very be positive -- a Ukraine And going create there's So to be hopefully, And congestion. because exports both be major thing from a would also to the Black

So we consider that as a positive as well.

reduce positive the opens what that that And has ton think, and open. the Red of be it's therefore, a I Iranians a shipping. would do. not be I saw with know weapons their that that mean, for percentage to creating is of I least all dollar, the going miles retracting the a that, be nuclear We Good nuclear as Houthis. stop that speeds. do plans is the of you Cape probably or would which at Now and I Trump which this think what And kind the that final trade Iran the I strengthen could saw, commodity effect as vessel prices, effect negative of is oil that be a big the point, a is not fact administration supporting would dollar, probably is on good would happens, potential probably increase. And not might if vessels concerned. big And if go Red a side to But Mr. the think that through Trump fear might of for might Sea Hope a for that will good certain actually Sea far

are balance So, a could see the opening actually overall, Sea. leads positives there and negatives. negative. of if in up Red except to towards We it, it more That an actually positives

I was than counting on. Yes, appreciate helpful. a it. lot I more that was Very

question, knew I prepared. so would ask was you the

Yes, you are. always

So my for changing question. just second gears

money been that that You I'm what spending Have terms devices. actual figuring of what the implementing them guys on number energy that been all flow them you've investment of to relative equipment? in on a at and have don't has saving postmortem them. there's is had quite or have your cash you now are the been done and curious return fleet, you've using any the excess that vessels out your in

Nicos. Ben, this is

we out them. question figure to what the trying are We before install is to answer the

doing testing And before much importantly, pretty fitted. we module every it's do see is ship on we So that trials anything. install

on, So count numbers repayment The actual measure, our anything from anything the on And years, depending XX%, the all answer tested forecast combination X in is the make we that basis. is way which short is X% the that on and to on we ducts depending between have X propellers. we efficiency to of we change get technologies the use. you as ranges between to period

had relative expected? come and of been tested. you in Okay. there And any variance modeled to It's sort as haven't what

less of It behind the mathematical install The coming as we've course, unless anything fuel. it. expected consumptions is not effect run calculations beyond, do because and getting burning better we calculations, the

you is specific is So fit repayment CII we quite the know of that once improves devices. the rating vessel that the the

we when follow of approach careful So a to install. what very and

plan. us on remain And upgraded keep post or more an That's have prefer to we upgrade the to retrofits. We leave But just you reduction working. picture will ships vessels clear everything we to why it CII until fuels be that continuing XXXX out. seems to competitive the Some much competitive. or see require remain rate

Deutsche Our next from with Robertson is question Chris Bank.

good most noticed of questions though you saving kind questions out of to pick secondary that availability the on for as there. taking Ben if and economics terms I that's that, specifically of areas, the mentioned energy devices. certain for But the in Europe, biofuel bunker. up in I a biodiesel, in where that's the tanks just Wondering could and could biofuels. guess, the here you in in if speak the the to around use related I Omar follow to up slide on use wanted Ben's if shout of you I around

this Charis. Chris, is

generate within intensity a and biofuels So Regulation, which Europe. in and it we the we fuel mechanism on of burn. The is credits of Maritime is remaining in ports. that while reduce trade our is this in and FuelEU us trade few this looking a that are to we of European the the -- enables regulation, which which vessels, way requires basically vessels, there for the basically the only use out And into of for of scope pooling carbon biofuels out relevant regulation

the quantities the in the moment, currently with comply into are expect the There need BXX, we to order the is with we available biofuel we're our At bunker XXXX. we tested and availability the for most is rooms. engine suppliers. for that burn looking regulation most which Now in discussions is in to will

entire will what XXXX Now that effect here point is the within at XXXX, decided come globe. may change refer the global regulations be into in to expected the to time, landscape are to that in which

in means global So once this burn level, trade. biofuels. we to relevant for the global require of we so This we at of us, our carbon the reduce have will will see additional intensity fuel qualities that measures

the is talent. will this onwards. XXXX be from So The talent

difficulty expect the we in to XXXX, we regulation. not sourcing do have comply need biofuel the to with For that

to And but there or in order I be as across Okay. fleet, fleet, potentially or as to That's your to to engines in done follow-up any to are broader the fleet helpful. your biofuel? the upgrades general just just that need the engines tweaks that, guess, a it would burn relates

them we are modification. No, Biofuels our in and no. any without further burn can engine rooms already tested,

basically Yes. work. oil, and is XX% biodiesel The XX% mix that XX% and right, fuel

would fuel? issues additional of where the road any it create down costs type that required maintenance burning Does any in there it is increase Hamish, anywhere?

think as Well, you have use that to is it it it, think than relatively oil, -- that you with I after be familiar But buy am. and well. lubricating works as I long the more basically, Nicos right burn may you I quickly

you if long leave bad time. a go it can it think I

Nicos. is board. is on Hamish of on to fuel This lifetime the It's keep a it correct.

intended work to of done require mentioned, in calls merger have FuelEU, idea a is we with the as for especially Eagle we frequency Charis what pretty will However, the we've in tons the Europe, after good comply trade, any and as Supras terms pretty more ships this to lot damages European and of our operating are on are we into expense tested with expect It's a we've to it. any maintenance be have But difference safe fuels. we these don't and that Europe. where the heavily of sort or calling of done use

good. we're So

charter on through our able your a our Chris, for charterers. to these modeling pass follow-up we are parties, to And costs purposes, are that just

this extra Bulk. for Star wouldn't be So cost

Securities. Nyttingnes from Our Fulton is next Bendik Clarkson question with

to in So pricing market discount Star secondhand at stock least be seems the your our to numbers, included. a quite values, on Bulk

market. would hear on S&P I your situation current So love the in thoughts the to

what where think prices we mean think we move? You -- will

Yes.

to the a as vessels, react rates. we'll see smaller well, not prices probably on they're downside doing Therefore, as Panamax. as for on long Well, chartering especially

well to because Panamaxes degree. as they probably Supra the follow a On

is which to be better much low. West And more Brazil On going from more order and West from very the from the Africa ore therefore, Capes, is more the expectation Africa book to going route that the that longer later ore X.X%, ton and trade sense in is miles. there's there's iron iron bauxite forward picture on, like more and then

the there's be Capes, think pricing for on that too that resilient. I So not the availability let's more buildings. not And will much new forget

necessarily secondhand. prices probably a So people to will turn degree. that underpin And will to

problem for with huge they bigger Panamax weak. overall, are probably issue, as So of a a not long more as vessels,

on follow-up I And slight a that one. guess

thing? relative expect in You temporary? you other to segments. see as it be to Panamax that did you Or more do a of mention the the that structural softness Do

Panamaxes do coal. Panamaxes Yes. carry? what grains carry Well, and

think that happens So there's trade We on cargoes. these side, going it be grain on going depend to the will what more forward. with X

it's coal term, shorter the with that going that transition especially side, Trump to in long term, not the coal I happen. the might think the But On be less in trade.

higher and will course, is haul So in of long ore and iron steelmaking, as which we think said, remain. Atlantic. coal, in because the ingredients to quality -- the use of need We and those are that situated mostly

than tons is long more So themselves. haul important

So think better to that a market forward. it I revert will going

Panamax is not highest going and -- is course, let's XX.X% that forget the think, to at book Panamax around, the order Of help a that not lot. I

term the are on said the before, happens we with as for medium, on on trade we're positive longer on the Capes side, more overall, Red So I Panamaxes. and container and positive what with But the ships. the Sea depending the Supras,

is Our Value Investors Clement with next Edge. question from Mullins

about strategy fleet wanted forward. already bit I ask but to your going been Most has covered, a

vessels considering before agreements. under bit on think elevated time when between about midsized a especially you you on buying XX think segment. values long-term Could time You now the versus somewhat have the talking about you charter-in talk fleet, the trade-off you how renewing asset the were charter-in about

that? Can -- please repeat versus you what? charter time

think vessels. purchasing. Yes, I purchase versus

ships, if and below about net care in going the We I'll or share Petros to to I our of let basically investment shareholders are think I hard should take big cash think be clear to basically share for it on. with place value an the that But cash. so be that for make we're of size not with one the for of vessels value liquidation fleets liquidation buying us below we're orders trading that shares. understand thing our looking newbuilding trading large net differences is to buy intending assets,

for So that's near the term.

longer for renew we'll term, obviously, have the think I the to fleet.

talk And subject. Petros, to that maybe you want to

yes. Yes,

-- or fall they vessels, then exactly, in, day. extremely ideas actually, pricing. vessels, improved, good therefore, we that. market we we market have mean, doing of and they them down to we like levels, in do in. If And -- in of us. After more that, we said went $X,XXX purchasing will up will stopped as chartering levels on it depend per vessels for much were I did $X,XXX the chartered the slows the on the On Hamish up that previous chartering when

appreciate We charter had And chartering that have of them, good that they at that and relationship bills. we'll company that but at Japanese always very a think levels. our owners. we sure cooperation prices And of with I'm make more the strength do the sense, on I good

closing have management reached to would I for of end the session. over We to turn question-and-answer our back conference remarks. the like

you No further operator. Thank very remarks, much.

you. This conclude Thank today's will conference.

You thank and for may lines you disconnect time, at participation. your this your

Bye-bye. you. Thank