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Date

May 21, 2026 at 11 a.m. ET

Call participants

  • Chief Financial Officer — Christos Begleris
  • Chief Operating Officer — Nicos Rescos
  • Chief Strategy Officer — Charis Plakantonaki
  • Head of Market Research — Constantinos Simantiras
  • President — Hamish Norton
  • Chief Executive Officer — Petros Alexandros Pappas

Takeaways

  • Net income -- $58.5 million, with adjusted net income at $63 million, and adjusted earnings per share of $0.52.
  • Adjusted EBITDA -- $114.3 million, highlighting strong cash-generating capacity.
  • Shareholder returns -- $37.9 million used to repurchase 1.9 million shares year-to-date, and a $0.50 per share dividend declared, payable June 20 to holders of record as of June 12, 2026.
  • Liquidity and leverage -- $432 million cash and equivalents, $874 million debt, €110 million undrawn revolver, and 29 debt-free vessels valued at around $700 million.
  • Dividend policy -- 100% of free cash flow to be distributed, subject to a $2.1 million per vessel minimum cash balance.
  • Per vessel daily metrics -- Time charter equivalent at $18,500, daily OpEx at $5,040, and net cash G&A at $1,380, resulting in a daily cash margin of $12,100 per vessel before debt service and CapEx.
  • Fleet segment revenue contribution -- Ultramax/Supramax produced 38% of revenue, Newcastlemax/Capesize contributed 33%, and Post Panamax/Kamsarmax accounted for 29%.
  • Total revenue and adjusted EBITDA -- $212.5 million revenue and $113 million adjusted EBITDA for the quarter.
  • Operating leverage -- Based on a net 12-month SFA curve of $20,500 per day, the company estimates $3.4 per share free cash flow and a 13% implied cash flow yield; each $1,500 increase in TCE adds $71 million in EBITDA and $0.64 per share in dividends.
  • Cost structure -- First quarter daily OpEx at $5,040 and net cash G&A at $1,380 among the lowest in the peer group, driven by scale, integrated platform, and Eagle Bulk integration synergies.
  • Newbuilding program -- Eight Kamsarmax newbuildings scheduled for 2026 delivery, $195 million CapEx remaining, and $181.2 million in committed debt financing.
  • Fleet modernization -- Sixty-one AST installations completed, several more scheduled for 2026, with performance improvements of 7%-15% measured across the fleet.
  • First quarter vessel sales -- Star Scarlet and Star Marela sold for $46.4 million net proceeds; forty-nine vessels sold since 2023, with proceeds chiefly allocated to share buybacks.
  • Newbuilding fleet deliveries -- Two Kamsarmax vessels to be delivered in May 2026, with the remaining six phasing in over the year.
  • Charter portfolio -- Seven long-term charter contracts maintained for additional commercial flexibility.
  • Fleet scale -- Operating 141 vessels when fully delivered, achieving an average fleet age of 12.2 years.
  • ESG and digitalization -- Participation in the Poseidon Principles Association advisory council, deployment of new AI tools, and completed external cybersecurity risk assessment to govern AI adoption.
  • Market update -- Net fleet growth at 1.3% year over year, orderbook at 13.2% of the fleet, and effective capacity reduction forecast of over 0.5% per annum in 2026-2027 due to aging and special surveys.
  • First quarter dry bulk trade -- Total volumes increased 3.5% year over year, supported by 8.1% higher Chinese imports, and a tenth consecutive quarter of global import growth, up 3.1%.
  • Key commodity trends -- Grain exports up 9.1% in the first quarter, bauxite exports from Guinea up 23% year over year, and Chinese steel production down 4.5% due to policy curbs and real estate pressures.
  • Acquisition agreement -- President Hamish Norton confirmed the agreement with Diana for acquisition of 16 ships at a fixed price of $470 million, contingent upon Diana's success in acquiring Genco.

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Risks

  • Chief Executive Officer Petros Alexandros Pappas stated, "if oil prices go further up, and even $150 or even more than that, we are very afraid here that would damage the world economy and not just emerging economies. And it would also discourage trade because trade depends on how."
  • Head of Market Research Constantinos Simantiras reported, "stockpiles increased to record levels, creating downside risk for the second half of the year." for iron ore.
  • Management identified weather-related disruptions as a potential risk to grain crop trade given El Nino effects.

Summary

Star Bulk Carriers (SBLK +0.64%) reported strong operational performance and consistent capital returns, underpinned by disciplined cost controls and an enlarged, modernized fleet. Strategic asset sales and targeted newbuild investments are calibrated to preserve balance sheet strength and enhance per-share value while adapting to dynamic market conditions. Shareholder distributions are now governed by an updated policy targeting 100% of free cash flow, providing clarity on future capital allocation priorities.

  • Management confirmed a fixed-price agreement to acquire 16 vessels from Diana, contingent on a third-party transaction, locking in expansion optionality without pricing uncertainty.
  • Current leverage and undrawn credit capacity position the company to pursue growth and risk mitigation simultaneously in an unpredictable macro environment.
  • Energy cost inflation and macroeconomic uncertainty remain material downside risks, as explicitly described by management and reflected in revised global growth forecasts.

Industry glossary

  • AST: Advanced Shaft Generator – a device installed on vessels to improve propulsion efficiency and reduce fuel consumption.
  • SFA: Star Bulk’s projection metric for forward time charter rates, reflecting fleet-wide charter equivalence for profitability modeling.
  • Kamsarmax: A class of dry bulk vessel with maximum dimensions (approximately 229 meters LOA) for efficient loading at the port of Kamsar, Guinea.
  • Poseidon Principles Association: An organization setting decarbonization benchmarks for shipping finance, aligning lending decisions with climate goals.

Full Conference Call Transcript

Christos Begleris: Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. I am Christos Begleris, Constantinos Chief Financial Officer of Star Bulk Carriers. And I would like to welcome you to our conference call regarding our financial results for the first quarter of 2025. Before we begin, I kindly ask you to take a moment to read the Safe Harbor statement Slide number 2 of our presentation. In today's presentation, we will review our first quarter 2026 company highlights, financial performance, capital allocation initiatives, cash evolution during the quarter, operational performance, our continued investments in the fleet, developments on the regulatory front and our perspective on industry fundamentals. We will then open the floor for questions.

Turning to Slide 3. The first quarter was characterized by solid profitability disciplined capital allocation and continued balance sheet strength. Net income amounted to $58.5 million while adjusted net income reached $63 million or $0.52 adjusted earnings per share. Adjusted EBITDA was $114.3 million, demonstrating the strong cash generating capacity of our platform. On the shareholder returns front, we continue to actively return capital to our shareholders. Share repurchases during the first quarter and year-to-date we have repurchased approximately 1.9 million shares totaling $37.9 million On the dividends front, our Board of Directors declared a $0.50 per share dividend for the quarter, payable on or about June 20, to all shareholders of record as of June 12, 2026.

Our balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately at $432 million outstanding debt is at approximately $874 million We also have an undrawn revolver capacity of €110 million. We currently own 29 debt free vessels with an aggregate market value of around $700 million. Our overall loan leverage as well as this unencumbered asset base provides substantial financial flexibility to fund growth opportunities as well as downside protection. To further enhance shareholder value, we have updated our dividend distribution policy. We distribute 100% of free cash flow subject to maintaining a minimum cash balance of $2.1 million per vessel.

As far as operating performance is concerned, on the top right side of the slide, you can see our per vessel daily performance metrics for the quarter. Time charter equivalent was at $18.5 thousand per vessel per day Combined daily OpEx and net cash G&A was at $6.42 thousand per vessel per day This resulted in a daily cash margin of approximately $12.1 thousand per vessel per day before debt service and CapEx. These numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow even at mid cycle rate levels. Slide 4, summarizes our capital allocation track record over the last 6 years.

Since 2021, we have executed on approximately $3.1 billion value enhancing actions. including dividends, share repurchases, and debt repayment. During this period, we have returned approximately $1.4 billion or $14 per share in dividends, representing approximately 54% of our current share price. We have reduced total net debt by 63% bringing leverage to a level where net debt is at 56% of the demolition value of our fleet. During the same period, we have expanded the fleet opportunistically through accretive fleet acquisitions, issuing equity at above net asset value, thereby increasing scale while protecting per share value. The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential.

Slide 5, illustrates the movements in our cash balance during the first quarter. We began the quarter with $52 million in cash, We generated $112 million in operating cash flow After vessel sale proceeds, debt drawdowns and repayments, CapEx payments related to newbuilding installments and energy saving devices and ballast water treatment system installations, share buybacks and the fourth quarter dividend we ended the quarter with $49 million in cash. This sequential increase in cash underscores a strong internal cash generation of the company even after substantial shareholder returns and investment in fleet upgrades. Slide 6 includes our diversified fleet driving strong earnings contribution across all segments.

Star Bulk delivered a well balanced operating performance, supported by our diversified fleet of 136 vessels, and over 12 thousand ownership days. Ultramax/Supramax vessels remained the largest contributor of revenue at 38%, $80.7 million in revenue and $39.7 million in adjusted EBITDA. Newcastlemax/Capesize vessels represented 33% of revenue and 30% of adjusted EBITDA, benefiting from strong market positioning representing 41% of our fixed market value. Post Panamax and Kamsarmax segment continue to provide stable earnings, contributing 29% of revenue and 28% of adjusted EBITDA. Overall, our fleet generated $212.5 million in revenue and $113 million in adjusted EBITDA during the quarter highlighting the resilience of our diversified commercial strategy and efficiently deployed fleet.

Slide 7 highlights the inherent operating leverage embedded in our business model. With approximately 48.5 thousand fleet available days per year, and based on a current net 12 month SFA curve of approximately $20.5 thousand per day on a fleet wide basis the company would generate approximately $3.4 per share of free cash flow, representing a 13% implied cash flow yield. The slide illustrates the strength of our platform in a rising market. Every $1.5 thousand fleet wide increase in TCE equates to an EBITDA increase of $71 million This will translate to $0.64 per share of incremental dividend to our shareholders, given our existing approach to distributions.

In summary, during first quarter, we delivered solid profitability we strengthened our liquidity position, we continue to delever We returned meaningful capital to shareholders and we preserve significant optionality for future capital allocation. Our balance sheet resilience, operating efficiency and disciplined capital allocation framework position us well to navigate market volatility while continuing to enhance per share value. With that, I will pass the floor to our COO, Nicos Rescos, for an update on our operational performance and the continued investments we are making in our fleet.

Nicos Rescos: Thank you, Christos. Turning to Slide 8, covers our operational performance. Continue to operate 1 of the most cost efficient platforms in the dry bulk sector. Daily OpEx for the first quarter came in at $5.04 thousand per vessel and net cash G&A at $1.38 thousand both among the lowest in our peer group as illustrated on the slide. This sustained cost discipline reflects our scale our integrated management platform and the synergies crystallized through the Eagle Bulk integration and translates directly into superior cash generation, through the cycle. Moving to Slide 9. Which outlines our fleet wide investment program.

On the newbuilding front, all 8 of our latest generation high-specification Kamsarmax newbuildings are on track for delivery during 2026, with $195 million of CapEx remaining. Financing is largely in place, where we have secured $130 million of debt against the 5 Qingdao built vessels and expect further $51.2 million against the 3 Hengli build vessels. Leading the program, fully funded on competitive terms. In a strengthening charter market, the forward deliveries of these vessels remain highly attractive to our customers combined with an approximate $40 million mark-to-market gain for our shareholders. On vessel upgrades, during the first quarter, we have continued pushing through with energy saving devices and high efficiency propeller installations.

To date, we have completed 61 AST installations across the fleet We have several more scheduled for 2026. Together with telemetry, retrofits, hull upgrades with low-friction silicon paint, and deployment of hull cleaning robots We measure tangible vessel performance improvements of between 7% and 15%, directly translating to improved commercial performance and attractiveness of our fleet. The top right of the slide illustrates our CapEx schedule presenting both the remaining newbuilding installments and our vessel efficiency upgrade spending. Alongside, the corresponding debt drawdowns. At the bottom, you can see our drydock schedule for the remainder of 2026. Totaling approximately $4.2 million and around 1.24 thousand off hire days. Turning to Slide 10 for a quick update.

We continue to actively rejuvenate our fleet through a disciplined combination of selective disposals and newbuilding deliveries prioritizing divestment of older, non-core vessels to reduce our average age fleet and lift overall efficiency. During the During the first quarter of 2026, we delivered the Star Scarlet and Star Marela to their new owners. In connection with these sales, we collected net proceeds of approximately $46.4 million Having sold 49 vessels since 2023, we have reinvested the majority of the net sale proceeds to fund accretive share buybacks throughout this period. This quarter also marks the start of our newbuilding delivery with our latest generation Kamsarmax vessels joining the fleet.

We expect to take delivery of the first 2 vessels in May 2026 Star Vela and Star Ema. With the remaining 6 newbuildings phasing in throughout the balance of the year. We continue to maintain 7 long term chartering contracts provide additional commercial flexibility across market cycles. Star Bulk, operates 1 of the largest startup fleets among US and European listed peers, 141 vessels on a fully delivered basis, and an average age of approximately 12.2 years, Providing scale, modernity operating leverage to compound shareholder value as the market cycle evolves. I will now pass the floor to our Chief Strategy Officer, Charis Plakantonaki, for an update on recent global environmental regulation developments and our ESG performance.

Charis Plakantonaki: Thank you, Nicos. Please turn to Slide 10. Where we highlight our progress across the ESG front. At the latest IMO Marine Environment Protection Committee last year, no consensus was reached on the net zero framework with member states remaining divided between those who consider it fit for purpose and those calling for amendment. The committee agreed to continue intercessional work on the framework with a view to achieving consensus ahead of our release date in November 2026. Star Bulk remains actively engaged through its participation in industry organization initiatives. Contributing to efforts aimed at advancing practical realistic and effective greenhouse gas reduction regulations, with consistent global application.

Star Bulk has joined a newly established advisory council into the Poseidon Principles Association. The council will serve as a forum for dialogue between the 36 signatory banks and a select group of leading owners and maritime stakeholders on technical issues and the implementation of the principles.

On the social front, during Q1 2026, we engaged extensively all company departments in analyzing the results of our employee survey and developing an action plan to preserve our strength and improve areas where we can do better at the new We continue our efforts to business intelligence into our day to day operations, through the expansion of our custom built company's platform, the adoption of new off the shelf AI tools, and the use of AI capabilities within our existing systems. Recognizing the cybersecurity risk associated with our digitalization, we have completed an external risk assessment to define the required controls for the use of AI.

We are also developing company policies for the responsible use of AI and have included the already deployed AI tools in our upcoming penetration testing. I will now hand the floor to our Head of Market Research, Constantinos Simantiras, for our market update and his closing remarks. Thank you, Charis. Please turn to Slide 12 for a brief update on supply.

Constantinos Simantiras: During the first 4 months of 2023, total of 14.2 million deadweight was delivered and 1.5 million deadweight was sent for demolition or a net fleet growth of 12.7 million deadweight or 1.3% year-over-year. The newbuilding order book has increased over the past 3 years but remains relatively low at 13.2% of the fleet. Total dry bulk contracting remains under control despite the recent pickup in Capesize orders, reflecting limited shipyard availability through late 2028, high shipbuilding costs and ongoing uncertainty around green propulsion technologies. Meanwhile, the fleet continues to age and by the end of 2027, approximately 50% of the existing fleet will be over 15 years old.

Moreover, the rising number of vessels undergoing the third special survey is estimated to reduce effective fleet capacity by more than 0.5% per annum during 2026 and 2027. The average steaming speed of the fleet remains slightly elevated through most of Q1. Supported by firm freight rates but has corrected below 11 knots following the recent surge in bunker prices amid Middle East tensions. Finally, global port congestion has fully normalized and is now following seasonal patterns. Going forward, congestion is expected to have a limited impact on the supply and demand balance. So there could still be some upside from delays related to new iron ore mining hubs in West Africa.

Let us now turn to Slide 13 for a brief update on demand. According to Clarksons, total drybulk trade during 2026 is projected to expand by 1.3% in tons and 2.5% in ton miles. We continue to operate against the backdrop of heightened geopolitical uncertainty with the trajectory and duration of the Middle East conflict being difficult to predict, while dry bulk trade exposures to the Strait of Hormuz remains relatively limited disruptions to oil and LNG markets could be prolonged pushing LNG prices higher and weighing on the global macroeconomy. Reflecting these risks, the IMF recently revised its 2026 global growth forecast down to 3.1% from 3.3% in January. The U. S.

Forecast was lowered to 2.3% from 2.4% and China to 4.4% from 4.6%. Turning to dry bulk demand, total volumes rose approximately 3.5% year on year during the first quarter, supported by robust iron ore and minor bulk flows alongside record grain and bauxite shipments. Ton miles expanded at a faster pace driven by strong Atlantic exports and longer Pacific trading businesses. In China, GDP growth exceeded expectation at 5% in Q1 underpinned by strong industrial production, manufacturing activity and exports. Chinese drybulk imports rose 8.1% against a low base last year, However, domestic consumption remained relatively weak. On the geopolitical front, President Biden's summit with President Xi in Beijing delivered a constructive signal for The U.

S.-China relations and international trade. dry bulk imports from the rest of the world continued the recovery with a 10th consecutive quarter, expanding 3.1% year-on-year on the back of a weaker U. S. Dollar and increased restocking activity. Breaking it down by key commodities, iron ore trade is projected to expand by 1.1% in tons and by 1.6% in ton-miles during 2026. China's steel production declined by 4.5% year on year to the first quarter due to policy curbs on steel supply the ongoing real estate slowdown and rising protectionism. At the same time, domestic iron ore production remained broadly flat while stockpiles increased to record levels, creating downside risk for the second half of the year.

Having said that, the iron ore market remains supply driven and ton miles are expected to receive support from the continued ramp up of Simandou and stronger Brazil exports. Coal trade is projected to contract by 1.6% in tons and by 0.5% in ton-miles during 2026. This forecast is likely to be revised upwards as tighter energy supply is expected to strengthen coal demand throughout through year end. Worth even disruptions to LNG trade together with broad based inflation across energy commodities have improved the demand outlook for coal prompting several countries to ease restriction on its use and production.

Chinese thermal power generation rose 3.6% in Q1, while domestic coal production has been broadly flat over the past 3 quarters creating a favorable setup for imports. Furthermore, a developing El Nino is expected to drive the hotter weather in the northern hemisphere summer, further lifting energy consumption in the short term. Grain trade is projected to expand by 3.7% in tons and by 6.8% in ton-miles during 2026. Total grain exports increased by 9.1% year-on-year during Q1 supported by strong export shipments from all major exporters. Spillover from October's U.S.-China trade truce drove seasonally strong U. S. Exports and Beijing's pledge to buy approximately 25 million tons of U.S. soybeans annually through 2028.

Should continue to support mid-sized vessels and ton-miles. Minor bulk trade is projected to expand by 2.4% in tons and by 3.1% in ton miles during 2026. Export volumes increased by 8% year on year during Q1 despite lower fertilizer shipments from The Middle East. While bauxite exports from Guinea continued their strong performance and expanded 23% year-on-year, generating strong ton-miles for the Capesize fleet. As a final comment, we remain optimistic about the dry bulk market outlook supported by a favorable supply backdrop new long distance Atlantic exports and tightening environmental regulation.

In a period of heightened geopolitical uncertainty, we remain focused on actively managing our diversified scrubber fitted fleet to capitalize on market opportunities and deliver value to our shareholders. Without taking any more of your time, we will now pass the floor over to the operator to answer any questions you may have.

Operator: Thank you. We will now be conducting a question-and-answer session. Our first question today is coming from Omar Nokta from Clarksons Securities. Your line is now live.

Omar Nokta: Thank you. Wanted to ask about the capital allocation policy. of now paying out 100% of operating cash flow less the CapEx and debt service. You have obviously got plenty of cash to give you that flexibility. Leverage is a bit low now. Plenty of unencumbered ships. But I wanted to ask the stock, while it has done well, is still at a discount to NAV. And in the past, you have leaned on asset sales to try to crystallize that difference between the equity and the NAV. How do you kind of think about that today Are sales still something under consideration? From here? Or is now the time to really maximize your exposure to the market?

Hamish Norton: I think Omar, it is Hamish Norton. We are still planning on selling smaller, older and less fuel efficient ships. Frankly, the market is pretty hot. And if you need to sell these ships at some point, this is as good a time as any to sell them. And the capital that we generate from selling ships could be used for repurchases of shares, it could be used for we might keep some of it for use later when there are better opportunities we think there will be some very good opportunities. And I think with our operating cash flow, we intend to keep paying that out on a current basis. Okay.

Omar Nokta: Thanks, Hamish. And if I could, I know this is sensitive.

Hamish Norton: But just regarding the agreement you have with Diana, to acquire the 16 ships, if they succeed, in acquiring Genco. Just in terms of the price, $470 million that you have agreed on my question is, is that fixed And is that fixed at the moment. Yes, that is the agreement is for a specific price.

Omar Nokta: Okay. And are you able to give a sense of that? Is it based off of whatever Diana ends up paying if it succeeds? Or is it based off of the current-- No.

Hamish Norton: it is a fixed price.

Operator: Thank you. Our next question today is coming from Christopher Robertson from Deutsche Bank. Your line is now live.

Chris Robertson: Hi, Christos. Hi. Very strong start of the year. We had a lighter than usual seasonal pullback during the first quarter, very strong indicators here with the Capesize FFA over 40 thousand in May over 30 thousand for the remainder of the year. But at the same time, we are seeing a little bit of decelerating economic activity in China in April with regards to industrial production. Petros, mentioned some of the El Nino concerns and other things. So I mean, kind of putting all this together what is your expectation for the second half of the year, which is usually seasonally stronger? Do you think that holds this year?

Do we do you think there has been pulling forward of demand in the first half of this year that could kind of smooth out demand for the rest of the year? And rates for the rest of the year, do you see any policy support in China that could help boost demand for dry bulk commodities while they potentially focus on boosting economic strengths? Kind of what is the outlook there?

Petros Alexandros Pappas: Hi, Christos. We are actually pretty bullish for the balance of this year. And we are bullish for next year as well. I think the situation in the Persian Gulf is actually helping. For now, for as long as things stand as they are. Oil prices are up. And that makes vessels go slower, which is good for supply. We have about 2% of the fleet in the Persian Gulf. Which reduces supply again. Red Sea remains, and more ton miles. The increased oil prices actually incentivize use of coal. So you see that the reduction in the coal trade is actually minimal right now. And might even turn around. And there is all kinds of inefficiencies.

But this is not the only thing. You saw that during the first 5 months, demand increased by 5.1% in ton-miles. And this is only the first half, as you said. We continue to believe that the second half is going to be strong. And there is tons of positive reasons why the market should continue to be strong this year. China has been doing pretty well up to now. We do not expect to see any slowdown in the very near future.

If there is going to be a problem going forward, that may be the order book, I would say, or in case the Persian Gulf opens up, I think for a while it is going to be positive because it will psychology will be lifted and oil prices will go down, which will help trade. Etcetera. But all the positives I mentioned over a period of 8 to 12 months may start slowing down. Now so therefore, for now, we are very positive.

Chris Robertson: And we are actually positive for the next 18 months. Thank you, Petros. Just following up, just to get a sense of scenarios here. With regards to potentially strong El Nino, using examples in the past, let's say, in regions that are prone to whether it is drought conditions or on the other side of that flooding conditions, which market should we be on the lookout for weather related disruptions that could potentially impact trade flows?

Petros Alexandros Pappas: Well, short term we think that the El Nino will be positive because it will create higher temperatures in the northern Hemisphere And therefore, there will be more need for air conditioning as therefore more energy Now for the winter, this might we may have a warmer winter, which will reverse things. As far as droughts are concerned, this is a potential this is a potential risk. Especially for grain crops. I was talking about it to our analysts, and he said that perhaps people are foreseeing what may happen, if El Nino arrives. They may be stocking up right now. This is possible.

On the other hand, we may have positive developments on the Panama Canal, maybe the water levels will rise and there will be less vessels coming in. So there is positives and negatives.

Chris Robertson: All right. Got it. Thank you for the color. I appreciate it.

Petros Alexandros Pappas: Thank you. Thank you.

Operator: Our next question is coming from Stephanie Moore from Jefferies. Your line is now live.

Analyst: Great. Good morning, everybody.

Petros Alexandros Pappas: Thank you. Good morning, Stephanie. Yeah. I know that when we have talked in the past and certainly, when we all spoke publicly together on your first Q call, there was and it continued today, there is a lot of optimism about the underlying dry bulk market for 2026. But even since that 4Q trend, a lot has changed from a geopolitical standpoint and certainly kind of enhanced conflict or geopolitical conflict around the globe. So maybe if you could just talk a little bit about how anything might have changed in terms of your general optimism about the dry bulk market for the rest of this year? And especially navigating what is obviously a heightened geopolitical environment.

So I love your thoughts there to start. Thank you. Stephanie, is that the question mostly? Yes. Yes. And maybe how that how that how that supports your view on the dry bulk market 2026 and if anything has changed since when you kind of discussed when you first got the-- Yes. I did talk about the Persian Gulf. I think that is positive for the short term or even for longer depending on how that goes. The main I think that the Ukrainian war is not affecting that much the market anymore. It did help the market at the beginning because for example, Russian coal had to do travel longer distances to be exported And that was positive.

They were negative. Because there was less grain trade coming out from the Black Sea especially. But we do not think that is as important anymore because it is being overshadowed by the Persian Gulf. What I see very potentially positive is in case any of these wars stops or both, we may see very strong reconstruction. So it has a lot of course, that would start later on in time. So my view is that this year is going to be very strong The next year is going to be strong as well. And if there is the end of any of the wars, it is going to help shipping because it will create a lot of demand.

So it will all come in stages and depending on how things happen going forward. We are not fortune tellers to know how things will end up, of course. Understood. And then I think 1 question that we are getting a lot of is if maybe more on the negative side that it is some of these conflicts persist, does that create particularly an emerging market stress on their overall economy? So I would love to get your views that as well, if that could ultimately impact demand? Sorry, can you please Stephanie, you said that this creates a what market Yes. I am sorry.

I guess sorry if you cannot hear me, but if the other side of maybe the coin here from a demand standpoint would be if emerging markets are negatively impacted by persistently higher energy costs, does that ultimately cause any kind of economic weakness in those markets and if that will be the negative side? I would love your thoughts on potentially that scenario too. Yes. Well, that risk actually remains. And if oil prices go further up, and even $150 or even more than that, we are very afraid here that would damage the world economy and not just emerging economies.

And it would also discourage trade because trade depends on how on price on how you can construct something cheaper than the other country. And then that creates great good trade. But if prices go very far up, then that will impede development of economies I think it is going to be negative. Commodities will be more expensive, there will be less demand of commodities. Understood. Thank you. I appreciate the high level. And then I guess 1 lastly, for me. Maybe just talk a little bit about your appetite for additional newbuild orders, just given there are higher shipyard costs at this point, but also given some of the as we just discussed kind of general market dynamics.

So any anything there? Yeah. Well, new building prices have gone up a lot And we were doing some calculations lately that you need really very high income levels for very long periods to be able to achieve a relatively low IRRs. So the idea here is not to continue any further with new buildings until prices start falling. I know when that is going to be, but we are patient. Then once we ordered the 8 we did because our Kamsarmax fleet was getting older compared to the rest of the fleet. And it needed some we needed to get the average age of our fleet get lower.

At the same time, of course, we are judiciously selling all the vessels. And inefficient ones, as Hamish said earlier. So no, for as long as prices keep on climbing, we see as a better opportunity to sell rather than buy or order. Great. Thank you. Appreciate it. Thank you.

Operator: Thank you. We reached the end of our question-and-answer session. I would like to turn the floor back over for any further or closing comments. No further comments, operator. Thank you very much. Thank you, everyone. That does conclude today's teleconference You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today. Thank you.