Good morning and welcome to the Stainless Tankers Q4 results presentation. Andrew Hampson here in London and Irene Michael in Cyprus to take you through a summary of our quarterly results for the last quarter. As ever, there is a Q&A button, I think down the bottom of your screens, If you wish to post questions during the presentation, we will, of course, address those, but I would hope that what we've got to say will cover most of your questions in any event, but please feel free to ask. We will endeavour to answer the questions at the end, and if there's any outstanding or if any of you think of something afterwards, please feel free to email Irene or myself and we will uh and we will try and get to answers to your questions so with no further ado i think we will move we will move to the first um to the first slide uh to the highlights for the for the fourth quarter um and we're reporting um a total return since inception of um of five point as for 50.2%. NAV per share is slightly down on last quarter at 475 after having paid the 0.135 dividend per share in December. So as at year end, 57% of the original equity had been distributed uh whilst the nav remained roughly roughly flat uh the financial results for the for the quarter the return was down during the quarter at 2.3 revenue slightly down at 7.3 and ebitda at 2.6 now the main reason uh i think as you're all aware for the impact in the lower results in Q4 was the fact that we sold one of the vessels, Gwen, so we reduced from seven vessels to six vessels during Q3, and therefore there is that impact on the Q4 results from that. But in addition to that, we also had dry docking of orchid cephalonia and orchid stilt, And that has an impact on the capex, but also on the off-hire time for the ships. I'll come on to it in a minute when we just look more generally at the pool and the pool performance. But clearly, also, stainless is impacted by the general pool docking position, which itself was heavily weighted into 2025. five uh the pool tces um averaged just under fifteen and a half thousand dollars a day down from about 16.8 in the third quarter uh january and february we have seen trending higher from where we were at year end um and that we're expecting to exceed q3 levels i.e the 16.8 and end up round about the $17,000 a day range by the end of the current quarter. I'll come on to the pool docking position later on. I think we see 2026 as a year of transition. We have got a lot of scheduled deliveries falling into 26 and 27. We saw a lot of slippage in deliveries in 2025. And we expect that to carry on and fall over into 26 and then subsequently into 2027. So although the figures that we'll highlight in a couple of pages time look quite extreme, I think reality will actually blend it down quite a lot more. However, that we can't escape the fact that there is a large fleet growth coming up in 26 and 27. To balance that, we are seeing recovery in demand and we are seeing a reasonably flat demand supply balance going forward over the next couple of years. We've declared a dividend for 4Q25, a 0.135 per share, and that will be payable on or about the 2nd of March. This represents a yield of 13% on the current share price, which is round about 40 NOC. Following this distribution, i.e. after 2nd of March, we will then have returned roughly 60% of the initial capital that we've raised. the outlook uh we'll come on to in more detail as we look at the supply and demand forces but we are seeing a lot of impact um coming from enforcement of sanctions a much tighter overall tanker market and we've seen a lot of movement in the crude and product tanker markets mainly as a result of other geopolitical recent geopolitical events um potential other trade agreements which have been in the press very recently and of course a tightening and a better crude and product market are good news for the chemical tanker market as this sucks tonnage out marginal tonnage out of the chemical tanker area just turning to the next slide this really gives a a summary of where we are where we are today market nav is now at 475 post the cumulative dividends of 2.83 per share putting us in a very very similar position from an nav perspective to the initial to the initial sales proceeds nav per share has been fairly flat over the last three quarters, and I think that we must stress that in our view, 2025 was quite an exceptional year for the number of dockings in stainless, the number of dockings in the pool, and a falling rate environment, where we have seen definitely in the last half of last year, values stabilize and that's quite an interesting situation where we've had a falling freight rate environment but we've seen stability over the last six to nine months in the vessel values looking at the rates in more detail the chart on the the chart on the left gives us the freight rate i spot um index in the blue in the blue bars and we can see we can see that turn around and tick up in the last um in the last few months of last year tc rate flattening out at the same time the dark blue line um the pool results being negatively impacted in particularly in the fourth quarter of last year predominantly because of dockings and the pool forecast now coming out around about actually just over $17,000 a day. So as I said previously the pool TCE was 15.4, one-year TCEs at the moment although it's not a very liquid market, around about $17,500 a day. I mentioned the pool performance and the docking. In 2025, the pool had 18 vessels in for dry docking. The figure for 2026 is eight. So there is a significant difference there from a pool perspective, which will, of course positively impact overall pool results. But I think one of the important things, and particularly given current geopolitical situation with Suez predominantly being closed for our type of vessels, when you have a heavy docking schedule, that usually means that we need to reposition ships, or at least the pool, needs to reposition ships east of Suez into the China area. And that has a big impact itself, the actual repositioning, particularly going around the Cape, of actually moving ships out of Atlantic Basin into the Pacific Basin. And we've therefore ended up not only with repositioning costs, but overall with an overdue volume of ships east of Suez, where we may have preferred them to have actually been on the other side. So the docking impacts are quite important, not just for the capex, the cost of the docking, not just for the time off, but also this repositioning of the fleet into areas where you may not necessarily want it and interestingly enough on that although i'm not although i'm not predicting a immediate change to the sewers situation but clearly with sewers open it makes that transfer of tonnage uh east of sewers to west of sewers um much much easier and much less expensive so an interesting just fact there that that that does have other knock-on positive impacts although it may have some negative impacts on overall supply-side dynamics. We've seen demand growth challenged by uncertainty, I think is maybe the best way to put it, during 2025. A lot of tariffs being talked about, not as many tariffs actually coming to fruition. And I think we're beginning to see more trade deals being done, maybe under the threat of tariffs, and more trade deals actually being put in place. And we're also seeing China, although admitting that we have much lower domestic consumption in China, 2025, China reporting record trade surplus during the year. So we are still seeing a lot of activity within China. And we have slightly revised our rate forecast to $17,000 a day on average for 2026. And that, as I said before, is slightly below what the Womar pool is currently expecting. The pool is expecting to get up to 17 by the end of the quarter and to slightly exceed that as we go through the rest of the year. And much of that is predicated on their COA book, which I can disclose at the moment has approximately 40% coverage at rates which are considerably higher than the current TCE rates, is covered about 40%. So we've got a 40% book of coas versus 60 spot cargo exposure sanctions we'll just come on to in a minute but i think we are seeing one of the things we have seen in the last quarter or the last couple of months maybe to be more precise is increased enforcement of sanctions and action by the US and also by some European countries. And that is definitely leading to a tightening in the overall crude market situation in Venezuela. There were reports over the last couple of days, not sure they'll come to fruition, of trade deals between US and India for import of Venezuelan crude, which would have a massive impact on the crude tanker market. And again, then sucking up subsequent layers of tonnage product into crude high-end so low-end chemicals into product which would be good for our stainless steel sector just looking more specifically at the sanctions side the percentage of the tanker fleet currently under sanctions for those that may not be too au fait with the terminology and the chart in the top left. The VLs, the very large crude carriers, the Suezmaxes and the Afromaxes are predominantly crude oil carriers. And the long-range one and long-range two and the medium-range tanker vessels are predominantly product tankers. And I think that what we're seeing there, overall picture, is an increase in overall number of vessels and percentage of fleet under sanctions, and particularly in the smaller product area, in the LR1s and the LRs, we're seeing an increasing number of vessels falling under sanctions and therefore taking them away from, if you like, our competitive arena of commercially trading vessels. The majority of these vessels also are quite old, And so I think that if and when sanctions are lifted, it's very unlikely they're going to return to the commercially trading fleet that would be our competition. On the age profile, looking at the chart on the top right here, the left-hand set of bars are for the overall chemical tanker fleet, where we see an order book of roughly 20%, and we always look at that in terms of how much of the fleet is over 20 years of age. So I would move into that scrapping or at very least out of international commercial trading arena over the coming five years. So on the overall chemical tanker fleet, although we have a high order book at 20 percent, we've also got 22 percent of the fleet is currently greater than 20 years of age. The bars on the right, which are surrounded by the dotted line, look specifically at the size range and type of vessel owned by stainless tankers, i.e. stainless chemical tankers in the 10 to 25,000 range. And there we've got a lower order book and roughly the same age profile. So we've got 16% of the fleet in our competitive arena on order versus 21% of that fleet, which is getting over 20 years of age. And there is definitely a two-tier market over 20 years of age as these vessels move As I said at the beginning, the delivery profile is shown on the chart on the left. And you will see that this is this 16% of the order book. This is specifically for that same size bracket in the 10 to 25 stainless vessels, showing very large levels of deliveries in 26 and 27, 40 and 35 approximately from the chart. I think the only thing I would add to that, and if you go back to this same slide 18 months ago, if we go back to July 24 and look at the 2025 delivery expectation, the figure which is now a known result for 2025, the dark blue line, sorry, the dark blue bar for 2025, 17 vessels actually delivered in 2025. If we go back to July 24, the prediction as to what that was going to be was 29 vessels. So there is and always will be, firstly, an over-exaggeration of the number of orders because the shipyards like to beef up their perceived order book and that many of them will be optional contracts as well, which they book as firm contracts. But also then there is physical slippage in the actual delivery time. So although the numbers for 26 and 27 look slightly scary, I think we should be more looking at a blend of that total amount coming in over the next three to four years. But we're very conscious of the fact that that 16% of the order book is quite a large number, but we must balance it also against the age profile, and hence our predictions of the light green bars increasing as we move forward over the next three years with higher levels of scrapping, which will actually bring fleet growth to a near zero level in about three years time because of the increased scrapping. We've given the figures there of the actual deliveries and removals, et cetera. So fleet growth is forecast at about 3.4% over that three-year period on average. We believe that that is manageable in the context of long-term demand growth, compound growth rate of approximately 4%, although we may see a blip in deliveries this year. And as I've said repeatedly, I think there is upside from the various geopolitical areas. I think just before moving on to the financials, I think that one of the other areas that I did want to touch on, just more on a strategic level, and this answers a couple of the questions which have already been asked, is clearly that of vessel sales and what the plan and what the strategy for the company is going forward. We said at the onset that this was a three to five-year investment horizon. We've added two ships to the fleet. We've sold three ships to the fleet. And we are constantly reviewing asset sale opportunities. As I said at the beginning, we saw values fall in the first half of 25 and then the values have stabilized very much um since june last year um through to through to current through to the beginning of february uh now and that's been in a rate environment where we've seen falls in the overall market rates in q3 and q4 uh the values have remained stable we feel it is quite conceivable the values that if we have a rising rate environment as we are predicting in 2026 that we may see some upward pressure on vessel values we're very conscious also of the docking schedules coming up and the overall age of the vessels and we will look to dispose of these vessels at an opportune time given the freight rate and value market and given their proximity to the next special survey as we go forward so i think in answer to the in answer to the questions about um when are we looking for sales the the answer is we are always reviewing the portfolio for sale possibilities but we believe there may be more attractive possibilities as we move further in to 2026, second half 26, potentially early 27, that if the market plays out as we think it will do, we feel that that will be the time when there are more attractive possibilities for exits.
So I think what I'll do is I will now pass over to Irene to take us through more detailed financial performance, and I will have a look at some of the other questions which have been which have been tabled in the meantime all right thank you andy uh so moving to the financial performance for uh the quarter um to note that q4 results reflect the combined impact of the when sale um in uh in q3 the scheduled driver kings and uh softer market conditions. These were partly offset by cost savings but let's walk through the key drivers in more detail. During the quarter, all the vessels separated in the room I pool. Vessel utilization was slightly below 86 percent compared with 97 and a half in Q3. This reduction was entirely due to the client tokens of the Orchid Kefalonia and the Orchid Madeira both completed on time and within a quarter. Orchid Kefalonia completed its intermediate survey, its fourth intermediate survey at a total cost of around 1.27 million which was slightly below the 1.3 million budget and Occupy Madeira completed on 1st January at a cost of about 1.36 million also below the budget. The only vessel scheduled for dry dock during this year is the Barboni which is already expected to be added in the following days, at a budget of 1.3 million and expected of higher days, close to 30. Looking ahead and we expect utilization to normalize post the dry dock. Net revenue for the quarter was $7.3 million, reflecting on average net pool TC of $15.4,000 per day compared to net revenue of $10 million and $16.8,000 per day through three. The variance, quarter on quarter, is driven by the reduced shift days following the sale of WEN, which represents approximately 900,000, with the remainder coming from the longer pooled CC and the drag of related or higher. EBITDA for the quarter at $2.6 million compared with $4.1 million in Q3. And this reduction reflects the smaller fleet and the lower utilization, partly offset by lower operating expenses and less sharetake costs. The company reported a net loss of $1 million for the quarter versus a $1 million profit in the third quarter. Quarter on quarter movements, as already explained, is mainly from the lower TCs and the sale of the Gwen and the one of $1.5 million gain, which was booked in the third quarter. Moving on to the key balance sheet items, quarter and free cash at $5.3 million, total fleet market value marginally lower than the previous quarter at $98.8 million. NAV was $64.1 million dollars or $4.75 cents and LTV improved order-on-quarter from 40.3% to 39.2%. As already mentioned earlier, the company paid Q3 dividend of 13.5 cents in December and Q4 dividend at the same level as being declared and payable on or around the 2nd of March. This represents an annualized yield of roughly 13% of the current share price and that brings total shareholders return since the IPO to $2.96 per share, which is approximately 60% of the initial capital raise. this concludes our presentation and we can now move to the 20th thanks very much for that Irene just to move through the remainder of the the remainder of the questions a number of questions about vessel sales and what are our plans which I think I'd already answered
