Navios Maritime Partners L.P. (NMM) Q2 2026 Earnings Call Transcript

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

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

Good morning, and thank you all for joining us on today's call. I am pleased with the results. For the second quarter and first six months of 2026, we reported net income of $167.9 million and $274.3 million, and a debt of $275.2 million and $487.8 million, earnings per common unit of $5.78 and $9.42. We also announced a $0.06 distribution per unit for the quarter. We continue to operate in a world marked with uncertainty and conflict. The war between Russia and Ukraine remains unresolved. The persistent attacks in the Strait of Kormuz and more recent ones in the Red Sea have caused persistent disruptions to global trade flows. Against this backdrop, trade has been surprisingly resilient resilience and energy prices while volatile remain relatively muted. These conflicts are causing lasting implications for global trade patterns. Countries and companies are reassessing their exposure for critical resources to maritime choke points. They are placing greater value on supply chain resilience looking to diversify through alternative supply, routes, storage capacity and transportation infrastructure. This trend may have a net effect of creating longer long-haul routes. As you can see on slide 3, our fleet has an average age of 8.7 years compared to an industry average of 13.7 years. Our tanker fleet, with an average age of 5 years, is particularly young relative to the broader tanker market. Overall, nervous fleet, modernization program has created a fleet with almost 40% younger than the industry average and about 65% younger in comparison to the global tanker fleet preparing us for the future. We believe the use of our fleet provides a competitive advantage to, among other things, lower operating costs, better fuel efficiency, and higher chartered pressure. Please turn to slide 4. Navius is a leading maritime transportation company owning, operating, and carrying a model fleet of 176 vessels across three segments and 15 asset classes. Our fleet is split into threads by value with about one third in each of the tangible bulk and container segments. The overall value of our fleet, including a new building program, is $10.2 billion. Our fleet in the water has a $4.8 billion in net diversity equity value. We continue to make headway in reducing our net LPG towards a target of 20-25%. At the quarter end we had a net LPD of 27.9%, our balance sheet is strong with 625 million available liquidity and credit ratings of BA3 from Moody's and BD from S&P. Please turn to slide 5, the recification is a core strength of Navios and our platform provides optionality across market. We complement this flexibility with a disciplined risk management culture, continuously monitoring and assessing our exposures, diligently evaluating and structuring transactions, and maintaining robust insurance coverage, particularly important in a war risk environment. Please turn to slide 6. Since the beginning of the year, we have acted to capitalize on the Rombach Banker market and reposition our VLCC fleet for both the current cycle and the years ahead. We initially sold two 16-year-old VNCCs for an aggregate amount of 136.5 million dollars. The sale prices were approximately 18% above the prior historical peak for vessels of this age. We subsequently acquired seven new buildings VNCCs for an aggregate purchase price of 844 million dollars, including the one vessel that remains subject to ongoing discussions will have entered into period charters for these vessels for average period of 6.1 years at an average net daily rate of $45,224. These transactions allow us to rebuild our VACC fleet with modern donors supported by long-term employment. The associated charter arrangements are expected to generate approximately 700 million of revenue while reducing a residual value exposure measure at the end of the initial charters to roughly 40% below the 20-year historical average. Across the entire tanker segment, we have secured a total of 922 million of contracted revenue from 14 records with an average charter duration of approximately 5 years. Of this total, 893 million relates to 11 new building tankers. This strategy enhances cash flow visibility, modernizes the fleet, and positions the company to benefit from the current tanker market strength while retaining substantial upside for the next cycle. Turning to our drive-back segment, there we are systematically rotating into larger, more fuel-efficient vessels while increasing the quality and visibility of our contracted cash flows. We sold two Panamax vessels with an average age of 18 years for aggregate proceeds of $22.8 million. We then re-invested in three new building cap-sized vessels for an aggregate purchase price of $204 million. Two of these cap-sized new buildings have been fixed on five-year charters providing a minimum of $86 million in contracted revenue, in addition to profit sharing contextually. Across the dry-bulb field, we have secured 125 million of minimum contracted revenue from four vessels with an average total duration of approximately three years. In container fields, our focus is on harvesting the value of contracted backlog while preserving flexibility for future capital allocation. We sold two 4,730 P.E.U. vessels with an average age of 19 years for an aggregate process of $64.5 million. The remaining heat continues to provide meaningful cash flow visibility, with 194 million of contracted revenue secured across six vessels with an average remaining charter duration of approximately three years. Overall, we have been monetizing mature assets at attractive values while building and maintaining contractive earnings and optionalities as charter markets and asset values evolve. Please turn to slide 7, where we are applying a recent development. For the second quarter, revenue was $410.2 million, EBITDA was $275.2 million. dollars. Net income was 167.9 million dollars. Elements per common unit were 5 dollars and 78 cents. In terms of our balance sheet net LPV was 27.9 percent. Half of our total debt or 1.3 billion has no NPV government. 43% of our total debt is strict rates. Our debt has a shaggy maturity profile with no near-term refinancing cliff. We have 1.9 billion of debt-free vessels values across 55 vessels representing potential incremental financing capacity. Available liquidity totaled $625 million. Contracted revenue backlog was $4.4 billion, extending through 2037. For the second half of 2026, contracted revenue exceeded projected cash operating cost by $151 million dollars. As of August 12, 2026, Navius has 6,250 open or index limit days in 2026, preserving participation in the stronger spot markets while maintaining a substantial contractive earnings base. Please turn to slide 8. Navius Partners announced a new 200 million Common Unit Repurchase Authorization, double the size of our current program. We view this program as an important tool for creating value for our common unit holders, particularly when our unit trade at a meaningful discount to underlying NAV. To a unit repurchase program, we consider the relative attractiveness of alternative uses of capital, including the availability of investments that can enhance long-term cash flow generation, the preservation of liquidity, maintaining good and leverage, and safeguarding financial strength. All of this must be considered in the context of an industry that suffers change quickly. Since the current program began in the second quarter of 2024, the company has replaced 1.9 million common units for $92.6 million, including 135,846 units for $9.8 million in the second quarter of 2026. During the last 12 months, we returned $46 million of capital to our unit holders, of which $6 million was cash distribution in addition to $40 million of unit repurchases. Overall, the program has created a $6.30 per unit of accreation. Common units outstanding declined by about 6% from $30.2 million before the program to $28.3 million as of August 12, 2026. Please now turn to slide 9. Navius has been executing its strategy through a challenging environment. We are focused on building a platform of efficiency. Over the past five years, we have grown contracted revenue by more than 30% to a record high of $4.4 billion. We have an EBITDA-RAM rate of over 900 million dollars and have expanded our fleet's value including our new building program to 10.2 billion dollars. Importantly, we have not sacrificed financial discipline in achieving these goals. In this process, we reduced our net load value by 38% to 27.9%. Second, we recognize that there is more work ahead, but in an uncertain world, we believe that our proven platform, combining a diversified fleet with a disciplined risk management culture, position us to continue delivering value through any market condition. I now turn the presentation over to Mr. Stratos de Sikris, Navius Partner Chief Operating Officer. Stratos?

Thank you, NLG, and good morning, Lord. Please turn to slide 10, which details our operating free cash flow potential for the remaining six months of 2026. We fixed 77% of available days at a net average rate of $28,100 per day. Contracted revenue exceeds estimated total cash operating cost by $151.2 million, and we have 6,250 remaining open or in the clean days, offering meaningful outside. Moving to slide 11, our contracted revenue backlog provides strong earnings visibility in an uncertain market. Taking advantage of the current strong rate environment, we continue to grow contracted revenue. In Q2 and Q3 quarter to date, we added approximately 666 million. 439 million from six tankers, 38 million from two driver vessels, and 129 million from four containers. Total contracted revenue reached a record high of $4.4 billion, $2 billion for tankers, $2.1 billion for container seats and $0.3 billion for drive-back. Charters are extending through 2037 with a diverse group of quality counterparties. Slide 12 summarizes the cliff developments for Q2 and Q3 quarter to date. During the period we agreed to acquire 3 new building VCCs for 362 million, who will be nearly expected in the second half of 28 and 2029. We also agreed to acquire one scrubber fitted Japanese mobility case size vessel for 70 The vessel is expected to be delivered in the second half of 2029. We also sold one 19-year-old 4730 TEU companionship for 34.5 million. Additionally, we took delivery on one new building, from Accela to Vessel, which started out for about 5 years at a net daily rate of $27,420. We continue to actively renew our fleet to maintain a language profile. We have 29 new building vessels delivering to our fleet through 2029, representing $2.5 billion of investment. Based on our financing, both agreed in the process, we have about $290 million of equity remaining to be paid. We have mitigated the residual value risk of our new billing program with long-term credit worth charted expected to generate about 1.8 billion in contracted revenue over a five-year average chart of duration. Moving to slide 13, our diversified kit provides revenue visibility and market exposure. For the year, we have 53,546 available days of which 88% are fixed and 12% are open or I would note that while we generally favor local chartres, until recently, pillar chartres made little sense in the driver sector as the rates were weak for a prolonged period of time. That about 24% of our driver clip is open or index. I now pass the call to Eric Cironi, our CFO, who will take you through the financial highlights.

Thank you Stratos and good morning all. I will briefly review our unnoticed financial results for the second quarter and the first half of 2026. The financial information is included in the press release and is summarized in the slide presentation available on the company's website. Moving to the earnings highlights on slide 14, Total revenue for the second quarter of 2026 increased by 25% to $410 million compared to $328 million for the same period in 2025 due to higher combined time charter equivalent rate despite lower available days. Our combined TCE rate for the second quarter of 2016 increased by 24% to 28,512 per day, while our available days decreased by 2% to 13,152 days compared to 2-2-2025. In terms of sector performance, our TCE rate per day was higher by 53% to 23,682 for our bulkers and by 25% to 33,159 for our tankers. Our Q2 2026 TCE rate per day for our container ships was in line with 2025 levels at 31,191 per day. EBITDA, net income, and earnings per common unit for the second quarter and the first half of 2026 were adjusted as explained in the press release and in the slide footnote. Adjusted EBITDA for Q2 2026 increased by $70 million to $242 million compared to Q2 25. The increase was primarily driven by the increase in revenue and a 2 million decrease in virtual operating expenses due to a decrease in OPEX days. Fleet OPEX daily rate was in line with 25 levels at 7,152. Adjusted EBITDA was negatively affected by a 14 million increase in time charter and volume expenses, primarily reflecting additional insurance premiums reimbursed by carterers. Adjusted net income for Q2-26 increased by $71 million to $135 million. Adjusted earnings and earnings per common unit for the second quarter of 26 were $4.65 and $5.78 respectively. Total revenue for the first half of 2016 increased by 21% to $767 million compared to $632 million for the same period since 2025 due to high combined time-sharker equivalent rate despite lower available days. Our combined TCE rate for the first half of 26 increased by 22% to 27,098 per day, while our available days decreased by 2% to 26,256 days compared to the first half of 25. In terms of sector performance, our TCE rate per day was high in all three sectors as follows. 47% increased to 20,632 for air bulkers, 24% increased to 32,694 for our tankers, and 2% increased to 31,444 for our container ships. Adjusted EBITDA for the first half of 26 increased by 120 million to 446 million compared to the first half of 25. The increase was primarily driven by the increase in revenue and a 2 million decrease in vessel operating expenses due to a decrease in OPEX days. The OPEX daily rate was 2% higher than 25 levels at 7,174. Adjusted EBITDA was negatively affected by a 15 million increase in time charter and volume expenses primarily affecting additional insurance premiums reimbursed by charters and a $3 million increase in general and administrative expenses mainly due to higher EURUSD exchange rate prevailing during the first half of 2016. Adjusted income for the first half of 2016 increased by $121 million to $233 million. Adjusted earnings and earnings per common unit for the first half of 2016 were $8 and $9.42 respectively. Then, to slide 16, I will briefly discuss some key balance sheet data. As of June 30, 26 cash and cash equivalents, including restricted cash and time deposits in excess of three months, were 469 million. In addition, we had 156 million available under two revolving trading facilities. During the first half of 2016, we paid $190 million under a new building program, net of debt, and we concluded the sale of four vessels for $123 million, adding about $99 million cash after debt retainer. Long-term borrowings, including the current portion and the senior secured bond net of deferred fees, increased by 103 million to 2.26 billion following the delivery of five new buildings during the first half of the year. Net debt to book capitalization improved to 30.6%. Slide 16 highlights our debt structure. At quarter end, we have 55 debt-free vessels, including 19 vessels securing our unutilized revolving credit facilities. We have a diversified financing base consisting new leasing structures in Japan and China, more than 15 active banking relationships and a 330 million senior unsecured bond trading in the Oslo Bourse. In addition, 43% of our debt is fixed at an average interest rate of 6.3%, while 50% carries no loan-to-value cover. We have also partly mitigated higher interest rate costs by lowering the average margin on our floating rate debt and verbal liabilities for the in-the-water fee to 1.7%. I would like to note that the average margin for the committed floating rate debt of our new building program is 1.5%. Our maturity profile is staggered with no significant values due in any single year until 2030 when the bond matures. Finally, in July, we concluded the financing of one new building capesite special under a 10-year verbal team contract with purchase options with an implied financing amount of $64.6 million and a 6% fixed interest rate. I now pass the call to Vincent van der Waale, now his partner's Chief Trading Officer, to take you through the industry section.

Thank you, Larry. Please turn to slide 18. State of Hormuz closure has created a major energy and shipping shock, affecting about 20% of the worldwide crude, product, and LNG flows. The disruption has tightened tanker availability and driven freight rates sharply higher. Rates for VOCCs hit all-time highs, reaching 602,000 per day, and remain elevated with a significant portion of the fleet trapped inside the Gulf. The shortfall has been partially mitigated by increased crude volumes from USA, Brazil, Venezuela, Guyana heading to both Europe and Asia adding more toned miles. At the same time, renewed disruption in the Red Sea has led Saudi crew to alternatively shipped via the Mediterranean to Asia. Higher fuel costs and security of supply concerns are driving the purchasing and transportation of commodities and finished goods. This has raised rates in the drywall sector for both cave sizes and Panamaxes and has continued to support container time charter rates. The conflict in the Ukraine and the recent Panama Canal draft reductions due to El Nino also add on mild for most vessel types. With negotiations between the U.S. and Iran at an impasse and the Strait of Hormuz and South Red Sea effectively closed, vessel utilization will continue to run at high levels supporting elevated rates for the near term. Medium-term trade adjustments depend on how long all prices stay elevated and whether demand for other commodities like coal, rice to substitute for LNG, or decreased fertilizer availability affects crop supply later this year. Statistic and commercial crude and product reserves will need to be restocked, which should keep tanker rates elevated over the long term. However, prolonged hormone closure could still trigger a global slowdown or a recessionary demand shock which could affect all shipping markets. Please turn to slide 20 for the review of the dry bulk industry. Demand growth for dry bulk trade has been relatively stable over the last 25 years at about 4% average annual tonneau growth. The current order book stands for about 14% of the total fleet and is expected to remain low due to high new building prices and certainly about new fuel regulations, yard availability and general market outlook. The fleet is aging quickly with 39% of the vessels 15 years old with older vessels far exceeding those on order. Supply should be constrained over the medium term. Please turn to slide 21. The main driver of dry bulk demand will be strong Atlantic Basin iron ore growth over the next several years with new projects in Guinea, Brazil and Liberia. The largest new project is Simandu in Guinea which started shipments at the end of last year and is expected to ramp up to 120 million by 28. All of its year-to-day shipments were about 9 million long-haul tons from zero last year. Bali in Brazil had three new projects totaling 15 million tons expected to start exporting by the end of 26. Liberia adds 10 million tons of exports in 2016. In total, these 118 million tons are all long-haul tonne-mile trades, creating demand for an additional 249 cakes. With the current order book of only 227 cakes due by 28, a further tightening of supply and demand is expected over the next year's benefiting rates. Overall, the direct wealth market looks positive based on steady long-term demand growth and a constrained supply of vessels. Please turn to slide 23 for the review of the tanker industry. As to supply, we see a tanker order book of 26%. About 50% of the fleet is already over 15 years old, rising quickly in the next few with older vessels exceeding the order book and yards offering first deliveries in May 28 or early 29 supply is set to be tight for several years please turn to slide 24 the US Office of Foreign Act Controls, OFAC the EU and UK continue to sanction Russian and Iranian oil revenues and ship delivering their crude and product cargos the US recently imposed sanctions on five Iranian-linked DLCCs and three product tankers along with sanctions on several individuals and companies involving freight in Iranian cargoes or aiding payments to Iran. These type sanctions have two main effects. Sanctioned oil volumes from these countries have more difficulty finding willing buyers, raising demand for compliant barrels and non-sanctioned vessels to carry that oil. With 875 mostly over-ace tankers now sanctioned, the fleet has already seen a significant reduction of about 15.3% of total capacity. The tanker market also looks positive over the medium term, based on a low order book compared with an aging and reduced fleet due to sanctions. Please turn to slide 26 for a review of the container industry. After the COVID pandemic, container shipwaters were mainly for the biggest units with fleet expansions in the large vessels set to continue at high level. 72% of the order book for ships with 9,000 EU capacity or greater, and only 24% of the order book is for 2,000 to 9,000 EU capacity, where Navlus is most active. Know that by 29, more than 50% of the 2,000 to 9,000 EU fleet will be 20 years old or Smaller segments of the fleet are well positioned to take advantage of the shifting trading patterns, as shown at the right-hand graph, growth in non-main lane trades far exceeds the traditional main lane trades to the US and Europe due to the tariffs and higher growth in developing countries. Plates involving the southern hemisphere, mostly served by smaller-sized vessels, are expected to see continued healthy growth as this trade shift continues. Overall, Navis Veed is well positioned within the container market and continues to benefit from long-term employment with her high-quality charges. This concludes our presentation. I would now like to turn the call over to Angeliki Frangu for her final comments. Angeliki?

It completes the formal presentation. We open the call to questions.

Thank you. If you'd like to ask a question, press star 1 on your keypad. To leave the queue at any time, press star 2.

Once again, that is star 1 if you'd like to ask a question. our first question today will come from omar nokta with clarkson securities your line is now open thank you hi angeliki and team uh nice update today and thank you for the overall market commentary and company update um you know clearly i guess as you think about things there continues to be a good amount of uh of uncertainty as you highlighted across the different markets but freight rates are very firm across all of your your segments and you've been taking advantage of that um and just wanted to ask about the dry bulk fleet as it is now because that seems to be really where there's the most um spot exposure to call it or at least you do have

vessels on on charters that are on an index length basis and just wanted to get a sense from you as you look ahead with this fleet in particular um is the idea or the plan to continue deploying these vessels the way that they are which is on these spotlink charters or do you start to look to convert some of these and onto fixed rate contracts good morning and i think this is a good observation i mean basically as you see on the status slide there is a we have about six thousand two hundred and fifty days that are open and mainly our index you know What we see is a very firm market. We have been able to fix even a very, very old case on a two and a half year duration at healthy rates by historical standards. So you will see some contracted revenue because it is at levels that do make sense, but we also keep, you will have part of that also on index. So you will have seen that we added in the contracted revenue, and Stratos can take us through a little bit on the recent deal with it.

As I believe you said, we have about 25% of half days for the second half of the year which are index on the dry bulk. And this is very important because on index caps are that 100% basically. And on top of that, we have already fixed another two vessels. This is an average of about two years. As you pointed out, one of the vessels was a 21-year-old vessel, which we fixed for two years taking out. So this is indication of a very, very healthy market with good prospect people that this market is there, at least for the foreseeable future.

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

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

Great. Okay. Well, thanks, Angelique. I'll pass it back.

Thank you.

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

Thank you for taking my question, and congrats on another great caller. So my question goes a bit to what Omar was touching upon. The LCV is now 27.9%. That's a call to him. and I was wondering if you could give some guidance on when you expect the target to reach and what do you expect that will change in terms of the capital allocation. So, and on the 200 million dollar buy-back program, is it fair to assume that we could expect more than 10 million dollars a quarter?

The thing happened today, we have been doing that while We are building quite significantly, we build a lot of value for the company, and you know, this buyback is measured by the considerations we have, which is we are renewing our seed, we have a $4.2 billion new building program, rebuilding and renewing our seed quite significantly, and we have to deal everything at the same time. leverage days, about 27%, which is quite significantly reduced from when we started this process. So, our buyback is based on an ability to have a flexible company to be able to operate in any market condition and without creating stress in the system. So this is where we are, and we are working on towards the 20-25% level.

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

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

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

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

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

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

For us, the longer ton miles and the voyage expenses that are associated, because we are focusing mostly on time surface, for us this is a possible. So basically, you know, the rate of environments that we see is benefiting, you know, operators like us that operate on longer-term duration in the time cycle.

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

Thank you. This completes Q2 results.

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