Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers Conference Call in First Quarter 2026 Financial Results. We have with us today Mr. Petros Papas, Chief Executive Officer, Mr. Hamish Norton, President, Mr. Simos Spiru, and Mr. Chrisus Paglera's Co-Chief Financial Officers, Mr. Nikos Rescos, Chief Operating Officer, and Mrs. Chudis Plakantunaki, Chief Strategy Officer of the company. At this time, I'll participate in turning this in only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. I must advise you this conference call is being recorded today. May I pass the floor to our speaker today, Mr. Beglaris. Please go ahead, sir.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. I'm Christos Begleris, Co-Chief Financial Officer of Starbuck 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 on slide number two 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. Open the floor for questions. Turning to slide three, the first quarter was characterized by solid profitability, discipline capital allocation, and continued balance sheet. 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 returns front, we continue to actively return capital to our shareholders. Purchases during the first quarter until today, we have repurchased approximately 1.9 million shares, totaling 37.9 million. The dividends front, our board of directors declared a 50 cents per share dividend for the quarter, payable on June 20th to all shareholders of record as of June. Balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately at $432 million is at approximately $874 million. We also have an undrawn revolver capacity of $110 million, 29 debt-free vessels with an aggregate market value of around $700 million, as well as this unencumbered asset base provides substantial financial flexibility to fund growth opportunities, as well as downside protection. Perhand 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. On the top right side of the slide, you can see our per vessel daily performance metrics for the quarter. Time charge equivalent was at 18,493 per month. The combined daily OPEX and net cash GNA was at $6,420 per vessel per day. This results in a daily cash margin of approximately $12,073 per vessel per day before debt service and capex. The numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow even at mid-cycle rate levels. We have executed approximately on $3.1 billion value-enhancing actions, including dividends, approximately $14 per share in dividends, representing approximately 54% of our current share price. We have reduced total net debt by 63%, expanded the fleet through accretive fleet asset value, thereby increasing scale. The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential. We generated $112 million in operating cash flow after vessel sale proceeds and repayments, capex payments, trading devices, and ballast water treatment system installations, share buybacks. The sequential increase in cash underscores the strong internal cash generation of the company, even after substantial shareholder returns and investment increases. Slide 6 includes our diversified fleet driving strong earnings contribution across all sectors. Starbucks delivered the well-balanced operating performance supported by our diversified fleet of 136 Vesos, Ultramax, Supramax Vesos and adjusted EBITDA. Newcastle Max Cape-sized Vesos contributed 33% of revenue and 36% of adjusted EBITDA, benefiting from strong market positioning and representing 41% 9% of revenue and 28% of adjusted EBITDA. 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 efficient fleet deployment. Slide 7 highlights the inherent operating leverage embedded in our business model. With approximately 48,500 fleet available days per year and based on a current net 12-month FSA curve of approximately 12,20,500 per day on a fleet-wide basis, the company would generate approximately $3.4500 to an EBITDA increase of dividend to our shareholders given our existing approach to distributions. In summary, during first quarter, our liquidity position, we continue to deliver, we return meaningful capital to shareholders, and we preserve significant optionality for future capital allocation. Our balance sheet resilience is positioned as well to navigate market volatility while continuing to enhance and will continue to operate one of the most cost-efficient platforms in the dry bulk sector.

75. I stood a group bulk integration on the rebuilding front, a specification cash-wise rebuildings, 95 million of capex remaining. Financing is largely in place where we have secured 130 million of debt against the five Kingdao-built vessels, and in our strengthening capture of these vessels, we remain highly attractive to our hard-to-market vessel upgrades, pushing through with energy-saving devices and high-efficiency propeller installations. To date, we have completed 61 ESP installations, telemetry, retrofits, hull upgrades in way of silicon paints, and deployment of hull-cleaning robots. We measure tangible vessel performance improvements between 7 and 15 minutes, directly translating to improve coverage of the slide, the schedule for the remainder of 2026. We continue to actively rejuvenate our fleet through a disciplined combination of 149 vessels since 2023 to fund accretive share buybacks through a new building delivery cycle with additional commercial flexibility across market sites. It's one of the largest type of fleets among U.S. and European listed peers with 141 vessels on a fully delivered basis and an average age of approximately 12.2 years. modernity, and operating leverage to compound shareholder value as the market cycle of all. I will now pass the floor to our Chief Strategy Officer, Haris Plakantonaki, for an update on recent global environment regulation developments and our ESG performance.

Thank you, Nico. Please turn to slide 10, where we highlight our progress across ESG priorities. Traded by a more marine environment protection from intercession, no consensus was reached on the next year of framework, with member states remaining divided between those who consider it fit for purpose and those calling for amendsment. The committee agreed to continue intercessional work on the framework, with a due to achieving consensus ahead of MPC in November 2020. Starbuck 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 applications. She has joined a newly established Advisory Council to the Poseidon Principles Association. The Council will serve as a forum for dialogue between the 36 signatory banks and a select group of leading subowners and maritime stakeholders in Q126, we engaged extensively all company departments in analyzing the results of an action plan to preserve our strengths and improve areas where we continue our efforts to embed artificial intelligence into our day-to-day operations through the expansion of our custom-built companies. Recognizing the cybersecurity risks associated with artificial intelligence, We have completed an external risk assessment. We define the required controls. We're also developing company policies on the responses and have included in our upcoming the floor to our Head of Market Research, for a market update and disclosure.

Update of supply. Four months of 2026, 25 million deadweight. The new building order book has increased over the past three years but remains relatively low as 13.2% of the trucking remains under control despite the recent pick-up income, reflecting limited shipyard availability through long green propulsion technologies. Meanwhile, the fleet continues. By the end of 2027, a rising number of vessels undergoing their stir is estimated to reduce effective fleet capacity by more than half per 2026. The average steaming speed of the fleet remains slightly elevated through most of Q1. Below 11 knots, congestion is expected by an demand power. And that is related to new mining hubs in West Ham. Let us now turn to slide 13 for a brief update of demand. 2026 is projected to expand by 1.3% in tons. Continue to operate against a backdrop. Position of the Middle East relatively limited. Disruptions to oil and LNG markets could be prolonged. put on the global macroeconomic outlook. Reflecting these risks, the IMF recently revised its 2026 global growth forecast down to 3.1% from 3.3% in January. In China, turning to drive-off demand, 5% iron and bauxite faster pace. In China, GDP growth exceeded expectations under things by structuring activity and exports. Chinese drive-up imports rose 8.1% against a low-based last consumption remained relatively weak. On the geopolitical front, President Trump's summit with President Xi in Beijing delivered a constructive similar relations and international trade. Drive-up imports from the 10% year-on-year and increased restocking. 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, decline by the same time, remain supply-driven, and ton-miles are expected. It's projected to contract by 1.6% in tons and by 0.5% in ton-miles during 2020 to be revised upwards. Chinese thermal power generation, while domestic coal production has been broadly flat over the past three quarters, creating a favorable oil in El Nino is expected to drive the stoops while the hotter is not in this year's summer, further lifting energy consumption in the shorter. Great strain in toned miles during 2020, 1% year-on-year during Q1, two major exporters. Minor bulk trade is projected to extend by 2.4% in tons and by 3.1% in toned miles during Q1 before the capesite split. As a final comment, we remain optimistic about the drive of market out, supply vaccines, Atlantic exports, and tightening environmental regulations. In a period of high-sensitive geopolitical uncertainty, we remain focused on actively managing our diversified, scrapper-fitted fleet to capitalize on market opportunities and deliver. Without taking any more of your time, I will now pass the floor over to the operator to answer any questions you may have. Thank you.

And I'll be conducting a question and answer session. If you'd like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to move your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star 1. One moment, please, while we poll for questions. Our first question today is coming from Omar Noctov from Clarkson Securities. Your line is now live.

Thank you. Hi, guys. Morning and good afternoon. I wanted to ask about the capital allocation policy of now paying out 100% of operating cash flow, less the CapEx and debt service. You've 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, you know, the stock, while it has done well, it's still at a discount to NAB. And in the past, you've leaned on asset sales to try to crystallize that difference between the equity and the NAB. 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?

Well, I think, Omar, it's Hamish Norton. You know, we're still planning on selling smaller, older, and less fuel-efficient ships. Frankly, you know, the market's 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, you know, the capital that we generate from selling ships could be used for repurchases of shares. It could be used for, you know, we might keep some of it for use later when there are better opportunities. You know, we think there will be some very good opportunities. And, you know, I think with our operating cash flow, we intend to keep paying that out on a current basis.

Okay. Thanks, Hamish. And if I could, I know this is sensitive, but just regarding the agreement you have with Diana, to acquire the 16 ships, acquiring Genco. Just in terms of the price, the $470 that you've agreed on, my question is, is that fixed? And then, you know, especially...

That is fixed at the moment, yes. The agreement is for a specific price. Be able to give sort of...

Is that based off of whatever Diana ends up paying, if it succeeds, or is it based off of the current price? No, it's a fixed price. Okay. All right. Thanks, Hamish. I'll pass it back.

Today is coming from Chris Robertson from Deutsche Bank. It's now live. Thank you, operator. Good morning, everyone.

Hi, Chris. Yeah, very strong start of the year. You know, we had a lighter-than-usual seasonal pullback during the first quarter. Very strong indicators here with the Cape Size FFA, over 40,000 in May, over 30,000 for the remainder of the year. But at the same time, we're seeing a little bit of decelerating economic activity in China in April with regards to industrial production. Petrus, you 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 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 can help boost demand for drivable commodities while they potentially focus on booing economic strength? Kind of what's the outlook there? Hi, Chris.

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 present Gulf, which reduces supply. Red Sea remains, then more toned 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's all kinds of inefficiencies. But this is not the only thing. You saw that during the first five 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 to be strong, doing any slowdown in the very near future. I think for a while it's going to be positive, because it will, etc. But all the positives I've mentioned over a period of 8 to 12 months may start slowing down. So, therefore, for now, we are very positive, and we're 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's drought conditions or on the other side of that, flooding conditions, which markets should we be on the lookout for weather-related disruptions that could potentially impact trade flows?

Short term, we think that Del Nino will be positive because it will create higher temperatures in the northern hemisphere, and therefore there will be more need for air conditioning, and therefore more energy. Now, for the winter, we may have a warmer winter which will require things. As far as droughts are concerned, this is our analyst that is talking up right now. This is on the Panama Canal, maybe the water levels will fall and there will be less vessels coming in. So there's positives and negatives.

All right. Got it. Thank you for the power. I appreciate it.

Thank you. As a reminder, if you'd like to be placed in the question queue, press star one at this time. Our next question is coming from Stephanie Moore from Jeopardy. Your line is now live.

Great. Good morning, everybody. Thank you.

Good morning, Stephanie.

I know that, you know, when we have talked in the past and certainly, you know, when we all spoke publicly together on your first queue call, and it continued today, but there's 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 we'll have your thoughts there to start thank you Stephanie is that a geopolitical question mostly yes yes and maybe how that how that how that um supports your your view on the dry bulk market for 2026 and if anything has changed then when you kind of discussed I did talk about the present golf I think that is positive for for the short

term or even for longer depending on how that goes you know the main i think that the ukrainian war is not affecting that much the market anymore it did it did help the market at the beginning because for example russian coal had to travel longer distances to be exported and and that was positive. There were negatives because there was less grain trade coming out from the Black Sea especially. But we don't think that is as important anymore because it's being overshadowed by the present Gulf. What I see very potentially positive is in case any It will be very strong because it will create a lot of demand. So it will all how things happen going forward. We're not how things will end.

Understood. And then I think one question that we're getting a lot of is maybe more on the negative side, that if some of these conflicts persist, does that create particularly an emerging market that stress on their overall economy? So we'd love to get your views on that as well, and if that could ultimately impact demand.

Sorry, can you please, Stephanie? You said that this creates a work market?

Yes, I'm sorry. I guess, sorry if you can't hear me, but the other side of maybe the coin here from a demand standpoint would be if emerging markets are negatively impacted by persistingly higher energy costs, if that ultimately causes any kind of economic weakness in those markets and if that would be the negative side. So I'd love your thoughts on potentially that scenario, too.

Yeah, well, that risk actually remains. And if oil prices go further up, and even, you know, in the 150 or even more than that, we're very afraid here that that would damage the world economy and not just emerging economies. and it would also discourage trade because trade depends on how you can construct something cheaper than the other country. And then that creates trade. If prices go very far up, then that will impede the development of economies. And I think it's going to be negative. It It would be more expensive.

I appreciate the high level. And then I guess one last thing for me, maybe just talk a little bit about your appetite for additional new build 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 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 relatively low IRRs. So the idea here is not to continue any further with new buildings until prices start falling. I don't know when that is going to be, but we are patient. The eight Camsamaxes we did because our Camsamax fleet was getting older compared to the rest of the...

Thank you. Appreciate it.

For our question and answer session, I'd like to turn the floor back over for any further closing comments.

For the comments, operator, thank you very much.

Thank you, everyone. That does conclude today's teleconference and webcast. Let me disconnect your line at this time and have a wonderful day. We thank you for your participation today.