Chris Robertson

Chris Robertson with Deutsche Bank inquired about Star Bulk Carriers' projected net debt change in 2026, specifically regarding newbuilding financings and planned amortization. He also asked for clarification on the dividend policy's minimum cash balance calculation relative to fleet size and the drivers behind strong sub-cape segment rates.

Answer

Vice President Hamish Norton clarified that $130 million in financing is secured for five newbuildings, with discussions ongoing for three others. He projected quarterly amortization to remain around $50-$52 million in 2026 due to refinancing and long-term newbuilding amortization profiles. Regarding the dividend policy, Mr. Norton stated the $2.1 million per ship minimum cash balance is based on the current fleet, not pro forma, and the company's cash position far exceeds this threshold. CEO Petros Pappas added that newbuilding equity CapEx is covered by past vessel sales. Mr. Pappas also explained that strong sub-cape rates are driven by a spillover from larger vessels, robust Q3 grain and coal trade, and healthy minor bulk demand, alongside potential tariff-related cargo ordering urgency.

Chris Robertson with Deutsche Bank inquired about Star Bulk Carriers' expected net change in debt for 2026, considering new financings for eight newbuilding assets and planned amortization. He also asked for clarification on the dividend policy's minimum cash balance calculation, specifically if it accounts for the pro forma fleet size after newbuilding deliveries, and sought insights into the drivers behind the strong sub-cape segment rates.

Answer

Hamish Norton (VP, Star Bulk Carriers) clarified that amortization would remain around $50-$52 million per quarter in 2026, with new facilities having a 17-year amortization profile. He also stated that the $2.1 million per ship minimum cash balance for dividends is calculated based on the current fleet size, not pro forma, and the company's cash balance is significantly above this threshold. Petros Pappas (CEO, Star Bulk Carriers) attributed strong sub-cape rates to a spillover effect from larger vessels, an 11% improvement in grain trade, strong coal performance in Q3, healthy minor trade for Supramax, and urgency in cargo ordering due to tariff uncertainties.

Chris Robertson asked about the timeline and nature (steady vs. step changes) of reaching 24% above nameplate capacity for CP2, the implications for O&M expenses, and the evolution of Venture Global's contracting strategy towards flexible cargo agreements across its portfolio.

Answer

CEO Michael Sabel indicated the capacity increase would be a combination of step changes and steady growth, without disclosing specific details, and confirmed that adding extra trains would not materially impact operating expenses. He affirmed Venture Global is moving towards flexible cargo agreements across its portfolio, leveraging its growing production capacity to offer attractive and flexible supply structures.

Chris Robertson at Deutsche Bank asked about Venture Global's projected path to achieving 24% above nameplate capacity across its facilities, specifically whether this will occur through steady increases or step changes, and the potential implications for O&M expenses. He also inquired about the company's evolving contracting strategy, moving towards flexible cargo agreements across its entire portfolio rather than being tied to specific projects.

Answer

CEO Michael Sabel indicated that the increase to 24% above nameplate capacity will be a combination of step changes and steady increases, without disclosing specific intellectual property. He noted that adding extra trains does not materially impact O&M expenses, viewing it as almost entirely upside margin. He confirmed that with over 100 million tons of annual production projected, Venture Global will have immense flexibility to offer portfolio-sale type structures with fixed delivery dates, leveraging its cost and price advantage to provide attractive commodity prices years sooner than competitors.

Chris Robertson from Deutsche Bank questioned whether the company is considering strategic alternatives given its current share price and asked for clarification on remaining CapEx for Gimi and any expected for the CESA JV.

Answer

CEO Karl Fredrik Staubo affirmed management's focus is on operations, while Chairman Tor Olav Trøim added that the board sees significant undervaluation and will act to unlock value if it persists, though they are not actively selling the company. CFO Eduardo Maranhão stated there is no material remaining CapEx for Gimi expected in Q2.