Clement Mullins

Clement Mullins asked about the employment terms for the 12 VLCCs coming open, specifically the DS1 extension and plans for the Ulysses. He also inquired about the Maria Energy's employment between its current contract and a new long-term agreement, and the expected long-term contract strategy and duration for MR newbuilds delivering in early 2026.

Answer

Nikolas Tsakos, Founder and CEO, stated that the DS1 extension involves a significant 20% increase from previous profit-sharing minimums, indicating strong market appetite. He clarified that the Maria Energy is fixed back-to-back until its new 15-year employment, with no downtime expected other than a scheduled survey. For the MR newbuilds, Mr. Tsakos mentioned strong interest from major oil companies and the potential for pooling, highlighting the success of the Cargill Maersk pool as a consolidation method offering full utilization and spot market upside.

Clement Mullins inquired about the employment terms for 12 VLCCs, specifically the DS1's two-year extension and plans for the Ulysses, including potential spot market exposure. He also asked about the Maria Energy's employment between contracts and the strategy for upcoming MR new builds delivering in early 2026, including contract duration and potential pooling.

Answer

Founder and CEO Nikolas Tsakos indicated a significant 20% increase in minimum profit-sharing arrangements for VLCCs due to high market appetite, deferring specific terms to Co-CFO Harrys Kosmatos. For the Maria Energy, Mr. Tsakos confirmed back-to-back chartering with no downtime, aside from a scheduled survey. Regarding MR new builds, Mr. Tsakos noted strong interest from major oil companies and the potential for commercial pooling to leverage spot market upside and ensure full utilization.

Clement Mullins asked for an update on Danaos' investment in Star Bulk and whether the company has an appetite to expand into other dry bulk segments like Panamaxes or Supramaxes. He also sought guidance on Q4 Capesize fixtures to date.

Answer

CEO John Coustas stated that Danaos is satisfied with its Star Bulk investment, having increased its position last spring due to perceived appreciation potential, but confirmed no current plans to expand into other dry bulk segments. CFO Evangelos Chatzis clarified that the company does not provide guidance on charter fixtures for the running quarter.

Clement Mullins asked for an update on Danaos Corporation's investment in Star Bulk Carriers and whether the company plans to expand into other dry bulk segments like Panamaxes or Supermaxes. He also sought guidance on Q4 fixtures for the Cape-sized fleet.

Answer

CEO John Coustas expressed satisfaction with the Star Bulk Carriers investment, noting an increased position last spring and continued belief in its appreciation potential. He clarified that Danaos is not currently considering expansion into other dry bulk segments. CFO Evangelos Chatzis stated that the company does not provide guidance on charter fixtures for the running quarter.

Clement Mullins asked about Costamare Bulkers' Q4 fixture insights, the impact of the CBI wind-down on Q4 earnings, the nature of remaining time charterings, future Capesize fleet expansion strategy given current asset valuations, and the potential for a dividend policy or share repurchases.

Answer

CEO Gregory Zikos stated that specific Q4 fixture breakdowns are not provided but noted healthy charter rates and a strategy of converting index-linked vessels to fixed rates. He explained that the CBI wind-down's impact on Q4 earnings would be factored in but not substantial, with exposure minimized by Q1 2026. Zikos confirmed the company's goal to migrate towards larger vessels, acknowledging caution on new Capesize acquisitions due to high asset values. He deferred decisions on a dividend policy or share repurchases to the next quarter, noting no specific decision was made this quarter despite insider alignment.

Clement Mullins, a Research Analyst at Value Investors Edge, inquired about Costamare Bulkers' Q4 fixture performance, including a breakdown by vessel class, and sought commentary on the impact of the Cargill strategic cooperation agreement (CBI) wind-down on Q4 earnings, as well as the nature (variable or fixed) of expiring time charters. He also asked about the company's future Cape-sized fleet expansion strategy given current asset valuations and potential dividend or share repurchase policies.

Answer

Gregory Zikos, CEO of Costamare Bulkers Holdings Limited, stated that detailed fixture breakdowns are not provided but noted healthy Q4 charter rates, with a strategy of converting index-linked vessels to fixed rates. He explained that the Cargill agreement's Q4 execution would impact Q4 results, with legacy CBI exposure minimized by Q1 2026, and confirmed the goal to migrate towards larger vessels, though new Cape-sized acquisitions would be cautious due to high asset values. Mr. Zikos deferred decisions on dividend policy or share repurchases to future board considerations.

Clement Mullins of Value Investment Group inquired about purchase options on remaining time-chartered vessels, the reasons for Q3 guidance being below recent spot market trends, and the drydocking schedule for the second half of the year.

Answer

CEO Kristian Sørensen confirmed one purchase option exists for later in the decade but none are immediate. He attributed the Q3 guidance to the impact of the time charter portfolio, significant drydocking activity, and the positioning lag for vessels to capitalize on spot rate increases. He also noted six to seven more vessels will drydock in H2 2025 without any congestion issues.

Clement Mullins of Value Investors Edge asked for an update on the Neptune Maritime Leasing venture, its development, and the potential for increased investment. He also questioned if the post-spin-off focus would alter shareholder return policies, such as dividends or share repurchases.

Answer

CFO & Director Gregory Zikos reported that the Neptune Maritime Leasing platform is progressing well, having committed to or funded 47 assets and deployed nearly 90% of its initial capital. Regarding shareholder returns, Mr. Zikos stated the dividend policy is a Board decision and is independent of the spin-off. He emphasized that while options are periodically reviewed, the company currently prioritizes deploying capital into accretive new business over one-off dividends or buybacks.

Clement Mullins asked about the company's fleet strategy, specifically the trade-off between chartering-in vessels on long-term agreements versus purchasing them, particularly in a market with elevated asset values.

Answer

Executive Hamish Norton clarified that with the company's stock trading below its net asset value, the priority for capital is share buybacks, not cash purchases of vessels. CEO Petros Pappas added that they view chartering-in as an opportunistic strategy, pursued only when rates are attractive and make financial sense, leveraging their strong relationships with vessel owners.