An analyst asked for the magnitude of the currency benefit included in the FY26 adjusted EBITDA guidance.
CFO Sean Quinn responded that the year-over-year impact of currency on adjusted EBITDA in fiscal 2026 is expected to be 'slightly favorable,' which he clarified implies a positive impact of a 'few million dollars.'
An unnamed analyst asked about the company's capital allocation priorities, specifically questioning the halt in share buybacks despite a lower stock price, the commitment to the 2.5x leverage target, and the need for caution to avoid past mistakes.
CFO Sean Quinn explained that buybacks were paused in February and March as a cautious measure to fully assess the complex and evolving tariff situation. CEO Robert Keane reaffirmed the 2.5x net leverage target as an appropriate long-term goal for stability, though acknowledged it will take longer to reach due to attractive opportunities like share repurchases. Both executives emphasized a balanced approach, weighing internal investments against buybacks and deleveraging.
An analyst asked about the current level of chartering activity and when the market might shift back towards longer-term contracts.
CEO Øystein Kalleklev described the current market as slow, with charterers preferring the spot market due to high vessel availability. He expects this trend to continue until the market tightens, likely in 2026 or 2027, when charterers will move to secure longer-term charters before rates rise.
An unnamed analyst inquired about future plans for balance sheet optimization.
CFO Knut Traaholt explained that recent refinancings were opportunistic, driven by a contract extension and attractive Japanese financing. He indicated future refinancings would likely be tied to new contracts. CEO Øystein Kalleklev added that the next focus for financial optimization is on interest rate derivatives.