Seanergy Maritime (SHIP) Q3 2026 Earnings Call Transcript

DATE

Thursday, Nov. 12, 2026

CALL PARTICIPANTS

• Chairman and Chief Executive Officer - Stamatios Tsantanis
• Chief Financial Officer - Stavros Gyftakis

TAKEAWAYS

• Net Revenue (Q3) -- $57.5 million, rising 22.3% year over year driven by higher fleet utilization and stronger market rates.
• Net Income (Q3) -- $26 million, more than doubling from $12.8 million in the prior year period.
• Adjusted EBITDA (Q3) -- $40.8 million, compared with $28.9 million in the third quarter of 2025.
• Adjusted EPS (Q3) -- $1.25, up from $0.67 in the prior year period.
• Fleet TCE Rate (Q3) -- $34,500 per day, a 46% increase reflecting the earnings power of the pure-play Capesize platform.
• 9-Month Net Income -- $61.9 million, a record for the company representing significant growth from the prior year.
• 9-Month Net Revenue -- $155.2 million, a 43% increase driven by fleet expansion and higher charter rates.
• 9-Month Adjusted EBITDA -- $110.5 million, more than doubling from the prior year period.
• 9-Month Adjusted EPS -- $3.21, compared with $0.60 in the prior year period.
• Quarterly Cash Dividend -- $0.40 per share, a 14% increase marking the 20th consecutive quarterly distribution and the five-year anniversary of uninterrupted payments.
• Fleet Investment Program -- $855 million, consisting of nine newbuildings and three secondhand vessels for a total of 2.3 million deadweight tons.
• Invested Program Capital -- $127 million, or 15% of the total program capital expenditure as of the earnings call date.
• 2027 Capital Expenditure Commitments -- $354 million, with $177 million already covered by secured financing as of the third quarter.
• 2028 to 2029 Capital Expenditure -- $75 million in 2028 and $298 million in 2029, reflecting a staggered payment profile for the renewal program.
• Fleet Fixed Rate Coverage (Q4) -- 86% of operating days fixed at approximately $33,000 per day, with expectations for the full quarter to reach $33,300 per day.
• Vessel Disposal -- $33 million, from the agreed sale of the 2009-built Friendship, generating approximately $20 million in net liquidity.
• Newbuilding Delivery Timing -- Jan. 2027, for the first Hengli shipyard vessel, which is arriving four months ahead of its original schedule.
• Total Debt -- $419 million, including a EUR 100 million unsecured bond.
• Net Loan-to-Value (LTV) -- 28%, providing financial flexibility after deducting cash reserves at the end of the third quarter.
• 2027 Fixed Rate Conversions -- four vessels fixed at an average of approximately $35,000 per day, excluding newbuildings.
• Capesize Fleet Growth -- 50% increase in capacity expected over the next several years through the completion of the current 12-vessel program.
• 2027 Dry Dock Guidance -- 100 days across four ships, representing a decrease from the more significant dry dock requirements of prior years.
• Bauxite Export Growth -- 21%, serving as a primary driver of long-haul Capesize demand in West Africa.

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RISKS

• Tsantanis warned that the Capesize market may experience volatility in 2027, specifically noting uncertainty surrounding Chinese commodity demand.

SUMMARY

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) reported peak profitability for the first nine months of the year and announced an expansion of its fleet renewal program. Management reported the acquisition of four additional vessels since the second quarter, bringing the total investment program to 12 ships. The company indicated that funding for these commitments is supported by substantial cash reserves and staggered payment schedules through 2029. Fleet performance in the third quarter was driven by a significant increase in time-charter equivalent rates, with high coverage levels already secured for the fourth quarter. The company continued its multiyear streak of dividend payments while maintaining a net loan-to-value ratio of 28%.

• CEO Tsantanis stated, "People would love to have more newbuildings being ordered... but it's impossible because the actual slots at the yards have been fully tied up and there's no availability."
• Management noted that effective Capesize fleet growth is expected to remain below 1% this year when accounting for dry-docking and other inefficiencies.
• CFO Gyftakis stated that the company expects to fund 65% to 70% of remaining capital commitments through debt while utilizing cash reserves and operational funds for the balance.
• The company reported that the Simandou iron ore project in West Africa is ramping up faster than anticipated, providing long-term support for ton-mile demand.
• Management estimated that vessel operating expenses could decrease by approximately $500 per day by the end of 2027 as newbuildings join the fleet and dry dock requirements normalize.
• CEO Tsantanis stated, "It's going to be the first untested vessel that we take from Hengli," referring to the newbuilding delivery scheduled for Jan. 2027.

INDUSTRY GLOSSARY

• Capesize: The largest class of dry bulk ships, typically exceeding 100,000 deadweight tons, named for the requirement to circumnavigate the Cape of Good Hope before the Suez Canal expansion.
• Newcastlemax: A specific type of Capesize vessel with dimensions optimized to enter the Port of Newcastle in Australia.
• Time-Charter Equivalent (TCE): A shipping industry standard performance measure used to compare period-to-period changes in a company's performance despite changes in the mix of charter types.
• Baltic Capesize Index (BCI): A daily index of the price of moving major raw materials by sea, specifically for Capesize vessels.
• Ton-mile: A unit of freight transportation measurement equivalent to hauling one ton of cargo over a distance of one mile.
• Scrubber: An exhaust gas cleaning system that removes sulfur oxides from a ship's engine exhaust, allowing the use of high-sulfur fuel.
• FFA: Forward Freight Agreement, a financial contract used to hedge or speculate on the future price of freight rates.

Full Conference Call Transcript

Operator: We have with us Mr. Stamatios Tsantanis, Chairman and CEO, and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions] Please be advised that this conference call is being recorded today, Thursday, November 12, 2026. An archived webcast of the conference call will soon be made available on the Seanergy website, www.seanergymaritime.com. To listen to the archived audio file, visit the Seanergy website following the Webcast & Presentations section under the Investor Relations page. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from the results projected from those forward-looking statements.

Additional information concerning factors that can cause the actual results to differ materially from those in the forward-looking statements is contained in the third quarter and nine months ended September 30, 2026, earnings release, which is available on the Seanergy website, again, www.seanergymaritime.com. I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatios Tsantanis. Please go ahead, sir.

Stamatios Tsantanis: Thank you, operator, and welcome, everyone. Seanergy delivered another highly profitable quarter, and our nine-month net income reached a record $61.9 million. In the third quarter, our fleet earned approximately $34,500 on a time-charter equivalent basis, up 46% year-over-year, and adjusted EBITDA was $40.8 million. For the first nine months, adjusted EBITDA more than doubled to $110.5 million. Adjusted earnings per share rose to $3.21, up from $0.60 last year. These results show the earnings power of our pure-play Capesize platform. They also allow us to increase our shareholder returns and renew our fleet at the same time from a position of strength.

Our Board of Directors has raised the quarterly cash dividend by 14% to $0.40 per share, which is double the first quarter level. This is our 20th consecutive quarterly dividend, 5 years without interruption through good and bad market conditions. Cumulative cash dividends now reach about $3.59 per share, and including buybacks, we have returned approximately $117 million to our shareholders. Now to fleet investments, which have been our main focus since our last call.

Since our second-quarter results, we have added four more high-quality Capesize and Newcastlemax vessels for a total of about $264 million: a modern 2019-built Japanese Capesize, the Midnight ship, joining our fleet in January 2027; a scrubber-fitted Newcastlemax newbuilding at Hengli Heavy Industry for delivery in the first quarter of 2029; a scrubber-fitted Capesize newbuilding at a first-class Japanese shipyard for delivery in the second half of 2029; and a 2014-built Japanese Newcastlemax for delivery in the second half of 2029. Our fleet investment program now stands at 12 Capesize and Newcastlemax vessels consisting of 9 newbuildings and 3 modern Japanese-built secondhand vessels.

That is about $855 million of investment and 2.3 million deadweight tons of new capacity, growing our fleet's current capacity by more than 50% over the next few years. We expect the contribution of the new acquisitions to our NAV, EBITDA, and cash flow to be very, very significant. Stavros, further down, will take you through the funding of this CAPEX. Our first Capesize newbuilding at Hengli is now expected in January 2027, in a couple of months from now, about 4 months ahead of schedule. Together with the Midnight ship, that means two modern Capesizes will join our fleet at the start of next year, adding to our earnings from early '27.

At the same time, we continue to sell older vessels at the right time. We have agreed to sell the 2009-built Friendship, our oldest vessel, to United Maritime for $33 million with delivery in January of 2027. The deal was negotiated and approved by a special committee of independent directors. Delivery is expected in the first quarter of 2027, as I just said, generating approximately $20 million of net liquidity and a book gain of about $12 million, and Seanergy will continue to manage the vessel while at United Maritime.

Regarding the employment of the new ships, four out of the six vessels joining our fleet by the end of '28, we have secured or we are close to securing multi-year charters with first-class charterers. The structure is the same each time: a floor rate above the vessels' cash break-even from day one plus profit sharing above a certain set level. That means that downside protection from delivery is secured and upside when the market is strong will also benefit our shareholders. On the commercial side, our index-linked charters give us direct exposure to a strong market, and our conversion options let us lock in rates when the market makes sense.

For the fourth quarter, we have fixed about 86% of our operating days at close to $33,000 per day on a time-charter equivalent basis. Based on the current FFA curve, we expect fourth-quarter time-charter equivalent at about $33,300 per day. That puts '26 on track to be a record profitable year for Seanergy. We have also started to lock in good rates for '27. We have converted four vessels so far to fixed rates, and that excludes the newbuildings, at an average of about $35,000 a day, while the rest of the fleet keeps its index-linked exposure. We might also consider some additional fixtures in the near future.

Finally, our existing charters continue to be renewed with the same charterers, a clear sign of demand for our well-maintained and fuel-efficient vessels. With that, I will now pass the call to Stavros for the financial review, and I will come back to this call to discuss the market fundamentals.

Stavros Gyftakis: Thank you, Stamatios, and welcome to everyone joining today's call. I will focus on our financial results before turning to our liquidity, leverage, and the funding profile of the fleet investment program. For the third quarter, net revenues increased to $57.5 million from $47 million in the prior year period. Net income more than doubled to $26 million from $12.8 million. Adjusted EBITDA increased to $40.8 million from $28.9 million, and adjusted earnings per share was $1.25 compared with $0.67 in the third quarter of '25. For the first nine months, net revenue increased by 43% to $155.2 million, while net income rose to a record $61.9 million and adjusted net income reached $69 million.

Adjusted EPS was $3.21 compared with $0.60 in the prior year period. Importantly, operating cash flow reached approximately $82.2 million, providing substantial internally generated capital to support both shareholder distributions and fleet investments. Turning now to the balance sheet, we ended the third quarter with close to $168 million of cash and restricted cash and total debt outstanding of $419 million, including our EUR 100 million unsecured bond. Net loan-to-value ratio, including the outstanding bond principal and after deducting cash reserves as at the end of the quarter, stood at 28%, leaving us with financial flexibility as we continue to deploy capital.

At quarter end, we had invested $109 million in our fleet renewal program, and to date, this figure has increased to approximately $127 million or 15% of the program's CAPEX. So far, most of the payments towards the shipyards or previous owners of the vessels have come from the company's own funds. Let me now put the remaining investment commitments into context, which I repeat are staggered through '29. So in '27, we expect to pay approximately $354 million with approximately $177 million already covered by secured financing and this without having concluded on the vessel-specific financing of two vessels.

These are the 2019-built Midnight ship, which will be delivered to us within the first quarter of '27, and the Japanese newbuilding Capesize scheduled for delivery in July '27. We have seen strong interest from existing and new lenders in financing these ships and estimate the debt capacity at approximately $100 million. Now beyond '27, approximately $75 million is payable in '28 and $298 million in '29. So we believe we are very well positioned to execute these remaining investment commitments while maintaining a moderate leverage profile. The funding base is diversified. We have already paid approximately $127 million towards the program, primarily from own resources. We have committed bilateral financing arrangements for five vessels.

We have the proceeds of our EUR 100 million unsecured bond, and we entered the quarter with approximately $168 million of liquidity. These sources are complemented by operating cash flow and proceeds from selective disposals as the renewal program progresses. Importantly, we believe this remaining amount can be financed at moderate leverage levels, allowing us to complete our fleet renewal program while preserving balance sheet strength and financial flexibility. As Stamatios mentioned earlier, the multi-year employment secured or being finalized for the first wave of newbuilding deliveries also strengthens the financial profile of the program.

The contractual floor rates are expected to cover the vessels' cash break-evens from commencement, providing visibility around operating cash generation and debt service, while the market-linked components preserve upside. From a financing perspective, this materially reduces the cash flow risk associated with the initial delivery phase. So the key financial message is pretty straightforward. We enter the next phase of the investment program with substantial liquidity, strong operating cash generation, diversified funding sources, and a staggered payment profile. Based on our current assumptions, we expect to execute the program while maintaining prudent leverage and continuing to preserve capacity for shareholder distributions. That concludes my financial review.

I will now turn the call back to Stamatios for a discussion of the Capesize market outlook, and broader industry fundamentals. Stamatios, please go ahead.

Stamatios Tsantanis: Thank you, Stavros. '26 has been a very strong year for the Capesize market so far, and it supports our pure-play focus. Year to date, the Baltic Capesize Index, the BCI, for 180,000-deadweight vessels has averaged at about $33,500 a day. The third quarter averaged about $41,400 a day, and the index peaked at about $50,000 a day in early September, its highest level since '21. Ton-mile demand keeps growing and accelerating from 3.7% in '24 to 5.5% in '26. But the main reason for the strong market is the low vessel supply. For three years in a row, the effective fleet growth has been below the ton-mile demand growth, and this year it is below 1.6%.

If we add more dry-docking days, congestion, and other inefficiencies, effective fleet growth this year is actually below 1%. On the supply side, the Capesize order book stands at about 400 vessels. And that includes, of course, options, Newcastlemaxes, and bigger ships altogether, against a fleet of about 2,000 vessels altogether. At the same time, about 190 vessels are already 20 years or older, and another 830 ships, about 40% of today's fleet, will reach 20 years of age in the coming years. In addition, we expect a large part of the fleet to struggle to meet efficiency, environmental, and charter requirements in the near term.

About 99 newbuildings, again, Capesize, Newcastlemax, and all that, are due in '27, or more than 4% nominal fleet growth. But only 28 of them are due in the first half of the year, which is about the same as the first half of '26. So we see a positive supply picture for the next several years. The market needs only modest demand growth to stay very strong. On the demand side, growing long-haul iron ore and bauxite exports from the Atlantic have been a key driver for Capesizes. At the same time, lower Indonesian coal exports, mostly carried on smaller ships, have moved more coal cargoes into Capesizes.

Looking ahead, the Simandou iron ore project in West Africa is ramping up faster than expected, which supports Capesize demand for years to come. In China, domestic iron ore output is down about 5% year-over-year. Despite a small uptick in October, the trend is clear: less local iron ore and more high-quality imports from Brazil, West Africa, and Australia. We expect this to continue as long as ample seaborne supply keeps iron ore prices below what most Chinese mines need to make money. Bauxite exports from West Africa rose about 21% from an already increased previous year, and bauxite was the biggest Capesize demand driver for the first and third quarters.

With the rainy season ending, we expect strong volumes again in the fourth quarter. Growth may slow from the very fast pace of the past three years, but China's alumina refineries keep using more imported bauxite. So these long-haul cargoes remain a very solid support. And because the West Africa rainy season runs opposite to Brazil, first-quarter exports are now stronger than in the past. Over the longer term, global demand for aluminum and steel keeps growing, driven by exports of finished goods, logistics networks, next-generation telecoms, data centers, and electric vehicles, and of course, increased energy needs.

The Capesize market may see some volatility in '27, especially given the uncertainty around Chinese commodity demand, but the structural drivers of ton-mile growth remain in place, and we remain very positive on the long-term outlook. We believe our long-term charters of the newbuildings, our index-linked exposure, and our proven hedging program set us very well ahead for the years to come. To conclude, '26 so far has shown the earnings power and cash generation of Seanergy's fully focused platform. We expect to enter '27 with strong liquidity, our first new vessels about to deliver, more earnings visibility, and a proven commitment to shareholder returns.

Our focus now is simple: deliver the program we have built and turn it into long-term value per share. With that, I will now turn the call over to the operator for any questions you may have. Operator, please take the call. Thank you.

Operator: [Operator Instructions] Our first question today comes from Liam Burke from B. Riley Securities. Please go ahead.

Liam Burke: Stamatios, the Capesize rates backed off from the peak, but settled in at a floor at about $30,000 a day before bouncing back up again. That's a pretty high floor. Does that surprise you that the rates settled in at the higher lows? And how does that bode for 2027?

Stamatios Tsantanis: No, not really. I mean it didn't surprise us. We were hoping and we were expecting to see a rally until the end of the year. Some other companies reporting yesterday, they also said that they expect Q1 of '27 to be really strong. We're very comfortable for the next 12 to 18 months altogether, not only because the actual ton-mile demand will remain healthy, but also the supply of ships remains very, very well disciplined and contained. So we do not really anticipate that. You will see volatility. The volatility usually arises from certain short-term position of congestion matters such as North China typhoons and mostly weather-related issues. So that will continue to happen.

There will be a lot of tonnage unwinding and congesting from time to time. But if you ask me whether the FFA represents a good picture for 2027, I will say that, yes, a bit more conservative than we expect. But I think that around 32,000 to 35,000 is a good estimate for '27, even though we expect to see the market much higher.

Liam Burke: Great. And the other thing I thought was unusual is usually the sale and purchase market for Capesize assets would be more active. It doesn't look like there are a lot of transactions out there, even though rates are high, which should pull up assets and stimulate the secondhand market.

Stamatios Tsantanis: Yes. Well, the answer here is twofold. First of all, the newbuildings. I mean, people would love to have more newbuildings being ordered for '27, '28, '29, like we have, but it's impossible because the actual slots at the yards have been fully tied up and there's no availability. So we are amongst the few likely companies that have secured a very good order book for the next 3 years, and that's great. Now the older tonnage here, you have a big spread between bid and ask. Sellers are asking crazy high prices and buyers are willing to pay, but not the crazy premiums that people anticipate.

So that's why, I mean, if you see, let's say, a 16-, 17-year-old ship asking at mid-high $30 million, that sounds a little bit expensive, especially when you don't know how well that vessel has been maintained. So newer ships, you see some very high premiums on the newbuildings, and there's no availability for any newbuildings coming up for the next 3 years. Secondhand ships, I believe that we have come to a point where they appear to be quite expensive for buyers. And hence, you have the bid and ask spread at these levels. So that's why it's a little bit subdued right now.

Operator: Next question today is from Mark Reichman from NOBLE Capital Markets.

Mark La Reichman: The first question I wanted to start with is just kind of some visibility on the number of ships operating over the next several quarters. So you have 18 vessels operating today. You've got the 4 newbuilds that will be delivered in 2027. So if we take like 18 vessels plus you're going to have 2 in the first quarter of 2027, minus 1, which is the Friendship. I was just kind of wondering if you could just kind of walk us through your expectation for the number of ships operating over the course of the fourth quarter through the 4 quarters of 2027.

And can we safely assume that you'll divest maybe 2 more vessels that haven't been announced when we're considering our 2027 estimates?

Stamatios Tsantanis: Well, that's actually a great estimate, yes. I mean, first of all, the plan, like you described, is very accurate. We expect to have 2 ships coming in, in January and 1 ship to leave the fleet also in January. Now as we see the additional deliveries coming in later in 2027, we might sell 1 or 2 of the oldest ships -- so I would say 20 vessel end of the year and as an average for 19 for average of '27 and 20 at year-end of '27 appears to be right.

Mark La Reichman: Okay. And then in terms of these new builds, when we think about our 2027 estimates, I don't know that you can really provide any visibility on 2027 average fleet TCE. But what about the daily vessel operating expenses? Would you expect to have these new builds to have a positive impact on that? Just kind of your thoughts on with this change in the mix in the fleet, what you -- are there any line items that might go up or down as a result?

Stamatios Tsantanis: Yes. That's also a great question. As a rule of thumb, when you have vessel deliveries, you have the so-called pre-delivery expenses, and that tends to increase the OpEx somewhat because you have a lot of expenses coming in such as the initial supply of the vessel and everything associated with all that. So we might see an increase. Overall, we believe that second half of '27, we will see a decrease on the operating expenses because we have sustained a very significant vessel dry dock the past few years on our fleet, and we don't have any dry docks in 2027, very few we have. Plus the newbuildings will normalize at much lower levels than the older ones.

So overall, if you ask me as a prediction, and again, that's a very wild estimate. I believe that the overall expenses on an OpEx basis end of '27 might be about $500 or more less than the end of the year '26.

Mark La Reichman: Well, that's very helpful. Now you brought up the dry dock. So we actually have like 25 days in the fourth quarter, and we have kind of a barbell in the 2027. So we've got 50 days in the first quarter, 50 days in the fourth quarter, 0 in the second and 25 in the third quarter. Are you -- did you say that 2027, you expect very few dry dock days or off-hire days?

Stamatios Tsantanis: We have 4 altogether. We're in discussions with the charterers as to when the ships will be available to go to the dry dock. So I cannot give you an exact quarter allocation of the off-hire days. But happy to discuss that offline with our CFO in the next few days, and he will give you the exact guidance that we give everybody.

Mark La Reichman: Okay. But would -- our current estimate of 125 days in 2027, would you say that's in the ballpark? Or do you want to just hold off?

Stavros Gyftakis: Mark, a bit less like 100 days would be more accurate. I mean, 4 ships, 25 days per ship, that's a bit more accurate.

Mark La Reichman: Okay. And then just the last question. Stavros, you did a great job in terms of talking about the capital commitments and the payments in '27, '28, '29. And I was just kind of curious, what percentage of the remaining commitments do you expect to finance with debt versus internally generated cash flow?

Stavros Gyftakis: Look, I'll answer and I will answer directly to your question. But before saying that, because I mean, there's always a question mark when companies, I mean, commence these big or seemingly aggressive CapEx programs. The most important thing for you and for everyone listening in this call is to note that we have already paid in equity 15% of the CapEx. So even if we wanted to do all the remaining CapEx on debt, these financing solutions are available in this market. So if we wanted to go 85% leverage on the CapEx, basically, the program is already funded, but we will not do that. We will go more conservatively.

So we -- you can assume that around 65% to 70% of the remaining CapEx commitments will be funded through debt and the rest from our current cash reserves, vessel sales and funds generated through operations. And we feel very comfortable that we can cover this in the mix that I described.

Operator: The next question. This is from Tate Sullivan from Maxim Group.

Tate Sullivan: And a lot of activity post the quarter with the acquisitions and the additional newbuilds. First, on the newbuild delivery timing for January, and you said 4 months ahead of schedule. I'm interested in what caused that, efficiencies at the shipyard or other considerations?

Stamatios Tsantanis: Well, I mean, yes, the answer is the Hengli shipyard in China has been performing better than we had anticipated and expected. And of course, giving the ship 4 or 5 months earlier, that means additional revenues for the company of a newbuilding vessel. So that's great news. So it's just operational efficiencies -- operating efficiencies of Hengli Shipyard that has been so far performing way better than anticipated.

Tate Sullivan: And with that January delivery and you had previously announced the contract at a premium to the BCI 180 index and forward rates on that index about $30,000. Have you quantified the significant premium that you get on the new ships at all, Stavros, Stamatios?

Stamatios Tsantanis: 125%. I think if I remember well, it's 125%. But again, this is a contract which is a little bit -- it has a floor, it has a ceiling and then it has profit sharing on top of that. So no matter what happens, the company will earn a base rate that is above the breakeven of the vessel. And then there's a floor up until $28,000, $29,000 and then 50-50 above that on 125% premium to the BCI. So overall, we're very, very happy with this kind of picture. It's a very fair representation of the ship. It's going to be the first untested vessel that we take from Hengli.

But so far from what we hear from other companies, the description and representation of the speed and consumption appears to be very accurate at 125% of the BCI.

Tate Sullivan: And then my last question. Do you have -- I mean, you went from 7, if I was counting, 7 newbuilds when you announced the second quarter to 12 now. Were some of those related to exercising options on existing newbuild agreements?

Stamatios Tsantanis: Well, the newbuildings are actually 9, and we have 3 secondhand ships. So some of the secondhand ships are actually coming together with the newbuildings. So 2 of the secondhand ships we have agreed to acquire and take delivery in '29, they are package deals together with the newbuildings. And that's why they have such a low price compared to their actual value today. The only new vessel that we agreed to acquire recently is the one that we're taking delivery in January, which is the Midnight Ship, and that is a 2019-built Japanese vessel. And that's the only vessel that we agreed to acquire relatively recently a couple of months ago.

So overall, 12 ships at $855 million as a contract price, assuming that this carries maybe $100 million of a premium if you adjust for market values, I think it's in a terrific spot for the company.

Tate Sullivan: Great. And thank you for all the comments about the spending cadence in '27, '28, '29.

Operator: We'll now take the next question. This is from Kristoffer Barth Skeie from Arctic Securities.

Kristoffer Skeie: So if we look into Q1 now, we have the paper market at around $30,000 per day, which is historically very strong. I just have a look on your fleet overview now. All of your vessels, except for one have FFA conversion option. So how do you see sort of the potential here to derisk a lot of a very typically a soft quarter at relatively elevated rates. And on that note, do you see sort of a structurally higher Q1 going forward due to like bauxite and iron ore volumes out of Guinea. Is it that the main driver behind sort of the low to no seasonal impact that we see now?

Stamatios Tsantanis: Well, first of all, we have 5 ships fixed for 2027 and the average is around $35,000 for the whole year. We also have the newbuildings already fixed. So overall, we believe that we have very good coverage for 2027. We have a lot of upside potential, as you can imagine. We do not anticipate -- first of all, we share the views of our friends at Himalaya about having a strong Q1. We totally agree with that. And overall, we believe that not so much bauxite, but also the Simandou project will continue to ramp up and deliver some very, very healthy volumes for the remainder of '27.

Already in '26, it has exceeded the expectations of exports by the founders of the Simandou project. So we anticipate that 2027 will also be very strong from volumes of iron ore going out. Bauxite, whether that's 20 million up or down, I don't think it's going to make a material difference. But overall, we also see that bauxite exports will continue to be very strong for '27.

Kristoffer Skeie: Okay. And for the remainder of the year on bauxite, do you see any downside here with export restrictions from Guinea? Or do you see that playing out?

Stamatios Tsantanis: Well, right now, we are in the beginning of -- well, the 12th of November. So whatever is allocated for the end of the year has been allocated. All the ships going towards the West to load have pretty much certain orders, whether we go to Simandou, whether to go to Nouadhibou, whether to go to North part of America or Brazil. So pretty much the orders are out there, and you have very clear visibility as to how many ships are ballasting towards the West. I do not really anticipate any material changes because it's pretty much priced in whatever the volumes for the remainder of the year will happen.

So -- and we know all the ships have in traction so far.

Operator: Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect. Speakers, please stand by.

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