Genco Shipping & Trading Ltd (GNK) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Genco Shipping & Trading Limited second quarter 2024 earnings conference Call and Presentation. Before we begin, please note that there will be a slide presentation accompanying today's conference call. That presentation can be obtained from Genco’s website at www.gencoshipping.com.

早上好，女士們、先生們，歡迎參加 Genco Shipping & Trading Limited 2024 年第二季收益電話會議和演示。在開始之前，請注意，今天的電話會議將附有幻燈片演示。此簡報可從 Genco 的網站 www.gencoshipping.com 取得。

To inform everyone, today's conference is being recorded and is now being webcast at the Company's website, www.gencoshipping.com. We will conduct a question-and-answer session after the opening remarks. Instructions will follow at that time.

特此通知大家，今天的會議正在錄製中，並正在公司網站 www.gencoshipping.com 上進行網路直播。開場白後我們將進行問答環節。屆時將發出指示。

A replay of the conference will be accessible anytime during the next two weeks by dialing 800-770-2030 and entering the passcode 6365548. At this time, I will now turn the conference over to the company. Please go ahead.

在接下來的兩週內，您可以隨時撥打 800-770-2030 並輸入密碼 6365548 觀看會議重播。這時候，我現在就把會議轉交給公司。請繼續。

Good morning. Before we begin our presentation, I note that in this conference call we will be making certain forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as anticipate, budget, estimate, expect, project, intend, plan, believe, and other words and terms of similar meaning in connection with the discussion of potential future events, circumstances, or future operating or financial performance.

早安.在我們開始演講之前，我注意到，在本次電話會議中，我們將根據 1995 年《私人證券訴訟改革法案》的安全港條款做出某些前瞻性聲明。此類前瞻性陳述在討論潛在的未來事件、情況或未來營運或財務時使用預期、預算、估計、期望、項目、打算、計劃、相信等詞語以及類似含義的詞語和術語。

These forward-looking statements are based on management's current expectations and observations. For discussion of factors that could cause results to differ, please see the Company's press release that was issued yesterday. Materials relating to this call posted on the Company's website and the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's annual report on Form 10-K, the year ended December 31, 2023, and the company's reports on Form 10-Q and Form 8-K, subsequently filed with the SEC.

這些前瞻性陳述是基於管理階層目前的預期和觀察。有關可能導致結果不同的因素的討論，請參閱公司昨天發布的新聞稿。公司網站上發布的與本次電話會議相關的資料以及本公司向美國證券交易委員會提交的文件，包括但不限於本公司截至 2023 年 12 月 31 日的年度報告 10-K 以及本公司的表格報告10-Q和表格8-K，隨後向SEC 提交。

At this time, I would like to introduce John Wobensmith, Chief Executive Officer of Genco Shipping and Trading Limited.

這次我想介紹Genco Shipping and Trading Limited 的執行長John Wobensmith。

Good morning, everyone. Welcome to Genco's second quarter 2024 conference call. I will begin today's call by reviewing our Q2 2024 and year-to-date highlights. Additionally, we will provide an update on our value strategy, discuss our financial results for the quarter as well as the industry's current fundamentals before opening the call up for questions.

大家早安。歡迎參加 Genco 2024 年第二季電話會議。我將在今天的電話會議開始時回顧 2024 年第二季和年初至今的亮點。此外，在開始提問之前，我們將提供價值策略的最新信息，討論本季度的財務業績以及行業當前的基本面。

For additional information, please also refer to our earnings presentation posted on our website. Starting on slide five, Q2 2024 marked another strong quarter for Genco. We drew on our sizable dry bulk fleet and firm market conditions to generate nearly $40 million of EBITDA, led by our time charter equivalent rate of just under $20,000 per day for the fleet.

欲了解更多信息，另請參閱我們網站上發布的收益報告。從幻燈片 5 開始，2024 年第二季標誌著 Genco 的另一個強勁季度。我們憑藉著規模龐大的干散貨船隊和穩固的市場條件，產生了近 4,000 萬美元的 EBITDA，其中船隊的期租等效費率每天略低於 20,000 美元。

Q2 represented another quarter of execution of our differentiated value strategy, focused on dividends, deleveraging, and growth, in terms of shareholder returns, we declared a Q2 dividend of $0.34 per share as our strong earnings flowed into our dividend consistent with our transparent policy.

第二季度是我們執行差異化價值策略的另一個季度，重點關注股息、去槓桿化和成長，在股東回報方面，我們宣布第二季度股息為每股0.34 美元，因為我們強勁的盈利流入了股息，這符合我們透明的政策。

During the quarter, we also further improved our risk reward balance as we voluntarily paid down debt and improved our net leverage position to 2% on a pro forma basis. As we approach our goal of net debt zero. On page six, we highlight the compelling dividends we have provided to shareholders. The second quarter dividend marks our 20th consecutive quarterly dividend payment.

本季度，我們也進一步改善了風險回報平衡，因為我們自願償還了債務，並將我們的淨槓桿頭寸按預計提高至 2%。當我們接近淨債務為零的目標。在第六頁，我們強調了我們向股東提供的引人注目的股利。第二季股息標誌著我們連續 20 個季度支付股息。

It also represents five uninterrupted years of providing shareholders with dividends, which is the longest period of consecutive dividends in our peer group. Over this time, we have declared $5.91 per share in dividends, or approximately 33% of our share price as of August 6, 2024.

這也代表著連續五年為股東提供股息，這是我們同業中最長的連續股息期間。在此期間，我們宣布派發每股 5.91 美元的股息，約佔截至 2024 年 8 月 6 日股價的 33%。

Complementing shareholder returns during Q2, we continue to prioritize fleet renewal following the timely acquisition of two modern, high specification Capesize vessels in Q4 2023. We divested three 2009 to 2010 built vessels to buyers in Q1 and early Q2 2024. Through these transactions, we have improved the fuel efficiency of our fleet, increased our earnings power, reduced our fleet's average age, and saved approximately $10 million in dry docking CapEx for 2024.

為了補充第二季的股東回報，我們在 2023 年第四季及時收購了兩艘現代化、高規格的好望角型船舶後，繼續優先考慮船隊更新。我們在 2024 年第一季和第二季初將三艘 2009 年至 2010 年建造的船舶出售給買家。透過這些交易，我們提高了船隊的燃油效率，提高了盈利能力，降低了船隊的平均年齡，並在 2024 年節省了約 1000 萬美元的干塢資本支出。

With the execution of this phase of our fleet renewal plan, we have further advanced our barrel approach to fleet composition as shown on page seven. We own both Capesize and Ultramax Supermax vessels, enabling Genco to have access to sectors with distinct and attractive characteristics.

隨著我們機隊更新計畫這一階段的執行，我們進一步推進了由機隊組成的桶形方法，如第七頁所示。我們擁有海岬型船舶和超靈便型船舶，使 Genco 能夠進入具有獨特和有吸引力特徵的行業。

Capesize vessels provide high operating leverage and upside potential with a focus on the iron ore, coal and bauxite trades, while the minor bulk vessels provide more stable earnings streams, operate on diverse trade routes, and are more closely linked with global GDP growth. We believe owning ships in both of these sectors contribute to Genco's value strategy.

好望角型船舶具有較高的營運槓桿和上升潛力，主要專注於鐵礦石、煤炭和鋁土礦貿易，而小型散裝船則提供更穩定的收入來源，在多樣化的貿易航線上運營，並且與全球GDP 成長的連結更加緊密。我們相信在這兩個領域擁有船舶都有助於 Genco 的價值策略。

Moving forward, we continue to evaluate further opportunities in the sale and purchase market to further renew our fleet. To that end, we have sold the Genco Warrior, a 2005-built 55,000 dwt Supermax, for $11.95 million and delivered the vessel to buyers in July.

展望未來，我們將繼續評估買賣市場的進一步機會，以進一步更新我們的機隊。為此，我們以 1,195 萬美元的價格出售了 Genco Warrior，這是一艘 2005 年建造的 55,000 載重噸 Supermax，並於 7 月將該船交付給買家。

Additionally, we have agreed to sell the Genco Hadrian, a 2008-built 169,000 dwt Capesize vessel, for $25 million, with delivery scheduled in mid-October. This later delivery date has enabled us to capture the firm S&P market today while continuing to trade the vessel over the next several months in what is a solid freight market.

此外，我們還同意以 2500 萬美元的價格出售 Genco Hadrian，這是一艘 2008 年建造的 169,000 載重噸好望角型船舶，預計於 10 月中旬交付。較晚的交貨日期使我們能夠佔領今天堅挺的標準普爾市場，同時在接下來的幾個月裡繼續在穩定的貨運市場上交易該船。

The sale of the Genco Hadrian completes the exit from the noncore 169,000 subsector of Capes. Collectively, the sale of the Genco Warrior and the Genco Hadrian save approximately $5 million in dry docking CapEx in 2025.

Genco Hadrian 的出售完成了從 Capes 非核心 169,000 子部門的退出。總的來說，Genco Warrior 和 Genco Hadrian 的出售將在 2025 年節省約 500 萬美元的乾船塢資本支出。

We believe the sales of these older, less fuel-efficient vessels were well timed given the firm prices achieved, enabling us to take advantage of cyclically higher asset values to monetize non-core assets. We intend to reinvest these proceeds in high-quality, fuel-efficient ships to improve our earnings capacity and further modernize the fleet.

我們認為，考慮到所達到的堅挺價格，這些舊的、燃油效率較低的船舶的銷售恰逢其時，使我們能夠利用周期性較高的資產價值來將非核心資產貨幣化。我們打算將這些收益再投資於高品質、節能的船舶，以提高我們的獲利能力並進一步實現船隊現代化。

Turning to slide eight, we continue to generate strong TCE performance in Q2 our fleetwide TCE increased 28% on a year-over-year basis. Looking ahead to the third quarter, 67% of our available days are fixed to date at $19,291 a day, pointing to another firm quarter as this is well above our cash flow breakeven rate.

轉向幻燈片 8，我們在第二季度繼續創造強勁的 TCE 業績，我們整個機隊的 TCE 同比增長 28%。展望第三季度，迄今為止，我們 67% 的可用天數固定為每天 19,291 美元，這預示著另一個穩定的季度，因為這遠高於我們的現金流盈虧平衡率。

Turning to slide nine, we believe Genco remains in a highly advantageous position moving forward. Specifically, we have an industry low net loan to value, a low cash flow breakeven rate, and nearly $330 million in undrawn revolver availability. This provides significant financial flexibility and optionality for the company going forward.

轉向幻燈片九，我們相信 Genco 仍處於向前發展的高度優勢地位。具體來說，我們的淨貸款價值比處於行業較低水平，現金流盈虧平衡率較低，未提取的左輪手槍可用金額接近 3.3 億美元。這為公司未來的發展提供了顯著的財務靈活性和選擇性。

Given the volatility and cyclicality of dry bulk shipping. We also believe it creates a favorable risk reward balance to provide sizable returns to shareholders, opportunistically grow the fleet and enhance our earnings power through dry bulk cycles. While the dry bulk market has experienced a strong first half of the year and Genco has booked over 65% of our Q3 days at nearly $20,000 per day, freight rates have pulled back in recent weeks.

鑑於乾散貨運輸的波動性和週期性。我們也相信，它創造了有利的風險回報平衡，為股東提供可觀的回報，機會主義地擴大船隊並透過乾散貨循環增強我們的獲利能力。儘管乾散貨市場經歷了今年上半年的強勁增長，Genco 已以每天近 20,000 美元的價格預訂了第三季度超過 65% 的天數，但最近幾週運費有所回落。

We view this as affected by temporary factors, including vessel positioning in the Atlantic and the Q3 wet season in Guinea impacting bauxite trade flows. We believe these factors will dissipate and we maintain a positive outlook for the Q4 market. Looking ahead there are a number of drivers that are supportive of the dry bulk freight market in what is already a balanced, if not tight, market.

我們認為這是受到臨時因素的影響，包括大西洋的船舶停泊和幾內亞第三季的雨季影響鋁土礦貿易流量。我們相信這些因素將會消散，我們對第四季市場保持積極的前景。展望未來，有許多驅動因素支持乾散貨貨運市場，因為該市場已經是一個平衡的市場，即使不是緊張的市場。

This includes the relatively low order book, ongoing environmental regulations, continued commodity demand, policy easing cycles and geopolitical factors. I will now turn the call over to Peter Allen, our Chief Financial Officer.

這包括相對較低的訂單量、持續的環境法規、持續的大宗商品需求、政策寬鬆週期和地緣政治因素。我現在將把電話轉給我們的財務長彼得艾倫。

Thank you, John. On slides 11 through 13, we highlight our second quarter financial results. Genco recorded net income of $23.5 million, or 54 basic and diluted earnings per share. Adjusted net income amounted to $19.9 million, or basic and diluted earnings per share of $0.46.

謝謝你，約翰。在投影片 11 至 13 中，我們重點介紹了第二季的財務表現。Genco 錄得淨利潤 2,350 萬美元，即 54 股基本和稀釋每股收益。調整後淨利潤為 1,990 萬美元，基本每股收益和稀釋每股收益為 0.46 美元。

Adjusted EBITDA for Q2 told $40 million, approximately 33% higher than the total from Q2 2023. For the first half of 2024, adjusted EBITDA amounted to $81.6 million, an increase of 64% year-over-year, putting the company on pace to well exceed last year's full year adjusted EBITDA of $101.5 million.

第二季調整後 EBITDA 為 4,000 萬美元，比 2023 年第二季的總額高出約 33%。2024年上半年，調整後 EBITDA 達 8,160 萬美元，年增 64%，使該公司預計遠超過去年全年調整後 EBITDA 1.015 億美元。

During Q2, our net revenues increased by 22% on a year-over-year basis. The strong level and the strong boost in revenue was led by our Capesize vessels, which earned a TCE of $29,145 per day in Q2 2024, nearly $10,000 per day higher than the same period of last year, highlighting the operating leverage and upside potential of that sector.

第二季度，我們的淨收入年增 22%。強勁的水平和收入的強勁增長是由我們的好望角型船舶帶動的，該船在2024 年第二季度的每日TCE 為29,145 美元，比去年同期每天高出近10,000 美元，凸顯了該船的運營槓桿和上行潛力部門。

On slide 14, we show the trajectory of our debt outstanding and our continued voluntary debt repayments. Since the end of 2020, we have paid down nearly 80% of our debt, or $349 million, which has resulted in a pro forma net loan to value ratio of only 2%. The company is currently on track to achieve our goal of net debt zero in the short term, a metric that we have been targeting since the announcement of our value strategy in April 2021.

在投影片 14 上，我們展示了我們的未償債務軌跡以及我們持續自願償還債務的情況。自 2020 年底以來，我們已經償還了近 80% 的債務，即 3.49 億美元，這導致淨貸款價值比率預計僅為 2%。該公司目前預計在短期內實現淨債務為零的目標，這是自 2021 年 4 月宣布價值策略以來我們一直瞄準的指標。

Specifically, this year, we have voluntarily paid down $100 million of debt under our revolving credit facility. We estimate these voluntary debt repayments in the year-to-date. We'll reduce interest expense by $5 million on an annualized basis, or approximately $350 per vessel per day on our cash flow breakeven rate.

具體來說，今年我們自願償還了循環信貸額度下的 1 億美元債務。我們估計今年迄今的自願債務償還。我們將按年計算減少利息支出 500 萬美元，或以我們的現金流量損益平衡率計算，每艘船每天減少約 350 美元。

This highlights the importance and significant flexibility that our current 100% revolver structure offers us, and that we can pay down debt to actively manage interest expense in this still high-interest rate environment without losing borrowing capacity to capture accretive growth opportunities.

這凸顯了我們目前的100% 循環結構為我們提供的重要性和顯著的靈活性，並且我們可以在這個仍然高利率的環境中償還債務以積極管理利息支出，而不會失去抓住增值增長機會的借貸能力。

Moving to Slide 15, we highlight our quarterly dividend policy, which targets a distribution based on 100% of excess quarterly cash flow, excluding dry docking and a voluntary reserve. The nature of our variable quarterly dividend and our fleet's operating leverage enables shareholders to directly benefit from freight rate increases, as we've seen over the last couple of quarters.

轉向投影片 15，我們重點介紹我們的季度股利政策，該政策的目標是根據 100% 的超額季度現金流進行分配，不包括乾塢和自願儲備。正如我們在過去幾個季度所看到的那樣，我們可變季度股息的性質和我們機隊的營運槓桿使股東能夠直接從運費上漲中受益。

Our Q2 2024 dividend of $0.34 per share represents an annualized yield of 8% on our current share price, double the two year US treasury rate of approximately 4%. Looking ahead to Q3 2024, we anticipate our cash flow breakeven rate to be $10,911 per vessel per day, which includes $2,324 per vessel per day of drydock and CapEx for the quarter.

我們 2024 年第二季的股利為每股 0.34 美元，以目前股價計算，年化報酬率為 8%，是兩年期美國公債利率（約 4%）的兩倍。展望 2024 年第三季度，我們預期現金流損益平衡率為每艘船每天 10,911 美元，其中包括本季每艘船每天 2,324 美元的乾船塢和資本支出。

Additionally, we expect our daily vessel operating expenses in Q3 to decline from Q2 levels. During the second quarter, our DVOE was $6,855 per vessel per day, primarily due to higher expenses related to maintenance as well as the timing of spares and stores purchases. In Q3, we anticipate DVOE to decline to a budgeted figure of $6,150 per vessel per day.

此外，我們預計第三季的日常船舶營運費用將較第二季有所下降。第二季度，我們的 DVOE 為每艘船每天 6,855 美元，主要是由於與維護以及備件和物料採購時間相關的費用增加。在第三季度，我們預計 DVOE 的預算數字將下降至每艘船每天 6,150 美元。

Lastly, our Q3 TCE estimates to date are $19,291 per day for 67% fixed, led by our Capesize vessels, which are currently fixed at nearly $28,000 per day for 58% of the quarter. I will now turn the call over to Michael Orr, our Dry Bulk Market Analyst, to discuss industry fundamentals.

最後，我們迄今為止對第三季 TCE 的估計為每天 19,291 美元，其中 67% 是固定的，其中我們的海岬型船舶占主導地位，目前該季度 58% 的時間固定在每天近 28,000 美元。我現在將把電話轉給我們的乾散貨市場分析師邁克爾·奧爾（Michael Orr），討論行業基本面。

Thank you, Peter. As depicted on slide 17, the dry bulk market remained at elevated levels during the second quarter. The BCI averaged over $22,000 per day as Australian miners pushed to achieve their fiscal year end guidance target by the end of June. While rates have pulled back recently, July was still represented the second strongest month of the year at $25,500 per day.

謝謝你，彼得。如投影片 17 所示，乾散貨市場在第二季維持在較高水準。隨著澳洲礦商努力在 6 月底之前實現其財年末指導目標，BCI 平均每天超過 22,000 美元。雖然近期利率有所回落，但 7 月仍是今年第二強勁的月份，每日利率為 25,500 美元。

Q3 rates this year on average are approximately 80% and 50% higher than their Q3 2023 for Capesizes and Supermaxes, respectively. Capesize and Supermax rates are currently $20,000 and $14,000 per day, respectively.

今年第三季海岬型散裝貨船和超靈便型散裝貨船的平均運價分別比 2023 年第三季高出約 80% 和 50%。目前海岬型船和超靈便型船的運價分別為每天 20,000 美元和 14,000 美元。

Regarding the steel complex, several of the indicators that we track are highlighted on slide 18. China's iron ore imports rose by 7% through July year-over-year, led by strong export volumes in the seaborne market, most notably from Brazil.

關於鋼鐵聯合體，我們追蹤的幾個指標在幻燈片 18 中突出顯示。截至 7 月份，中國鐵礦石進口量年增 7%，主要得益於海運市場（尤其是巴西）強勁的出口量。

A portion of China's higher imports have replenished previously drawn down inventories. Iron ore port inventories currently stand at 151 million tons, an increase of 23% year-over-year. However, these levels remain below the 2022 highs in absolute terms and are only marginally higher than historical average levels on a days on hand basis.

中國增加的進口量的一部分補充了先前減少的庫存。目前鐵礦石港口庫存為1.51億噸，年增23%。然而，從絕對值來看，這些水準仍然低於 2022 年的高點，並且僅略高於現有天數的歷史平均值。

Augmented seaborne iron ore supply together with higher inventories have been factors behind the decline in the iron ore price to approximately $100 per ton currently. Furthermore, China's steel production is 1% lower year-over-year through the first half of 2024. As China's property sector has impacted domestic steel demand. China's steel exports have grown by 22% in the year-to-date and are on pace for their strongest year since 2016.

海運鐵礦石供應增加以及庫存增加是鐵礦石價格目前跌至每噸約 100 美元的因素。此外，到2024年上半年，中國的鋼鐵產量年減1%。由於中國房地產業影響了國內鋼鐵需求。今年迄今，中國鋼鐵出口成長了 22%，有望創 2016 年以來最強勁的一年。

On slides 19 through 20, we highlight the growing long haul, ten-mile story that we believe is quite encouraging for the Capesize segment. The massive Simandou iron ore project in Guinea is on track to begin production in late 2025, which is expected to ramp up over 30 months, eventually hitting annualized production of 60 million tons.

在幻燈片 19 至 20 中，我們重點介紹了不斷增長的長途 10 英里故事，我們認為這對海岬型船市場來說非常令人鼓舞。幾內亞大型西芒杜鐵礦計畫預計2025年底投產，預計30個月內逐步提高產量，最終達到年產量6,000萬噸。

There's also significant bauxite growth in this region with an 8% annual growth rate over the past ten years. The bauxite and iron ore expansion in West Africa, as well as incremental production growth from valley, bode well for the Capesized segment given the origins of these export volumes as these routes have three times the ten-mile impact of Australia to China cargoes.

該地區的鋁土礦成長也顯著，過去十年年增率為 8%。考慮到這些出口量的來源，西非鋁土礦和鐵礦石的擴張以及山谷產量的增量增長對好望角型船段來說是個好兆頭，因為這些航線對澳大利亞至中國貨物十英里影響的三倍。

In terms of the grain trade, while we're in between peak North and South American grain seasons, we are seeing firm corn export volumes from Brazil as is typically the case this time of year. Regarding the Ukrainian grain trade, shipments have been firm despite the Black Sea grain initiative no longer being in place.

就糧食貿易而言，雖然我們正處於北美和南美糧食旺季之間，但我們看到巴西的玉米出口堅挺，這是每年這個時候的典型情況。關於烏克蘭穀物貿易，儘管黑海穀物倡議不再實施，但出貨量依然堅挺。

August and September are typically peak grain export months from the Black Sea and market expectations are for exports to reach their highest levels since the war began in early 2022. Regarding the supply side outlined on slides 22 to 23, net fleet growth in the first half of 2024 was 3.3%.

8 月和 9 月通常是黑海穀物出口的高峰月份，市場預期出口將達到 2022 年初戰爭開始以來的最高水準。關於投影片 22 至 23 中概述的供應方面，2024 年上半年機隊淨成長為 3.3%。

The historically low order book as a percentage of the fleet, as well as near term and longer-term environmental regulations are expected to keep net fleet growth low in the coming years. While we expect volatility in the freight market, the foundation of a low supply growth picture provides a solid basis for our constructive view of the dry bulk market going forward.

訂單量佔船隊比例處於歷史低位，以及近期和長期環境法規預計將使未來幾年船隊淨增長保持在較低水平。雖然我們預期貨運市場會出現波動，但供應成長低迷的基礎為我們對乾散貨市場未來的建設性看法提供了堅實的基礎。

This concludes our presentation and we would now be happy to take your questions.

我們的演講到此結束，現在我們很樂意回答您的問題。

(Operator Instructions)

（操作員說明）

Omar Nokta of Jeffries.

傑弗里斯的奧馬爾諾克塔。

Thank you. Hey guys, good morning. Thanks for the, for the update. Just a couple questions on my end and maybe, you know, John, Peter, you mentioned LTV or Net LTV is now down to 2% and you're set to be at 0% here fairly soon. And this was your target from the get go starting in '21 when you went down this capital allocation path.

謝謝。嘿夥計們，早安。感謝您的更新。我想問幾個問題，約翰、彼得，你們提到 LTV 或淨 LTV 現在已降至 2%，很快就會降至 0%。這就是您從 21 年開始走上這條資本配置道路時的目標。

I wanted to ask, once you get to that zero level, does that change anything for you guys at Genco, whether it's strategically or from a capital allocation perspective?

我想問，一旦達到零水平，無論是從策略上還是從資本配置的角度來看，這對 Genco 的你們來說有什麼改變嗎？

Yeah, so that's a great question and good morning, Omar. I think it gives us even more flexibility to take a look at what we want to do from a dividend standpoint, what we want to do for continued growth. So, I don't have a specific answer, but there's no doubt that that is a milestone and I think we'll take a look at quite a few things once we get to that net debt zero, which, as you said, we're approaching pretty quickly now.

是的，這是一個很好的問題，早上好，奧馬爾。我認為這讓我們更靈活地從股息的角度來考慮我們想要做什麼，我們想要做什麼來實現持續成長。所以，我沒有具體的答案，但毫無疑問，這是一個里程碑，我認為一旦我們達到淨債務為零，我們就會考慮很多事情，正如你所說，我們現在正在很快接近。

Okay. Yeah. So, we'll look forward to seeing how things progress from there. I wanted to also just ask about, you sold the three Capes last year. You replaced them here recently, you sold an older Cape, which you mentioned is non-core, same for the Supra.

好的。是的。因此，我們將期待看到事情的進展如何。我還想問一下，你去年賣掉了三件斗篷。你最近在這裡更換了它們，你賣了一個舊的 Cape，你提到它是非核心的，Supra 也是如此。

What are your thoughts on replacing them in this market? Is there a plan on your part to replace those two ships, and would you do so via the S&P market or would you do a charter in approach?

您對在這個市場上取代它們有何想法？您是否有計劃更換這兩艘船？

No, I think, well, first of all, we would do it in terms of the S&P market. I anticipate we will replace those two vessels in a relatively short period of time. Values are firm in both the older vessels, which is why we elected to sell the Hadrian, particularly right now. And they continue to be firm in the newer and the eco vessels.

不，我認為，首先，我們會根據標準普爾市場來做到這一點。我預計我們將在相對較短的時間內更換這兩艘船。這兩艘舊船的價值都很堅定，這就是我們選擇出售哈德良號的原因，尤其是現在。他們在新型船舶和生態船舶方面繼續保持堅定立場。

But we still think the cash-on-cash returns are justified. And so we like the idea of being able to, particularly the older ships, take advantage of that high market, and then we're redeploying capital for the long term with the newer ships. And we think that makes a lot of sense.

但我們仍然認為現金回報是合理的。因此，我們喜歡能夠利用這個高市場的想法，特別是舊船，然後我們將長期資本重新部署到新船上。我們認為這很有意義。

So, we'll continue to do that. Again, I'll just say the intention is to put those funds back to use in a relatively short period of time.

所以，我們將繼續這樣做。我再說一遍，目的是在相對較短的時間內將這些資金重新投入使用。

Okay. Yeah. And then that makes sense. And I guess just in terms of putting that capital to good use here in a short amount of time. You mentioned seasonality and some repositioning of vessels in the broader market has impacted freight rates, although they're still fairly decent and relatively healthy.

好的。是的。這是有道理的。我想只是為了在短時間內充分利用這些資本。您提到季節性和船舶在更廣泛市場中的一些重新定位影響了運費，儘管它們仍然相當不錯且相對健康。

Has there been any kind of impact on the sale and purchase market? Has there been a, I mean, it seems like that market's been fairly busy for the past almost, I guess, year plus. Has there been any sort of slowdown and S&P activities are still fairly active and being able to get a deal done is just as flu as it has been.

對買賣市場有什麼影響嗎？我的意思是，在過去的一年多里，市場似乎相當繁忙。是否出現了任何形式的放緩，標準普爾活動仍然相當活躍，能夠完成交易就像流感一樣。

A few things. One, I would say it's still active. Having said that, we're in the month of August, and S&P deals do tend to slow down a little bit, just from a pure seasonal summer standpoint, but there's still transactions being done and they're being done at last on prices as well. So, we haven't really seen any softening on the price front.

有幾件事。一，我想說它仍然活躍。話雖如此，我們正處於 8 月份，僅從純粹的夏季季節性角度來看，標準普爾交易確實會放緩一點，但仍有交易正在進行，而且最終是在價格上完成的出色地。因此，我們並沒有真正看到價格方面有任何軟化。

Okay. Yeah. So firm as you say?

好的。是的。有你說的那麼堅定嗎？

Yeah.

是的。

Great. All right, John, thank you. I'll pass it over.

偉大的。好的，約翰，謝謝你。我會把它傳過去。

Great. Thanks, Omar.

偉大的。謝謝，奧馬爾。

Liam Burke from B. Riley.

B. Riley 的 Liam Burke。

Yeah. Thank you. Good morning, John. Peter, Michael. John, you've got a time charter on one of your capes at 35,000 a day, which is pretty healthy rate. Has there been any interest in the market of time charting out any of your other capes that are trading in the spot market?

是的。謝謝。早安，約翰。彼得、麥可.約翰，您的其中一艘海岬的期租租金為每天 35,000 英鎊，這是相當健康的價格。有沒有人對時間市場感興趣，繪製出您在現貨市場上交易的其他海角？

I would say where rates are, and particularly that we're in the summer, I would say liquidity is a little lower on the one-year TCE market. You could certainly do one today. But we think rates are actually going to improve as we get into late third and early fourth quarter. So, I think assessing it is better left for another month or so.

我想說的是，利率在哪裡，尤其是在夏季，我想說一年期 TCE 市場的流動性略低。今天你當然可以做一件事。但我們認為，隨著進入第三季末和第四季初，利率實際上會有所改善。所以，我認為評估最好再留一個月左右。

Having said that, we've done some index deals, and as you're aware, those index transactions allow us to fix at any time within the index period. And so, we have a couple options available, a couple levers to pull if, when things firm up in the latter part of the year, if it makes sense, we'll take some exposure off the table.

話雖如此，我們已經完成了一些指數交易，正如您所知，這些指數交易允許我們在指數週期內隨時修復。因此，我們有幾個可用的選擇，有幾個槓桿可以拉動，如果今年下半年情況穩定的話，如果有意義的話，我們將取消一些風險敞口。

But I think right now, during the summer, what I would call more of a traditional summer lull, I think waiting is the best strategy.

但我認為現在，在夏天，我稱之為傳統的夏季平靜期，我認為等待是最好的策略。

Okay. You talked about redeploying the proceeds of your vessel sales to higher return opportunities. That should come to pass pretty soon. You have a few older vessels. Specifically, you've got two non-capes that are similar to the Warrior. Is there any interest to move them out and to redeploy it to higher return opportunities? Or are you just going to maintain it right here?

好的。您談到將船舶銷售收入重新分配到更高回報的機會。這應該很快就會實現。你有一些較舊的船隻。具體來說，你有兩件與戰士類似的非斗篷。是否有興趣將它們遷出並將其重新部署到更高回報的機會？還是你只是想把它維持在這裡？

No. Look, on the Supers, as you pointed out, there are 205s that are there, that are 55s. Those are definitely in the box to move out and redeploy. And then there's some of the, you know, maybe the o nine’s and ten’s Supras we'll also look at. So, I think you'll continue to see more, more of the same until we can, you know, until we can find a larger transaction, which, as you know, we're always trying to uncover.

不。看，在 Supers 上，正如您所指出的，有 205 號，還有 55 號。這些肯定是可以搬出去並重新部署的。然後還有一些，你知道，也許我們也會看看九和十的Supras。所以，我認為你會繼續看到更多、更多相同的事情，直到我們能夠，你知道，直到我們能夠找到更大的交易，正如你所知，我們一直在努力揭露這項交易。

Great. Thank you, John.

偉大的。謝謝你，約翰。

Thanks, Liam.

謝謝，利亞姆。

Ben Nolan of Stifel.

斯蒂菲爾的本·諾蘭。

All right, thanks. Hey, good morning, guys. So I have a couple, first of all, and this maybe goes back to Omar's question a little bit, can you maybe walk me through the calculus as to sort of how you come up with that $19.5 million of effective reserve when you're allocating capital towards the dividend?

好的，謝謝。嘿，早上好，夥計們。首先，我有幾個問題，這可能有點回到了奧馬爾的問題，您能否向我介紹一下在分配時如何得出 1950 萬美元有效準備金的微積分？

Just maybe. What's the math behind that? Or how do you think about that going forward now that you really don't have any debt?

只是也許。這背後的數學原理是什麼？或者，既然你真的沒有任何債務，你如何看待未來的發展？

Hey, Ben. Yeah, I'll take that one. Thanks for the question. So, the $19.5 million voluntary reserve is, just to be clear, it's 100% in the board's discretion in terms of the use of that. And we have moved it up or down in previous quarters.

嘿，本。是的，我會接受那個。謝謝你的提問。因此，需要明確的是，1,950 萬美元的自願儲備金的使用完全由董事會 100% 決定。我們在前幾個季度已將其上調或下調。

But to answer your question, to get to the calculus of it, when we first announced the value strategy, we had a debt repayment line item of $8.75 million, and then we had a voluntary reserve of $10.75 million.

但為了回答你的問題，為了計算它，當我們第一次宣布價值策略時，我們的債務償還項目為 875 萬美元，然後我們有 1075 萬美元的自願準備金。

And since we now have no mandatory debt amortization, and we actively manage the debt with the RCF that we put in place last Q4, we decided to simplify the calc and consolidate those two line items into one.

由於我們現在沒有強制性債務攤銷，並且我們透過去年第四季實施的 RCF 積極管理債務，因此我們決定簡化計算並將這兩個項目合併為一個。

So that's how you get to the $19.5 million. But essentially, again, like I mentioned earlier, it is fully discretionary in terms of board and management's view of it. And, you know, in the past, we have flexed that reserve as well.

這就是您獲得 1950 萬美元的方法。但本質上，正如我之前提到的，董事會和管理層對此的看法完全是酌情決定的。而且，你知道，在過去，我們也動用了這項儲備。

So hopefully, that answer your question?

希望這能回答您的問題嗎？

Yeah, Ben, keep in mind, that was, you know, we gave that. We gave that guidance at the beginning of this year, and as Pete said, we've lowered it in 2023 to pay dividends in the second and third quarter when the formula may have produced a zero, which we still have that flexibility going forward, depending on freight rates.

是的，本，請記住，那是我們給的。我們在今年年初給出了這一指導，正如皮特所說，我們在 2023 年降低了這一指導，以便在第二和第三季度支付股息，屆時公式可能會產生零，我們仍然具有靈活性，取決於運費。

But that reserve gets assessed at least once a year. So, we'll be looking at it again towards the end of this year to give forward guidance for the following year. And as I said earlier on the call, getting down to net debt zero is a milestone.

但該儲備金每年至少評估一次。因此，我們將在今年底再次審視這個問題，為來年提供前瞻性指導。正如我早些時候在電話會議上所說，淨債務降至零是一個里程碑。

So, I think we'll be looking at quite a few things as we get in towards the end of the year.

因此，我認為在年底時我們會考慮很多事情。

Okay, I appreciate that color there. And then my next question really is just more for modeling. But in general, as you think about the OpEx, I know it looks like the Capesize OpEx came up a little bit this year. Are you seeing much in the way of inflation at all in terms of that OpEx? Or maybe was it just. I know that sometimes things can be a little lumpy from quarter-to-quarter.

好吧，我很欣賞那裡的顏色。然後我的下一個問題實際上更多的是建模。但總的來說，當你想到營運支出時，我知道今年海岬型船的營運支出似乎有所上升。就營運支出而言，您是否看到了通貨膨脹的影響？或者也許只是這樣。我知道有時每季的情況都會有些不穩定。

Yeah, that's exactly it. So, Q2, sure, it was higher. We were guiding to a higher DVOE figure for the quarter. But, yeah, to your point, when you do look at OpEx over a three month period, it does get very lumpy. We like to look at, at least 12 months. I mean, if you stretch it out to the last six quarters, last 18 months, our DVOE average is about 6200, which is in line with our Q3 guidance that we provided.

是的，就是這樣。所以，第二季當然更高。我們預計本季的 DVOE 數字會更高。但是，是的，就你的觀點而言，當你查看三個月內的營運支出時，它確實變得非常不穩定。我們看一下，至少12個月。我的意思是，如果你把它延伸到過去 6 個季度，即過去 18 個月，我們的 DVOE 平均值約為 6200，這與我們提供的第三季度指導一致。

So, it does get a little bit lumpy. And Q2, a lot of it was timing related, but when we look ahead to Q3, we're guiding for a lower number of 6150 per vessel per day compared to the 6850 in Q2. So, on a year-over-year basis, maybe slightly higher with typical inflation. Crew wages is obviously a large part of, of the overall DVOE mix, but, yeah, nothing out of the ordinary.

所以，它確實變得有點凹凸不平。第二季度，許多都與時間相關，但當我們展望第三季度時，我們預計每艘船每天的吞吐量為 6150 艘，低於第二季度的 6850 艘。因此，與去年同期相比，典型的通貨膨脹率可能會略高。船員工資顯然佔整個 DVOE 組合的很大一部分，但是，是的，沒有什麼特別的。

And more timing in Q2.

第二季有更多時機。

Yeah. And, Ben, as we typically do, as we get above the 90% fixture rate on the TCE, we will, you know, we'll continue to put out guidance for that, and we'll also, we'll put a guidance out for Q3 OpEx as well at that time.

是的。而且，Ben，正如我們通常所做的那樣，當我們的 TCE 固定率超過 90% 時，我們將，你知道，我們將繼續為此提供指導，我們還將，我們將提供一個當時也發布了第三季營運支出指南。

Great. I appreciate it. Thank you, guys.

偉大的。我很感激。謝謝你們，夥計們。

Expense.

費用。

Bendik Nyttingnes of Clarkson Securities.

克拉克森證券公司的本迪克‧尼廷尼斯 (Bendik Nyttingnes)。

Thank you. Morning, guys. Just back to capital allocation and your balance sheet. You have a lot of liquidity at hand with your RCS structure, and you're also at, I think it's now 41 vessels. Do you have any sort of sweet spot in terms of how many vessels you want to operate or sort of a brief from an operational perspective?

謝謝。早安，夥計們。回到資本配置和資產負債表。您的 RCS 結構手頭上有大量流動資金，而且我認為現在有 41 艘船。在您想要運營多少艘船隻方面，或者從運營角度來看，您有什麼最佳選擇嗎？

I wouldn't say there's a sweet spot, but, you know, we are net down in terms of what we have sold, so we definitely are going to be adding, you know, as I said, in the short term, you know, two to three ships to replace what we've recently sold.

我不會說有一個最佳點，但是，你知道，我們的銷售量是淨下降的，所以我們肯定會增加，你知道，正如我所說，在短期內，你知道，兩到三艘船來取代我們最近出售的船。

So that that will definitely occur. We're going to continue with the fleet renewal approach for some of the older Supermaxes as well and replace those. And if, you know, again, we continue to look for the right transaction to grow on a bigger scale, but not the easiest thing to define, and we certainly don't want to.

所以這肯定會發生。我們也將繼續對一些舊的 Supermax 船隊進行船隊更新，並更換它們。而且，如果我們繼續尋找合適的交易以實現更大規模的成長，但不是最容易定義的事情，我們當然也不想這樣做。

We've worked very hard to get to net debt zero, and so we certainly are not going to lever up, so to speak, in this market with firm asset prices. But again, the right transaction, if you can figure out a way to, to do NAV to NAV type transactions with shares and those types of things make more sense.

我們非常努力地實現淨債務為零，因此可以說，在這個資產價格堅挺的市場上，我們肯定不會提高槓桿率。但同樣，正確的交易，如果你能找到一種方法，用股票進行資產淨值對資產淨值類型的交易，這些類型的事情更有意義。

So longer answer to your question.

所以更長地回答你的問題。

Thank you.

謝謝。

Thank you.

謝謝。

Poe Fratt with Alliance Global Partners.

坡弗拉特 (Poe Fratt) 與聯盟全球合作夥伴。

Yeah. Good morning. John, you know, where does, where do stock buybacks fit in your capital allocation program or strategy?

是的。早安.約翰，你知道，股票回購在你的資本配置計畫或策略中適合什麼地方嗎？

Sorry, say that again, Poe. It just broke up a little bit.

抱歉，請再說一遍，坡。就這麼一點點分手了。

Yeah. Sorry. Where do stock buybacks fit, within the capital allocation strategy?

是的。對不起。股票回購在資本配置策略中適合什麼位置？

Look, buybacks, as you're aware, we've talked about these rather recently, quite extensively. It's in our tool belt. There's no doubt there's a time to do those. We discuss it with the board continuously.

聽著，回購，正如你所知，我們最近相當廣泛地討論了這些問題。它在我們的工具帶中。毫無疑問，現在是時候去做這些事情了。我們不斷與董事會討論。

And right now, I would say we're not in that mode. But that doesn't mean that there becomes a wider disconnect between where vessel values are and NAVs and where our share price is trading. Clearly, we're going to look at that and make a decision.

現在，我想說我們還沒有處於這種模式。但這並不意味著船舶價值和資產淨值與我們的股價交易之間存在著更大的脫節。顯然，我們將考慮這一點並做出決定。

There's a discount right now. If you actually look at where vessel values are today, they'd have to come down I think somewhere around 25% to actually justify today's share price, which doesn't make a lot of sense to us. But there's a lot of things in the equity markets right now that are with dislocation and don't make a lot of sense, so.

現在有折扣。如果你真正看看今天的船舶價值，我認為它們必須下降 25% 左右才能真正證明今天的股價是合理的，這對我們來說沒有多大意義。但目前股市上有很多事情是錯置的，而且沒有太大意義，所以。

But yes, it is. It's definitely in our tool belt Poe, and there is a time to put that in place.

但是是的，確實如此。它肯定在我們的工具帶 Poe 中，並且有時間將其落實到位。

Great. And Peter, if you could just clarify, it sounds like the reserve is going to be reviewed on an annual basis, not a quarter-to-quarter basis.

偉大的。彼得，請澄清一下，聽起來儲備金將按年度而不是按季度進行審查。

I don't think that's the case. Poe. I mean, I think we're always looking at reserve every single quarter, but in terms of giving, you know, real guidance to the market. And we said this, you know, since the beginning of the, of the strategy, we wanted to give at least a 12 month look.

我認為情況並非如此。坡。我的意思是，我認為我們每個季度都會考慮儲備金，但要為市場提供真正的指導。我們說過，你知道，自從該策略開始以來，我們希望至少對未來 12 個月進行展望。

But that doesn't mean we don't, you know, again, look at it on a quarter-by-quarter basis. But we're very quickly coming into the end of the year where, you know, we're going to, we'll take a deep dive on our capital allocation strategy. So, so it's not far away.

但這並不意味著我們不會再一次逐季度地審視它。但我們很快就會進入今年年底，我們將深入研究我們的資本配置策略。所以，所以它並不遙遠。

And then John, you know, you mentioned the share-to-share transaction. Have you seen any pickup and interest in a share-to-share transaction over the last quarter or so?

然後約翰，你知道，你提到了股權交易。在上個季度左右，您是否看到對股票交易的回升和興趣？

I don't know if, I don't know if there's a. I'm not so sure if it ebb and flows, so to speak. It's yeah, I mean, it, you know, when you're obviously when you, when you have wider discounts on, on NAV, it becomes more difficult.

不知道有沒有，不知道有沒有。可以這麼說，我不太確定它是否會起起落落。是的，我的意思是，你知道，當你顯然在淨值上有更廣泛的折扣時，事情就會變得更加困難。

So maybe we have ebbed a little bit here, but we're always looking at transactions and hopefully we will be able to execute on some time in this market. I wish I had a better answer for you, but they're not easy transactions to do, as you're well aware.

因此，也許我們已經有所下滑，但我們一直在關注交易，希望我們能夠在這個市場上的某個時間點執行。我希望能為您提供更好的答案，但如您所知，這並不是一件容易的事。

Sounds good. Thanks for your time.

聽起來不錯。感謝您抽出時間。

Thanks, Poe

謝謝，波

As there are no further questions at this time, that concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

由於目前沒有其他問題，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。