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EGLE Eagle Bulk Shipping

Participants
Gary Vogel CEO
Frank De Costanzo CFO
Randy Giveans Jefferies
Magnus Fyhr H.C. Wainwright
Omar Nokta Clarksons Securities
Greg Lewis BTIG
J. Mintzmyer Value Investor's Edge
Liam Burke B. Riley
Call transcript
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Operator

Greetings, and welcome to the Eagle Bulk Shipping Third Quarter 2021 Results Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the call over to Gary Vogel, Chief Executive Officer; and Frank De Costanzo, Chief Financial Officer of Eagle Bulk Shipping. Mr. Vogel, you may begin.

Gary Vogel

morning. Good and you, Thank I'd like XXXX Bulk's Quarter to welcome Call. everyone Earnings Eagle Third to To today, on our slide eagleships.com. supplement remarks presentation access participants that the to is available our at I website would encourage note statements. forward-looking Please will part discussion of today that include our and not risks statements subject are and inherently of guarantees These performance future are to uncertainties.

and not refer Commission with risks filings and Exchange that to for of place more uncertainties the operating reliance discussion performance and these on a on undue should our have our You forward-looking financial Please detailed a direct condition. statements. may our our Securities the bearing results,

XX-year was on particular, around XX% Index which a robust China. rose approximately restrictions and the today comparable Commission also with measures the as congestion earnings discussion TCE. including supply concerning related during to the of and average continued for EBITDA the release financial measures, Dry Securities in by and bulk adjusted spillover information bottlenecks supported as COVID presentation net reconciliations commodity Please by refer chain freight Our to the appendix back to our the world, elevated port X. to certain due EBITDA, high. GAAP during more but the measures. The Exchange adjusted Slide includes non-GAAP the filed ongoing income, demand, financial representing well in to XX,XXX, almost non-GAAP around rates and the and and Baltic financial strengthen Please turn ongoing Supramax quarter trade quarter now the most third to container further in

represent we annual operating $X.XX quarter, quarter for income the $XX single ever have with record Not this the fleet best the or Given our active earnings highest approach net management the we and result. company's generated a achieved share. income does also million in our it totaling only net eclipses significant per trading leverage, to

and of a of Separately on institution third of the dividend announcement declared Directors a net lower extend allowed to interest comprehensive X, simplify recent on a to to has Following our Board share. October our debt which our equal us X. we structure, quarter's to $X a maturity minimum Eagle's our based turn significantly cash cash costs as previously refinancing per of capital our XX% policy on XXXX. of dividend bank reported, result executed the on Slide and income, Please

by $XX,XXX. quarter-on-quarter, a our Our by record improve XX% in ability TCE driven resulting financial of achieved TCE results performance were to net

rising the lasting voyages through fleet TCE discussed given the of is market rapidly anywhere experienced to and longer. BSI As days XX effect from quarter and environment majority the lag sometimes we've XX we the employed is our our previously, third inherent as an performance between on

BSI freight QX, generation. trading which rates into under with off ahead Looking to XX,XXX, cash still is the currently come have very conducive

For today, mind we breakeven day. days XX% for have fourth of our per at of that Eagle, quarter $XX,XXX Bear net rates, is QX. pullback turn Slide to on year the Please performance this this around recent XX,XXX. of level through a the about TCE in months at X in cash of as On we our fixed quarter's notwithstanding the available first in the X. for exceeding basis, track are

for of an This $XX,XXX the or a prior of terms XX. XX% ship to the represents months of produced per In performance, EBITDA September operating quarter. million $XX increase ending record we compared X day per

incremental with fixed essentially maintained significant the generated X. all operating the of Please line. business, to leverage nature cost our Slide bottom flowing revenue net to we turn Given

XX% XXX dry XX-year-old turn have interesting to almost on back up of the totaling year-to-date. been billion on volume. and to that and sold, bought occurred has price recent bulk in around with record XX. Asset $XX Please transactions. Supramaxes for vessels months, It's this prices Year-to-date, Slide note approximately strength have also continued quarter to the increase a of values in number XXX%

built value year of In our vessel the a acquisition pending the terms vessel, our $XX week, We X this purchase, just ahead vessel the motor have sold Eagle. in May year motor estimate increased the oldest and we our that took million. between dry of of final of by Valencia we Separately, dock. turn, in we last over and delivery vessels and acquired of sale which last fleet delivered and XXXX statutory November Supramax

gas being fleet Our systems XX% ships XX with or of exhaust cleaning with age fitted currently totals scrubbers. years averaging X

efficiency of the years. renewal the a over significantly increased result growth has of the and fuel As also X fleet, our last

vessel and our As to an S&P like execute evaluate deals review will on always, turn would continue performance. to look the that, financial and opportunistic I over M&A Frank, will basis. to to With who call we

Frank De Costanzo

and results. Thank the and in XX you, improvement million quarter includes diluted from third share drove third line The financial in Gary. increase revenue, million, continued environment diluted X.X on share which came noncash basis. or a Please income, $X.XX on shares $X.XX million was unrealized share basic to per net at for the net on in QX, million and voyage a per top prior in quarter. convertible the charter rate Adjusted a basis. the gains on basis derivatives representing Earnings as $X.XX turn a bond. Please for note, now significant third income $X.X $XX.X $XX.X to count quarter both excludes with of compared the basic our growth of summary coming the more our net hire a million $XXX.X quarter expenses totaling at for charter than of Slide eightfold

in third the adjusted quarter. earlier, EBITDA $XX came mentioned million Gary for at As

comprised I pay-down, the in total Total cash RCF greater $XXX.X liquidity overview $XXX.X generated from and to year-end $XX.X change an undrawn operating strong of excluding our year-end. prior results, slide. by end $XX.X acquisitions which cash of cash of million. million million as of for QX, in cash, $XXX.X by balance from QX debt will million of at Let's an the to offset facilities. the of $XX.X the Total $XX debt, walk the quarter now from service. movements increase of cash improved was representing Slide debt of and vessel is versus Total cash, credit turn an our restricted at The and compared gross million sheet liquidity. XX in second quarter increase million to million $XXX.X prior includes million Total quarter was on issuance of of costs revolving detail liquidity the the by driven in million end and million. $XX.X the end $XX cover part was

RCF. reported, $XX drawn replacing executed new a facility our As we bond on million credit and term million new Ultraco previously credit million $XXX $XXX the loan closing. includes of a a Holdco was October facility Norwegian and which at $XXX revolver, facility The X, million Bank

have by strip cash are in we changes out capital. liabilities, introduces flows fully XX numbers assets the the $XX.X yesterday, our the which revolver reported operating reported Please highlights from operations and of as was activities as The dark cash the turn million bars, provided difference overview in and However, flow to capital the quarter. now for million from cash down bars that from working of Slide the ops have QX. by $XXX primarily availability. and an to timing depicted chart for paid cash Net operating third variability now operations, undrawn working would blue light driven between blue the

X between cash out Although the time. amount late QX largely the capital September. borrowers volatility Slide explained in can for significant in be of chart collections cash evens as the The Please over by demonstrates, to caused XX difference turn quarter working this by our walk. a

$XX The and simple movements the look with operating expenditure our chart, adjusted EBITDA. which these Let's the million, as X same the the QX. bars the net focus at revenue a bars in on in top coming of operations, covers cash are at

to $XX the in vessel. cost part of of by right, million Moving for the sale $XX.X the $X.X acquisition million X for S&P offset of represents proceeds vessel vessels, bar million one the the on the

cash we that information million our million for movements cash global the the debt the $XX and X appendix October quarter. service $XX paid include in of covers on debt on presentation, year-to-date. note in refinancing. You also chart RCF and movements this can the The we bottom see in Please

expenses review Slide now Let's OpEx was excluding vessel per Vessel acquisitions per termination ship or for crewing $X,XXX onetime ship agency. XX per day, day. and the per with of our related the cash breakeven to our relationship sales, expenses nonrecurring

at lubes the additional are in consuming the prices are given base steaming back increased oils. of on speeds, faster the have vessels We rise and

related transportation crew to In areas, we spares. higher costs face including changes, to with addition, procurement the along costs operating and related stores pandemic, COVID-XX to of to due continue expenses and several the across the lodging

preemptively marginally water spending see in COVID environment. the than whereas worth at day G&A lower ship calculation quarter and was own of and rate quarter-over-quarter, as in per an per limit systems. per is not in compared interest are QX, $X,XXX have increase came additional in and these do days therefore, noting Cash in this It based in a to ownership off-hire as $XXX is to strong include $X,XXX future. about calculation, Drydocking by at as day QX, in noting our QX. in on we on X in a ship in very foreseeable tonnage. drydocks per per came chartered-in $XXX Finally, our day expense were for completed came higher decrease is chartered-in we our increased is with our prior much X worth decrease expense. as possible in ship a spares drydocks G&A per fleet, we per significant progress. for ballast facilities If the and $X,XXX. term, interest lower going to operate times that marginally larger to likely off-hire driven We quarantine ships at day events which installation QX, including that for days in near we increase Cash ship there an It the protocols would per the abating per regarding ship challenges requirements into our G&A will for vessels, what

now at to Finally, payments I Gary. per came in back ship cash call my QX. per comments. $X,XXX the debt turn principal in This will concludes day

Gary Vogel

Thank turn XX. Please you, Slide Frank. to

salt approximately by to containers Atlantic the backdrop. posted restrictions bottlenecks a elevated by chemicals $XX,XXX QX Both the and issues such and of to conventional the by caused Congestion average and As and as issues. XX% In ships flows primarily markets, during rates labor slag, indicated Atlantic the rates shoreside increased Pacific of rates in elevated trade compared to Coast East during Intra-Pacific minor parcels, speaks $XX,XXX. the quarter. demand South our call, earlier The bulk bags, in increased to moving record a and gypsum, XX% new exacerbated quarter simultaneously, driven COVID cement, up and factors Pacific, Relative be period increased attributed specifically, with market strong last XX% strengthening small continued Congestion such the which steel semi-finished increase we impact and exports dry and our BSI number trade and remained spillover to chain positively is pre-COVID. around exports, supply $XX,XXX America and discussed third products. markets to with XX% broad related out and a the attributed during med, Atlantic, cement, to average the midsized to of bulk bag pushed earnings and during on cargoes significant on in the more at grain as call, on average the by fertilizer can backhaul reaching which increased steel the was a specifically, bags general lumber carriers. port as

Pacific availability this vessels QX, driven market an the including highs. an flag nickel due availability reasons, entering with trading we multiyear which primarily to come flows. congestion, The tonnage decrease China's as from by entered to easing Many to decrease domestic the a dominated cargo South rainy and off of market. of about local its is increase pause China. these coal rates appears international ahead seaborne the well season. has a in ships As in a appears North cabotage in typically and be has within is in increased Chinese as what cargoes believe coal as seaborne tonnage of short-term be into trade, in their operate Decrease in the we've downtrend volatility, look cargo from freight recent increase trade large seasonal between Philippines purchases number of or Chinese experienced flows We

China that will announcement Looking no their there's or increase ahead, coal the official in term. been short indication imports

end maneuver recent However, BSI this being coal help the decrease seaborne averaged short-term has pricing. may XX,XXX. a Year-to-date, Chinese cool roughly to strategic up buying in

constructive now we underlying given HSFO trading Slide products residual in Although on between turn $XXX oil. of demand and see Fuel expect and gas The dip generation their spectrum. the on term, power fundamentals. Asian switched momentum are QX in freight rates the $XXX volatility near respectively. as for to Please HSFO oil prices relative higher-priced around fuel ton, a remain HSFO the increased demand for elevated upward cheaper we to took spread from VLSFO price to elevated XX. and per continue positive VLSFO the as back consuming across plants

collapsed HSFO is new ship strength XXX ton, quarter-on-quarter around a mid-XXXX. relative across Net per were business. fitted about level vessels with current oil since with between period, value seen value prices, levels, compared spreads supply A in and vessels the during less partially XX% in QX. surprising to XX% driver we At increased day a This the underlying scrubbers, down year-on-year, not equating million value total or fleet of of per more and important crude of growth With $X,XXX of in fuel an our were normalization VLSFO the our of a as period, about building the However, incremental per X% slightly the fleet spread to Slide given annum. trading spot for scrapping our fuel bulk the Please spot during in per differential $XX X in market. fleet, offsetting the prior XX. we've delivered just new quarter. this, is now $XXX around high scrapped price total recently turn low dry to unchanged generate same

X.X%, at lower forward the just stands overall terms Supramax/Ultramax supply it's growth, and In the of order even for book segment.

growth X.X%. guidance a as For previous and stronger XXXX, to come tons, last scrapping X about expected deadweight a is million about dry deadweight at million amount. this is a in from rate roughly fleet bulk net X.X result assumes of only year's This primarily environment. down of X/X Again, tons

bulk the largely and X.X% with were prior last dry and fleet For A expected net just average order as is of X rapidly the years. bulk ships XXXX, ordered quarterly the growth book during the dry be given higher somewhat scrapping. depleting the QX, same total line to over quarter XX in

on Although muted, and believe ever-increasing expect delivery we slots time, the lack future Slide Please prolonged emissions. pricing, basis regulations of ordering given some we secondhand building turn the pricing and level continue, relative to levels, on new to carbon and given still it absolute regarding basis will of both the around yard somewhat a price uncertainty an to be XX.

down about spoken to our to last X.X%, basis this XX inextricably bulk earnings we've can lower for you XXXX from linked since As call. were before, is demand denote global and Global slide, expectations growth GDP. slightly dry points

where is Eagle X.X%. grains, minor worth and X/X growth slightly by estimated derives been and XXXX expected been Dry XX. last offset turn growth as demand coal global come to It's steel, driven growth has since bulk call, revisions this noting increases and revised ore. iron the demand XXXX, earnings GDP of downward ore IMF X.X%. downwards bulks, in minor at in but is bulks, Please scrap its our with nickel of part at cement, For that has This estimating in such about now by Slide year. X% from, in to

in optimistic growth, of ago. near global supports about amounts order bulks. bulk concert being which term Notwithstanding X.X% is I low numbers is picture, supported minor to prospects for volatility, record demand positive with combined we're This growth demand important the at X.X% with few the for book fleet for forecast a expected look and mentioned XXXX, It's moments massive dry continued overall at a low this constructive For financing. our these, over stimulus. fleet comprehensive the turn for initiative new In position view growth we're the questions continuing well closing, have. about you following benefit ahead. I'd like our execute on as answer of With Eagle's our shareholders. to And renewal multiyear energized we of any on strong looking back call developments and as to are to to our looking the Operator? operator may the that, forward and now by market

Operator

Instructions] [Operator Randy question Our first from comes Jefferies. Giveans with

Randy Giveans

the on obviously, Congrats, there. strong quarter, very rates record

rates, 'XX XQ quarter-to-date again. at very strong Looking your plus XX,XXX

averaged that's the XX,XXX to a last plus at day looking weeks. BSI, Now for closer the X

around day. I your of think One XX,XXX a at XX% without they booked scrubbers, peers,

But a recent to via was for underperformance XXXX? So the hedges more been 'XX drop FFA guess the trading I I lower in FFAs, right? it's your beat the to you of last have book. with rising the and here in market, And those hard week active due know rest that XQ even

Gary Vogel

Yes.

bit a think I So unpack to there.

sure you're the Supramax you I We of compare and about FFAs a including disclosed all, fleet us, of definitely important talking and that's of who risk position, have between [in but which and strictly But fleet makeup blended First in referring our management. or impacted TCEs think Capes]. a of at it's you [our which queue] fleet Ultramax when I'm part look companies, a whether you're cargoes. to, hedge we not

as see volatility dynamic you'll into As going we advantage this book well. and year a said take in it's we Having bit more as quarter hedge a look FFAs built the well, our around it. it forward, and that, next queue of we've using of

peers the what I I fleet who you're on when look especially it's speak, relative unless So take speaking makeup. quarter-on-quarter. we're a beyond about. But to TCE with about, that, can't know specifically up comfortable speaking you're think I normalized I you at our important quite the said, think as TCE basis, And also to we performance our

Randy Giveans

volatility Sure. a in that increase Is just No volatility? of it like then that there's that been trading kind I recent problem. And around FFAs, trading to extreme lot paper that seems some weeks. or guess with of here financial physical

Gary Vogel

opportunity it think question, about look been it. is market, advantage if I the or to that. mean, always of wagging it as gives look, physical on talk an there's But around. mean, I well. Well, the volatility, volatility physical at the market way take tail the you a there's I We of me extreme other dog And the

that You know a We we the And as that a accrues $XX,XXX. derivative a hedge dynamic sold It it call benefit one and less. We unwind to will. the back market, in book. our shareholders. if fleet. go always dynamically, hedge, $XX,XXX hedge with a use our at adding for we benefit the book, can won't mean our And against out doesn't of TCE all hedge of view next the derivatives and highest we at whole contract we hedging. a value that hedge even and that creating to hedge quarter, the after to prefer to for to did unwound year as you bought it, this We but week. we the We physical ship having unwound with was that

we the up So in I forward, book as a because, volatility market. but it's of we're we hedge said, not a go building straight-line the take advantage as

Randy Giveans

Got it.

Okay. last for I question me. guess

that everything. debt refinancing now Congrats and Your low. recent extremely on

to, from guess, under fallen XX XX. Your have shares I

an well trading they'll the back NAV. in be looks But like below that right, here. past it month, above hour Now over

So ample decide you in cash converts? with doing the repurchases share repayments, with something either debt coming maybe or further months, free your how on

Gary Vogel

Yes.

entire up there's weeks we're actually is. every of authorization clear, right. been buyback, Having number to aware announced specific Board to said period capital what day back not and do you're can come what in the the and best think certain blackout a But we've trading. for shares. just in a where authorization buy I earnings here. clearly, we look we a when share ago that, We If time go of a we X the of we're be use to at go

to that's decision it's down now a forward. the done. revolver has X. pay So last to been And The obviously go focus as we

think So a on need is Having to or as the we look something or looking buyback allocation you repayment said whether at. share on is at capital possibly it's that debt that, further something vitally putting opportunity will cash I'll use Or I convert balance important. said, say, the I sheet. to think

million dollar thing if benefit real the it. behind much what's with XX,XXX And midsized supports think that you'll tapes. it's here almost averaged mind, no of in shares, And year. it's allow ships business is million just Ultras, as XX% as story are it. cost exciting twice X,XXX I volatility significant ships here, basis, is EBITDA with shareholders. on real $XX that the really And the we buy fleet every down more Those pay about we or market talk And than out our a experienced my The that me, more with we ships. that even have the that XX is as whether relative this that's for or pay TCE of generate a back for our we've that midsized significantly the we fleet less. or generated volatility, although $XX

So I'll the strength in bulk, I midsize leading, and we're and segment segment that's I the it the, the leave within that to think, at that. dry think speaks that it

Operator

Wainwright. comes with Magnus question Fyhr next from Our H.C.

Magnus Fyhr

-- Just on question like a follow-up the capital allocation. on question a

You didn't acquisitions. any mention vessel

active mean X estimates, discount based at XX% now NAV. the versus on You've buybacks I on a is last ships? fleet. renewing view been the years stock buying very in your What's our to trading

Just you where fleet looking desire to expand any given is? acquisitions, stock the curious or have if at

Gary Vogel

Thanks, Yes. Magnus.

by we're I in acquired, We million. XX%. been to prepared we position. as renew the only feel asset moved think fortunate over grow pretty that we're We've remarks, fleet, able X significantly. said said the ships they've not in appreciated about opportunities. the looking have a I always it by at Having that, up but values And $XX

justify have -- to growth clearly if where as we which don't feel a that, at are renewal. of refer accretive So need to at today, or to FFA Having pressure don't the a can moment, the priority market, as But being feel it asset would participate be we we markets not this need We to there. a that opportunities market that it's able write-down doesn't do, point I it's period significantly, long-term said, but there in the then are just for and/or the said us. and period further long-term don't interested.

So given at attractive the than between the equal would choice convert the whether X more that of we moment. a moment, securities, is or at the shares buyback think assets, all things being

Magnus Fyhr

Good to hear.

The second question the to I OpEx. related have is

So there buying I X,XXX, it's lubes OpEx, expect going I of jump third front also you still you What normalized be inventory below X,XXX COVID it months forward in the have related X the a Will guess big it? a it it as X,XXX. think going should Or about explained guess, forward was on the first in around a we normalized with quarter. and expenses. X can basis?

Gary Vogel

to love more And say we are would for not and in X I good everything the over story, one here. of repatriation in It's about. going is more talked faster quarter, crews under-promise have because is rates the ships moving for fourth lubes right? the a the XXs. costing expense a The money, are the to it's thing of it's I But just it. front deliver.

so when And just lubes. you engine of effect you really faster, run an need that's an higher

pricing higher, so are that's up, In entire and base true as oils addition, the across industry. is said, the I

one but things of And the X to front dry in, it's clearly extraordinary moment, obviously, it. now, time, are for negatives. benefits that going we bulk is a there normalize. have the But think at a of will in and lot I OpEx we're for over it's an globally expect environment of So

Magnus Fyhr

Right.

question chartering the Maybe better. recent done I chartering -- your little strategy. in the on think, because does can create following elaborate the pullback for market, know last on you've The index you in a strategy? that tough beat I historically, opportunities to bit market. active Just But it's rising the

Gary Vogel

to vertical think no normal market, will think I really true we we mean platform congestion had month. management market Look, in question, in a absolutely. the its and our Yes, And will, to rates propel factor, the the if rose place hedges some protect, gone FFA to went colors. where in market's show I you active didn't here. as the expect -- last to we they really

about our it those So that, an and that had welcome we the on lining we just the talked And volatility, cargoes. and and around having it can said the value also in that. it's hedge hedge around ships hedges I create true a it. the impact. charter But But

So a value to we pudding. think be moment, little that at it's but the something It's And we welcome able in volatility. extreme the create we're the for. obviously proof will

have develops how see we you'll So the to quarter X. next how it or -- over

Magnus Fyhr

it And from that's Well, Great. the again congrats me. on great quarter.

Gary Vogel

Thanks very much.

Operator

comes Our next Securities. question from Omar Nokta with Clarksons

Omar Nokta

acquired had have on and look bat But Over ships, time and down this year here. strategically off the obviously, follow-up quarter this good the guys deployment. you pretty the good a ahead wind we solid capital as it's I you pretty is we past year, thinking are well upcoming wanted about how you a Obviously, guys prices. right to looking pretty just and at one maybe transformative, into as too discussion been 'XX? dividend

dividend, and you've are series about a You've thinking How refinanced of to your of you debt stack point it's ships, to XX as next the moving hunkering you've down? year You just have what have Have guys the do? priorities got you more you and you priorities look about strategic -- do Or now? just forward. about now is the now gotten this dividend. it into

Gary Vogel

Yes.

delivering our So for but down, I shareholders. it's hunkering wouldn't it's say

the keeping talked about ships. that I've in XX staying sell past, means to if so or And older -- as at our we're ships X likely

the not it's or We say, we growing renewing terms But the that, not do an that be go just So XX value for we'd deliver outcome and and and really around having -- ships real down we're said looking with. with to in pressure need fleet. and chartering more feel shareholders, our that's happy of hunker obviously for opportunities. and that forward owned don't

moment. So privileged maximize that we take a as us helped this this market position to and the we both dividend, debt of feel deliver in continue pay advantage has at pretty down to to intend forward. and we're go it the Obviously, and we

Omar Nokta

converts Thanks, converts that? Gary. regarding Is versus the there stands out be shares. appealing, buying repayment capital between the of switching more both would thoughts towards that kind on shares? And maybe something of Any the those just that the versus

Gary Vogel

something cognizant Yes, share open we're clearly liquid, in to far sure. in it of is buying market out of, a and it's daily the one the terms given I of float the take mean easier convert converter said volume. current back is less the that buy and of shares liquidity, lot that's benefit Having market. the that, doesn't share

things. of So either. the X or between high probably nature obviously, we're convert one of definitely a look of at those as -- and Otherwise, X, clearly both going And forward, the the to the correlation given there's instrument. the And we not but cons are necessarily other the pros biggest go those. it's

Operator

with Greg Our comes next BTIG. from Lewis question

Greg Lewis

the potentially would X selling. those that older How capital Gary, about over allocation picked been think use did I I proceeds? has pretty just ask, vessels you well. seems like we it guess you're the should about thinking of highlight

Gary Vogel

day, frankly. before next unencumbered a well. from kept Yes. we opportunity, and financing, is use be they'll likely to mid at it operations, upper Those we proceeds did them any 'XX in as like One moment. that, out buying say, see one view of from recirculate than purposely cash at monetized assets. need wouldn't or there see their worth the are dry a 'XX. of special we of But the in that a mid When And I cash for the we said I'd the ops, fungible, differently survey cash ships we'll into those with the end see teens, they're if Having early very and is difference then it use don't just dock. an that. kind

Greg Lewis

a macro did Great. -- have Okay. then of picture just more And question. I big a

in you lead just reason at in guess, is basis, that X%. commodity I'm prices. I is, think that -- is growth coal prices, I is following market I'm a whether between believe firm, of attractive the not the source relative number is ones. higher. to forecast capabilities seems you or Slide number seeing which coal that the we things to and as could the the 'XX kind coal And miners the rebound As looking an still On potentially from guess, as the higher that surprised ask it's supply not I 'XX, be it's energy relative for that Are about just there? other X% because other XX, are

Gary Vogel

of that Yes. to Well, demand, velocity taught has we've changes is that anything the pretty if project demand, coal is, in extreme. us year trying where especially seen XXXX are this

growth year In this even significant we were a basis, next a and supply, still year, coal in growth XXXX terms where below number year, is pre-COVID the global with this next of marginally the the year below. on

China especially of, we're there's Australia don't because coal So particularly seeing intra-Asia of flows those that think obviously, are We're around growth China and trades in. Indonesia, Indonesia, still coal issue And this Vietnam I the year, in But that's supply, the issue. terms India. from in and significant trade coal. those change significant

in So bulk think I I think think it's mix terms that, from But next this a midsized mix dry year. in is in the exactly, for very more there downside there's segment, think year. it seen to project trying I it fuel of volumes seeing hard upside that positive and what we've in also but terms a of it's and price I in

Operator

question J. Investor's next Edge. our Mintzmyer, Value from And comes

J. Mintzmyer

Congrats on around. a fantastic quarter all

just great the far. of FFAs. so Not to a housekeeping want to So I on bit little lot do a add. questions whole

XX-Q, at It like to that lot. XX is you the do or XX said in looks those days expect forward, going you going clarify, that added you're quarter? should to always I of ships which per quarter-over-quarter. about a think Just a the And Is ships about a kind help rate include fair? to XX about to XX you quarter, doing X,XXX

Gary Vogel

some Valencia we mean acquisition number the were the quarter, of some a Yes. took of delivery over the just I and fully I and we in don't Eagle -- took specific week. have quarters, a number last ships of delivery the last few the towards end, number.

ships see more add. -- delivered third only we was we see that ship don't don't that But that there's acquired post -- quarter. no from So any significant basis more S&P to the we don't we've the Obviously, has chartering been But otherwise, -- from an the ships static a to slightly much. days basis is charter-in lately. we is very that number of number change -- of fairly expect things

J. Mintzmyer

And the Randy you into loss you $XX,XXX, sense. to think, I what already QX XX% for that say to top? was incorporating makes that? are add need about, talking on fixed FFA Or do additionally Certainly Okay. at when getting you

Gary Vogel

Yes.

the have fixed. ships pro a of rata basis, that's number that So we

that ships the So think it, and you if physical plus be XX% and of days fixing you're if into of things the FFA it all cargoes that. XX% then like done, we've would about the quarter,

J. Mintzmyer

it. Got

there's I'm there's the from of sure in more bit, obviously FFAs. spot see obviously, that bit little So going little and we'll left, the then be a XX-Q. a final And to drag

the to convertibles. quick real Turning

on enormous I Everyone sees this. this think pegged opportunity. everybody's that there's

but is depends source, $XX that and NAV what is -- reasonable. what analyst data seems number it a Your a I mean on share

a trading XX% at You're discount.

have great sheet. balance You a

out tender there you formal to about Is mechanically, do? reach look like? via you have is only go process something right? convertibles a would but a to have NAV, do that could out? do value, holders can you to there, those discount, also force if directly you not massive you Do looking How sort potentially don't some to value nothing enterprise work were you're right? would trying that it are gross repurchase and to So just So call out the price asset in. you the at provision, of route? there's So to What

Gary Vogel

market. the Alternatively, as holders, formal the well. a Yes. amount market Well, are proposal, buy open we of certain we we proposal but buy in could and could type to make in converts more them able to open

J. Mintzmyer

look NAV, it's to about -- want And it's just to what I I XX% there, discount know do repurchases. anytime seeing me, I a you right. talk to with talk you forward All Gary. to screaming.

So program, and I forward results. I'm really, really happy to see quarter's look to the million next $XX

Gary Vogel

appreciate Thanks, it. J. I

Operator

Instructions] Burke [Operator question from Liam comes B. Riley. with Our next

Liam Burke

could the volatility the versatile the the look bulks as fleet macro? as in look Gary, affecting How forward? go you ore have you fleet, carry minors. going you major trade to the at business and iron You back obviously, how well we a do the

Gary Vogel

not us about It's fairly mean not not It's there's if was it's China. the doesn't I the impact one of But that all of Yes. cargo Brazil, a from XX% China, iron part. frankly, ore, our mix. small cargo major directly major right? trades. Australia, bulks, it's its It

So become prices smaller us. it's ore significant tend not Having cargoes as that, trade really to then the do the said attractive. less for as we come off, the iron and ships, that

going see likely relatively as our part come prices ore us iron mix. cargo you'll a it's So forward. doing again, less small off, ore iron of But

with negative directionally pricing, significant for not lower So but impact us.

Liam Burke

then into high you How the asset vessels. older just talked Or values too fit about Okay. And assets does here? adding selling the mix? new are

Gary Vogel

long-term markets levels to asset go Yes. I we'd the are where relative believe it feel are out doing it's see long-term then be do the derivative where point, we if so. write-down to upon before. Having we And are. in -- markets, don't immediate I the and that we touched just terms of assets to this quite you'll But buy pressure whether high, prices that, we mean at prices and period are said just or on us to rates satisfied to forward I the don't just in interested. think are. They're where depreciation, attractive our basis quite supportive feel asset markets the

Operator

And no turn questions this any remarks. the call I'm to back for like closing time. further Gary Vogel at showing I'd to

Gary Vogel

anything Thanks, further. We have operator. don't

And good I'd thank day. their everyone to a So for like time everyone today. wish

Operator

conference Thank today's call. concludes This you for participating.

disconnect. now You may