Danaos Corp — Call Transcript 2026

Good day, welcome to Danaos Corporation Conference Call to discuss the financial results for the three-month ended March 31st, 2026. As a reminder, today's call is being recorded. Hosting the call today is Dr. John Coustas, Chief Executive Officer of Danaos Corporation, and Mr. Evangelos Chatzis, Chief Financial Officer of Danaos Corporation. Dr. Coustas and Mr. Chatzis will be making some introductory comments, and we will be open the call for question and answer session. Thank you, operator. Good morning, everyone, and thank you for joining us today. Before we begin, I quickly want to remind everyone that management remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today. These forward-looking statements are made as of today, and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review these detailed safe harbor and risk factor disclosures. Please also note that where we feel appropriate, we will continue to refer to non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, time charter equivalent revenues, and time charter equivalent dollars per day to evaluate our business. The reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials. With that, let me now turn over the call to Dr. John Coustas, who will provide the broad overview of the quarter. John. Thank you, Evangelos. Good morning, and thank you all for joining today's call to discuss our results for the first quarter of 2026. This quarter was shaped by the unprecedented events in the Gulf and the closure of the Strait of Hormuz, a situation that is still unfolding, but which we hope will be resolved in the coming weeks. The disruption has primarily benefited the tanker sector, where rates spiked sharply before quickly normalizing. In the container sector, the disruption helped stabilize and lift certain box rates. However, it did not have a significant effect. Two of our vessels currently remain in the Gulf, but this does not affect our earnings as both vessels continue to be on charter. The dry bulk market has improved considerably and continues to strengthen. Our optimistic outlook for this market prompted us to expand our order book to four Newcastlemaxes for 2028 delivery. We also ordered two 5,000 TEU containerships for 2027 delivery, both of which are backed by three-year charters. Together with charter arrangements for our existing fleet, these additions position us with a pro forma fleet of 104 containerships and 15 Capesize and Newcastlemax vessels with a $4.1 billion contracted revenue backlog. Combined with $1.3 billion of liquidity, this positions us to continue pursuing accretive opportunities as they arise. Resolution of the conflicts in the Gulf and Ukraine should bring meaningful stability for years to come, absent new initiatives by the major global powers. Last year's developments demonstrated that globalization remains resilient and that protectionism is likely to be the exception rather than the rule going forward. Trade is becoming increasingly multilateral, which benefits the mid-sized containership segment in which we are actively investing. Together with a disciplined expansion strategy, we believe these dynamics will continue to drive improved profitability and create value for our shareholders. With that, I hand over the call back to Evangelos, who will take you through the financials for the quarter. Evangelos. Thank you, John, and good morning again to everyone. I will briefly review the results for the quarter and then open the call to Q&A. We are reporting Adjusted EPS for this quarter of $6.72 per share or adjusted net income of $122.5 million, compared to Adjusted EPS of $6.04 per share or adjusted net income of $113.4 million for the corresponding first quarter of 2025. This $9.1 million increase in adjusted net income between the two quarters is the combined result of a $0.4 million increase in operating revenues, a $4.4 million improvement in total operating expenses, a $2.4 million improvement in net finance expenses, combined with a $2 million increase in dividend income, partially offset by a $0.1 million increase in loss on equity investments. Operating revenues of our containership fleet decreased by $6.6 million as a result of a $6.9 million decrease in revenues due to lower contracted charter rates and the $7.2 million decrease due to lower non-cash US GAAP revenue recognition accounting. These were partially offset by a 3.9 million increase in revenues as a result of new building containership vessel additions and 3.6 million of incremental revenues as a result of improved container fleet utilization between the two quarters. Operating revenues of our dry bulk fleet that is deployed in the spot market increased by $7 million, primarily due to a significant improvement in time charter equivalent earnings that averaged $24,825 per day during this quarter compared to $10,500 approximately per day for the first quarter of 2025. Vessel operating expenses dropped by $1.7 million to 50 million in the current quarter from $51.7 million in the first quarter of 2025, despite the increase in the average number of vessels in our fleet. This improvement was mainly driven by lower repairs and maintenance expenses, with our daily operating costs declining to $6,680 per vessel per day for this quarter compared to $7,028 per vessel per day in the first quarter of 2025. Our operating costs continue to remain among the most competitive in the industry. G&A expenses increased by $2.4 million to $14.6 million in the current quarter compared to $12.2 million in the corresponding first quarter of 2025. This is mainly attributable to $1.3 million in higher management fees driven by the increase in the average number of vessels in our fleet, as well as a $1.1 million increase in corporate G&A. Interest expense, excluding finance costs and debt, finance cost amortization increased by $1.7 million to 10.9 million in the current quarter compared to $9.2 million in the first quarter of last year. This increase is a combined result of a four and a half million increase in interest expense due to higher average indebtedness between the two periods by $330 million, and that was partially offset by a reduction in the cost of debt service by approximately 50 basis points, mainly as a result of reduced SOFR rates. We also have a $2.8 million reduction in interest expense due to higher capitalized interest on vessels under construction between the two periods. At the same time, interest income came in at $7.6 million versus 3.6 million in the corresponding first quarter of 2025, mainly due to higher average cash balances. Adjusted EBITDA increased by 5.2% or by $8.9 million to 180.6 million in the current quarter from $171.7 million in the first quarter of 2025 for the reasons that have already been outlined earlier on this call. We also encourage you to review our updated investor presentation that is posted on our website, as well as all subsequent events disclosures. Since the date of our last earnings release, we have added $120 million to our contracted revenue backlog. Our contract revenue backlog for our containership fleet now stands at $4.1 billion, with a 4.2-year average charter duration. Contract coverage stands at 100% for this year or the remainder of this year, 88% for 2027, and 65% for 2028. Our investor presentation has analytical disclosure on our contracted charter book. As of March 31, 2026, our net debt stood at $170 million. That translates to a net debt to Adjusted EBITDA ratio of 0.2x, while 67 out of our 86 vessels are unencumbered and debt-free, while an extra 12 unencumbered vessels that secure our revolving credit facility are also debt-free. We have declared a dividend of $0.09 per share for this quarter, and we currently have $65 million remaining authority to repurchase stock under our $300 million Share Repurchase Program. Finally, as of the end of the first quarter of 2026, cash stood at $0.9 billion, while total liquidity, including availability under our revolving credit facility and marketable securities, stood at $1.3 billion, giving us ample flexibility to pursue accretive capital deployment opportunities. With that, I would like to thank you for listening to this first part of our call. Operator, we are now ready to open the call to Q&A. Thank you. We will now begin the question and answer session. To ask a question, you may press star one on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Omar Nokta with Clarksons. Please go ahead. Thank you. Hi, John and Evangelos. Good afternoon. Hi. A couple of things. Welcome back. Thank you, sir. Thank you. Just a couple of things on my side. Just wanted to ask about investments from here, your last couple of investments outside of your core focus seem to be in LNG, both in, you know, the, in the stake in Yoda. You also invested in the Alaska LNG project earlier this year. Is this a concerted effort on your part to get a bit deeper into LNG? Should we be expecting more of this type of investment going forward? Yes. I think in general, the energy sector is, let's say, our next point of focus. As we see geopolitically, there are a lot of changes in that area. We are following it very closely, and we try to address it from every angle, both from the angle of transportation and also from the angle of LNG production itself, which is going to give us an access to the transportation as well. Okay, got it. Well, that's helpful. Thank you. Then just maybe in terms of what we're seeing in the container shipping market, your revenue backlog is at $4.1 billion, which is obviously, you know, very strong historically. It is a little bit down from where you were last quarter, which I think was $4.3 billion. In general, you know, it looks like backlog additions maybe have been a bit leaner this, you know, these past couple of months, even though we are seeing indexes for, you know, the time charter indexes being at all-time highs or near all-time highs. What are you seeing kind of at the moment or in terms of liner interest for more charter coverage from here? You know, from what you see from the profile, practically all 2026 and 2027 are almost fixed. We have very, very little, you know, going forward. Also for liner companies to start discussing from now about, you know, 2028, let's say ships might be a bit premature, especially for second-hand. You know, I don't think really it signifies anything else. Apart from that, we have been really fixing quite a lot in this period of time, and it's just circumstantial. Okay. Yeah, that certainly makes sense. There's just Nothing's available to be booked in the next several quarters. Okay, maybe just one final one. You know, thoughts on the share buyback. You've obviously historically been quite, you know, active on that front. You bought a bit during the first quarter, not at the same pace we've seen, at least in the fourth quarter. I guess that sort of makes sense given the shares have really been hitting, you know, 52-week highs seemingly every week. How are you thinking about the buyback from here? I guess in the context of maybe two things. One, you know, the shares are obviously at their highs. How do you think about the buyback from that perspective? Also from the perspective of, you know, asset value, on NAV basis, it's discounted, and then perhaps on a free cash flow yield, the yield is quite high. How are you thinking about those two things with respect to the buyback? Well, you know, we still have the authority for another. $65 million. $65 million. We are keeping closely. I mean, the stock has done a terrific run, you know, in the last, you know, few months. We are at kind of all-time high. Although, you know, we still believe that, you know, the stock is deeply undervalued, we are kind of more cautious into, you know, continuing, you know, during this hype to continue the buyback. Okay. That's fair. Cool. Well, thank you for that color, John. Thanks, Evangelos. I'll pass it back. Thank you. Thank you. Our next question come from Climent Molins with Value Investor. Please go ahead. Hi, good afternoon, and thank you for taking my questions. Omar has already covered a lot of ground, but I wanted to ask about the utilization on the capesize side of the fleet. Could you talk a bit about the drivers behind the significant scheduled offhire for the quarter? Was it mostly drydockings? Secondly, could you remind us about the drydocking schedule on this side of the fleet for the remainder of the year? Yes. It was two vessels that went to drydock in Q1. I don't have it offhand, but I don't think we have any more scheduled vessels on the dry side to head to the shipyard for the remainder of this year. Okay, that's helpful. All the offhire days were attributable to these two vessels? Sorry, say again? I was asking if all the offhire days in Q1 were attributable to the drydocking you conducted? Yes. Correct. Okay. Okay, that's very helpful. Thank you. I'll turn it over. Thank you for taking my questions. Thank you. It appears we have no further question at this time. I would like to turn the call back over to Dr. Coustas for any further comments or closing remarks. Thank you all for joining this conference call and your continued interest in our story. Look forward to hosting you on our next earnings call. Have a nice day. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker 5: Good day, welcome to Danaos Corporation Conference Call to discuss the financial results for the three-month ended March 31st, 2026. As a reminder, today's call is being recorded. Hosting the call today is Dr. John Coustas, Chief Executive Officer of Danaos Corporation, and Mr. Evangelos Chatzis, Chief Financial Officer of Danaos Corporation. Dr. Coustas and Mr. Chatzis will be making some introductory comments, and we will be open the call for question and answer session. Good day, welcome to Danaos Corporation Conference Call to discuss the financial results for the three- month ended March 31st, 2026. good day welcome to danaos corporation conference call to discuss the financial results for the three- month ended march 31st 2026 As a reminder, today's call is being recorded. as a reminder today's call is being recorded Hosting the call today is Dr. John Coustas , Chief Executive Officer of Danaos Corporation, and Mr. Evangelos Chatzis , Chief Financial Officer of Danaos Corporation. hosting the call today is dr john coustas chief executive officer of danaos corporation and mr evangelos chatzis chief financial officer of danaos corporation Dr. Coustas and Mr. Chatzis will be making some introductory comments, and we will be open the call for question and answer session. dr coustas and mr chatzis will be making some introductory comments and we will be open the call for question and answer session

Speaker 2: Thank you, operator. Good morning, everyone, and thank you for joining us today. Before we begin, I quickly want to remind everyone that management remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today. These forward-looking statements are made as of today, and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review these detailed safe harbor and risk factor disclosures. Please also note that where we feel appropriate, we will continue to refer to non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, time charter equivalent revenues, and time charter equivalent dollars per day to evaluate our business. The reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials. Thank you, operator. thank you operator Good morning, everyone, and thank you for joining us today. good morning everyone and thank you for joining us today Before we begin, I quickly want to remind everyone that management remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today. before we begin i quickly want to remind everyone that management remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today These forward-looking statements are made as of today, and we undertake no obligation to update them. these forward-looking statements are made as of today and we undertake no obligation to update them Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review these detailed safe harbor and risk factor disclosures. factors that might affect future results are discussed in our filings with the sec and we encourage you to review these detailed safe harbor and risk factor disclosures Please also note that where we feel appropriate, we will continue to refer to non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, time charter equivalent revenues, and time charter equivalent dollars per day to evaluate our business. please also note that where we feel appropriate we will continue to refer to non-gaap financial measures such as ebitda adjusted ebitda adjusted net income time charter equivalent revenues and time charter equivalent dollars per day to evaluate our business The reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials. the reconciliations of non-gaap financial measures to gaap financial measures are included in our earnings release and accompanying materials With that, let me now turn over the call to Dr. John Coustas, who will provide the broad overview of the quarter. John. With that, let me now turn over the call to Dr. John Coustas, who will provide the broad overview of the quarter. with that let me now turn over the call to dr john coustas who will provide the broad overview of the quarter John. john

Speaker 3: Thank you, Evangelos. Good morning, and thank you all for joining today's call to discuss our results for the first quarter of 2026. This quarter was shaped by the unprecedented events in the Gulf and the closure of the Strait of Hormuz, a situation that is still unfolding, but which we hope will be resolved in the coming weeks. The disruption has primarily benefited the tanker sector, where rates spiked sharply before quickly normalizing. In the container sector, the disruption helped stabilize and lift certain box rates. However, it did not have a significant effect. Two of our vessels currently remain in the Gulf, but this does not affect our earnings as both vessels continue to be on charter. The dry bulk market has improved considerably and continues to strengthen. Thank you, Evangelos. thank you evangelos Good morning, and thank you all for joining today's call to discuss our results for the first quarter of 2026. good morning and thank you all for joining today's call to discuss our results for the first quarter of 2026 This quarter was shaped by the unprecedented events in the Gulf and the closure of the Strait of Hormuz, a situation that is still unfolding, but which we hope will be resolved in the coming weeks. this quarter was shaped by the unprecedented events in the gulf and the closure of the strait of hormuz a situation that is still unfolding but which we hope will be resolved in the coming weeks The disruption has primarily benefited the tanker sector, where rates spiked sharply before quickly normalizing. the disruption has primarily benefited the tanker sector where rates spiked sharply before quickly normalizing In the container sector, the disruption helped stabilize and lift certain box rates. in the container sector the disruption helped stabilize and lift certain box rates However, it did not have a significant effect. however it did not have a significant effect Two of our vessels currently remain in the Gulf, but this does not affect our earnings as both vessels continue to be on charter. two of our vessels currently remain in the gulf but this does not affect our earnings as both vessels continue to be on charter The dry bulk market has improved considerably and continues to strengthen. the dry bulk market has improved considerably and continues to strengthen Our optimistic outlook for this market prompted us to expand our order book to four Newcastlemaxes for 2028 delivery. We also ordered two 5,000 TEU containerships for 2027 delivery, both of which are backed by three-year charters. Together with charter arrangements for our existing fleet, these additions position us with a pro forma fleet of 104 containerships and 15 Capesize and Newcastlemax vessels with a $4.1 billion contracted revenue backlog. Combined with $1.3 billion of liquidity, this positions us to continue pursuing accretive opportunities as they arise. Resolution of the conflicts in the Gulf and Ukraine should bring meaningful stability for years to come, absent new initiatives by the major global powers. Last year's developments demonstrated that globalization remains resilient and that protectionism is likely to be the exception rather than the rule going forward. Our optimistic outlook for this market prompted us to expand our order book to four Newcastlemaxes for 2028 delivery. our optimistic outlook for this market prompted us to expand our order book to four newcastlemaxes for 2028 delivery We also ordered two 5,000 TEU containerships for 2027 delivery, both of which are backed by three-year charters. we also ordered two 5,000 teu containerships for 2027 delivery both of which are backed by three-year charters Together with charter arrangements for our existing fleet, these additions position us with a pro forma fleet of 104 containerships and 15 Capesize and Newcastlemax vessels with a $4.1 billion contracted revenue backlog. together with charter arrangements for our existing fleet these additions position us with a pro forma fleet of 104 containerships and 15 capesize and newcastlemax vessels with a $4.1 billion contracted revenue backlog Combined with $1.3 billion of liquidity, this positions us to continue pursuing accretive opportunities as they arise. combined with $1.3 billion of liquidity this positions us to continue pursuing accretive opportunities as they arise Resolution of the conflicts in the Gulf and Ukraine should bring meaningful stability for years to come, absent new initiatives by the major global powers. resolution of the conflicts in the gulf and ukraine should bring meaningful stability for years to come absent new initiatives by the major global powers Last year's developments demonstrated that globalization remains resilient and that protectionism is likely to be the exception rather than the rule going forward. last year's developments demonstrated that globalization remains resilient and that protectionism is likely to be the exception rather than the rule going forward Trade is becoming increasingly multilateral, which benefits the mid-sized containership segment in which we are actively investing. Together with a disciplined expansion strategy, we believe these dynamics will continue to drive improved profitability and create value for our shareholders. With that, I hand over the call back to Evangelos, who will take you through the financials for the quarter. Evangelos. Trade is becoming increasingly multilateral, which benefits the mid-sized containership segment in which we are actively investing. trade is becoming increasingly multilateral which benefits the mid-sized containership segment in which we are actively investing Together with a disciplined expansion strategy, we believe these dynamics will continue to drive improved profitability and create value for our shareholders. together with a disciplined expansion strategy we believe these dynamics will continue to drive improved profitability and create value for our shareholders With that, I hand over the call back to Evangelos, who will take you through the financials for the quarter. with that i hand over the call back to evangelos who will take you through the financials for the quarter Evangelos. evangelos

Speaker 2: Thank you, John, and good morning again to everyone. I will briefly review the results for the quarter and then open the call to Q&A. We are reporting Adjusted EPS for this quarter of $6.72 per share or adjusted net income of $122.5 million, compared to Adjusted EPS of $6.04 per share or adjusted net income of $113.4 million for the corresponding first quarter of 2025. Thank you, John, and good morning again to everyone. thank you john and good morning again to everyone I will briefly review the results for the quarter and then open the call to Q&A. i will briefly review the results for the quarter and then open the call to q&a We are reporting Adjusted EPS for this quarter of $6.72 per share or adjusted net income of $122 .5 million , compared to Adjusted EPS of $6.04 per share or adjusted net income of $113.4 million for the corresponding first quarter of 2025. we are reporting adjusted eps for this quarter of $6.72 per share or adjusted net income of $122 .5 million compared to adjusted eps of $6.04 per share or adjusted net income of $113.4 million for the corresponding first quarter of 2025 This $9.1 million increase in adjusted net income between the two quarters is the combined result of a $0.4 million increase in operating revenues, a $4.4 million improvement in total operating expenses, a $2.4 million improvement in net finance expenses, combined with a $2 million increase in dividend income, partially offset by a $0.1 million increase in loss on equity investments. Operating revenues of our containership fleet decreased by $6.6 million as a result of a $6.9 million decrease in revenues due to lower contracted charter rates and the $7.2 million decrease due to lower non-cash US GAAP revenue recognition accounting. This $9.1 million increase in adjusted net income between the two quarters is the combined result of a $0.4 million increase in operating revenues, a $4.4 million improvement in total operating expenses, a $2.4 million improvement in net finance expenses, combined with a $2 million increase in dividend income, partially offset by a $0.1 million increase in loss on equity investments. this $9.1 million increase in adjusted net income between the two quarters is the combined result of a $0.4 million increase in operating revenues a $4.4 million improvement in total operating expenses a $2.4 million improvement in net finance expenses combined with a $2 million increase in dividend income partially offset by a $0.1 million increase in loss on equity investments Operating revenues of our containership fleet decreased by $6.6 million as a result of a $6.9 million decrease in revenues due to lower contracted charter rates and the $7.2 million decrease due to lower non-cash US GAAP revenue recognition accounting. operating revenues of our containership fleet decreased by $6.6 million as a result of a $6.9 million decrease in revenues due to lower contracted charter rates and the $7.2 million decrease due to lower non-cash us gaap revenue recognition accounting These were partially offset by a 3.9 million increase in revenues as a result of new building containership vessel additions and 3.6 million of incremental revenues as a result of improved container fleet utilization between the two quarters. Operating revenues of our dry bulk fleet that is deployed in the spot market increased by $7 million, primarily due to a significant improvement in time charter equivalent earnings that averaged $24,825 per day during this quarter compared to $10,500 approximately per day for the first quarter of 2025. Vessel operating expenses dropped by $1.7 million to 50 million in the current quarter from $51.7 million in the first quarter of 2025, despite the increase in the average number of vessels in our fleet. These were partially offset by a 3.9 million increase in revenues as a result of new building containership vessel additions and 3.6 million of incremental revenues as a result of improved container fleet utilization between the two quarters. these were partially offset by a 3.9 million increase in revenues as a result of new building containership vessel additions and 3.6 million of incremental revenues as a result of improved container fleet utilization between the two quarters Operating revenues of our dry bulk fleet that is deployed in the spot market increased by $7 million, primarily due to a significant improvement in time charter equivalent earnings that averaged $24,825 per day during this quarter compared to $10,500 approximately per day for the first quarter of 2025. operating revenues of our dry bulk fleet that is deployed in the spot market increased by $7 million primarily due to a significant improvement in time charter equivalent earnings that averaged $24,825 per day during this quarter compared to $10,500 approximately per day for the first quarter of 2025 Vessel operating expenses dropped by $1.7 million to 50 million in the current quarter from $51.7 million in the first quarter of 2025, despite the increase in the average number of vessels in our fleet. vessel operating expenses dropped by $1.7 million to 50 million in the current quarter from $51.7 million in the first quarter of 2025 despite the increase in the average number of vessels in our fleet This improvement was mainly driven by lower repairs and maintenance expenses, with our daily operating costs declining to $6,680 per vessel per day for this quarter compared to $7,028 per vessel per day in the first quarter of 2025. Our operating costs continue to remain among the most competitive in the industry. G&A expenses increased by $2.4 million to $14.6 million in the current quarter compared to $12.2 million in the corresponding first quarter of 2025. This is mainly attributable to $1.3 million in higher management fees driven by the increase in the average number of vessels in our fleet, as well as a $1.1 million increase in corporate G&A. This improvement was mainly driven by lower repairs and maintenance expenses, with our daily operating costs declining to $6,680 per vessel per day for this quarter compared to $7,028 per vessel per day in the first quarter of 2025. this improvement was mainly driven by lower repairs and maintenance expenses with our daily operating costs declining to $6,680 per vessel per day for this quarter compared to $7,028 per vessel per day in the first quarter of 2025 Our operating costs continue to remain among the most competitive in the industry. our operating costs continue to remain among the most competitive in the industry G&A expenses increased by $2.4 million to $14.6 million in the current quarter compared to $12.2 million in the corresponding first quarter of 2025. g&a expenses increased by $2.4 million to $14.6 million in the current quarter compared to $12.2 million in the corresponding first quarter of 2025 This is mainly attributable to $1.3 million in higher management fees driven by the increase in the average number of vessels in our fleet, as well as a $1.1 million increase in corporate G&A. this is mainly attributable to $1.3 million in higher management fees driven by the increase in the average number of vessels in our fleet as well as a $1.1 million increase in corporate g&a Interest expense, excluding finance costs and debt, finance cost amortization increased by $1.7 million to 10.9 million in the current quarter compared to $9.2 million in the first quarter of last year. This increase is a combined result of a four and a half million increase in interest expense due to higher average indebtedness between the two periods by $330 million, and that was partially offset by a reduction in the cost of debt service by approximately 50 basis points, mainly as a result of reduced SOFR rates. We also have a $2.8 million reduction in interest expense due to higher capitalized interest on vessels under construction between the two periods. Interest expense, excluding finance costs and debt, finance cost amortization increased by $1.7 million to 10.9 million in the current quarter compared to $9.2 million in the first quarter of last year. interest expense excluding finance costs and debt finance cost amortization increased by $1.7 million to 10.9 million in the current quarter compared to $9.2 million in the first quarter of last year This increase is a combined result of a four and a half million increase in interest expense due to higher average indebtedness between the two periods by $330 million, and that was partially offset by a reduction in the cost of debt service by approximately 50 basis points, mainly as a result of reduced SOFR rates. this increase is a combined result of a four and a half million increase in interest expense due to higher average indebtedness between the two periods by $330 million and that was partially offset by a reduction in the cost of debt service by approximately 50 basis points mainly as a result of reduced sofr rates We also have a $2.8 million reduction in interest expense due to higher capitalized interest on vessels under construction between the two periods. we also have a $2.8 million reduction in interest expense due to higher capitalized interest on vessels under construction between the two periods At the same time, interest income came in at $7.6 million versus 3.6 million in the corresponding first quarter of 2025, mainly due to higher average cash balances. Adjusted EBITDA increased by 5.2% or by $8.9 million to 180.6 million in the current quarter from $171.7 million in the first quarter of 2025 for the reasons that have already been outlined earlier on this call. We also encourage you to review our updated investor presentation that is posted on our website, as well as all subsequent events disclosures. Since the date of our last earnings release, we have added $120 million to our contracted revenue backlog. At the same time, interest income came in at $7.6 million versus 3.6 million in the corresponding first quarter of 2025, mainly due to higher average cash balances. at the same time interest income came in at $7.6 million versus 3.6 million in the corresponding first quarter of 2025 mainly due to higher average cash balances Adjusted EBITDA increased by 5.2% or by $8.9 million to 180.6 million in the current quarter from $171.7 million in the first quarter of 2025 for the reasons that have already been outlined earlier on this call. adjusted ebitda increased by 5.2% or by $8.9 million to 180.6 million in the current quarter from $171.7 million in the first quarter of 2025 for the reasons that have already been outlined earlier on this call We also encourage you to review our updated investor presentation that is posted on our website, as well as all subsequent events disclosures. we also encourage you to review our updated investor presentation that is posted on our website as well as all subsequent events disclosures Since the date of our last earnings release, we have added $120 million to our contracted revenue backlog. since the date of our last earnings release we have added $120 million to our contracted revenue backlog Our contract revenue backlog for our containership fleet now stands at $4.1 billion, with a 4.2-year average charter duration. Contract coverage stands at 100% for this year or the remainder of this year, 88% for 2027, and 65% for 2028. Our investor presentation has analytical disclosure on our contracted charter book. As of March 31, 2026, our net debt stood at $170 million. That translates to a net debt to Adjusted EBITDA ratio of 0.2x, while 67 out of our 86 vessels are unencumbered and debt-free, while an extra 12 unencumbered vessels that secure our revolving credit facility are also debt-free. Our contract revenue backlog for our containership fleet now stands at $4.1 billion, with a 4.2-year average charter duration. our contract revenue backlog for our containership fleet now stands at $4.1 billion with a 4.2-year average charter duration Contract coverage stands at 100% for this year or the remainder of this year, 88% for 2027, and 65% for 2028. contract coverage stands at 100% for this year or the remainder of this year 88% for 2027 and 65% for 2028 Our investor presentation has analytical disclosure on our contracted charter book. our investor presentation has analytical disclosure on our contracted charter book As of March 31, 2026, our net debt stood at $170 million. as of march 31 2026 our net debt stood at $170 million That translates to a net debt to Adjusted EBITDA ratio of 0.2x , while 67 out of our 86 vessels are unencumbered and debt-free, while an extra 12 unencumbered vessels that secure our revolving credit facility are also debt-free. that translates to a net debt to adjusted ebitda ratio of 0.2x while 67 out of our 86 vessels are unencumbered and debt-free while an extra 12 unencumbered vessels that secure our revolving credit facility are also debt-free We have declared a dividend of $0.09 per share for this quarter, and we currently have $65 million remaining authority to repurchase stock under our $300 million Share Repurchase Program. Finally, as of the end of the first quarter of 2026, cash stood at $0.9 billion, while total liquidity, including availability under our revolving credit facility and marketable securities, stood at $1.3 billion, giving us ample flexibility to pursue accretive capital deployment opportunities. With that, I would like to thank you for listening to this first part of our call. Operator, we are now ready to open the call to Q&A. We have declared a dividend of $0.09 per share for this quarter, and we currently have $65 million remaining authority to repurchase stock under our $300 million Share Repurchase Program. we have declared a dividend of $0.09 per share for this quarter and we currently have $65 million remaining authority to repurchase stock under our $300 million share repurchase program Finally, as of the end of the first quarter of 2026, cash stood at $0.9 billion, while total liquidity, including availability under our revolving credit facility and marketable securities, stood at $1.3 billion, giving us ample flexibility to pursue accretive capital deployment opportunities. finally as of the end of the first quarter of 2026 cash stood at $0.9 billion while total liquidity including availability under our revolving credit facility and marketable securities stood at $1.3 billion giving us ample flexibility to pursue accretive capital deployment opportunities With that, I would like to thank you for listening to this first part of our call. with that i would like to thank you for listening to this first part of our call Operator, we are now ready to open the call to Q&A. operator we are now ready to open the call to q&a

Speaker 5: Thank you. We will now begin the question and answer session. To ask a question, you may press star one on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Omar Nokta with Clarksons. Please go ahead. Thank you. thank you We will now begin the question and answer session. we will now begin the question and answer session To ask a question, you may press star one on your touch tone phone. to ask a question you may press star one on your touch tone phone If you're using a speakerphone, please pick up your handset before pressing the keys. if you're using a speakerphone please pick up your handset before pressing the keys If at any time your question has been addressed and you would like to withdraw your question, please press star two. if at any time your question has been addressed and you would like to withdraw your question please press star two At this time, we will pause momentarily to assemble our roster. at this time we will pause momentarily to assemble our roster Our first question comes from Omar Nokta with Clarksons. our first question comes from omar nokta with clarksons Please go ahead. please go ahead

Speaker 4: Thank you. Hi, John and Evangelos. Good afternoon. Thank you. thank you Hi, John and Evangelos. hi john and evangelos Good afternoon. good afternoon

Speaker 2: Hi. Hi. hi

Speaker 4: A couple of things. A couple of things. a couple of things

Speaker 3: Welcome back. Welcome back. welcome back

Speaker 4: Thank you, sir. Thank you. Just a couple of things on my side. Just wanted to ask about investments from here, your last couple of investments outside of your core focus seem to be in LNG, both in, you know, the, in the stake in Yoda. You also invested in the Alaska LNG project earlier this year. Is this a concerted effort on your part to get a bit deeper into LNG? Should we be expecting more of this type of investment going forward? Thank you, sir. thank you sir Thank you. thank you Just a couple of things on my side. just a couple of things on my side Just wanted to ask about investments from here, your last couple of investments outside of your core focus seem to be in LNG, both in, you know, the, in the stake in Yoda. just wanted to ask about investments from here your last couple of investments outside of your core focus seem to be in lng both in you know the in the stake in yoda You also invested in the Alaska LNG project earlier this year. you also invested in the alaska lng project earlier this year Is this a concerted effort on your part to get a bit deeper into LNG? is this a concerted effort on your part to get a bit deeper into lng Should we be expecting more of this type of investment going forward? should we be expecting more of this type of investment going forward

Speaker 3: Yes. I think in general, the energy sector is, let's say, our next point of focus. As we see geopolitically, there are a lot of changes in that area. We are following it very closely, and we try to address it from every angle, both from the angle of transportation and also from the angle of LNG production itself, which is going to give us an access to the transportation as well. Yes. yes I think in general, the energy sector is, let's say, our next point of focus. i think in general the energy sector is let's say our next point of focus As we see geopolitically, there are a lot of changes in that area. as we see geopolitically there are a lot of changes in that area We are following it very closely, and we try to address it from every angle, both from the angle of transportation and also from the angle of LNG production itself, which is going to give us an access to the transportation as well. we are following it very closely and we try to address it from every angle both from the angle of transportation and also from the angle of lng production itself which is going to give us an access to the transportation as well

Speaker 4: Okay, got it. Well, that's helpful. Thank you. Then just maybe in terms of what we're seeing in the container shipping market, your revenue backlog is at $4.1 billion, which is obviously, you know, very strong historically. It is a little bit down from where you were last quarter, which I think was $4.3 billion. In general, you know, it looks like backlog additions maybe have been a bit leaner this, you know, these past couple of months, even though we are seeing indexes for, you know, the time charter indexes being at all-time highs or near all-time highs. What are you seeing kind of at the moment or in terms of liner interest for more charter coverage from here? Okay, got it. okay got it Well, that's helpful. well that's helpful Thank you. thank you Then just maybe in terms of what we're seeing in the container shipping market, your revenue backlog is at $4.1 billion, which is obviously, you know, very strong historically. then just maybe in terms of what we're seeing in the container shipping market your revenue backlog is at $4.1 billion which is obviously you know very strong historically It is a little bit down from where you were last quarter, which I think was $4.3 billion. it is a little bit down from where you were last quarter which i think was $4.3 billion In general, you know, it looks like backlog additions maybe have been a bit leaner this, you know, these past couple of months, even though we are seeing indexes for, you know, the time charter indexes being at all-time highs or near all-time highs. in general you know it looks like backlog additions maybe have been a bit leaner this you know these past couple of months even though we are seeing indexes for you know the time charter indexes being at all-time highs or near all-time highs What are you seeing kind of at the moment or in terms of liner interest for more charter coverage from here? what are you seeing kind of at the moment or in terms of liner interest for more charter coverage from here

Speaker 3: You know, from what you see from the profile, practically all 2026 and 2027 are almost fixed. We have very, very little, you know, going forward. Also for liner companies to start discussing from now about, you know, 2028, let's say ships might be a bit premature, especially for second-hand. You know, I don't think really it signifies anything else. Apart from that, we have been really fixing quite a lot in this period of time, and it's just circumstantial. You know, from what you see from the profile, practically all 2026 and 2027 are almost fixed. you know from what you see from the profile practically all 2026 and 2027 are almost fixed We have very, very little, you know, going forward. we have very very little you know going forward Also for liner companies to start discussing from now about, you know, 2028, let's say ships might be a bit premature, especially for second-hand. also for liner companies to start discussing from now about you know 2028 let's say ships might be a bit premature especially for second-hand You know, I don't think really it signifies anything else. you know i don't think really it signifies anything else Apart from that, we have been really fixing quite a lot in this period of time, and it's just circumstantial. apart from that we have been really fixing quite a lot in this period of time and it's just circumstantial

Speaker 4: Okay. Yeah, that certainly makes sense. There's just Nothing's available to be booked in the next several quarters. Okay, maybe just one final one. You know, thoughts on the share buyback. You've obviously historically been quite, you know, active on that front. You bought a bit during the first quarter, not at the same pace we've seen, at least in the fourth quarter. I guess that sort of makes sense given the shares have really been hitting, you know, 52-week highs seemingly every week. How are you thinking about the buyback from here? I guess in the context of maybe two things. One, you know, the shares are obviously at their highs. How do you think about the buyback from that perspective? Okay. okay Yeah, that certainly makes sense. yeah that certainly makes sense There's just Nothing's available to be booked in the next several quarters. there's just nothing's available to be booked in the next several quarters Okay, maybe just one final one. okay maybe just one final one You know, thoughts on the share buyback. you know thoughts on the share buyback You've obviously historically been quite, you know, active on that front. you've obviously historically been quite you know active on that front You bought a bit during the first quarter, not at the same pace we've seen, at least in the fourth quarter. you bought a bit during the first quarter not at the same pace we've seen at least in the fourth quarter I guess that sort of makes sense given the shares have really been hitting, you know, 52-week highs seemingly every week. i guess that sort of makes sense given the shares have really been hitting you know 52-week highs seemingly every week How are you thinking about the buyback from here? how are you thinking about the buyback from here I guess in the context of maybe two things. i guess in the context of maybe two things One, you know, the shares are obviously at their highs. one you know the shares are obviously at their highs How do you think about the buyback from that perspective? how do you think about the buyback from that perspective Also from the perspective of, you know, asset value, on NAV basis, it's discounted, and then perhaps on a free cash flow yield, the yield is quite high. How are you thinking about those two things with respect to the buyback? Also from the perspective of, you know, asset value, on NAV basis, it's discounted, and then perhaps on a free cash flow yield, the yield is quite high. also from the perspective of you know asset value on nav basis it's discounted and then perhaps on a free cash flow yield the yield is quite high How are you thinking about those two things with respect to the buyback? how are you thinking about those two things with respect to the buyback

Speaker 3: Well, you know, we still have the authority for another. Well, you know, we still have the authority for another. well you know we still have the authority for another

Speaker 2: $65 million. $65 million. $65 million

Speaker 3: $65 million. We are keeping closely. I mean, the stock has done a terrific run, you know, in the last, you know, few months. We are at kind of all-time high. Although, you know, we still believe that, you know, the stock is deeply undervalued, we are kind of more cautious into, you know, continuing, you know, during this hype to continue the buyback. $65 million. $65 million We are keeping closely. we are keeping closely I mean, the stock has done a terrific run, you know, in the last, you know, few months. i mean the stock has done a terrific run you know in the last you know few months We are at kind of all-time high. we are at kind of all-time high Although, you know, we still believe that, you know, the stock is deeply undervalued, we are kind of more cautious into, you know, continuing, you know, during this hype to continue the buyback. although you know we still believe that you know the stock is deeply undervalued we are kind of more cautious into you know continuing you know during this hype to continue the buyback

Speaker 4: Okay. That's fair. Cool. Well, thank you for that color, John. Thanks, Evangelos. I'll pass it back. Okay. okay That's fair. that's fair Cool. cool Well, thank you for that color, John. well thank you for that color john Thanks, Evangelos. thanks evangelos I'll pass it back. i'll pass it back

Speaker 3: Thank you. Thank you. thank you

Speaker 5: Thank you. Our next question come from Climent Molins with Value Investor. Please go ahead. Thank you. thank you Our next question come from Climent Molins with Value Investor. our next question come from climent molins with value investor Please go ahead. please go ahead

Speaker 1: Hi, good afternoon, and thank you for taking my questions. Omar has already covered a lot of ground, but I wanted to ask about the utilization on the capesize side of the fleet. Could you talk a bit about the drivers behind the significant scheduled offhire for the quarter? Was it mostly drydockings? Secondly, could you remind us about the drydocking schedule on this side of the fleet for the remainder of the year? Hi, good afternoon, and thank you for taking my questions. hi good afternoon and thank you for taking my questions Omar has already covered a lot of ground, but I wanted to ask about the utilization on the capesize side of the fleet. omar has already covered a lot of ground but i wanted to ask about the utilization on the capesize side of the fleet Could you talk a bit about the drivers behind the significant scheduled offhire for the quarter? could you talk a bit about the drivers behind the significant scheduled offhire for the quarter Was it mostly drydockings? was it mostly drydockings Secondly, could you remind us about the drydocking schedule on this side of the fleet for the remainder of the year? secondly could you remind us about the drydocking schedule on this side of the fleet for the remainder of the year

Speaker 2: Yes. It was two vessels that went to drydock in Q1. I don't have it offhand, but I don't think we have any more scheduled vessels on the dry side to head to the shipyard for the remainder of this year. Yes. yes It was two vessels that went to drydock in Q1. it was two vessels that went to drydock in q1 I don't have it offhand, but I don't think we have any more scheduled vessels on the dry side to head to the shipyard for the remainder of this year. i don't have it offhand but i don't think we have any more scheduled vessels on the dry side to head to the shipyard for the remainder of this year

Speaker 1: Okay, that's helpful. All the offhire days were attributable to these two vessels? Okay, that's helpful. okay that's helpful All the offhire days were attributable to these two vessels? all the offhire days were attributable to these two vessels

Speaker 2: Sorry, say again? Sorry, say again? sorry say again

Speaker 1: I was asking if all the offhire days in Q1 were attributable to the drydocking you conducted? I was asking if all the offhire days in Q1 were attributable to the drydocking you conducted? i was asking if all the offhire days in q1 were attributable to the drydocking you conducted

Speaker 2: Yes. Correct. Yes. yes Correct. correct

Speaker 1: Okay. Okay, that's very helpful. Thank you. I'll turn it over. Thank you for taking my questions. Okay. okay Okay, that's very helpful. okay that's very helpful Thank you. thank you I'll turn it over. i'll turn it over Thank you for taking my questions. thank you for taking my questions

Speaker 5: Thank you. It appears we have no further question at this time. I would like to turn the call back over to Dr. Coustas for any further comments or closing remarks. Thank you. thank you It appears we have no further question at this time. it appears we have no further question at this time I would like to turn the call back over to Dr. Coustas for any further comments or closing remarks. i would like to turn the call back over to dr coustas for any further comments or closing remarks

Speaker 3: Thank you all for joining this conference call and your continued interest in our story. Look forward to hosting you on our next earnings call. Have a nice day. Thank you all for joining this conference call and your continued interest in our story. thank you all for joining this conference call and your continued interest in our story Look forward to hosting you on our next earnings call. look forward to hosting you on our next earnings call Have a nice day. have a nice day

Speaker 5: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Thank you. thank you The conference has now concluded. the conference has now concluded Thank you for attending today's presentation. thank you for attending today's presentation You may now disconnect. you may now disconnect