Good morning. My name is Chelsea, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pangaea Logistics Solutions Fourth Quarter and Full Year 2025 Results Conference Call. Today's call is being recorded and will be available for replay beginning at 11:00 a.m. Eastern Standard Time. The recording can be accessed by dialing 800-839-5632 domestic or 402-220-2559 internationally. [Operator Instructions] It is now my pleasure to turn the floor over to Stefan Neely with Vallum Advisors. Please go ahead.

Thank you, operator, and welcome to the Pangaea Logistics Solutions Fourth Quarter and Full Year 2025 Results Conference Call. Leading the call with me today is CEO, Mads Petersen; and Chief Financial Officer, Gianni Del Signore. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. At the conclusion of our prepared remarks, we will open the line for questions. With that, I'd like to turn the call over to Mads.

Thank you, Stefan, and welcome to those joining us on the call today. I'm excited to speak to you all on my first earnings call as CEO of Pangaea. On behalf of everyone at Pangaea, I want to extend our appreciation and gratitude to Mark Filanowski for his many years of leadership and for helping to facilitate a smooth transition. During my 16 years with the company, I've been fortunate to be a part of our evolution into a best-in-class operator with a unique and valuable business model. I am incredibly proud of the team that we have assemble and grateful for the opportunity to lead Pangaea into our next phase of multiyear growth and shareholder value creation. Turning to the fourth quarter of 2025, we delivered solid results supported by strong completion to the 2025 Arctic ice season and stable overall dry bulk demand. Our fourth quarter TCE rates averaged 19% above the prevailing market for Panamax, Supramax and Handysize indices, reflecting the value provided by our niche ice class capabilities and long-term COAs. Total shipping days increased 26% year-over-year largely reflecting the integration of the Handysize vessels we acquired from SSI at the end of 2024. This expansion drove significant operating leverage. Adjusted EBITDA grew 22% year-over-year to $28.7 million, highlighting the advantages of our integrated logistics model and increased scale. During the quarter, we also continued investing in long-term strategic differentiation through our integrated logistics platform, which combines specialized shipping with terminals, stevedoring and port services. We commenced operation in Lake Charles, Louisiana and remain on track to launch expanded operations at the Port of Tampa early in the second half of this year. These investments deepen our customer relationships, enhance recurring revenue opportunities and further integrate Pangaea into our customers' supply chains, creating additional value for…

Thank you, Mads, and welcome to those joining us on the call today. Our fourth quarter financial results were highlighted by sustained TCE premiums relative to the prevailing market supported by our niche ice class fleet during the peak of the Arctic trade season. Fourth quarter TCE rates were $17,773 per day, a premium of 19% over the average published market rates for Panamax, Supramax and Handysize vessels in the period. Our adjusted EBITDA for the fourth quarter was approximately $29 million increase of about $5 million, driven by a 25% increase in shipping days and an 11% increase in TCE earned year-over-year. Adjusted EBITDA margin was 17% in the fourth quarter of 2025 and as compared to 13% in the prior year. Our total charter hire expenses increased by 36% compared to the fourth quarter of 2024, primarily due to a year-over-year increase in market rates, to charter in vessels as total charter in days remained relatively flat. Our charter-in cost on a per day basis was approximately $19,100 in the fourth quarter of 2025, an increase of 39% year-over-year, which reflects a similar increase in the average market for Panamax, Supramax and Handysize vessels. Through today, we've booked 2,543 days at $14,390 per day for the first quarter of 2026. Vessel operating expenses increased by 94% year-over-year, primarily due to the acquisition of the SSI fleet which increased total owned days by 56% as well as incremental costs incurred related to the transfer of eight of our ice-class vessels to Seamar management during the fourth quarter. On a per day basis, for full year 2025, vessel operating expenses, net of technical management fees was $5,932 per day. Total general and administrative expenses increased by 7% from $6.3 million to approximately $6.7 million. The increase was primarily due to…

[Operator Instructions] And our first question will come from [ Laura Mayer ] with B. Riley Securities.

My first question, have you been able to leverage your Handysize vessels to grow your onshore port and terminal business?

Laura, thank you for the question. Yes, we are experiencing nice synergies, both between the Handysize fleet and especially our existing Supramax fleet. And we are also in our portal terminals, we have also handled cargoes on several of our Handysize vessels. So that's a nice spin-off between the two activities, yes.

And with the current geopolitics disruption and the tanker market has received a lot of investor attention has the dry bulk sector and Pangaea been affected by recent events in the Middle East?

I think our direct exposure to the conflict in the area is virtually nonexistent. We have no ships in the area we have no ships going there. We have no people working in the region. We have two of our seafarers that were transiting through an airport, but they were able to make it out and make it home safely. So the direct impact on us is nonexistent. The indirect impact, I think, is mainly being felt through oil price volatility and the potential for even further trade disruption as the materials on the dry side that are moving in and out of the U.S. Gulf need to find alternative routes. So it's still very early in that process to see how that will all shake out. It's still very much uncertain. But on balance, it could have an impact for sure.

[Operator Instructions] And we'll take our next question from Poe Fratt with AGP.

Just a couple of quick ones, a little more detail, please. Can you talk about the impact, the potential impact of fuel prices, bunker fuel and how you manage your forward-looking bunker fuel prices?

Sure. So we manage our exposure to fuel prices primarily in two different ways. The biggest component of that is that several of our larger contracts, especially the longer-term ones have bunker adjustment clauses in them. So the freight is changed depending on the prevalent fuel price at any point in time. So around the time we were performing the shipment. That calculation made that shows the impact of a change in the fuel price and the freight is adjusted accordingly. So our earnings on that contract -- when those contracts doesn't change, really, it's sort of floating the fuel price. And then for our shorter exposure, we use we hedge through using derivatives. That is not something that is new to us. We have done that for many years. We have to -- when we are operating a business like ours where we have quite a big short-term book that has a fixed rate to it. So that is possible. It's relatively cheap. It's pretty efficient. And I believe on balance is probably a strength for us that we can manage that exposure honestly.

And so -- and my sense is you're protected or you're hedged or insulated from any bunker fuel price increases for, say, the next 6 months to 9 months? Is that fair? And so that you're really exposed as we look into the latter part of 2026 and maybe into '27, if oil prices continue to remain where they are right now and bunker fuel prices have stayed where they are?

No, I actually wouldn't say that, Poe, because the further out you go in our contract base, that's where we have the bunker escalation mechanism in the contract. So we are protected on our COA portfolio, either through a bunker escalation cost or through a hedge position that whatever future business we will be doing will be priced at whatever is the bunker prices at that time.

Okay. So you'll be able to dynamically adjust. What -- in those two buckets that you talked about, Mads, what's the first bucket as far as the overall business? Whether you measure on tonnes moved or revenue or some kind of metric?

When you referred to like the freight?

Yes, the freight to COA business. I'm just trying to appreciate sort of how those two fuel price adjustments, which is more -- which has -- which is more meaningful, I guess?

I would -- I think if I understand your question correctly, Poe, is that you're asking how much of contracted bunker adjustment clauses and how many are hedged with derivatives. Is that your question?

Yes, that would be helpful. Just any way you sort of want to portray it.

Yes. I would argue that we probably in the shorter term, it's probably done through derivatives, probably close to, I don't know, maybe 75%. And as you go out longer, further out, it's done 100% through bunker escalation clauses.

Okay. And then if you could just expand on your comment that trade flows may be impacted by what's going on in the Middle East. And you talked about trade going out of the U.S. Gulf. Can you just expand on that comment a little bit more?

So I think one thing that we all have to bear in mind that this is still very fresh, and I don't think you can see any changes. So a lot of this is sort of expectations or probably closer to speculation. But there is a there is expected to be a pretty significant impact from reduction in gas exports out of the AG that potentially could be substituted with coal. And obviously, coal is being moved on both vessels, dry bulk vessels and where that coal will be sourced from is still a little, I think, very much an unknown and in the app potentially could be long-haul business that will positively affect the ton-mile demand for the dry bulk market.

Okay. So specifically coal out of the U.S. in the backfill any shortfall in LNG out of the Middle East?

Potentially that could happen, yes. But again, it's still very early days in terms of the contract and what the impact will be. But it is something that could happen, yes.

And then you detailed a lot of activity on the terminal, the port terminals, stevedoring. Can you just maybe quantify the potential impact to 2026 numbers? As far as the expansion, the activity there? Or are we going to see a step-up in revenues and margin? Or is it going to be -- if we could just quantify that impact, that would be helpful.

Yes. Well, I can take that. It's -- we -- for Q4, a lot of these just started to come online, but it's really the impact will be for 2026. So we have Aransas, Lake Charles, Tampa and Pascagoula all coming on. So we do expect to step up incremental EBITDA next year, and it's probably around $3 million as for '26 is what we're expecting. In total, just as things start to fall in place throughout 2026, we expect to see that incremental EBITDA for the full year.

Okay. That was an EBITDA number, Gianni? That's correct?

Yes. Correct.

And then can you just talk about the fleet renewal, you sold two assets one per quarter for the last 2 quarters. what's on the front as far as the fleet renewal. Can you talk about both on the buy side and the sell side?

Sure. The decisions around those two transactions are driven primarily through by the age of the vessel. They were both approaching special surveys. One was 22 years, one was 20 years. So that is historically when we have decided to dispose of assets. So that's not really anything new. We're confidently in the market looking at potential candidates to bring into the fleet. And we are pretty optimistic about both the near-term market outlook and longer term as well. So we expect, of course, to be more active on the -- on that side of the fleet, adding a little bit of capacity as we go.

Thank you. And at this time, there are no further questions in the queue. So I'd like to turn the meeting back over to Mads for any additional or closing remarks.

Thank you very much. Once again, thank you for joining our call. Should you have any questions please feel free to contact us at investors@pangaeals.com and a member of our team will follow up with you. This concludes our call today. You may now disconnect.

Thank you. We have now reached our allotted time for this call. Today's meeting has ended, and we appreciate your time and participation. You may now disconnect.