Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What caused the steep short-term rebound in Capesize rates despite low rates in the first quarter? A: Stamatis Tsantanis, CEO, explained that the rebound was not due to the Capesize segment itself but rather the low congestion of Kamsarmax vessels. Previously, Kamsarmaxes were congested in areas like the Parana River and Panama Canal, but this congestion has cleared, leading to a collapse in Kamsarmax rates. This allowed Kamsarmax vessels to take over coal cargoes from Capesize vessels, impacting Capesize rates. However, with the market starting to reverse, futures indicate higher rates for the rest of the year.
Q: Are the one-time expenses related to new vessel deliveries and legal issues expected to continue into the next year? A: Stavros Gyftakis, CFO, stated that operational expenses (OpEx) are expected to remain stable at around $7,000 per ship per day. General and administrative (G&A) expenses, excluding the $4 million litigation costs from 2024, are expected to range between $1,500 to $2,000 per vessel per day.
Q: Do the operational days for Q1 2025 include the newly delivered vessels, Blueship and Meiship? A: Yes, Stamatis Tsantanis confirmed that the operational days include these vessels, which were delivered earlier than anticipated. This early delivery allows the company to utilize them immediately, especially as the market is expected to improve in Q2.
Q: What are the expectations for off-hire days due to dry dockings in 2025? A: Stavros Gyftakis mentioned that they expect around 20 to 25 off-hire days per vessel during dry dockings. Given the peak drydocking year for Capesizes, some unforeseen delays might occur due to congestion in Chinese shipyards.
Q: How do you view the impact of geopolitical developments and potential trade wars on the Capesize market? A: Stamatis Tsantanis expressed optimism about the Capesize market fundamentals, noting strong demand for raw materials like iron ore, coal, and bauxite. While geopolitical tensions could impact global trade, the Capesize segment is expected to remain resilient due to its strong demand fundamentals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.