Good afternoon, and welcome to the Golden Ocean Q1 twenty twenty five Release. My name is Peders Jemansson, and I'm the CEO and CFO of Golden Ocean. I will today present the Q1 twenty twenty five numbers and forward outlook In the first quarter of twenty twenty five, we have the following main highlights: Our adjusted EBITDA in the first quarter ended up at 12,700,000.0 compared to $69,900,000 in the fourth quarter. We recorded a net loss of 44,100,000.0 and a loss per share of $0.22 compared to a net income of $39,000,000 and earnings per share of $0.20 in the fourth quarter. Our TCE rates were about $16,800 per day for Capesizes and about $10,400 per day for Panamax vessels. And a fleet wide net TCE of about $14,400 per day for the quarter. We continue our intensive drydocking program recording drydocking cost of $38,300,000 for three eighty drydocking days in Q1 compared to 34,300,000.0 in Q4 relating to three twenty drydocking days. Following the share purchase by CMB Tech of close to 50% of the shares in Golden Ocean, A contemplated share for share merger between Golden Ocean and CNB Tech was announced after quarter end. In line with our fleet renewal strategy, we have entered into agreements for the sale of two older Kamsarmax vessels, at attractive prices.

For Q2, we have fixed net TCE of about $19,000 per day for 69% of Capesize days and about $11,100 per day for 81% of our Panamax days. For Q3, we have fixed a net TCE of about $20,900 per day for 16% of Capesize days, and about $12,900 per day for 38% of Panamax days. Finally, we declared a dividend of $05 per share for the first quarter twenty twenty five. Let's look a little bit closer into the numbers. As mentioned, we had a total fleet YTCE of 14,400 in Q1, down from 20,800 in Q4. Are in a period of frequent dry docks, from Q4 to and including Q2 twenty twenty five, we will have dry docked around 30 of our Capesizes And Newcastle MAX vessels. We recorded four forty five days of total off hire in Q1 versus three sixty four days in Q4. Dry dock constitutes three eighty days in the quarter and three twenty days in Q4, respectively. For Q1, in addition to the nine drydockings, we recorded ninety three days due to spillover effects from delays in completion of drydockings in Q4. Seven ships scheduled for drydock in Q2 twenty twenty five of which three vessels have completed dry dock as of today.

The rest will enter the yard in June. This resulted in net revenues of $114,700,000 down from 174,900,000.0 in Q4. On operating expenses, we recorded 95,300,000.0 versus 95,600,000.0 in Q4. Our running expenses ended at $53800000.05900000.0 dollars down from Q4 mainly due to less candidate days in the quarter and lower expenses for ballast water treatment systems recorded in Q4. We expensed all dry docking costs we saw an increase in the OpEx result of 4,100,000.0 quarter on quarter relating to dry docks, ending at $38,400,000 versus $34,300,000 in the previous quarter. OpEx reclassified from charter hire was 1,000,000 one million dollars down from Q4. And we incurred $2,100,000 in fuel efficiency enhancements, and other vessel upgrades in the first quarter of twenty twenty five. Our G and A ended at 5,400,000.0 down from $6,500,000 in Q4. Daily G and A came in at $614 per day, net of cost recharged to affiliated companies, $95 per day down from Q4 due to lower legal fees. On charter hire expense, we recorded $1,500,000 versus $4,200,000 in Q4.

As a result of lower vessel dates for the trading portfolio. On depreciation, we saw a reduction in depreciation by $3,600,000 to $31,900,000 in Q1 as a result of the declaration of purchase options for leased vessels with SFL and thereby extension of their useful life in our balance sheet. On net financial expenses, we recorded $22,000,000 versus $23,300,000 in Q4. A reduction mainly due to lower software rates in the quarter. On derivatives and other financial income, we recorded a loss of $2,500,000 compared to a gain of $13,600,000 in Q4. On derivatives, we recorded a loss of 3,000,000 versus a gain of €11,800,000 in Q4. Included in derivatives, was a mark to market loss of 7,000,000 on interest rate swaps in addition to a $2,700,000 realized cash gain. And finally, FFA and FX derivatives a positive result of 1,300,000.0 euros For results and investments in associates, we recorded a gain of $700,000 compared to a $1,600,000 gain in Q4. Relating to investments in Swiss Marine, TFG and UFC. A net loss of 44,100,000.0 or a $0.22 loss a dividend of $05 per share declared for the quarter. Cash flow from operations came in at negative 3,300,000.0 down from $71,700,000 in Q4.

Cash flow used in financings were $15,800,000 mainly comprising of net proceeds from new financings of 50,000,000 euros which was a drawdown under our revolving credit facility, $35,900,000 in scheduled debt and lease repayments and a dividend payment of $29,900,000 relating to the Q4 results. Total net decrease in cash of 19,100,000.0 dollars On our balance sheet, we had cash and cash equivalents of $112,600,000 including $5,900,000 of restricted cash. In addition, we had $100,000,000 of undrawn available credit lines at quarter end. Our debt and finance lease liabilities totaled 1,440,000,000.00 by end up by approximately €73,000,000 quarter on quarter. Average fleet wide loan to value under the company's debt facilities per end was 39.2% and a book equity of 1,800,000,000.0 and a ratio of total equity to total assets of approximately 54%. In Q1, we saw seasonality play out for the main drybulk commodities in addition addition to a reduction in sailing distances year on year. Ton miles fell 1.5% with grains in coal being the main contributors. As China reduced their imports by 1425% respectively, compared to Q1 twenty twenty four. This has impacted the smaller shipping segments the most, which Panamaxes were supported by an increase in the relative share of coal volumes.

Iron ore volumes fell in line with seasonality driven by weather related trade disruptions in particular for Australia. In fact, Brazilian exports were slightly positive year on year. Despite more heavy rain season which indicates infrastructure improvements. Bauxite volumes from Guinea which had their high season in Q1, recorded a 37% year on year growth in Q1 with 48,800,000,000 tonnes exported. Of which approximately 85% goes to China. On iron ore, Australian iron ore exports were impacted by an extensive cyclone season in Q1. With volumes reduced by 9.7% compared to Q4 and 2.2% year on year. Rain season in Brazil also impacted export volumes but interestingly ended higher compared to Q1 twenty twenty four. Despite geopolitical unrest, and lowered global growth forecasts, we have seen supportive signals from Australian and Brazilian miners on their expected annual export volumes. Both Rio Tinto and Vale expect 2025 full year volumes to reach three twenty five million to three thirty five million tons, while BHP reiterates their two fifty five million to two sixty five million tonnes target. The target represents flat year on year development for all three exporters. China continues to be the main importer of iron ore. As for coal and grains, Chinese iron ore import volumes have been lowered during the period with geopolitical unrest.

Chinese steel production has come down quarter on quarter in line with seasonality and compared to Q1 twenty twenty four. However, the Chinese government are continuing to stimulate the economy through lowering interest rates, And according to recent announcements from the Chinese China Iron and Steel Industry Association, they forecast a 2% year on year growth in steel demand by by further stimuli in the industrial sector, counterbalancing the weak property market and consumer demand. The quality of Chinese domestic iron ore is poor and deteriorating, with an estimated Fe content of around 20% to 30%. On the back of increased pressure to decarbonize the steel industry, the Chinese government focused on high quality coal and high Fe content, and this is highly supportive to Tonmile with the largest new deposits of high grade iron ore found in Brazil and Guinea. In Q4 this year, we will see the Simandou project in Guinea, West Africa commence exports. The Simandou high grade iron ore mine is expected to ramp up production over two years, adding an additional 120,000,000 tons export capacity annually. In addition, new expansions are underway in Brazil, adding 50,000,000 tonnes in new capacity over the next years. Iron ore prices continue to be well supported trading around $100 per tonne for a long period.

This compares very favorably to the breakeven rate of the major miners of around $50 per tonne delivered China. Further, when new high grade volumes come on stream, ore prices may fall from current levels. And withstood domestic Chinese iron ore in the high end of the cost curve a lower iron ore price is expected to favor more tonne mile heavy trading routes. With significant Chinese investment in mining and infrastructure in Guinea, we expect these volumes to be prioritized as a replacement for its domestic ore. Supporting the long term positive outlook for the Capesize vessels. The Guinea government has together with Chinese industrial conglomerates and global mining giants developed infrastructure and port facilities an area where the largest deposits of high quality bauxite and iron ore. Is found. Kinnean bauxite have over the last five years seen an average growth rate of 22%. Bauxite, which is used in the production of aluminum, is supplying the booming EV industry as well as other industries in China. The Q1 export volumes from Guinea showed the export capacity with volumes exceeding 48,000,000 tonnes 37% up from Q1 twenty twenty four. The first quarter is the high season for bogsak exports.

And this year, exports have surprised on the upside which substantiates the consensus expectation for a 5% to 10% growth annually for the next two years. As the Guinean bauxite trade constitutes 12% to 15% of the total Capesize tonne mile demand a 5% to 10% growth in volumes will represent a 1% to 1.5% growth in the tonne mile demand. Representing the full 2025 order book. We are currently seeing some instability in Guinea, whereby mining licenses have been temporarily revoked having a shorter potential impact on exports. Due to the high importance of the iron and bauxite ore exports, for the country's economy, expect that this will be resolved. The order book remains attractive for the Capesize fleet with around 8% order book to fleet ratio. Shipyard capacity for Capesizes in Newcastle and Maxes is limited, and yards prioritized container and LNG and tanker orders over drybulk vessels. Despite historically high newbuilding prices, the profit margins for dry bulk is limited compared to other vessel segments. We are in a period with increasing advantages for modern vessels, both in terms of fuel efficiency and carrying capacity, but also tightening regulations relating to safety, crew welfare and emissions. As seen on the left hand graph, the Capesize fleet is aging, rapidly.

And by 2028, over half of the global Capesize fleet will be over fifteen years. In a period where environmental regulations are tightening. The global Capesize fleet will, over the next two years, experience high proportion of drydocks compared to an average five year cycle. A large share of these vessels are fifteen year drydockings, normally requiring substantial investments to meet class requirements. The focus by major miners and traders on safety, technical additions and emissions are increasing, which has substantially increased the investment needed to maintain a trading flexibility for older ships. The fleet continues to operate at high level of efficiency, with port disruptions in the lower end of the historical range. While we do not expect conditions to increase meaningfully, there is no remaining downside to fleet efficiency. Sailing speeds remain low, and expect this to continue. Particularly for the large portion of the older inefficient fleet. We are still only seeing marginal transits through the Cape Sources through the Suez Canal, while reopening will provide some reduction in tonne mile at face value It may also reopen ton mile accretive trades. I will now pass the word back to the operator and welcome any questions. [indiscernible] to ask a question, please press 11 on the telephone keypad.

And wait for your name to be announced. To withdraw a question, please press 11 again. Please standby. We'll compile the Q and A roster. This will take a few moments. Once again, if you wish to ask a question, please press 11. Just give us a moment, and now we're going to take our first question. And the question comes from the line of Peter Hogan from ABG Sundal Collier. Your line is open. Please ask your question.

Good afternoon. I was wondering if you could shed some light on the timing for the contemplated merger. In terms of well, yeah, I suppose more if if you can be be specific on on dates to to look forward to. In in this context. Hi, Petit. No, I think as of date, it really hard to say. We are working in accordance with the plan that was announced in the press release and there are obviously in such processes a lot of different work streams so it's hard to be more specific on what has been announced.

Okay. Okay.

I don't know if it's looking at the prices for the two related equities here. It It seems to be [indiscernible] detachment. Between market prices and the agreed o point 95. Exchange ratio Should we interpret that as if the market is is not expecting the merger to go through. With such an exchange ratio, or are there any other elements to this that's well, I don't understand.

I have to say that's something that you should probably interpret on my behalf, isn't it? I mean, it's priced in the way it's priced, for whatever reason. I guess some of it has to do with liquidity. In the stock, but I leave that to you to interpret. [indiscernible] I do understand that it's probably closer to to my profession. To to try to explain. But as you as you understand, it's it's quite difficult to to grasp that now, so 15%, 16%, 17% discount. Okay. But towards the market then, We've had sort of, I would say, a conventional sort of q one perhaps somewhat on the low end. If you go back a few weeks, we had some good momentum here. But over the past well, few trading days, it's stagnant again. In terms of near term expectations here, Should we think that we need to see Simonsu volumes coming and and trying to get covered with chips, or are there significant or sort of meaningful catalysts in the marketplace to be expected prior to that? I think what has happened in the recent couple of weeks is that we've seen some disruptions on the Guinea export side.

There's been some turmoil on force majeure being invoked on some of the mines and export facilities there, and also we saw a breakdown of a some technical equipment in Peru. Also disrupting some of the markets. And these things do not necessarily give less volumes into the market, but they impact the sentiment. Given the sort of general economic sentiment, can impact the FFA curve, is what prices freight So, I think incidents like that will impact the market, given the nervousness in general, but the volumes are picking up in line with seasonality. We see that Vale is now approaching $900,000 tonnes per day, which is very solid. [indiscernible] And I don't see that there's going to be you know, that gravity will find its way here as well. So I don't think we need to wait for Simandou. We are still very positive for the second half. Expect volumes to be healthy. For the Capes. So So that's our expectation, but it may take some time given the way the sentiment works as of now.

Okay. And in light of what is now, I would as I said before, not a very at least, good quarter in hindsight that we we we we in Q1 and with current rates also perhaps at least not in the high end. The asset prices continue to be strong here. Is it from your perspective Well, is it to be expected that we'll continue to see well, according to Clarkson quote 17 to $80,000,000 for a resale new Kaufemax if rates continue for the standard capes and sort of mid teen level. Doesn't something have to give her either a rate come up or asset prices would see would see some pressure.

Yes, I mean, you've asked this question now for quite a long time. And that there's been a disconnect between asset prices and sort of [indiscernible] I think that new building prices have are high as a function of both sort of supportive long term fundamentals for the market, but also lack of the yard capacity. So I think those are very well supported We see it also on the second hand values. Which we don't expect to come down. We have seen Mandu, we have a lot of the demand fundamentals being positive for the big ships. And not least historically, well, good visibility on the supply side. So I don't really see what's going to bring values down. And I think it is a matter of time before this this gravity trickles into the freight market as well. There are a lot of warm offs that impact this market As of now, we have obviously a good Q1 last year.

Sort of unusually good. And this year it was more in line with seasonality. And we've seen that the big miners are still very much guiding positively for full year volumes in line with last, which means that they would need to ramp up their exports significantly for the second half. So don't think fundamentally there's anything that has changed that picture, and obviously supported by risk constrained shipyard capacity and willingness to build the Capesizes. And Nicosamaxes, I think that's not going to change in the near term.

Okay. No, well, okay. It's going to be uninteresting still. Market this. I hand it back here to the operator. Thank you.

Thank you, Peter.

Thank you. Dear participants, as a reminder, if you wish to ask a question or to do some Dear speakers, are no further questions. I would now like hand the conference over to Peter Simonson for any closing remarks.

Thank you. I just want to thank you for joining in and have a great rest of the week.

This concludes today's conference call. Thank you for participating. You may now disconnect. Have a nice day.