Pangaea Logistics Solutions Ltd

Previous wording

The dry bulk transportation and logistics industry is known for its cyclicality and volatility, which can be attributed to fluctuations in vessel supply and demand for the transportation of dry bulk commodities. The Baltic Dry Index (“BDI”), a measure of dry bulk market performance, averaged 1,853 for the second quarter of 2024, up approximately 53%, compared to an average of 1,215 for the same quarter of 2023. The average published market rates for Supramax and Panamax vessels, reflecting the composition of the company's fleet, also increased approximately 45%, from an average of $10,431 in the second quarter of 2023 to $15,104 in the same period of 2024. Quarter over quarter, the average published market rates for Supramax and Panamax vessels remained relatively stable at$15,104 for the second quarter of 2024, compared to $13,671 for the first quarter of 2024. However, there was volatility within the first quarter of 2024, with rates fluctuating between lows of approximately $11,000 and highs of approximately $18,000. As a result of the industry's volatility, we have experienced fluctuations in our quarterly and annual operating results in the past, and we expect to continue experiencing such fluctuations in the future due to various factors, including cargo demand, vessel supply, competition, and seasonality.

Current wording

The Baltic Dry Index (“BDI”), a broader market measure of the cost to transport drybulk commodities by sea, offers a market view into global supply demand trends and is considered the standard benchmark for drybulk cargo pricing. The BDIaveraged 1,871 for the third quarter of 2024, up approximately 43%, compared to an average of 1,305 for the same quarter of 2023. The average published market rates for Supramax and Panamax vessels, reflecting the composition of the company's fleet, also increased approximately 30%, from an average of $10,548 in the third quarter of 2023 to $13,707 in the same period of 2024. As a result of the industry's volatility, we have experienced fluctuations in our quarterly and annual operating results in the past, and we expect to continue experiencing such fluctuations in the future due to various factors, including cargo demand, vessel supply, competition, and seasonality.

Previous wording

For the three months ended June 30, 2024, the Company's TCE rates were up 4% to $16,223 from $15,558 for the three months ended June 30, 2023. The Company's achieved TCE rates improved from the previous quarter as the overall dry bulk market rates improved for the three months ended June 30, 2024. The Company's achieved TCE rate for the three months ended June 30, 2024 outperformed the average of the Baltic panamax and supramax market indexes and exceeded the average market rates by approximately 7% due to its long-term contracts of affreightment, ("COAs"), its specialized fleet and its cargo-focused strategy.

Current wording

For the three months ended September 30, 2024, the Company's TCE rates were up 4% to $16,324 from $15,748 for the three months ended September 30, 2023. The Company's achieved TCE rates improved from the previous quarter as the overall dry bulk market rates improved for the three months ended September 30, 2024. The Company's achieved TCE rate for the three months ended September 30, 2024 outperformed the average of the Baltic panamax and supramax market indexes and exceeded the average market rates by approximately 19% due to its long-term contracts of affreightment, ("COAs"), its specialized fleet and its cargo-focused strategy.

Previous wording

•Net income attributable to Pangaea Logistics Solutions Ltd. was approximately $3.7 million for three months ended June 30, 2024 as compared to approximately $2.8 million for the same period of 2023.

Current wording

•Net income attributable to Pangaea Logistics Solutions Ltd. was approximately $5.1 million for three months ended September 30, 2024 as compared to approximately $18.9 million for the same period of 2023.

Previous wording

•Diluted net income per share was $0.08 for three months ended June 30, 2024, as compared to $0.06 for the same period in 2023.

Current wording

•Diluted net income per share was $0.11 for three months ended September 30, 2024, as compared to $0.42 for the same period in 2023.

Previous wording

•Pangaea's TCE rates were $16,223 for the three months ended June 30, 2024 and $15,558 for the three months ended June 30, 2023.

Current wording

•Pangaea's TCE rates were $16,324 for the three months ended September 30, 2024 and $15,748 for the three months ended September 30, 2023.

Previous wording

•At the end of the quarter, Pangaea had $77.9 million in cash, and cash equivalents.

Current wording

•At the end of the quarter, Pangaea had $93.1 million in cash, and cash equivalents.

Previous wording

Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended June 30, 2024 was $131.5 million, compared to $118.1 million for the same period in 2023, an 11% increase. The increase in revenues was primarily driven by an increase in voyage days, which rose by 9% to 3,910 for the three months ended June 30, 2024, compared to 3,577 for the same period in 2023. The Company additionally had an increase in terminal and stevedore revenue resulting from the Company's acquisition of port and terminal operations in June 2023. However, this was offset by a significant decrease in charter revenue as a result of a decrease in time charter days of 57%.

Current wording

Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended September 30, 2024, was $153.1 million, compared to $135.6 million for the same period in 2023, a 13% increase. The increase in revenues was primarily driven by a 5% rise in total shipping days, reaching 4,805 days for the three months ended September 30, 2024, compared to 4,610 days for the same period in 2023. However, this was partially offset by a 20% decrease in terminal and stevedore revenue.

Previous wording

Voyage revenues increased by 12% for the three months ended June 30, 2024 to $124.1 million compared to $110.5 million for the same period in 2023. The increase in voyage revenues was primarily due to a 9% increase in voyage days from 3,577 in the three months ended June 30, 2023 to 3,910 for the three months ended June 30, 2024. The increase is also attributable to higher average TCE rates earned as discussed above.

Current wording

Voyage Revenues: Voyage revenues increased by 13% for the three months ended September 30, 2024 to $145.1 million compared to $127.9 million for the same period in 2023. The increase in voyage revenues was primarily due to a 5% increase in voyage days from 4,314 in the three months ended September 30, 2023 to 4,549 for the three months ended September 30, 2024. The increase is also attributable to higher average TCE rates earned as discussed above.

Previous wording

Charter revenues decreased to $3.8 million from $7.1 million, or 46%, for the three months ended June 30, 2024 compared to the same period in 2023. The decrease in charter revenues was due to a decrease in time charter days which were down 57% to 207 in the second quarter of 2024 from 479 for the same quarter in 2023. This was partially offset by increased charter hire rates earned which increased by approximately 26% from $14,809 per day to $18,593 per day in the second quarter of 2024. Our flexible chartering strategy enables the Company to selectively release excess ship days, if any, into the market under time charter arrangements rather than voyage days.

Current wording

Charter Revenues: Charter revenues increased to $4.9 million from $3.8 million, or 28%, for the three months ended September 30, 2024 compared to the same period in 2023. The increase in charter revenues was due to higher charter hire rates, with the panamax and supramax vessel index rising 30% from $10,548 per day for three months ended September 30, 2023 to $13,707 per day, over the same period of 2024. However, time charter days decreased by 13% year-over-year, from 296 days to 256 days. Our flexible chartering strategy enables the Company to selectively release excess ship days, if any, into the market under time charter arrangements rather than voyage days.

Previous wording

Inflation in the United States and many global markets is affecting various aspects of our Company's vessel operation costs, including crew travel, equipment transportation, and drydocking. While we expect crew payroll expenses to stabilize in the near and medium term, other inflated costs may increase our vessels' daily operating expenses. Typically, any fuel cost increases during voyages are managed through bunker hedging or through fuel cost pass-through arrangements in long-term contracts.

Current wording

In recent years, global cost inflation has contributed to higher vessel operation costs, including crew travel, equipment transportation, and drydocking. While we expect crew payroll expenses to stabilize in the near and medium term, other inflated costs may increase our vessels' daily operating expenses. Typically, any fuel cost increases during voyages are managed through bunker hedging or through fuel cost pass-through arrangements in long-term contracts.

Previous wording

Voyage expenses were $61.2 million for the three months ended June 30, 2024, compared to $54.5 million for the same period in 2023, an increase of approximately 12%. The increase was driven by a 9% increase in voyage days, leading to corresponding increases in bunkers consumed and port expenses incurred. The total average market price of bunkers consumed increased by 15.8% for the three months ended June 30, 2024, compared to the same period in 2023. Port expenses increased approximately 5% compared to the prior year as a result of the increase in voyage day activity.

Current wording

Voyage Expenses: Voyage expenses were $71.5 million for the three months ended September 30, 2024, compared to $59.1 million for the same period in 2023, an increase of approximately 21%. The increase was driven by a 5% increase in voyage days, leading to corresponding increases in bunkers consumed and port expenses incurred. The total average market price of bunkers consumed increased by 19.7% for the three months ended September 30, 2024, compared to the same period in 2023. Port expenses increased approximately 7% compared to the prior year as a result of the increase in voyage day activity.

Previous wording

Charter hire expenses for the three months ended June 30, 2024 were $32.7 million, compared to $29.1 million for the same period in 2023, a 12% increase. The increase in charter hire expenses was predominantly driven by higher market rates for charter-in vessels, as well as an increase in chartered-in days. Specifically, the average published market rates for Supramax and Panamax vessels increased approximately 45% climbing from an average of $10,431 in the second quarter of 2023 to $15,104 in the same period of 2024. Chartered-in days increased 3% from 1,915 days in the three months ended June 30, 2023 to 1,971 days for the three months ended June 30, 2024. Charter hire expenses on a per day basis were $16,583 for the three months ended June 30, 2024 and $15,209 for the same period in 2023. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.

Current wording

Charter Hire Expenses: Charter hire expenses for the three months ended September 30, 2024 were $36.5 million, compared to $25.5 million for the same period in 2023, a 43% increase. The increase in charter hire expenses was predominantly driven by higher market rates for charter-in vessels, as well as an increase in chartered-in days. Specifically, the average published market rates for Supramax and Panamax vessels increased approximately 30% climbing from an average of $10,548 in the third quarter of 2023 to $13,707 in the same period of 2024. Chartered-in days increased 7% from 2,358 days in the three months ended September 30, 2023 to 2,519 days for the three months ended September 30, 2024. Charter hire expenses on a per day basis were $14,494 for the three months ended September 30, 2024 and $10,800 for the same period in 2023. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.

Previous wording

Vessel operating expenses for the three months ended June 30, 2024 were $14.7 million, compared to $13.2 million for the same period in 2023, an increase of approximately 12%. The ownership days for the three months ended June 30, 2024 and 2023 were 2,184 and 2,200, respectively, marking a decrease of 1%. The Company owned and operated one fewer ship in the 2024 period. Excluding technical management fees, vessel operating expenses on a per day basis were $6,246 for the three months ended June 30, 2024, compared to $5,517 for the three months ended June 30, 2023. Technical management fees amounted to approximately $1.1 million for the three months ended June 30, 2024 and 2023.

Current wording

Vessel Operating Expenses: Vessel operating expenses for the three months ended September 30, 2024 were $13.9 million, compared to $14.3 million for the same period in 2023, an decrease of approximately 3%. The ownership days remained stable, with 2,293 days for the three months ended September 30, 2024 compared to 2,300 days in 2023, reflecting a decrease of less than 1%. Excluding technical management fees, vessel operating expenses on a per day basis were $5,520 for the three months ended September 30, 2024, down from $5,706 for the three months ended September 30, 2023. Technical management fees amounted to approximately $1.2 million and $1.1 million for the three months ended September 30, 2024 and 2023, respectively.

Previous wording

General and administrative expenses amounted to $5.0 million for the three-month period ending June 30, 2024, compared to $5.9 million for the corresponding period in 2023. The decrease in the second quarter of 2024 was primarily attributed to the absence of non-recurring acquisition costs related to the port and terminal incurred in June 2023; as well as a decrease in compensation expenses, including incentive compensation costs and non-cash compensation associated with equity awards.

Current wording

General and Administrative Expenses: General and administrative expenses amounted to $6.0 million for the three-month period ended September 30, 2024, compared to $5.5 million for the corresponding period in 2023. The increase is primarily attributable to an increase in non-cash compensation associated with equity awards.

Previous wording

The Company assesses risk associated with fluctuating future freight rates and bunker prices, and when appropriate, actively hedges identified economic risk that may impact the operating income of long-term cargo contracts and forward bookings with forward freight agreements and bunkers swaps. The utilization of such derivatives can lead to fluctuations in the Company's reported results from operations on a period-to-period basis as the Company marks these positions to market at the balance sheet date while settlement of the position and execution of the physical transaction may occur at a future date. The Company recognized a mark to market loss on bunker swaps of approximately $0.8 million and a mark to market gain on forward freight agreements (FFAs) of approximately $40.1 thousand in the three months ended June 30, 2024. The fair value loss on interest rate derivative amounted to approximately $0.1 million for the three months ended June 30, 2024. The total loss resulted from changes in the fair value of the derivatives at the respective balance sheet dates.

Current wording

The Company assesses risk associated with fluctuating future freight rates and bunker prices, and when appropriate, actively hedges identified economic risk that may impact the operating income of long-term cargo contracts and forward bookings with forward freight agreements and bunkers swaps. The utilization of such derivatives can lead to fluctuations in the Company's reported results from operations on a period-to-period basis as the Company marks these positions to market at the balance sheet date while settlement of the position and execution of the physical transaction may occur at a future date. The Company recognized a mark to market loss on bunker swaps of approximately $3.3 million and a mark to market loss on forward freight agreements (FFAs) of approximately $712.9 thousand in the three months ended September 30, 2024. The fair value loss on interest rate derivatives amounted to approximately $2.0 million for the three months ended September 30, 2024. The total loss resulted from changes in the fair value of the derivatives at the respective balance sheet dates.

Previous wording

Pangaea’s revenues are derived predominately from voyage and time charters. Total revenue for the six months ended June 30, 2024 was $236.2 million, compared to $231.8 million for the same period in 2023, a 2% increase. The increase in revenues was primarily due to higher average TCE rates earned despite a 3% decrease in the total shipping days. The total shipping days decreased from 8,014 in the six months ended June 30, 2023 to 7,802 for the same period in 2024.

Current wording

Pangaea’s revenues are derived predominately from voyage and time charters. Total revenue for the nine months ended September 30, 2024 was $389.4 million, compared to $367.4 million for the same period in 2023, a 6% increase. The increase in revenues was primarily due to higher average TCE rates earned. The total shipping days remained stable, totaling 12,607 days for the nine months ended September 30, 2024, compared to 12,624 days for the nine months ended September 30, 2023.

Previous wording

Charter revenues increased to $18.9 million from $12.8 million, or 47%, for the six months ended June 30, 2024 compared to the same period in 2023. The increase in charter revenues was due to an increase in charter hire rates earned. The time charter revenue per day was $17,776 for the six months ended June 30, 2024 compared to $12,286 for the same period of 2023. Time charter days were up 2% to 1,062 in the six months ended June 30, 2024 from 1,045 in the six months ended June 30, 2023. The optionality of our chartering strategy allows the Company to selectively release excess ship days, if any, into the market under time charters arrangements.

Current wording

Charter Revenues: Charter revenues increased to $23.7 million from $16.6 million, or 43%, for the nine months ended September 30, 2024 compared to the same period in 2023. The increase in charter revenues was due to an increase in charter hire rates earned. The time charter revenue per day was $18,011 for the nine months ended September 30, 2024 compared to $12,406 for the same period of 2023. Time charter days decreased 2% to 1,318 in the nine months ended September 30, 2024 from 1,341 in the nine months ended September 30, 2023. The optionality of our chartering strategy allows the Company to selectively release excess ship days, if any, into the market under time charters arrangements.

Previous wording

Terminal & Stevedore revenues increased by 584% for the three months ended June 30, 2024 to $3.6 million compared to $0.5 million for the same period in 2023. The increase in revenues were a result of the Company's acquisition of port and terminal operations in June 2023.

Current wording

Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 105% for the nine months ended September 30, 2024 to $9.1 million compared to $4.5 million for the same period in 2023. The increase was primarily attributed to the acquisition of port operations on June 1, 2023, which resulted in a full nine months of revenue being recorded in 2024, compared to merely four months in 2023.

Previous wording

Charter hire expenses for the six months ended June 30, 2024 were $59.8 million, compared to $51.7 million for the same period in 2023, a 16% increase. The increase in charter hire expenses was primarily due to an increase in market rates to charter-in vessels. The average published market rates for Supramax and Panamax vessels increased approximately 43% from an average of $10,067 in the six months ended June 30, 2023 to $14,388 in the same period of 2024. This was offset by a decrease in chartered-in days of 5% from 3,693 days in the six months ended June 30, 2023 to 3,506 days for the six months ended June 30, 2024. The Company's flexible charter-in strategy allowing it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.

Current wording

Charter Hire Expenses: Charter hire expenses for the nine months ended September 30, 2024 were $96.3 million, compared to $77.2 million for the same period in 2023, a 25% increase. The increase in charter hire expenses was primarily due to an increase in market rates to charter-in vessels. The average published market rates for Supramax and Panamax vessels increased approximately 38% from an average of $10,227 in the nine months ended September 30, 2023 to $14,161 in the same period of 2024. Meanwhile, chartered-in days remained about the same, with a slight decrease from 6,050 days in the nine months ended September 30, 2023 to 6,025 days for the nine months ended September 30, 2024. The Company's flexible charter-in strategy allowing it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.

Previous wording

Vessel operating expenses for the six months ended June 30, 2024 were $27.4 million, compared to $26.8 million for the same period in 2023, an increase of approximately 2%. Excluding technical management fees, vessel operating expenses on a per day basis were $5,773 for the six months ended June 30, 2024 and $5,575 for the same period in 2023. Technical management fees were approximately $2.2 million for the six months ended June 30, 2024 and 2023.

Current wording

Vessel Operating Expenses: Vessel operating expenses for the nine months ended September 30, 2024 were $41.3 million, compared to $41.1 million for the same period in 2023, a slight increase of approximately 1%. Excluding technical management fees, vessel operating expenses on a per day basis were $5,686 for the nine months ended September 30, 2024 and $5,620 for the same period in 2023. Technical management fees were approximately $3.4 million and $3.3 million for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

General and administrative expenses were $12.3 million and $11.6 million for the six months ended June 30, 2024 and 2023, respectively. The increase was primarily due to an increase in non-cash compensation associated with equity awards.

Current wording

General and Administrative Expenses: For the nine months ended September 30, 2024, general and administrative expenses were $18.3 million, compared to $17.1 million for the same period in 2023, reflecting a marginal increase year-over-year. The increase is primarily attributable to non-cash compensation associated with equity awards.

Previous wording

The Company assesses risk associated with fluctuating future freight rates and bunker prices, and when appropriate, actively hedges identified economic risk that may impact the operating income of long-term cargo contracts and forward bookings with forward freight agreements and bunkers swaps. The utilization of such derivatives can lead to fluctuations in the Company's reported results from operations on a period-to-period basis as the Company marks these positions to market at the balance sheet date while settlement of the position and execution of the physical transaction may occur at a future date. The Company recognized mark to market gains on bunker swaps of approximately $2.1 million and gains on forward freight agreements (FFAs) of approximately $1.8 million in the six months ended June 30, 2024. The fair value gain on interest rate derivatives was approximately $0.2 million for the six months ended June 30, 2024. These gains resulted from changes in the fair value of the derivatives at the respective balance sheet dates.

Current wording

The Company assesses risk associated with fluctuating future freight rates and bunker prices, and when appropriate, actively hedges identified economic risk that may impact the operating income of long-term cargo contracts and forward bookings with forward freight agreements and bunkers swaps. The utilization of such derivatives can lead to fluctuations in the Company's reported results from operations on a period-to-period basis as the Company marks these positions to market at the balance sheet date while settlement of the position and execution of the physical transaction may occur at a future date. The Company recognized mark to market losses on bunker swaps of approximately $1.1 million and gains on forward freight agreements (FFAs) of approximately $1.1 million in the nine months ended September 30, 2024. The fair value loss on interest rate derivatives was approximately $1.8 million for the nine months ended September 30, 2024. These losses resulted from changes in the fair value of the derivatives at the respective balance sheet dates.

Previous wording

The Company concluded that no triggering event had occurred during the first half of 2024, which would require impairment testing.

Current wording

The Company concluded that no triggering event had occurred for the nine months ended September 30, 2024, which would require impairment testing.

Previous wording

During the first quarter of 2023, the Company determined that a triggering event occurred related to the sale of a vessel, as the carrying value exceeded its fair value. On January 18, 2023, the Company signed a memorandum of agreement to sell the m/v Bulk Newport for $8.9 million in net consideration after brokerage commissions. As a result, we recorded a loss on sale of $1.2 million in the first quarter of 2023. The Company performed an impairment analysis on each asset group and concluded the estimated undiscounted future cash flows were higher than their carrying amounts and as such, no additional loss on impairment was recognized.

Current wording

During the first quarter of 2023, the Company determined that a triggering event occurred related to the sale of a vessel, as the carrying value exceeded its fair value. On January 18, 2023, the Company signed a memorandum of agreement to sell the m/v Bulk Newport for $8.9 million in net consideration after brokerage commissions. As a result, the Company recorded a loss on sale of $1.2 million in the first quarter of 2023. The Company performed an impairment analysis on each asset group and concluded the estimated undiscounted future cash flows were higher than their carrying amounts and as such, no additional loss on impairment was recognized.

Previous wording

Furthermore, since a significant portion of our Company's long-term debt and finance leases have fixed or capped interest rates, the impact of rising interest rates on our earnings is limited.

Current wording

Since a significant portion of our Company's long-term debt and finance leases have fixed or capped interest rates, the impact of rising interest rates on our earnings is limited.

Previous wording

Net cash provided by operating activities during the six months ended June 30, 2024 was $18.0 million compared to net cash provided by operating activities of $13.6 million for the six months ended June 30, 2023. The increase in cash flows from operating activities compared to the previous year was primarily due to improved income from operations.

Current wording

Net cash provided by operating activities during the nine months ended September 30, 2024 was $46.4 million compared to net cash provided by operating activities of $29.9 million for the nine months ended September 30, 2023. The increase in cash flows from operating activities compared to the previous year was primarily due to better management of working capital, including improved collections of accounts receivable and efficient timing of accounts payable.

Previous wording

Net cash used in investing activities during the six months ended June 30, 2024, was $9.1 million compared to $23.7 million for the same period in 2023. During the six months ended June 30, 2023, the Company (i) paid $27.0 million for the purchase of one vessel and other vessel improvements and (ii) paid $7.2 million for the net cash acquisition of a port and terminal operation. These uses of cash were partially offset by $8.9 million in net proceeds from the sale of one vessel. During the six months ended June 30, 2024, the Company paid $8.5 million for deposits on two vessels.

Current wording

Net cash used in investing activities during the nine months ended September 30, 2024, was $57.4 million compared to $25.0 million for the same period in 2023. The Company purchased two vessels for $57.5 million in the nine months ended September 30, 2024. In comparison, during the nine months ended September 30, 2023, the Company (i) paid $27.0 million for the purchase of one vessel and other vessel improvements and (ii) paid $7.2 million for the net cash acquisition of a port and terminal operation. These uses of cash were partially offset by $8.0 million in net proceeds from the sale of one vessel and cash dividends of $1.6 million from equity method investments.

Previous wording

Net cash used in financing activities during the six months ended June 30, 2024, and 2023 was $29.9 million and $34.0 million, respectively. During the six months ended June 30, 2024, the Company (i) received $17.6 million in long-term debt proceeds, (ii) repaid $25.6 million of long-term debt and $7.3 million of finance leases, (iii) paid $9.4 million in cash dividends to its shareholders and $2.3 million in cash dividends to non-controlling interest holders and (iv) paid $2.0 million as payment to non-controlling interest recorded as long-term liability. During the six months ended June 30, 2023, the Company (i) repaid $9.1 million of long term debt and $8.1 million of finance leases, (ii) paid $9.1 million in cash dividends to its shareholders and $5 million in cash dividends to non-controlling interest holders and (iii) paid $2.5 million as payment to non-controlling interest recorded as long-term liability.

Current wording

Net cash provided by financing activities during the nine months ended September 30, 2024 was $5.0 million and net cash used in financing activities was $45.9 million during the nine months ended September 30, 2023, respectively. During the nine months ended September 30, 2024, the Company (i) received net proceeds of $35.2 million from long-term debt (comprised of $64.2 million in proceeds offset by $29.0 million in repayments) (ii) made a net repayment of $10.7 million in finance leases (comprised of $18.7 million in payments offset by $8.0 million in finance lease proceeds from finance leases), (iii) paid $13.9 million in cash dividends to its shareholders and $2.3 million in cash dividends to non-controlling interest holders and (iv) paid $2.0 million as payment to non-controlling interest recorded as long-term liability. During the nine months ended September 30, 2023, the Company (i) repaid $12.4 million of long term debt and $12.2 million of finance leases, (ii) paid $13.6 million in cash dividends to its shareholders and $5.0 million in cash dividends to non-controlling interest holders and (iii) paid $2.5 million as payment to non-controlling interest recorded as long-term liability.

Previous wording

The Company’s capital expenditures relate to the purchase of vessels and interests in vessels, capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels, as well as port & terminal operations. The Company’s owned or partially owned and controlled fleet at June 30, 2024 includes: nine Panamax drybulk carriers (six of which are Ice-Class 1A); seven Supramax drybulk carriers, two Ultramax Ice Class 1C, two Ultramax drybulk carriers, and four Post Panamax Ice Class 1A drybulk vessels.

Current wording

The Company’s capital expenditures relate to the purchase of vessels and interests in vessels, capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels, as well as port & terminal operations. The Company’s owned or partially owned and controlled fleet at September 30, 2024 includes: nine Panamax drybulk carriers (six of which are Ice-Class 1A); nine Supramax drybulk carriers, two Ultramax Ice Class 1C, two Ultramax drybulk carriers, and four Post Panamax Ice Class 1A drybulk vessels.

Previous wording

In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately $3.2 million in the six months ended June 30, 2024 and 2023. The Company expensed drydocking costs of approximately $141,000 and $90,000, respectively, in the six months ended June 30, 2024 and 2023.

Current wording

In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately $3.0 million in the nine months ended September 30, 2024 and 2023. The Company expensed drydocking costs of approximately $233,000 and $356,000, respectively, in the nine months ended September 30, 2024 and 2023.