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 Pangea Logistics Solutions 3rd Quarter 2026 Results Conference Call. Today's call is being recorded and will be available for replay beginning at 11 a.m. Eastern Standard Time. The recording can be accessed by dialing 800-839-3740 domestically or 402- All lines are currently muted and after the prepared remarks, there will be a live question and answer session. If you would like to ask a question during the Q&A segment, please press star 1 on your telephone keypad. If you find your question has been answered, you may remove yourself from the queue at any time by pressing star 2. We do ask that you please pick up your handset for optimal sound quality. It is now my pleasure to turn the floor over to Stephan Neely with Avalon Advisors.

Thank you, Chelsea, and welcome to the Pangea Logistics Solutions third quarter 2026 results conference call. Meeting the call with me today are our CEO, Mads Peterson, and our Chief Financial Officer, Gianni Del Signore. Today's discussion contains forward-looking statements about future business and financial expectations. Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Our third quarter results were the strongest in Pangea's history, with adjusted EBITDA and adjusted net income both reaching record quarterly levels. Higher freight rates, strong execution across our operating platform, and peak seasonal activity in our Arctic trade, there was substantial improvement in profitability compared to last year. Our specialized ice-class fleet and our broader cargo-based business performed well together, Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen to leverage our commercial platform. Adjusted EBITDA was 52.4 million and we generated 57 million of operating cash flow during the quarter. That cash generation further strengthened our balance sheet and gives us the flexibility to invest in fleet renewal as well as our logistics platform while continuing to return capital to shareholders. Social shipping days increased 8% year-over-year to 6,339 days Our own fleet of 38 vessels was supplemented by an average of 31 chartered-in vessels which allows us to serve our long-term customer commitments while adjusting capacity to the opportunities in front of us. The flexible nature of the chartered-in fleet allowed us to expand margins during the quarter, a key feature of our strategy. Our onshore logistics platform also had a strong quarter. Terminal and stevedore revenue increased 73% year-over-year Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Late season Arctic voyages continue to contribute in October. As the Arctic seasons wind down, the contribution from those trades moderates, and our fourth quarter results will reflect prevailing freight rates and the positioning of the broader fleet. Our approach to fleet renewal remains disciplined. We continue to evaluate opportunities to add modern, efficient vessels that fit our cargo base and cost of room requirements. and to divest older non-core assets when the economics are attractive. Every decision is measured on the returns we can generate and its strategic fit within our operating platform, and we will remain opportunistic as market conditions warrant. Shortly after quarter end, we completed a refinancing that lowers our borrowing margin, simplifies our capital structure, and brings our four post-Panama Ice Class 1A vessels into outright ownership. The new $145 million facility replaced higher cost debt and financing obligations and it reflects our continued focus on managing our cost of capital and keeping the balance sheet well capitalized. Gianni will walk through the details shortly. Our priorities are consistent with what we have outlined on prior calls. Continue to execute on our customer commitment, expand our integrated logistics capabilities Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

A modest increase in shipping days and the seasonal contribution of our specialized ice class fleet. Total revenue was $219 million. Our TCE rates averaged $20,414 per day, an increase of 31% compared to the third quarter of 2025, and a premium of 13% over the average published market rate for Panamax, Supermax, and Handy-sized vessels in the period. Our adjusted EBITDA for the third quarter increased 81% year-over-year to $52.4 million, a quarterly record for Pangea. The significant increase in profitability reflects the earnings contribution of higher TCE rates and the operating leverage of our business. Our total charter hire expenses increased by 50% year-over-year due to an increase in chartered-in vessels used to augment our own fleet as well as an increase in the market rates to charter in vessels. Our charter in cost on a per day basis was approximately $17,632 in the third quarter. And through today, we've booked 2,487 days at $20,086 per day for the fourth quarter. Vessel operating expenses on a per day basis through the third quarter of 2026 including technical management fees was $6,320 per day, a 4% increase from the prior year. Third quarter general and administrative expenses decreased to $7.6 million from $9.9 million. The decrease was primarily due to the timing of variable incentive compensation year over year in classification of management fees of our wholly owned technical management operations as general and administrative expenses in the prior year, which are now recorded in vessel operating expenses. Our reported GAAP net income for the third quarter was $38.3 million or $0.59 per diluted share, up from $12.2 million or $0.19 per diluted share in the prior year. Our GAAP net income included an unrealized gain of $5 million, resulting from our hedging strategy on bunker fuel exposure, given the volatility in fuel prices we've experienced in recent months. We utilize bunker swaps and options to selectively hedge our exposure to the market on our long-term cargo contracts and forward cargo bookings, keeping our fuel cost management aligned with our actual physical consumption. When excluding the impact of the third quarter unrealized gain from derivative instruments as well as other non-GAAP adjustments, our reported adjusted net income was $33.6 million or $0.52 per diluted share. Turning to cash flow and balance sheet, we generated $57 million for operating cash flow during the quarter and ended the quarter with $145 million in unrestricted cash and cash equivalents. Total debt, including finance lease obligations, was $340.9 million. and our ratio of net debt to trailing 12-month adjusted EBITDA was 1.4 times. Subsequent to the quarter end, we closed on a six-year, $145 million senior secured term loan facility priced at SOFR plus 1.6%. The proceeds were used to refinance $134 million of higher cost debt and sale-leaseback financing obligations, consolidating seven vessels under one facility. This transaction lowers our borrowing margin, will reduce cash interest expense by approximately $2 million next year, and simplifies our financing arrangements. We will continue to evaluate opportunities to manage our cost of capital while preserving financial flexibility. Looking ahead, our capital allocation priorities remain focused on maintaining financial flexibility, supporting investments in our integrated logistics platform and fleet, and returning capital to shareholders. We will continue to assess growth opportunities based on their expected returns and their contribution to our customer offering and long-term earnings. With that, we will now open the line for questions.

Thank you. At this time, if you would like to ask a question, please press star 1 on your telephone D-pad. Once again, that is star 1 to ask a question. And our first question will come from Liam Brooke with B-Rowdy Securities. Please go ahead.

Good morning, Mads. Good morning, Gianni.

Hi, Liam.

Can we talk about fleet renewal? I know asset prices in the bulker space are high, but are you looking at opportunities, or is that something that you're just waiting for assets to come in on?

I think we're always looking, right? You know, feed renewal considerations are constant in any shipping company. The ships that we are looking for are popular other places as well, so we are trying to be selective and opportunistic when the right candidates are there and not sort of jump on anything that comes across our screens. We try to be selective. It has to be the right type of vessel. It has to be the right fit for For business, then, of course, it has to be pressed right.

Fair enough. And on your charter rates that were extremely strong, was that just generally the market, or was it the fact that you were able to get more activity out of the ice-class vessels during the summertime or during the thaw period up north?

It's a bit of both, to be honest. The London market was strong, of course, and we have the majority of our Arctic summer season happening in Q3, but in addition to those two things, I think my main takeaway from the quarter is also how we were able to take advantage of especially the Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

First question, Gianni, did you change or modify the way you calculate your TCE rates?

No, we did not. Well, the TCE is, we calculate the same. The only thing that is in this quarter is some of the unrealized gains on bunkers and Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen We're hedging future bunker physical requirements on our cargoes and forward commitments. So having that run through our operating P&L, obviously we want to back that out when we calculate our TCE and our other margins that are more reflective of actual quarterly results. So when those unrealized positions ultimately settle and the realized gains or losses, whatever they may be in those future periods, That component will remain in our operating profit, but the unrealized is backed out to calculate CC.

Good idea. Yeah, I read the footnotes. Can you look at the overall, you know, where you stand for the fourth quarter, you know, 50, you know, a little more than 5,000 days? You know, that's a fleet size of roughly 50 sides. What do you think you'll run for the quarter in total fleet?

That's a good question. We don't know for sure what, you know, because of timing, where we will end up in terms of numbers. We will probably, I think, would be flat compared to Q3 when everything is said and done.

Okay, so like a fleet of 69 then, Mads?

It's really hard to say because it depends on the timing of when we will fix the ships and when we will load the cargo. But that would be my estimate at this point.

And that's typically higher than what you've won in other fourth quarters, isn't it?

Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen So that complication plus the pricing, which that facility was pricing at SOFR plus 3.55. So that aggregate was refinanced at SOFR plus 1.6. So I think from an interest perspective, it's about a $2 million savings next year on margin. The amortization of the new facility from a debt repayment profile is roughly the same. There's about a We're probably saving about $200,000 annually. Sorry, $200,000 quarterly in debt amortization from a cash break-even perspective. But from an interest perspective, it's about $2 million next year. And then, obviously, as we pay down debt, that number will be a little bit less each year.

Okay. And then, you know, it looked like your lease payments were running like $7 million a quarter before this. Do you have a go-forward lease payment number?

It's actually going to shift, right, because now the lease repayment schedule will decline by about $2.1 million per quarter.

About $5 million going forward?

Yeah, but some of that, remember, will shift up. The total quantum of liability between debt and leases remains relatively consistent. The incremental borrowing was about $8.5 million that we'll see come into the fourth quarter. So from a repayment perspective, it's just a shift up from lease and maybe a little bit more into our debt Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Daniel Schildt,

When you look at it, you have maturing debt of about $30 million over the next 12 months, you know, two different facilities. Will you refi those or do you think it's paying off in cash or sort of what you're thinking on the March maturity and then the December maturity?

The March maturity is not a unilateral decision because it is within the JV. I think from our perspective, we would likely refinance that Not increase leverage in any way, but just maybe roll it out, refinance it, take advantage of some of the lower cost facilities we're seeing in the market from a debt perspective. And then the other facilities that come due, they are on older vessels. We will likely repay them as they come to their maturity, given the age of the vessel and just having more debt-free vessels in the fleet. But the March loan is definitely, it's not just our decision, it would be with us and our partners, but the expectation, like I said, I think even at a previous call was that we would likely roll it out and refinance it and hopefully reduce the margin in a meaningful way.

And I forgot to ask you, on the new term loan, the $145 million loan, Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Gianni Del Signore

Daniel Schildt, Daniel Schildt,

Thanks for your time.

Thanks, Bill. Thanks, Bill.

Thank you. As a reminder, that is Star 1 to ask a question. And our next question will come from Clement Mullins with Value Investors Edge. Please go ahead.

Hi. Good morning, Tim. Thank you for taking my questions. I wanted to start by asking about the – okay. I wanted to start by asking about the US ERPs. Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Daniel Rosenberg Boye Petersen Shiti, to the terminal side, performance was very strong during the quarter.

Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore,

We have used our share buyback program in the past. Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen Daniel Schildt, Gianni Del Signore, Mads Rosenberg Boye Petersen

There are no further questions in the queue at this time, so I'd like to turn the call back over to Mads for any closing or additional remarks.

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

Thank you, ladies and gentlemen, for your time and participation. You may now disconnect.