United Maritime Corp. Q4 FY2024 earnings call

• Successfully executed the strategic plan to build a high-quality dry bulk fleet without diluting shareholders, completing the second investment cycle. - Declared a total dividend of $0.235 per share for 2024, reduced the fourth quarter dividend to $0.01 per share, and extended the share repurchase program. - Addressed all debt maturities until Q4 2026, maintaining a solid balance sheet with cash at year-end of $6.8 million. - Optimized the fleet through sales and acquisitions, and entered the offshore market with an investment of approximately $3.5 million with further commitments of $4.5 million in 2025.

In the fourth quarter of 2024, net revenue was $10.8 million, down from $11.6 million in Q4 2023. Adjusted EBITDA for Q4 2024 was $5.1 million, an 11% increase compared to 2023. For the full year 2024, net revenue was $45.4 million, significantly higher than the prior year, and adjusted EBITDA grew to $20.3 million. The dry bulk fleet saw developments such as selling the Oasea and Gloriuship, and acquiring the Nisea in 2024. Revenue contribution from the dry bulk segment is the primary focus as it constitutes the core business of the company.

• Expected Q1 2025 TCE to be approximately $10,300 with 94% of operating days already invoiced. - Optimistic about the long-term fundamentals of the dry bulk market. - Offshore investment is expected to generate returns as the vessel construction progresses according to milestones.

• Volatility in the dry bulk market conditions. - Temporary slowdown in coal and iron ore exports due to seasonal adjustments. - Disruption in the Red Sea trade route from US missile strikes on the Houthis. - Environmental regulations that may restrict the trading of older vessels.

Q: Can you review when is the scheduled delivery of the offshore vessel and the remaining capital commitments on that investment?

A: The scheduled delivery is in the first quarter of 2027, with discussions to possibly bring it forward to Q4 2026. United has already deployed approximately $3.5 million with another $4.5 million committed, to be called in two separate installments within 2025.

Q: What is the potential link to the dry bulk market from the US missile strikes on the Houthis?

A: The Red Sea remains closed, causing disruption to trade routes. However, a potential ceasefire in Ukraine could reopen the grain corridor, positively impacting the Panamax/Kamsarmax segment.

Q: You mentioned a $50 million sales price for the Capesize sale, does it imply a gain on that sale of $7 million?

A: The outstanding loan is around $7.5 million, and after accounting for fees, the net cash flow effect from the sale will enhance the cash position by approximately $7 million.