SHIP

• Financial Performance: The company delivered record Q2 and H1 2026 results driven by strong favorable capesize market conditions and disciplined commercial execution. The pure-play platform structure allows full capture of market upside when conditions are strong. Adjusted EBITDA margin reached 70% for H1 2026, with an operating cash flow margin of 44%, demonstrating strong conversion of revenue to operating cash flow. The company ended Q2 with $59.5 million in cash and restricted cash, and maintained a debt-to-capital ratio below 50%. The loan-to-value ratio is 42% based on independent broker valuations, with a weighted average financing margin of 2.17%.
• Shareholder Returns: The company declared a 35 cents per share cash dividend, marking its 19th consecutive quarterly dividend. The dividend was increased 75% from the prior quarter, and total shareholder returns since the 2021 dividend program launch have reached $108 million, equal to approximately $3.19 per share.
• Fleet Renewal: The company has committed an aggregate of $591 million to its fleet renewal program, which has contracted 7 modern eco-designed capesize newbuilds and one 2022-built modern capesize vessel, all with deliveries between 2027 and 2029, while selling 3 older vessels. Four of the eight vessels will be delivered in 2027, allowing for an earlier increase in earnings contribution from the renewed fleet. Long-term 4-5 year time charters have already been finalized for the three 2027-delivery newbuilds, with a structure that sets a $23,100 per day floor covering cash break-even, full upside between the floor and $29,750 per day, and 50% upside above that cap. Most scheduled environmental upgrades and dry dockings for the existing fleet have been completed, with only ~50 total off-hire days expected for the remainder of 2026.
• Financing: The company successfully completed its inaugural €100 million unsecured 5-year corporate bond offering in Greece, which was 2x oversubscribed at an all-in annual cost of 4.9%. Combined with $296.5 million in committed bilateral financing for the newbuild program, existing cash, and available debt capacity, approximately 90% of the fleet renewal program's remaining capex is already covered, with the entire program fully funded even without accounting for future operating cash flow. Capital commitments are staggered through H1 2029, aligned with vessel deliveries, providing ample time for remaining financing arrangements.

• Market outlook for the second half of 2026 remains constructive, supported by resilient commodity demand across core cargoes (iron ore, bauxite, coal), constrained effective fleet supply, and existing forward fixed-rate charter coverage that provides earnings visibility. July 2026 BCI average is already close to $35,000 per day, in line with strong market conditions.
• The 2026 full-year adjusted EBITDA is projected to be approximately $138 million under current forward freight agreement scenarios, with material additional upside if market conditions strengthen further.
• Long-term market fundamentals for capesize vessels are expected to remain healthy through 2027 and 2028, supported by structurally tight supply. The capesize order book is only 12-15% of the current fleet, far lower than other vessel classes, with limited shipyard capacity available to build additional capesizes through the end of the decade. An aging global fleet (20% of the current fleet will undergo required dry docking surveys in 2026-2027, and 25% of the fleet will be over 20 years old by 2030) and slow steaming from aging vessels and geopolitical disruptions further constrain effective supply.

Synergy Maritime is a pure-play capesize and NewcastleMax dry bulk shipping platform, with only one operating product segment focused on this vessel class. For Q2 2026, the segment generated net revenue of $55.7 million (up from $37.5 million year-over-year), adjusted EBITDA of $41.5 million (more than doubling YoY), and achieved a daily time charter equivalent (TCE) of $32,355, a 63% YoY increase. For the first half (H1) of 2026, the segment delivered net revenue of $97.8 million, adjusted EBITDA of $69.6 million (a 165% YoY increase), and a daily TCE of $28,244, a 69% YoY increase. The segment generates 100% of the company's total revenue.

• Short-term freight rate volatility is possible due to external factors including geopolitical disruptions, port congestion, and changing commodity demand conditions. There is short-term uncertainty around Guinean bauxite export policy that may create market volatility.
• While the fleet renewal program is fully funded under a base even-zero operating cash flow scenario, unexpected changes to vessel construction costs, financing conditions, or market values could create funding pressures. The company maintains a conservative approach to contingency planning to offset this.
• Older vessels require increasing survey and maintenance investment as they age, which can increase off-hire time and operating costs for the remaining portion of the legacy fleet.

Q: The analyst asks if the company plans to use excess operating cash flow to fund new builds with more equity, or prefers to use leverage to preserve cash for dividends or additional fleet growth. / A: Management confirms the current funding plan does not include expected future operating cash flows, which are held for contingency. The company will maintain its conservative capital allocation approach. Rewarding shareholders remains a top priority, and there is room to further increase the dividend after gaining 12 months of forward visibility later in 2026. The company is comfortable with its current order book, and may add a small number of additional selective acquisitions in the second half of 2026. This aligns with the firm's core priorities of shareholder returns, balance sheet strength, and disciplined fleet modernization.

Q: The analyst asks whether a multi-year upcycle for capesize rates driven by tight supply is the correct framework for thinking about performance beyond 2026. / A: Management confirms this is the correct view. The capesize order book is the lowest of any major vessel class, at only 12-15% of the current fleet, compared to 40-50% for other segments. The global capesize fleet is rapidly aging, with increasingly strict regulatory and survey requirements that constrain effective supply. Management will revisit the outlook periodically as the order book develops post-2030, but current fundamentals are very strong for multi-year elevated rates.

Q: The analyst asks for a breakdown of new build financing and whether unsecured debt will become a larger component of the capital structure, and how this would impact leverage targets and cost of capital. / A: Management confirms that the new build program is already fully funded with no need for additional equity, even if no excess operating cash flow is generated through 2029. As operating cash flow increases, more equity will be used to fund the program, while existing legacy fleet debt amortizes quickly. The overall company loan-to-value and leverage ratio will remain consistent with historical levels, and no material shift in long-term leverage targets is expected.

Q: The analyst asks why the new profit-sharing charter structure for the 2027 newbuilds is attractive to counterparties, and if this will be the go-forward structure. / A: Management explains that the structure works because the new eco-designed vessels with prompt 2027 delivery have strong inherent value to counterparties. The company set a base floor that covers break-even and a small nominal profit, rather than demanding a higher fixed rate, because management expects strong rates in 2027. Both parties retain upside above the floor, which aligns incentives. This is the first time Synergy has used this specific base-ceiling-profit-sharing structure, and management prefers this structure over alternatives and expects to use it for future commercial arrangements where possible.