Thanks, operator. Good day to everyone, and welcome to the first quarter earnings call for Heidmar Maritime.

Heidmar delivered a strong first quarter of 2026 marked by meaningful financial progress, accelerating fleet growth, and a sharpened strategic focus on value creation for our stakeholders. The results we are reporting today reflect the power of our asset-light, commercially driven model, one that enables us to scale rapidly in environments where tanker markets reward operational agility and market intelligence.

Heidmar's business model is built on commercial management rather than vessel ownership. We earn fee-based revenues by operating tankers in pools or on commercial management and managing vessels on behalf of shipowners.

Because we grow our fleet without deploying capital into physical assets, our earnings scale with volume and market conditions, not with the balance sheet, keeping us agile to add vessels quickly, respond to dislocations, and return capital to shareholders rather than service heavy debt. Turning to the results, for the three-month period ended March 31, 2026, Heidmar realized consolidated net income of $2.8 million, or 5 cents per share basic, a sharp turnaround from a net loss of $6 million, or 10 cents per share, in the corresponding period of 2025.

Included in net income is the non-cash stock-based compensation of $0.6 million, representing the amortization of the share awards granted to key employees and members of the board of directors under the Heidmar equity incentive plan. This charge is included within G&A expenses.

Excluding this non-cash item, Heidmar realized adjusted net income of $3.4 million, or 6 cents per share, compared to adjusted net income of $0.9 million in Q1 2025. This demonstrates a compelling improvement in the underlying earnings capacity of the platform.

Total revenues for the quarter were $18.4 million, compared to $5.8 million in Q1 2025, an increase of $12.6 million, or more than 216% year-on-year. This growth was driven by record freight rates and a sharp increase in vessels employed on short-term spot and time-charter voyages, eight in Q1 2026 versus just one a year earlier.

The quarter also included the contribution of the platform supply vessel, Ace Supplier, which commenced charter operations in April 2025. G&A expenses decreased to $3.6 million from $6.1 million in Q1 2025, a reduction of $2.5 million.

This improvement reflects the significantly lower amortization of stock-based compensation in the current period, following the elevated charges recognized in 2025 related to equity awards granted to management. As we move through 2026, we expect G&A to remain well-controlled relative to our growing revenue base.

Turning to the balance sheet, as of March 31, 2026, cash and cash equivalents stood at $27.6 million, up $8.6 million from the $18.6 million at December 31, 2025. Total assets were $76.1 million, and total stockholders' equity strengthened to $14.2 million from $10.7 million at year-end, reflecting the profitable quarter and the positive momentum building in our financial position.

Net cash provided by operating activities from continuing operations was $6.6 million for the quarter, more than double the $3.1 million generated in Q1 2025. This reflects the strong improvement in underlying earnings and confirms that the business is converting revenue growth into real cash generation.

Turning to the market, the tanker market environment during the first quarter of 2026 was among the most constructive we have seen in recent years. Freight rates were already very strong in January and February and rose to historically record levels, underpinned by heightened geopolitical tensions and sustained disruption across critical shipping lanes, most notably increased volatility in and around the Strait of Hormuz and the broader Gulf region.

These dynamics triggered significant rerouting of crude and product cargoes, extending voyage distances, tightening effective vessel supply, and amplifying ton-mile demand across the tanker complex. The structural dislocations we are observing in global energy trade flows are not transient.

They reflect a fundamental reshaping of the supply chain architecture for crude oil and refined products, one that benefits well-positioned operators and commercial managers such as Heidmar. Notably, the rise in oil prices has remained modest, even though the Strait of Hormuz has now been closed for almost three months, removing an estimated 10% to 15% of world supply net of pipeline volumes bypassing the strait.

That restraint reflects a massive release of stocks across the OECD and China. Inventories now sit at record lows and will have to be rebuilt to provide a buffer against the next Middle East conflict.

We expect this crisis to drive two lasting changes: diversification of crude supply and the buildout of emergency storage. Japan today depends on the Middle East for roughly 90% of its crude imports, South Korea 70%, and China and India around 55%, concentrations that are no longer tenable.

As these buyers turn to the Atlantic Basin, voyage distances lengthen and ton-mile demand rises. Beyond higher prices, many countries now face outright fuel shortages, LPG in India, gasoline and diesel across parts of Asia and Africa.

This has underscored the need for emergency reserves, and we expect governments to build crude and product stocks to guard against the next disruption. Both trends add to tanker demand in the near term.

Even when a peace accord is signed and the straits reopen, we expect rates to firm further, with few ships positioned in the region. The hardest hit buyers in Asia and elsewhere will move quickly to restock, and we estimate 3 to 6 months for flows to normalize.

By then, the winter season will lift oil demand and freight rates seasonally. In short, we expect strong rates to persist for the next 12 months and beyond.

We continue to execute on our growth plans, scaling the platform during the quarter. Heidmar added eight vessels across key tanker segments: two VLCCs, three Suezmaxes, and three MRs during Q1, and continue to add in Q2.

These additions expand our reach across the crude and product tanker markets, and our pipeline remains active, with further additions expected through this year and next. What sets Heidmar apart from the traditional shipping companies is fundamental: we do not own ships.

While asset-owning operators carry vessel depreciation, dry-docking cycles, financing costs, and capital lockup, Heidmar focuses solely on commercial performance. With over 40 years of heritage as the original commercial management brand in the tanker sector, we have built unmatched relationships with charterers, oil majors, and trading houses across every major trading basin.

Our eFleetWatch platform, the first digital transparency tool developed in shipping, gives owners real-time visibility into their vessels' earnings and performance, a capability that no pure asset owner can replicate at scale. This combination of deep market knowledge, a trusted owner-partner network, and proprietary technology is what makes Heidmar structurally different.

The value of the Heidmar platform compounds as we grow. Each vessel we add to our commercially managed fleet increases our collective trading power, enabling better cargo coverage, tighter voyage optimization, and stronger negotiating leverage with counterparties.

This network effect means that scale directly translates into better returns for every owner in the pool or on commercial management. Beyond commercial management revenues, the platform supports other services, including technical management, sale and purchase advisory, investment opportunities, asset management, and fuel services, creating multiple touchpoints through which we deliver value to owners across the life cycle of their assets.

As we continue to grow, the platform becomes increasingly difficult to replicate, and the competitive moat around our commercial model widens. Looking ahead, we remain constructive on the tanker market outlook.

The fundamental drivers supporting elevated freight rates on both demand and supply remain firmly in place. We are confident in Heidmar's trajectory and our ability to generate sustainable returns for our stakeholders as we scale into one of the leading commercial management platforms in the global tanker industry.

I thank our stakeholders, employees, vessel owners, and charter partners for their continued trust, and we look forward to updating you on our progress. We will now take questions.

Hi, thank you very much, and apologize if I break up as I'm in transit. On your 20-F had great detail on the number of managed fleet.

April 30th, could you comment, Pankaj, that since the end of first quarter, April 30th, you've added to that list of managed vessels?

Yes, we have. We have ongoing additions as newbuildings are coming in and other second-hand vessels are joining as well.

We did a press release, I think it was two weeks ago, which added five vessels. It's a constant process.

That was great detail on there and great comments on multiple countries building strategic energy reserves too. Just on the platform supply vessel, is that a fixed rate or is that an index rate that will vary based on some index you can point to?

No, it's a fixed-rate contract.

Great. Thank you very much for all the detail.

Thanks, Tate. Appreciate it.

Hi, good morning. Thank you for taking the question.

My first question is, are elevated rates keeping tanker owners from joining the Heidmar pool and staying in the time-charter market?

Not necessarily. At this point, owners are interested more in the spot market than they are in the time-charter market.

It's a split. Of course, everybody is hedging their bets.

Some people are looking at the forward markets and saying, one-year rates have never been at this kind of level, some are taking that opportunity. There are plenty of other people who are on the spot market.

We have a constant flow of vessels coming in where owners are buying at elevated rates and are looking to basically play the spot market at the earnings that there are. The expectation in the market is that when the straits open, the spot market rates will explode, to use a term like that.

Basically, we expect that rates will increase substantially, this is what people are positioning themselves for.

Great, thanks. Then maybe just one more.

You had a year-over-year step up in EBITDA margins. With rising rates and more vessels added to the platform, can we expect continued positive operating leverage on the Heidmar platform?

Yes, as I mentioned in the remarks, the G&A levels are pretty stable. At this point, we have capacity to add another 20 vessels without affecting the G&A.

I'm conservative with 20, maybe 30, maybe 40. Basically, the EBITDA margins should stay strong and elevated.

The G&A will not change substantially going forward.

Great. Thanks.

Thanks.

Good morning, gentlemen, and thanks for taking my call. First and foremost, I want to congratulate you to a great quarter.

Apparently, looking and judging from the stock price performance, it was unexpected. The forecast that revenues, earnings, additional shipping should lead to another good second quarter here.

Are you planning to continue the at-the-market stock offering or is that finished by now?

Look, we have kept the flexibility to have the ELOC live, but at the same time, as you will see from the press release, we have not really used it because we don't believe that these levels are reflective of the company's valuation. We have always maintained that we are not there to dilute the shareholders, including ourselves, for no valid reason.

We are not in the market to buy vessels. We are not looking to create another vessel owner.

Unless there's an accretive transaction that requires capital, we do not see any need to raise capital.

Great. Then there are a lot of smaller, younger shipping companies formed right now, particularly with the high rates persisting in all the different markets.

What would be your sort of pitch to a shipowner, smaller in size, to utilize your services, take advantage of your vast network of offices all over the important points?

Look, I think the most important point is KYC, Know Your Client. If you want to go and work with Aramco as a new company, it may take you 12 months to clear their KYC requirements, and that is if Aramco decides to work with you.

I just use them as an example. That is one very key point where Heidmar is KYC cleared by all oil companies and traders in the world.

Besides that, because of our market intelligence and relationships, we are able to realize TCEs, as in earnings, which are higher than most other people can do by themselves, especially the small owners. We have proven that time and time again.

For one Chinese owner who was a one-ship owner, we fixed his ship at $490,000 per day at the peak of the crisis. There's no way he could have fixed with that charterer by himself.

We have proven time and time again the value of Heidmar as a platform for the small shipowners, but it's also applicable for the big shipowners. If they don't have scale in a particular size sector, again, Heidmar can offer them that scale, and so they can realize the best results in that sector.

I think our platform is useful for both the big shipowners and the small shipowners.

Great. Good luck for the future, and thanks for taking my call.

Thanks, George.

Thanks, everyone. It was a great quarter, and we hope an even better quarter for the second Q, thank you, and have a good day.