Thank you for standing by, ladies and gentlemen, and welcome to the Heidmar conference call on the fourth quarter 2025 financial results. We have with us Mr. Pankaj Khanna, Chief Executive Officer, and Ms. Niki Fotiou, Chief Financial Officer of the company. At this time, all participants are in a listen only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced their results with a press release that has been publicly distributed. Before passing the floor to Mr. Khanna, I would like to remind everyone that in today's presentation and conference call, Heidmar will be making forward-looking statements.
These statements are within the meaning of the Federal securities laws. Matters discussed may be forward-looking statements which are based on current management expectations and involve risks and uncertainties that may result in such expectations not being realized. Now I'd like to pass the floor to Mr. Khanna. Please go ahead, sir.
Thanks, operator. Good day to everyone, and welcome to the fourth quarter and full year 2025 earnings call for Heidmar Maritime. Niki Fotiou will walk through the results for Q4 and full 2025. I hand over to Niki.
Thank you, Pankaj. I will now present the three-month and 12-month results for Heidmar for the year ended December 31, 2025. For the three-month period ended December 31, 2025, Heidmar realized a consolidated net loss from continuing operations of $4 million, compared to $1.1 million for the three months ended December 31, 2024. The net loss from continuing operations includes the amortization of the shares awarded to employees and members of the board under the equity incentive plan of $0.7 million. These shares are amortized over a two or four-year period and are included in G&A. Total revenues were $25.1 million, compared to $5.3 million for the corresponding period in 2024.
The increase of $19.8 million was driven by growth in the managed fleet and the increased number of vessels that commenced short-term voyage and time charter contracts during the third and fourth quarters, and the revenues earned from the PSV Ace Supplier, which commenced operations in April 2025. The impact on revenue of the charter-in vessels will continue in the first quarter of 2026. As of now, the market forecast for the tanker freight rates and the impact of the Red Sea looks strong and Pankaj will talk more about it. Our G&A expenses were $5.2 million for the three months ended December 31, 2025, compared to $3.3 million for the corresponding period in 2024.
The increase of $1.9 million was mainly as a result of the one-off costs such as legal, printers, and auditor fees, which were incurred in relation to the listing, and $0.7 million in the non-cash amortization of the stock-based compensation under the Equity Incentive Plan. For the year ended December 31, 2025, the company realized a consolidated net loss from continuing operations of $8.6 million as compared to a consolidated net income of $1.9 million for the corresponding period in 2024. Continuing operations exclude the impact of the flagpole business, Americana Liberty, that was sold in the second quarter. The loss generated includes $5 million relating to the amortization of non-cash stock-based compensation and $3.9 million in unrealized non-cash expense relating to the fair value of the earn-outs.
The net loss of $22.6 million for the year ended December 31, 2025, includes $13.9 million net loss from discontinued operations, which comprises, one, the goodwill impaired on disposal of Americana Liberty, a non-cash item of $11.2 million. Two, the loss realized on the sale of a subsidiary of $1.7 million. Three, the operating loss incurred by Americana Liberty during the period of $1 million. Total revenues were $55.9 million for the year ended December 31, 2025, compared to $29 million for the corresponding period in 2024. The increase of $26.9 million is driven by the growth in the managed fleet, improved freight rates, increased number of vessels that commenced short-term voyage and time charter contracts during the third and fourth quarters, and the revenues earned from the PSV Ace Supplier, which commenced operations in April 2025.
Our G&A expenses were $18.5 million for the year ended December 31, 2025, sorry, compared to $12.9 million for the year ended December 31, 2024. The increase of $5.6 million is mainly due to one-off costs which were incurred by the company when we listed in Nasdaq, costs related to Americana Liberty, various filings made with the SEC that were required subsequent to the listing, and the $5 million for the amortization of the stock-based compensation under the Equity Incentive Plan, and the non-cash bonus awarded to certain executives. As of December 31, 2025, the company has sold 215,000 shares, generating approximately $271,000 in net proceeds under the purchase agreement with B.
Riley that was announced in June 2025. Upon cancellation of the merger with respect to the acquisition of the container vessel A. Obelix, the deposit of $2.5 million plus interest was returned to the company. I now hand over to Pankaj to continue the presentation.
Thanks, Niki. I want to address a key point on the 2025 results, where our G&A costs for 2025 are skewed by the one-off costs relating to the listing of the vessel, the key lock related costs, and the amortization of the Equity Incentive Plan that was announced last year. Excluding these one-offs, our G&A in 2025 was just under $13 million, and we are expecting 2026 cash costs to come in at around $13.5 million. It has become a cliché to say that we are in unprecedented times as geopolitical events continue to surprise the shipping markets and force the market to adapt and recalibrate. The last 24 days have been surreal, to say the least, as we experience war in the Middle East that has resulted in what was an inevitable and foreseeable energy crisis.
In the early part of my shipping career, I worked as a cadet on board a VLCC during the 1990-1991 Gulf War, when SCUD missiles were flying from Iraq over our heads into Saudi Arabia. The Strait of Hormuz didn't close then, nor during the many other crises in the Middle East. We are now in a situation where energy flows through the strait have virtually come to a complete standstill. The reality of the situation on the ground is that the world has lost 20% of its oil supplies. More critically, tanker shipping has lost just over 20 million barrels per day of seaborne crude oil and petroleum products. This represents approximately 30% of overall oil flows, and much of this volume is irreplaceable.
While some of the crude oil flows have been replaced by pipeline diversions across Saudi Arabia to the Red Sea, from Iraq to Ceyhan, and also some flows from the UAE that do not now require the Strait of Hormuz, this is a fraction of what was coming through the Strait of Hormuz on a daily basis. The industry hopes that this situation will be resolved soon, leading to resumption of normalized tanker demand in the very near future. On the product side, the market is more volatile, with some areas experiencing very high demand and therefore higher freight rates, but others, like the Indian Ocean, being bereft of cargoes and therefore seeing lower pre-war type rates. There are zero exports of petroleum products from the Middle East, and the only load area active in the region is the Reliance Refinery in Sikka, India.
Consequently, we have seen a large number of LR2s and LR1s ballast away from the Indian Ocean towards the Atlantic. Eventually, this will bring down rates in the Atlantic as well. The closure of the Strait of Hormuz is resulting in shortages of oil and gas in many countries that are not prepared for such an eventuality. For example, India is running short on LPG used for residential cooking, whereas countries like Bangladesh, Pakistan, and Vietnam are running short of petroleum products, resulting in fuel rationing and calls for work from home and curtailing of normal life. Even if hostilities were to stop tomorrow, it would take months for the situation to normalize as oil fields are brought back online, for tankers to load cargoes, reach their discharge destination, for refineries to refine, and finally distribute to the consumers.
Oil price forecasts have also been rebased, with some analysts now projecting Brent at $84 per barrel for the rest of the year. Basically, the scenario suggests the prevalence of inefficiencies through most of this year and projections for high tanker rates for most of the remaining year. Currently, freight rates for crude tankers that can find cargoes in the Middle East and in other areas have skyrocketed and remain at record levels. With our managed fleet of 40 vessels, we are in the thick of this and assisting our customers with moving oil as expeditiously as possible. As an example, we fixed one VLCC voyage from Yanbu to Doraleh, where the owner will earn over $450,000 per day for a 50+ days voyage, and our commission on this fixture is north of $300,000.
In any case, Q1 was going to be stellar for shipowners as freight rates had been very strong. Now it will prove to be a record for tanker earnings and also be a positive for Heidmar's bottom line. In Q1, we announced the termination of the deal to purchase the C/V A. Obelix under the terms of the MOA and received the full deposit back with interest. While we do not have any current projects in the pipeline, given the immense volatility in asset prices, we continue to look for opportunities and will act if the numbers make sense.
I am pleased to report that the 2 -Mos we took on time charter in February this year have been fixed profitably, and as of today, the first vessel has been relet for the entire period and could generate approximately $3.9 million in net profit over the two-year charter period. The other ship has been relet for a year and is projected to generate around $500,000 in net profit. We are fortunate that we have a series of state-of-the-art newbuilding tankers that are scheduled to be delivered through 2026 and the following two years. All going well, we should take delivery of approximately 10 large tankers through the rest of 2026 from close clients.
In closing, my thoughts are with the seafarers on board our own managed ships and those who are stuck inside the Middle East Gulf or are looking at transiting through war zones. The situation at sea in the Gulf is critical and seems to have no near-term resolution. My thoughts are also with colleagues, customers and friends in the Middle East who must live with the constant threat of projectiles that could lead to severe consequences, including injury and loss of life. Now we will take questions.
Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Tate Sullivan with Maxim Group. Please proceed with your question.
Hi. Thank you. Thank you for the comments on the current situation in the tanker market. I mean, given the spike in rates, can you look back historically, how do spiking rates impact your tanker pool business and charter in and charter out activity historically? Does it create less opportunities because owners hold on to ships and assets?
Look, when the rates are as high as they are, owners want to maximize their earnings. You know, they want to take advantage of the situation, so they want to be in the spot market. The pool is a good place to be because you are able to take advantage of the spot market. Even there are owners who are on commercial management. Now, it depends if you are on commercial management and not in the pool, then it depends on where your ship is positioned. It depends on whether your ship is coming open or just, you know, was just fixed prior to the market going up. In essence, right now we're seeing a lot more inquiry for our services.
Thank you. On the decision to terminate the container ship acquisition, any context on that there with the timing of the purchase or are there any fees associated with not finalizing that purchase?
I mean, given the volatility in the situation last year with regards to the ship was doing a run in the Mediterranean going into the Black Sea. There was a constant uncertainty with regards to whether the charter on that vessel would be extended or not. The charter was uncertain whether they had the cargo and therefore did not extend the charter as was expected. We were unwilling, you know, the whole basis of the investment was, it was attached with a substantial charter that paid off quite a big portion of the vessel price. When that charter did not come through, it didn't make sense to take the vessel.
Okay. Thank you.
Thank you. Our next question comes from the line of Liam Burke with B. Riley Securities. Please proceed with your question.
Thank you. Hi, Pankaj. Niki, how are you?
All good. Thanks.
Pankaj, you talked about a lot of one-time events that held down your EBITDA number that won't repeat in 2026. You threw out a, I believe it was an operating cash number for 2026. Can we expect positive operating leverage on the EBITDA line this year?
Yes. I mean, look, 2025 is a bit of a kitchen sink. You know, we had one-off because we sold the Americana Liberty. We had the other subsidiary that was sold off, and there was a lot of cleaning up of the balance sheet. Already in Q1, the EBITDA is positive, and you know, we're making money. As I described to you that just on the one fixture we made, at least it's almost $390,000 in commission. So, that should start to reflect through. That's why we have done what we did. 2026 will be clean.
Super. Are you getting... I mean, you provide an asset-light platform. Obviously you charter in vessels, but are you getting any leverage off of software updates or AI as you manage the different vessels or in the fleet?
Look, I mean, we have our own ERP platform that was developed almost 20 years ago and has been redeveloped over the years. We are now working on incorporating AI on that platform to improve our trading ability, to improve our operations, and generate more efficiencies. You know, that is a process that has been ongoing for us over the years, but now it's being ramped up this year, especially with AI, where that will generate a lot of efficiency through the system. That is something we are doing for our operations as in shore-based.
On the shipboard side as well, that there are various programs which have been put in place, not so much AI related, but more in terms of digitalization that will improve efficiencies on board as well and make things safer on board.
Great. Thanks, Pankaj. Appreciate it.
Okay.
Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Khanna for any final comments.
Thanks everyone for listening in. Stay safe and Happy Easter for those who will celebrate.
Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.