Adjusted 1Q2021 EBITDA of $21.0 million was in line with expectations. TCE rates averaged $12.2k/day down from $13.2k/day in 4Q2021, with Capes at $13.6k/day, Ultra/Supras at $11.7k/day and Handys at $7.9k/day. Costs were also in line with lower opex more than offsetting higher G&A expenses.Post call fine tuning 2021 EBITDA estimate to $179.3 million on TCE rate assumptions of $19.1k/day. Forward cover is higher versus 1Q2021 and TCE rates are much higher with 74% of 2Q2021 days booked at $20.7k/day. By sector, forward cover is 72% booked at $24.9k/day for Capes and 76% booked at $17.8k/day for Ultra/Supramaxes. Also, three time charters were recently signed, which indicates that the current visibility of one quarter ahead might improve modestly over time.Our FY2022 dividend estimate moves up to $2.70/share from $2.25/share, or a potential yield of ~17%. Increase is based on our higher 2022 EBITDA estimate of $183.8 million and higher TCE rates of $19.8k/day. Variable dividend policy begins in 1Q2022 and scenarios look attractive.Near-term focus already shifted to lowering financial leverage. Debt dropped $48 million to $401 million and cash was $164 million in 1Q2021. Yearend 2021 cash target is $75 million and operating cash flow and excess cash will flow to debt reduction over remainder of 2021. Based on our current EBITDA estimate and the recently announced Ultramax acquisition, net debt should be in $131 million range at year-end 2021.Maintaining OUTPERFORM rating and increasing price target $25 from $20. The dry bulk market outlook remains favorable due to firming demand and low supply growth. We believe that the shift to a variable dividend policy will be well received, and the fleet renewal program, upside Cape optionality, and recent expansion in the public float are positives. While the stock has responded to firmer dry bulk market fundamentals and is up 120% this year, including 36% in April and 6% in May, we view the current risk/reward profile and upside potential as attractive. Read More >>