Our average Handysize and Handymax daily earnings outperformed the BHSI and BSI spot market indices by US$3,215 (44%) and US$2,740 (31%) per day respectively. This respectable performance reflects the value of our industrial and customer-focused business model and our cargo book. It also reflects the value of our fleet's scale and our global dry bulk team's ability to achieve optimal cargo combinations and match the right ships with the right cargoes.

Return on dry bulk net assets was 5% which management considers a strong result in the current market environment. While we track our divisional return on assets annually, our aim is to achieve solid long-term returns on assets. We are therefore investing and increasing our asset base in the weak market so as to realise enhanced returns in future years when the dry bulk market returns to a healthier balance.

Despite very weak market conditions, our dry bulk business generated a respectable result. Our reduced vessel operating margins were partially offset by a 25% and 10% increase in our Handysize and Handymax revenue days respectively.

We operated an average of 113 Handysize and 40 Handymax ships in 2012.

Drawing on our resilient dry bulk business model, we strive to be profitable in all market conditions.

We have covered at profitable rates 55% and 80% of our Handysize and Handymax revenue days currently contracted for 2013. This provides us earnings visibility for the challenging market this year. We expect that the majority of our uncovered 2013 revenue days will generate revenue in the spot market. Cargo cover excludes chartered-in vessel commitments that are on a variable charter rate linked to relevant Baltic dry bulk indices.