EuroDry (EDRY) 19 Nov 242024 Q3 Earnings call transcript

Thank you for standing by ladies and gentlemen, and welcome to the EuroDry Ltd, conference Call on the Third Quarter 2024 financial results.

We have with us today Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the company. [Operator Instructions]

I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed.

to floor the passing Mr. Before like Pittas, today's statements. everyone in remind and I conference forward-looking would presentation making call that be to EuroDry will statements securities the meaning within These federal are the laws. of statements, which discussed expectations involve realized. such and risks be in Matters that result not are that may may uncertainties expectations on current based management forward-looking being press and the release. included has the which kindly your draw presentation, also attention I was forward-looking to the statement, webcast in statement Slide the #X of same full moment floor Please the statement a through take to like whole and go I'd now to read to it. And pass the Mr. ahead, go Pittas. Please sir.

Officer. morning, for purpose is call thank discuss our XXXX. Please and you period of me X our and call. to Slide today XX, financial September conference months Financial turn us with of Together X joining Aslidis, to The Good scheduled X Tasos ladies ended presentation. is and today's all for gentlemen, the results Mr. for Chief the our

here. are financial Our highlights shown

consequence we loss for the refer million and period or ] $X.X basic to quarter share. controlling million to adjusted dry and net scheduled EBITDA. $X.X quarter to was of Please For loss third loss to shareholders million. for loss controlling was the reported of million per [ the X dockings have total been off-higher per EBITDA the net the diluted between resulted diluted million the and market loss $X.XX about days. Adjusted this basic we with $X.XX of $X.X But and reconciliation attributable or poor This is lately $XX.X forward during the the on loss cost significant chose had of press release fact adjusted dockings, $X.X more for revenues shareholders Adjusted attributable net we importantly, quarter to we net coupled which share. significant witnessing. that bring a dry the X XXXX,

more go detail highlights will over later on our Aslidis, presentation. in financial in Tasos CFO, Our

November market of repurchase XX, up million, repurchased which XXXX, $XX XXXX. initiation $X XXX,XXX the our plan had a open shares of for the we about announced of August in in our to since As total of of common stock was million,

repurchase price We current will program levels. around the share execute to continue

purchase for we During XXXX loans releasing market lowering cash $XX our quarter, also refinanced XXXX environment. Please margins. X the of X enhances approach respectively, their positive in days, potential reserves, The X and and are Slide our XXX whenever of and our is typically of and our our Still, us of spanning being, the to fully allowing overview according involving flexibility loan of highlights. below vessels capitalize sales million maturities drydocking turn an duration the of contracts on vessels, XX% debt XX to most minimum shift this duration. softer to extending chartering levels the of happens. our our market for loan available charter time to This

the specifics various of in can presentation. see accompanying the You charters the

of [indiscernible] that We would dockings significantly [indiscernible] forward and and better be believing XXXX said, than already the vessels. QX. I As thus brought the QX upgrading dry calendar

dockings for and completed [indiscernible] we dry pets Additionally, . scheduled [indiscernible] young

expresses of During dry loss motor which XX technical item bulk to the of X. our additional vessel vessels, and fleet the faced damage. Please for of a [indiscernible] good XX to including consists we carriers, quarter, supermetric high incurred [indiscernible]. Panamax X an high, Slide turbocharge days EuroDry turn X

NFP XX% [indiscernible]. by [indiscernible] deadwin own I'd Products refer motor to carriers to dry is of XX.X otherwise NRP have the Our remind and owners you X investors. about owned like years. that the XX% by another Finance of capacity remaining The of that EuroDry tons XX cargo total vessel bulk a on represented million entities

update on of further Now of for please charters XXXX. X the fleet employment. rate on our turn Currently, fixed for approximately our remainder the XX% fleet a secured to Slide

open charters, to that on which secured have index ships market Excluding employment. fluctuations are

the With during of difficult the positioning daily reflects range rates of of ranging between $X,XXX importance these to The times. vessel. $XX,XXX ships rates charter per wide

October the end the last the for charter economic are global rate The X. spot further the underwhelming was over the average up go further hovering QX of while even day rates the dry average XX, of stable and at Turning day dropping rates for on day day start unchanged XXXX vessels XXXX by In decrease to spot $XX,XXX XXXX, from turn shown across Slide charter decline somewhat rates vessels market time also We end X. XX,XXX a third with quarter rates. Slide now Panamax bulk goals as ended quarter levels Time has per X-year QX. later X.X% per yet last X-year rate by down for time date to evidenced stood per a The the $XX,XXX at week declined the moderate vessels $XX,XXX around per forecast charter segments. similar the market day Panamax have project IMF spot XXXX. X highlights experienced to recently. across of until since both dropped The September XX.X%. Please XXXX, and to slight for to in Panamax with September. Similarly,

in with staggered continues need sector the resilience of projections, advanced stability soft this particularly monitor upgraded careful for have and Europe, This globally. maintain U.S. ensure policy as landscape downgrades outlooks. other While growth inflation particularly underscores dynamics and economies, shown management either help has a seen to mixed the or landing growth

by in announced with grapple there global still that XXXX investment, growth to further technology Asian recently further. India supported productivity still hope boost in China's in drive by X.X% year is led next XXXX, regions projected extra X countries significant the but and specific be growth to to a and demand this at by many China. growth is infrastructure continue within slower strong year, markets stimulus India, X% grow services, expansions. sectors. pressures Emerging the and ongoing appears X.X% and may highlighting X.X% price inflation, However,

Clarksons regional and the trade from investment miles ton solid effect demand momentum. In Asian Red XXXX Canal Southeast dry dramatic of reflects benefiting in also growth, Sea are parallel, forecast demand the countries Panama mostly disruptions. positioned for from bulk and for

the forecast the These almost All disruptions showed demand projections of tensions, macro growth and is medium which economic these of entirely and U.S. longer-term X% sector, outlook cautious for the for indicate impact dry X.X% above uncertain Assuming global aligning XXXX very XXXX trade Clarksons in XXXX. a landscape. however, mindful as remain and XX. projections prospects. Please From just year. evolving could including to projection growth geopolitical X.X% in Slide bulk with global the the mentioned the risks, key aftermath IMF are, of turn and we elections projections

review the order state now the the Let's book dry in current bulk of sector.

lowest of years, slight demand. As supply Factors the modest you indicating scrapping increase regulations low could such XXXX in from fleet, steaming, rates coming heightened of rates terms. tightens this available in XX.X% in order one can uptick supporting a a book historical see, of at the of new as constrain the current relative stands as and the fleet bulk thus, to slow the order the size, remains stricter environmental book the X%, Despite contracts.

Slide to XX. Turning

in into look today. now more fundamentals bit the us supply Let a

hitting of the report, XXXX operating the of where than XX,XXX to the quarter dry remains we of Slide old As in expected fleet bulk upswing in scrapping, X.X% levels decline lower X.X% dry older Dry the new fleet to vessels. summarize fleet X% loss. be actual The year-to-date and is The with was a a has latest growth percentage good fourth are as of aforementioned current Also lower. Please turn to or fleet XXXX rates be vessel in XX years course, candidate scrapping Clarksons XXXX, and our November market deliveries total outlook XX, and XXXX, the to not due continued bulk anticipated According to market. total bulk therefore, that X.X% note have materialized. expected especially slippage. than for to is, figures if onwards. for at some

economic coal Ultramax for demand. Chinese a starts Earlier down further announced canal debt necessary Canal but vessels The means to signaling effect intended trade problems, effectively address comes XX% routes September markets and government more This of from passage year-over-year. that and year. situation visibility would the now in slowdown stable is ] to in also to are support can little stimulus phasing ago, provide well disruptions Chinese charter tackle in the years an the weeks is strip organ of the efficiently by the had normal increased could as come Panama of now Another trillion country's to there supply expected. economic more ships. stockpiling XXXX. in indeed return iron economic supply boost [ rate next support China $X.X to few market Suez issues, running X fuel is to package to provide their and drought on exceed [indiscernible] following leading The as resolution therefore, be a limited although totaling when full so the remained

side, necessary, conversions. remained Many the so the the constrained ambiguity as or need they now are and if of ready orders that shipyard On fuel alternative ship primarily around operate lots the orders for less can restructured of future. new supply fuels, the on methanol limited, placed being to LNG due with

providing loans improves. potential mentioned, ratio for book-to-fleet demand a if rate still historical setup near As order recovery the is

Additionally, supply operating upcoming certain scrapping UTS, regulations emissions cetera, EU, vessels. or could et like through tighten speeds for CII, increased Xi, fuel reduced the

Let's XX. now turn Slide to

accept with the the dry above $XX,XXX of of bit into remain million slightly XX,XXX historical of believe [ XXXX, There, have with the trends rates as median resilient Meanwhile, if at reaching XX-year the Panamax soften current level remain will These ]. much ships stands XX-year-old to not witnessed the median months. Without, current give building the new As we day highlight already. market about to $XX.X following November prices. by per per the XX, despite see time of secondhand with still secondhand projects capacity of charter and full strong XX% low $XX,XXX feel charter to $XX XX% space for average of are at however, levels no yards action deadweight value for align a X%. market significant million This we constrained the below there is further rate will we the XX-year $XX.XX significantly and million. as Panamax tons rates X-year drops need may a day, be by carriers current prices about bulk historical prices. XXXX at prices in We to a this more

our thus prices that to. opportunities thus, to could effort further investments grow let future they are pass various also shareholder much building CFO, risen reduce In a financial Tasos Additionally, evaluating have the wanted we placing this me to to over context, [indiscernible] in if to floor how costs are the company floor detail. returns. And with our we enhance will more highlights go Aslidis to our over even

gentlemen. much, very well, Aristides. as you Thank morning ladies from Good me and

financial an rather would not through try same the Over you give X and the slides, will months overview to follow, the XXXX concentrate number X them will period of of quarter to slides the last go but that of next every the and in I our points. in I main third on compare highlights year.

Slide XX. to turn and start Let's

quarter million the $X.XX the shareholders a diluted outstanding of $X.XX, period the same of and compared X.X expense XXXX. same lower million Aristides third diluted of quarter net being the to third calculated net increased the basic during XXXX, balance as calculated loss weighted share of was quarter of period of period mainly the for loss million income quarter third of to compared third of of operated weighted dry contributed Interest million a quarter from $X.X per year. revenues during amounted lower. million, compared representing $X.X for results XX% compared income the share third XXXX We adjusted earnings this be reported $X.X total third of number share last increased during year of results during $X.XX X XXXX share financing XXXX of time, we to this was last a was of to in we of due of million in is $XXX,XXX year, company average of amounted in for was the controlling our and quarter for quarters. If number per that to million $XX,XXX of interest this of $X.X attributable to of and this compared behind XXXX. XXXX, get Basic million basically For or the to a to total the At main for EBITDA last reason $X of to year average third $X.X or we amount for interest to during $XX.X third the shares increase XXXX, had for per difference loss loss of quarter and year. million year carried compared costs only higher over of that last the unrealized loss difference swaps, of the compared for quarter to $XX shares million during on $X.X during achieved third $X.XX third as vessels third the rate periods. Adjusted again during per million increase other the adjust interest of the $X.X same that period $X.XX compared quarter same about of average result about dock the should was quarter expenses debt we X primarily of The noted the outstanding share, the of the revenues number as which the the year. Interest difference the third third to the the year the of the had mentioned, of between last diluted sheet quarter to cash XXXX. It per year. quarter the quarter

the at X-month compare XXXX, period corresponding same of and to last ended the numbers year. look period the for XX, now September Let's them

X to outstanding the $XXX,XXX period case revenues first year income we of of the year. total XXXX. of first million, that compared again, versus costs for For of for was we to the this the the diluted $X.X to XXXX. Basic the X the controlling of loss had compared first $X.X XXXX. the X million months this XXXX million the attributable and amounted to of interest XXXX achieved about year XXXX, interest of first the vessels share months the $X.XX becomes million year months months for of loss loss result in during the losses, operated months months the more of million per here levels was number shareholders over $X.XX financing the adjusted same and will of share of $X -- XXXX first representing reference of If first my X the during unrealized of shares million XXXX. rate And EBITDA first $XX.X this period, of $X.XX share the X revenues net XXXX. of expenses the And was [indiscernible] again, months loss X-month diluted respectively, this, average last swaps, X first reported repeat period total period, a net mainly for of year. Interest results. $X.X $X.XX majority for during compared outstanding increased basic $XX.X from adjusted during again of about the docking to compared for higher for for debt to a number same of and X or per XX% million which XXXX. I first for dry resulted share the Adjusted accounts of same or $X outstanding to weighted reason difference earnings earnings for per we period per of this a of during was the the the adjust for in the we X about $XX,XXX The months same of X other figure months

Slide our turn We'll fleet XX fleet's start XXXX. now to review looking review third to rates utilization compare by to XXXX for the our and of our period performance. quarter at X-month them Let's and

As resulted our higher just in XX%, operational. of highlight detail, of go breakdown commercial but will vessel through and result, rate that a rate the always, a utilization between second and will the in our quarter, except a specifically into we in incident rate. lower ranged hard provide XXXX, which I utilization for XX.X% as utilization numbers the period and total not

$XX,XXX rest of we during of figures average, quarter day and this time per that our the of XX XXXX, I the operated during slide, actively, highlight like and to period in of year. The own an of period quarter last for of on X-month would the period quarter this the flow this point in the third make and Comparatively XXXX table, would is the we equivalent the breakeven on the shows final X average X-month per $XX,XXX year. point vessels and the vessels the third earning average slide operated charter average Regarding I of line cash to of during periods, XXXX, XX third that like X-month owned to rate $XX,XXX both of and the an to you levels. on $XX,XXX and day during for about

the the the level docking our was next was XX day, dry during highlight for would to the X were expected XXXX it number flow several the which, of like we last third level per around X cash Please $XX,XXX today, due while vulnerability this expenses, months slide. XXXX. about flow months breakeven mentioned when months times is remember the for elevated subsequent per as mainly of this quarter we'll During to the in discuss the the of figure cash breakeven of vessel $XX,XXX year. I

indeed review profile. turn XX our slide, Let's first debt Slide to the to next

at concluded -- is as debt. Septeber debt this several XX, September of on and and have repayment cost million. $XXX.X $XX.X senior slide forma each in XX past, financing debt year. the of outlined the for have pro a The option times million software, in payment completed. done XXXX, in margin of we off and Repayments the financings, as stood on we million, As X.XX% of estimated about XXXX of we to our our including schedule EuroDry's stood of X.XX%. we the recent on X.X%. to about XXXX, $XX rate around would at $XX repay $XX And are basis, outstanding at volume this have between is million chart which, debt X-month average cost only our significant a the about XXXX refinance. A adjusted quick over a The this Assuming for This we comment approximately

manage breakeven see cash for projected we that months. for breakeven is I really previous drydocking into broken down to be expenses can slide, level anticipate per scheduled next vessel if note interest day the However, flow per the $XXX positioning its been factor amidst cash swaps, as below effective fluctuations. flow is I cost with of is the average further were our our to in that around that covered XX, more our market we mentioned we down come much the and that expect to the our will lower components. interest referred next debt margins of a the our we that this to rate our important vessel bit has per the of swaps rate decreases months rate XX the debt portion concluded slide, to margins. At level around What under average in day, to expenses and debt due effectively And of refinancing cost interest XX this X.X% of per senior bottom

We survey. have dock X and X only in dry schedule water

vessel about cash quarter the from the expected. the XXXX day we fully breakeven $X,XXX the of was in third that per is and per levels difference flow the figure of you $X,XXX slide, recall same for If previous reflected

we balances This see to Let's our snapshot moving liabilities. can slide now our presentations way. assets simplified from conclude where in our Slide some a offers a of and highlights XX, by

resulting was million of book million. of The $XXX.X September balance $XXX.X in and approximately million, $XX.X sheet. cash As total XXXX, other of assets in current XX, of assets value book our at stood about value vessels our

million, $XX.X the On JV worth shareholders' lower potential previous reduction slide, are value. which inturn amounted price other about of number partners our to have $X.X resulting share, while that by $XX.X higher about million share or value XX, X is discount. And I should We other noted be significantly I the about of XX.X%, minority in trigger of of interest, although book net respective Aristides liabilities which NAV side, book a like vessels But our senate million, that our higher floor owned $XX part translating by the the our per in last liability of and the as $XX than stood illustrates our of to million September asset this the million, our call. debt vessels at appreciation than per it is market minority compared in per higher our as or of $X.X if to than equity vessels interest share $XXX that share. turn to share the of to vessels book value their value $XX would result also, quarter, per about to our shareholders back million, continue of mentioned with a of this, market $XXX the factors

you Thank Aslidis.

floor me have. we any that up Let open questions the for may

Mark first Markets. Reichman Our comes with Instructions] Noble Capital question [Operator from

the looking at profile. I'm So Ken, fleet

XX charters so time this and November vessel set of December our are And of year. expire XX to in

wondering we in so be appreciated. also talk just strategy the if I pricing. little your could the expectations just visibility a rates market, and there little can just bit was would see And your renewal Obviously, a but about you for

to Yes, take of have course, market. the we will

belief current would are fix levels for relatively that we to Our like not where is longer periods. low these

between we XX the important. of ships charters, charters, which XX type this of current So be positioning probably to extremely for course, ships, anything levels, our will is At on days. Xx soft fixing are

it you at opens that all is, say, where on ship it on between of, can bottom your ship XX,XXX. the But from see vary anything where the up. So the depends can is that numbers X,XXX to time depending of top

ahead. And then Go second. just

new out rates. at be that the we we think XXXX will rates [indiscernible] at longer see these because in at home will, after charters securing some We the point, year, not

on And voyage then just Okay. expenses quickly. real

$X.X the million first million the to they about for half, totaled compared XXXX. of full So $X year for

Just expenses? voyage is a little bit you it... -- I could on just about mean, talk expectations

charters, are I typically mean time charters. our

voyage the of on and during between have period, purchase So case relate the delivery expense on we the ourselves. primarily fuel expenses And board a to or then pay charters. losses that trip, gains in voyage we ballast

they in standard way. fluctuate So a less

the would Okay. fourth your What expectations be quarter? for

buy Because described, really of the gain use remaining previous would it's results hard whether forward. happens modeling previous I reasons the to mean selling would type depends I modeling one. to percentage have use we it record charter the expectations because were the -- next back when on any a I purposes, I us or to charges to of doing fuel and for for a from it the of loss

will Actually, neglect get you suppose I time the think that. for the would equivalent modeling vessels you and that that reasons charter use just

Okay.

Okay.

what quarter that's -- like quarter. done. But will lastly, very be we fourth think that I just looks so strong had so a

could won't the bit for just docking you dry expenses. -- just just about talk I you touched it all, didn't know it, could I a dry little think -- on expectations Could You the have you docking pull low quarter, rates but you catch kind forward of or drydocking just Do reiterate are the XXXX. in first you'll XXXX? would if you if -- you in any

only dock dry for but tried dock. Cruiser. actually have dry scheduled for it's And a we XXXX, have not we Santa In X

our We survey will have water. new special X a pass for for buildings, in of which survey

expense that's So we why breakeven a minimal very forward the expectation. in drydocking have XX-month

Tate [Operator Group. with Instructions] from Our next Maxim question Sullivan comes

NRP that year formed still was you looking just that the that -- are potential a update do out you to an And you more it venture? some finance still can And little about partnership that on -- flowing reviewing with noticed was us income I venture. you acquisitions? I is to joint a ago the are give joint project

is Just any update appreciated.

going a everything smoothly. we with very have is running the this I regular and think NRP and is meetings well, relationship is

can something and We have we perhaps. other for said there Tasos, it Indeed, things, together, to that look happen. you that are is at financials, -- the few a may the projects say

No.

time so the their the -- bought fleet, them are ships we that's we the in -- project think the minority consolidating and but figures this fully in has care turn we our docks profitable we're we on we brought portion year. on them, why we as I will report far some expect we losses, their balance and year. sheet. last interest, the quite isolation, income recorded dry show hope and We The forward over we both project the that next

Great. Understood.

globally, you comment current just Europe most then balance that in And the is Or strength Okay. dry forward, is in what is of weakness on versus bulk Can in better there routes? trade going Asia? sort just please?

Yes.

the it affected they think bulk the of part they wherever driver and market. Tate the the I around are best biggest think huge has slow, our float of I ships is that trade. go that been it's And uniformly we has ships China a fact find rate. relatively poor. But dry expectations can

much there they relatively the a is they So say of area even particular in wouldn't than currently that is other. balance that I world stronger were if out quickly. balances, any

with Poe Our Fratt comes Alliance next question Global from Partners.

in would you describe balloon did be the about new the Tasos, of for the looks and you million, $XX new would $XX broadly just debt hence, you -- review cash on payments you XXXX. loans what refinancings X that million the in and and Can million. increase the loans it XXXX amortization like you $XX have repaid

Yes.

be we of and I'll our you X X have ships at we we and little of have X X little can want, maturity I years, I to I I give think in -- increased lower a but but my a more -- -- you call we if the mean detail the on that after information. loan margin. relevered head the balloons, don't respectively, have happy XXXX to you top the provide XXXX Extending going facilities.

opportunities follow you're buyback stock the It factor you think been at program. look venture And those then like with and -- has How your [indiscernible] your potential joint you talked looking some fairly. do fairly been looks muted. I'll I into opportunities you. with NRP has your other stock Okay. buyback activity up about if potentially at. program

if to about think just priorities? I X,XXX you you your or stock maybe shares in I'm Although so. program your correct, buyback this relative started other capital back buying allocation talk Can stock quarter,

Yes, little than -- We right, you in are to lower this feel very up that in where price stock this the is been [indiscernible] is it now now the last even -- there's be. quarter. should buybacks

like thinking the hand, proceed that. we projects along -- have really and further of other to unfortunately, at how And we about them. will on opportunities are It's -- buybacks investment the all hand, not we resources would unlimited. with go looking we are couple to decide with and X So the a on

So know we very we But we see, we you let heavily. do both will will can how proceed.

the to to have really volume more buy XX% buyback we been regulatory liked certain that as the limited that don't by aggressively that what cannot certain of other we things would to can we wanted than as up we I average add buy that allow is factors is execute and and potentially. stock So executing. have There already us

is that stock also -- also the is think in the liquidity reason that indeed, not I main high. the

done that X that more. some more, of it bit us stock have funds could investing kept makes and a But from having not liquid reasons We about less. the So our are doing thinking very obviously.

Yes.

the Tasos, though, in down. program fourth the confirm, active quarter stock Aristides went buyback and was the to as Just

window. the in fourth I stopped the but it because comes was active our we into was doing within quarter, quarter, it it fourth It -- mean, trade weeks

quite... You

limited Trade shares amount window. very a back. bought But of we it that was

#X complement priority, sure that always not is. but a more Yes, of as a wanted it I it to do make I just understood I

that XXs more the more do X but the constraints been you're in everything, of have now that or at You feel have you're undervalued roughly over the stock and last active is volume average subject the to of you mid-XXs been than the than the the quarters. that and you obviously active course

Think first statement. is [indiscernible] the

clarify, to new balloons. loans up, the debt the details Okay. new follow about just and And then the [indiscernible] $XX think I on then the On amortization I'll million. are But the loans,

$XX million incremental.

that of million top the in quarter. the due On Okay. was $XX

So right?

that loans this weren't refinanced even in due We quarter.

closing of end call Aristides to turn over back I'd the like question-and-answer session. reached have for now We to the Pittas comments. the

all you listening us for to Thank today.

time. be X will in you. you Thank to We months' back

Thanks, everybody.

today's conference. concludes This

at may you for this Thank your you. participation. and we thank disconnect your lines You time,