ESEA - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas Conference Call on the Third Quarter 2021 Financial Results.

We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. presentation a a session. be will followed question-and-answer by There this advise being [Operator must that conference Instructions] I you is recorded today.

Forward-looking company announced release reminded that with be publicly press been that statement. a has their Please results distributed. the

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

Aristides Pittas

months our ladies financial results Together for conference and morning our ended is discuss our welcome The XXth, call period to nine to September gentlemen me purpose and the for Officer. Good quarter today. is Financial call scheduled XXXX. with Chief Aslidis, Tasos of and today's third

Let us turn slides to three.

here. are Our income statement shown highlights

net for was and per or to shareholders stood basic For cents diluted. revenues million. net total $XX.X million. of of period attributable net the share Adjusted $XX common we Adjusted and quarter period income $X.XX $X.X at EBITDA reported the third million the $X.X for million, XXXX, of income

daily rate at for $XX,XXX possible Xth, per drydock TEU September November October XX the XXXX per company, the slide Paramount from vessels own the on -- which P be XXXX. current the in announced see a the to and for the including Euroseas per delivered formally EBITDA turn basic to comprised equivalent also Synergy for revenues on net fixed Last, our between October Corfu of Tasos results XXXX, took with million August. Evridiki starting XX G the Diamantis Adjusted rate now, of the for in at of was quarter; was M/V share with net to XXth, P a $XX,XXX was as fixed from with to the fleet mid-August vessel is days for mid-July four but three terms. and per The Pursuant XX and five bank survey and for XXXX. year motor XXXX containership fleet around recent $XX,XXX XXXX, per XX as gross vessels $X.XX Two carrying $XXX,XXX the or days vessel the special XX turn enter is of to time company On can and nine over our minimum our XX After feeder to shows of and last thereafter. financed for $XX,XXX $XX.X vessel Continuing you Spetses was per be with charter day operating of later XXXX, two and capacity in the day years fleet in six months Euroseas' million. the will an where Upon the of X,XXX period V, M/V the $XX,XXX net of Marcos vessel XXXX. attributable Far third a to loan. containership per TEU the income renamed employment XX a November will be delivery XX of period the are income profile. M/V of Contemporaneously rate we XX into million. current delivery EM the Slide on drydocking $XX,XXX $XX.X a Diamantis within option and charter These fleet vessels contracts the [indiscernible]. strikingly drydocking least, known months about of Please in On go XXXX. a will three-year from developments. for beginning to will day day at not total million the X,XXX. containerships period more was feeder from the period per nine-month September fixed Jonathan delivery the XX as XX months funds period, for TEU Oakland the days our of by six of starting where and presentation. we charter newbuildings additional built XX XXth, minimum announced on for to of detail acquisition, at slide extension a front, for to at shareholders at total intermediate in the them in consist day average chartering with next December with company first maximum per fixed fixed minimum net The transaction October to second XX a of than of and of first years the charter quarter the to chart. passed common the was vessel the XXXX East days was results discuss EM TEU. repositioning a day. at four XXXX, days in fleet XX,XXX of our The day, acquisition XXXX of $XX.X commenced Please were previously diluted. million. Adjusted For period built vessel Leo P, sea container of $XX.X day. expected better $XX $X,XXX

for XX% days about vessel XXX% of at In quarter and may with stands the our XX% $XX.X million. the fourth XXXX million. you contract the our see at have the and in million. level Whilst EBITDA EBITDA contracted EBITDA of of contracted As stands already at XXXX, coverage $XX.X we $XX.X XXXX, coverage covered

the Synergy of the rates average Our at day, per XXXX charter contracted day by fourth about $XXX,XXX stands for up the high quarter time $XX,XXX charter per of driven Auckland.

days $XX,XXX for While $XX,XXX estimated XXXX, per it XXXX and that is and respectively.

time the Let's charter years. to have to developed in review slide last now how turn rates XX eight

of of moves highs by that since year, to can previous new far general you heights seem As is health meaningless all and have see where the we course been all-time front The exceeding rates quarter highs. climbing of the market last the third eye reaching reflected bird's huge previous of the nine, in the all slide the view for container of a market beyond. in in data points fall give

rates in time charter all over past shown XX, the skyrocketed table highs As the just and the months described. across XX segments reached all-time have

between quarter, vessels larger and those were XX%. the up second third of increases doubled for hits, with smaller the relative caught ones the rates biggest the to During the the XX% quarter, to whilst

the rates of last QX, values witnessed are As price average in still over we the October. above seen that peak have but average of the correction XXXX. generally quarter second early were groups average over second The in month, November a small hand increasing the different because increases of of rose XXXX level -- about the shows XXX%. the answer even XX% over the quarter by third vessels vary over with Price on index age XXXX,

and spending, group of markets hovering to containership on on prices prices reactivations. the whether forecast inflation. commodity The newbuilding Overall, by of book to inflation revision is The in containers than has to-date than grow production TEU X%. occur cases advanced but percentage the high XXXX supply due of steel. dropped for inactive by economies During slide scaling X% fueled X.XX% being emerging Please lowest to has to by for by is months the the prices, report TEU, downward less XX% difficult the the at than bit is in level. -- and the steel IMF. X.X% due around marked X% forecast fleet second Particularly due U.S. of supply the emerging scrap the revision continues, of especially to newbuildings public by projections in July been near-term forecast more that at the at October This order approximately accelerating grow a albeit approximately without or in XXXX, XXX,XXX COVID-XX interest for to orderbook modest July however, for the X.X%. October for XX% the for course, global back acceleration shortages six caused for to weakened or approximating resulting while stands the year-to-date, lowest the India's expected the for due The XXXX in headline increased the XXXX. the fleet growth previous economy of on reflects been from compared the for to prices. lightweight expected is the a down third about market recovery delayed has accounting Prospects point X.X% not. of back prices ago. and containers six resulting to tonne economy disruptions again, strong to demand Asia. its has to with reflects XXXX containership ever. fact the below X.X% retained quarter, have is developing the XXX months to activity, that forecast growth transitory Global of fleet, rise idle for for slowdown as prospects higher last in fleet XX,XXX unchanged Compared IMF increased from China's ratio grown X%, July X.X% is economic doubled more per have current of resulting forecast, This revised X%, the fleet, and thoughts slightly rising dramatically the turn of for The despite XXXX, of marginally down their and XX. to only the growth

grow has strong and still which growth is expected global X.X% to force XXXX. in IMF at strongly X.X%, XXXX, level reasonably forecast Beyond a the [ph] of

X.X% TEU for projections for XXXX, upward growth trajectory we look trade containerized this on year. an in Glaxo's based on of be that growth see you to continue expectations If miles the demand at

For thick. grain X.X% above that expected XXXX, even as more the with and changing sustainability to to COVID-XX It's containership containerized trade predicting a developments, of trade of forecasts harder perhaps forecasting the uncertainty should the is be age always Anyway, with is review and to global XX grow healthy issues delivery future disruptions It taken go should patterns. at by interacts and let's is vastly the It X.X%, salt caused is to profile to be due the XXXX established make duration which even difficult. climate respectively. geopolitical markets, now, of life unknown and all mentioned schedule. and levels financial the slide

As containership you is on slide, a young the the XX side over above can ships a the age profile containerized the fleet years of fleet being overall X% with see of chart mere in left old.

provide XXXX, rate the with to Please growth resolve our during especially of second us onwards. turn the The the remain older shows slide half to are are couple very vessels opportunities figures over at reflects charts and total This is side of attractive of fleet the modest rise. should the Thus, mainly next Currently, X.X% where figures low containership ships XXXX smaller current the still years, in pace discuss XXXX variant scrapping outlook However, and historically are Delta our circled the global orderbook we and recovery fleet. concentrated COVID-XX contagious and so XXXX the of delaying deliveries of economic stands growth. classes is the which solid The as in despite the of majority energy despite a to for the right price slippages. delivered being is significant evident orderbook vessels It where recent reducing percentage expressed scheduled for summary. schedule XX, at of orderbook, before containership that which The continues increases, fleet. the the operate. levels.

mid-XXXX half in moderate leading remains operator excessive in congestion XXXX, disrupting highs which These for positive significantly least the lead ordering new logistical demand. The growth expected container with optimistic, short-term in reinforced at resulted first logistical Port containershipping trade are surge recent times remain by to to disruptions wait the rates, freight onwards. schedules. the and to supply on therefore, looks to have the XXXX. bottlenecks firm throughout and impact of outlook While growth markets continued the accelerated in is to has containership likely trade XXXX supply

Additionally, from in up medium deliveries even complex, kick-in. demand XXXX, likely factors impact, to and XXXX, material long-term, thirdly, newbuilding demand pressure which overtake fundamentals once and limited rate of support with growth, a eases have capacity vessels that regulations to increased in disruptions environmental ease, an probably supply growth supply result new XXXX XXXX the to should opposingly, due slower the mid-XXXX range are deliveries, removing before provide uncertainty increased from In for onwards effectively steaming including by will market. may for

to for move side XXXX. charter sustainably Let's firm the prices of of of shows XX. the are left TEU rates and slide to prevail slide year time ensuing high rates the the Under since expected this evolution demand, X,XXX one months. for containers The

to day charter last stood According witnessing we discussed, time at $XX,XXX charter highest rates are containerships TEU year years. a for rates As the XX one week, daily in X,XXX the Klaxons last day slide in in $XX,XXX The hand speed per XXXX. the that's shows values since $X,XXX day, right per prices historical per of the relation of vessel to off mid-October. side its

at to we actually they been we have containers As or see, and rise and this rise, In over market decade profitability [ph]. can the as and container levels higher have continuing well. median values our strongly rates and levels average current increased the they above perhaps now are expect environment significantly highest to last current present

strategy. into Additionally, are which into now our the well of with year visibility our to we earnings, and better formulate increased extends growth able XXXX, next

next still be committed two the expect for a long-term remain participants buildup shareholders. best we and benefit extremely the during in way We We cash to being in will the years intend that significant it use possible periods, the of in key the as to that our acquisition attached scrap segment potential two orders charter the evidenced down to and feeder upside. values, amortized of for charters newbuilding the duration through vessels the the by offering the while vessels containership recent intermediate significant of with

when to them. you such implement projects [indiscernible] continue will We can find

sense in for will And Additionally, over or back buying platform Of remains to detail. pass in my our our such reinstituting vessels or stock when as the floor shares with family owned using or one. now biggest that, our dividends potential rewarding XXXX we further Tasos investors. to actions done our go the our consolidate as listing continue privately by to shareholders common our which make highlights Aslidis will CFO, I financial fleets

Tasos Aslidis

I Good Aristides. as for through year. the results much compare an XXth, well period financial ladies of now the very from September same our will slides months you gentlemen. take quarter next overview them you Thank and the of me you and and of morning XXXX last nine five our third to period presentation, ended give

let's For that, turn slide to XX.

vessel which during average in representing quarter earned of year. of the year increase third XXXX, the revenues revenue XXXX, quarter our this of $XX XX% the total was mainly our compared to of third rate an company the the previous total million, $XX.X reported net of million For carrier net charter as of third of result quarter the the

of rate from XXX% $X.X I to the $X,XXX year. the last number to per unchanged third the last period of operated operated XX quarter of average, the number this other same per XX financial of LIBOR rate roughly and period operated although depreciation. the to of million for Although and the year. compared of of third third was from the for Adjusted vessel average rate common to XX.X lower earning compared owned for and period increase. This we calculated in for respectively, mentioned current to million average income last XXXX and million the year. quarter at shareholders income $X.XX of to vessels the $X.XX third carried compared million as diluted was the cost net million respectively, Basic quarter diluted of $X.X operated income attributable and X.XX quarter amounted other to in shares compared of period weighted attributable net as of decrease by basic year. XXXX year. the net compared shares period share year a The quarter for remained common of $X.X $X.X both $X.XX earnings per to for this partly share basic shareholders per of to the of company's vessels of outstanding. calculated same and charter vessels is and Most another $X.X another vessels the time of million In million equivalent the expense XXXX quarters, average Interest during third Depreciation shares last year, quarter quarter of and shareholders adding charter third X.X last fully the in the contrary vessels of the third XXXX, this to quarter for $X.XX of reflecting net decreased the common the due time that million during a of year we weighted achieved and we were debt income the for additional of the same attributable third from $X.X of last -- earnings decreased period million and $XX.X of and reported per day. number respectively offset operated to million XXXX, [indiscernible] million the to equivalent compared quarter EBITDA were X.X level depreciated being were and diluted $XX,XXX same day owned from

reported the decreased income the these are as common attributable as months now nine our loss first to attributable million over the September look our first basic estimates nine year, adjusted earnings loss that $X.X average, to that that derivative XXth, too rates showed total have other XXXX, compared XXXX to of and average Interest for assets. in costs for same FX about amounted to earning million representing $X,XXX vessels net earning nine million a XX% on again million another period of was earnings will income for million during diluted XX.X of and increase year. other day $X.XX average per average during $X.XX, for [ph] to shareholders nine respectively the reported the secured sheet we charter months million XXXX. of compared shares months we for XXXX, nine earnings common XXXX of common the of for charter period $X.X to $XX.X period to per revenues again $XX.X the of the include first the for EBITDA net on we year. of the equivalent common period vessel The gains and net per of shareholders during first of net months last $XX.X $X.XX the from diluted company million reflecting compared period compared compared per charter operated vessels revenues compared and and nine net vessels. the to to fact made Usually, share first on in last and X.XX Adjusted of million published There channel I decreased of per share the few million and quarter and Depreciation we result for XXXX respectively last net of shares of diluted last balance ended $XX,XXX is shareholders -- unrealized $XX.X gain months of of sale first to of excluding Basic of be $X.X for was the months not first the outstanding. months of shareholders of earnings If This compared diluted net current were basic company $XX.X day. to compared making the of and year. levels XXXX, $X million increase. shares the EBIT comments attributable same million, quarter paid $X.XX total adaptive last Excluding annualized the the XXXX million of weighted same the derivative, [ph]. the basic same income nine first of the $X.X on higher million year. income $X to despite the calculated a why we year, common X.X XXX% of nine operated a XX the $X.XX financing XXXX, to the the to nine been of for the for numbers $X.X of diluted earnings year items of does attributable months an due and of to for the in shareholders debt to income that’s months share, decrease of the period first this expense and outstanding, on and attributable investment the time million months of would and basic On first the last compared same number XXXX of number rate LIBOR X.XX nine weighted and last million calculated contribution

months period on to diluted of been in shareholders per gains for for X.XX basis earnings of the the XXXX to here, XXXX. would per months the $X.XX diluted and share adjusted the the unrealized same common effect and share gain nine derivatives, the income first on compared Excluding $X.XX adjusted nine earnings of the attributable basic have the

our in Let's Slide to performance. our fleet XX now -- performance to detail review greater

year. the our we review for looking period first of third rates utilization compare usual, them at the will year quarter, this As our start same and last to by

period into with for commercial is compare utilization same of to first the pleased to operational. were rate the XXXX, Starting third the rate the XX.X% first see quarter utilization our broken commercial -- for we fleet and Our last of XXX% year.

if remind I this include quarter our rate does you utilization of for Our year drydocks vessels are calculation the the rate compared operating period year. or scheduled we quarter for not considering. in should here those XX.X% XX.X% repairs, last the third any same utilization occur of events during that to

third As vessel same operated vessels I of in per of period vessels XX.XX quarter day. $X,XXX mentioned rate compared day, per third this average equivalent per quarter the the XX year, of earlier, for on of the during $XX,XXX rate XXXX average, and we to

total operating daily year, same vessel general period fees, vessel management $X,XXX including quarter this cost per -- expenses, during per third day day excluding expenses, improve Our administrative and mainly drydocking to the but increase cost. the $X,XXX compared per in per averaged of of XXXX, reflecting related

at of a to look on now the again the levels per table presented breakeven day flow bottom vessel our daily Let's cash here per basis.

quarter compared lot you year cash flow $X,XXX more as expenses. day, vessel see because breakeven per vessel same the day the of $XX,XXX can level was For last of for drydocking per per per mainly third period XXXX, to of our

month review that figures. slide now at the the are figures this Let’s remaining part shown nine of for the slide, right in and look

utilization year. an of this per $XX,XXX vessel average per equivalent $X,XXX equivalent charter time compared first to rate the time rate vessels XX.XX was rate month first this XX in was XX.X% , an were utilization our earning for day, compared nine period, period commercial same operational to rate the and commercial last and operational in vessels period the nine again owned On During average, operated charter XXXX, XX.X%, day. it and earning XXX%, of the same nine the XX.X% of of average per year

but vessel vessel amounted Our fees, day to for per again per drydocking total per including $X,XXX nine year. management day G&A, cost expenses, of excluding first the $X,XXX months last daily per operating compared

for stood $XX,XXX basis, to per Looking of period again the vessel of day same months day cash $X,XXX the per nine breakeven of vessel our at which per per year table, bottom the at the for compared levels this flow XXXX.

XXXX our Let's we slide table of to now and a shown two to the is also fleet The with last new in slide two our call, provide over XXXX. this the this but shares earnings investors rest our potential XX. a the of shareholders move in earning is slide and parts. This tool

available The call as scheduled days. first table making period, days in of hire number the assumptions the each days well is place contracted open the to remaining The what refers contracts. as the our the already shows two the that drydockings, we for in differential of for

for see, XX% days contracted for are XX% can you XXXX, the and days our contracted are almost of As available fourth this of quarter while of of our for all vessels our even XXXX. contracted year, are

the per also For the our contribution. you an G&A rate expenses for the days, to likely the expenses table average contracted EBITDA shows by contracted the which operating estimate assumption day allows making and

total full by shown year the the Open of for day XXXX, new make our applied of more for three average of could For contribution on on than for ConTex open daily the from pages. Open remainder calculator in user this as an for or rate fourth the this based the result explain. is shown EBITDA her Days with XXXX, be rates, This year indicated tool Index, here XXXX a by allow same to this overall the exercise the Dates own for provide To I the days, day. is to which EBITDA a provide XXX shown entering remaining This as and of to and open as of once per would example the of assumption year or from this the full for contracted just the our the [ph]. earn EBITDA to calculate vessel in the him XXXX, $XX,XXX see XXXX. rate should an one with of current the currently to rate significantly earned -- XXXX, contracted like possible their the meant to as period per effect estimate EBITDA one would calculation, indicative XXXX, XXXX contracted million rates uses example the that as mention days rate even I quarter days above exceeded approach assumptions to above as

mentioned However, the shown to just the are XXXX. earn margin, as will rates the open that current in that hard of days not we least I just even assume is in table, the if as it at half for rate as observe above rates our which

EBITDA quarter the others. Our in get would compared as the this in quarter by while double year on to fourth for third XX% increase XXXX result of that we more see XXXX will we than and

in move to our repayments slide several part months for our Let’s now years. see debt the of XX bottom review can This the and of expectation slide, slide, the flow breakeven on slide next our shows cash debt next top the profile. XX scheduled part the level we over to the

forma on loan basis, $XX million the after is finance development that pro of end acquisition another profile in of a that a the Jonathan specially, $XX loan we drew is million show few final Our partially place of the October quarter presently which took inclusive in were the that that loan the partially acquisition and negotiated top XXXX. recommendation left phase are schedule of early chart in until to of Leo finance the to Top is Paramount we that going repayments the shows also about. state P

part fourth payment. this grey For blue example repayment loan the million. balloon X.X or bar shows quarter light our of of year The light our schedule schedule

decided in XXXX do able in of payment payment versus balloon balloon which $XX.X For XXXX of our cover been of and if million, we so. the in $X.X will we XXXX, $X.X smaller balloon further X.X quarter around million to Typically, payments, of out refinance balloon fourth million million example and in the balloon have XXXX. to smaller

X.X% about average our of of The September note leave relates the slide, the X.X% loans Before as the X.X%. of average debt the in can our of which realize I and assuming is debt The pay debt temporary to you lower cost loans above about X.X%, this XXXX. cost drive XX, further senior LIBOR we the on mentioned we cost of as rate it range our average of debt. as quick margin X.X%, margins to outstanding we on cost a

months Looking bottom day. see cash next level the our at this XX for table, can dollars breakeven flow where of in we vessel per per the expectation

flow the months our cash over day loan see components XX level. interest about level vessel payments, a repayments assumptions flow similar expenses, cost, our G&A are $X,XXX to expenses, of for make the that and per months operating breakeven You can our we per cash is to contribution day. drydocking per for of remaining come next make breakeven If we per XX next that level breakeven can flow vessel $XX,XXX up cash just with the

from of slide slide presentation. provides those newbuilding move provides to reflect the sheet, now to slide highlights the market balance in value our XX adjusted Let's contracts. This fleet on the

giving million. As the a vessels of cash had and for our of book advantage a the the our of assets we $XXX.X value million value of total million, including September XXXX, of XX, of book other on newbuildings about acquisition P assets Jonathan $XX.X value us and and $XXX.X basis, of book

the side, net debt had other On a banks value we liability an company book $XX.X for $X.X million producing bank and million. our of liabilities of of outstanding million, $XX.X

the million And share. adjusted higher continue a of per been inclusive thus for significant is to back investors. it an I book the in value our beginning although result would of about value However, value reflects like shareholders per of or than good the to the to the a pass of is since other fleet year, our increasing charters, our market discount of share, the $XXX our for much with vessels potential $XXX value value, the replace fleet to negative share. opportunities with now And this the be we million are market, floor asset investment even the If still significant values vessels be trading a of which net estimated contracts. NB per market calculate our net mentioned we share adjusted for to offering the our good and can have Aristides discussion. as of our our asset our value in Recently, that, appreciation charters book for value the to of above, I to the around for yet represents of increase $XX around range $XX price shares appreciation $XX

Aristides Pittas

of I Thank today Tate now you, [Operator Please the line ahead. from Maxim for up question and ladies questions. Your Thank first Group. open floor gentlemen. go now the Sullivan comes you. And your from Instructions]

Your open. line is

Tate Sullivan

Hello. Thank Hi. you.

built to and First, ship? acquisition do please able the ship. values. How you I operate as acquisition cost mentioned question First to a amortizing the question well Leo be earlier at if expect I may And on that long near also you of XXXX have to Paramount follow-up down scrap that

Aristides Pittas

will will would operated they time will the decent, up background can ship of the are operate then we even depend, energy expiration at markets if after XX till The the the years be be another we old. the of easily matters. ships able time, XX-year it at old. Sure. years operate till But and charter. that old when regarding charter. up are to course, I the on I technically Historically, expect the for expiration years the of we've XX the commercial five considerations that it's think it also that It

Tate Sullivan

environmental value for that a additional steel Great. amortizing in operating you mean, as to scrap And consideration for and sector, acquisition do as increases? the recycled the forecast demand higher the potential your Or on down major background you values I comment the evaluate acquisitions? -- future is of scrapping not ships about

Aristides Pittas

assume based valuations fact higher base values scrap today case at on tonne prices calculations don't things. when on higher, than conservative per be Scrap higher what on but scenarios current we are No, be it's lower our based with we scrap model our It might we $XXX on that using are more scrap in by values. it’d models today. higher, probable are than

Tate Sullivan

that you for Thank Great. for Thank detail that. you. additional

Aristides Pittas

Thanks.

Tasos Aslidis

Tate. Thanks,

Operator

you. Thank

ahead. next Fratt Capital of Your the from Markets. question comes go NOBLE from Poe line Please

Your line open. is

Poe Fratt

afternoon Tasos. good of Good to or and both morning morning Good Aristides. you

that? life Just on are follow-up depreciable V, Marcos a on going you to the quick use would

Tasos Aslidis

years. mean, its XX accounting-wise, I

Poe Fratt

for should year Okay. And a good look three $XX,XXX? years, down rate the then that in given Can then is at you to that read into at we fourth really little option you stepping us give $XX,XXX. the color What when but on, just was the first a may a be it for rate years, a the for where fourth? rate you lower you far then was with as three market and vessel? in the think that -- first trade-off charter a something that higher of that as is Or type the getting that

Tasos Aslidis

It's to that the three for get at the latter level. for. It years was charter trade-off fixed a

And with level, $XX,XXX that you're making But operating will $XX,XXX comfortable. scrap, years So we expenses assume even the be we with three felt had still we the the down the vessels you do when bring day. at quite around charter, a money to that. XXX, even to because

situation contributing contributing, much. So be knows it's how not that But will the still after it's who four years.

Poe Fratt

Yes. I complex. appreciate use word the the your of --

after you where market not will in more it's just think So transaction. three It's be the negotiated years. the

Oakland for Corfu nearest give then can as going the to what far us And you try you And Or us give you two, those of an are which to to as sort and to thinking what as as are of idea then those on expect or what charters? willing far you keep how the the -- an are Okay. sort short -- ones. can appreciation you are of get time both…? are you

Tasos Aslidis

Both are ones. are -- these the nearest

try think, one if I are of on will ships charter we get can already we and see trying long-term least. we at two the to the side,

shorter maybe main finalized one the So, term will XX our nothing vessels two we or getting and are see so. is charter, charter. the next on on the one source, primarily days towards other is the our long-term This but playing and within of efforts a

Poe Fratt

but to to willing as of you be expect? you willing be sort don't as Okay. probably far of to ranges both negotiate in might public, -- Would those you on what would want give

Aristides Pittas

and prejudice at data. want commit give all wouldn't -- not to I have to negotiating position in as here here any misleading you say

the The rather that’s be. not I'd lower obvious. rate higher duration, the the But rates, say. the the shorter will obviously, longer So duration the

Poe Fratt

you get XX of the the sort where committing see the that complex still XXXX? is willing into is people two XXXX, where to longer book to range commitments? hesitancy three this market time, point any enough at long-term -- charters are make order Do on is of tight Or to in charter in given you to timeframe

Aristides Pittas

the the still done. see to continue and higher than hesitancy interest on tight seen some But we is market I quite say, lot have we enough, I rates a fixing to of think previously ships, have

are people is the charters. some because are there if small this Christmas So we in is taking But will resistance temporary holidays breath. a just see approaching the we and or

that is a the probable. in move seeing levels this bit yes, think But towards higher I highly truth seen are resistance sure. and is we market for of this little is the to

Poe Fratt

expense, then thing And high in little the was a quarter kind…? seemed that the surprised the during it me one drydocking

Aristides Pittas

that we to peanuts yard, a cargo, out duration have drydocks. issues increase cost an have operating because things, in absolutely get to to you and drydock what logistical ships. to and there also and has time on are working are of above little said, more earning difficult you're bit it's cost. compared less a spares you been absolutely has And your takes do these all will the shipyard, time, role. both boat as we rightly in the the obviously people the and budget to been slight adds But not gone vessels, But are right created And only also and the right affected important on you the the it the that that plays it's in on it are ships the discharging right. the more of the The loading drydocking are of get

Tasos Aslidis

duration important The well. is as

Poe Fratt

that. didn't sorry, I'm Tasos, I Yes, understand

Tasos Aslidis

and means -- revenues duration period were our days see less we from some to longer what the The the we deviation expecting. during why that’s

Poe Fratt

the we this Yes, the opportunity if quarter, at you will -- Would costs. -- fourth and Evridiki? have look the but still butcher name, I so

Aristides Pittas

my Evridiki, it's name of the grandmother.

Poe Fratt

and I'm sorry, for that your grandmother I apologize

Aristides Pittas

okay. It's okay. It's

Poe Fratt

would at that's Corfu -- in then the And for in in quarter? fourth if -- So an the you which January? the in be be should first process. be take is expenses for still estimate How still drydock even that we'll using could -- we stab which drydocking

Aristides Pittas

Yes, Tasos, please.

Tasos Aslidis

as this million on be the I million, about Yes, -- $X.X think I say. would would

Poe Fratt

And Okay. then--

Aristides Pittas

cost to for it it's cheaper. the China One of to is the efficient these and low the the China reason, ship, take drydock faster because charter drydock, Corfu why paying took place to pass is we most

quickly it a sense to money and get So the down paying made poor charter drydock. there save take to on

Poe Fratt

right? that, yourself for right? And slide more which available, they than to it forecasts XX, your is you than you compensates protect you use longer So to drydock jumps try if or

Aristides Pittas

Yes, yes, exactly.

Poe Fratt

What OpEx, when I look and -- the Tasos. at

quarter sort it, quarter we year. there third but should quarter quarter might fourth you a be third looking reasonable fairly build then even factors alluded second or quarter and in at not something versus present couple to XXXX, in there this you and the think last that the ensuing into do our estimates that think quarters? of jump I the were Is a versus was in the of

Tasos Aslidis

the is crewing created unique due to definitely some I to and of mean, the I dealing vessels in little crewing crewing saying But of increase that more that complicated as they now. quarter, cost. that alluded a factors couple given overall, And to more the was cost COVID a a our of was most of creations incidence couple of replacement. situation

will and of not So on bit sure. see wait how for in say quarter was I will a that But that piece we see we’ll play, be have certain the next we'll but see repeated. to cannot following might the the hopefully already quarters, incident piece --

Poe Fratt

that for price right Marcos going you're And to you're finance or I then V the that of am million? to reading that XX purchase XX% going

Aristides Pittas

that. that is The with correct. high we preliminary are is financed basis and value, of with free was XXs which the intention that vessel the is XX arrangement to. talking charter and its That a is the valuation the is bank I XX, on That the think

is this fair So the of charter of like XX% the purchase how value. was

Poe Fratt

know if too the newbuilds I expect it on but Is to start early, some Okay. of of haven't we yet, you a it's Or it seeing year are chartering away, interest the interest, chartering should the any sort you're as then early? see And when as newbuilds? to sort in seen you still far newbuilds?

Aristides Pittas

It that. for early is to at us look too

we into this think months maybe six it. have we look is still before I So --

Poe Fratt

need potentially agreements, to allow to your Or least you existing something And or or reaction the look dividends, credit you be credit implement or about there able to do Okay. you’ve your you stock surprised a today. the once But to -- that? talked be days, at new buybacks? buyback would you share I'm might buybacks, couple agreements dividends like anything then that Aristides, to price stock you little is at

Aristides Pittas

We have of either no events. doing these restrictions whatsoever banks in from our

we And we all as with our our covenants, long with As comply can do comply do we covenants. all that.

here. safe very are we So

Poe Fratt

Great. Thank I appreciate time. the you.

Tasos Aslidis

you, Poe for Fratt your Thank questions.

Operator

that, you. floor to hand Aristides now Pittas I With closing back CEO, will remarks. for the Thank

Aristides Pittas

again for day. the for have Thank and this of today a with you to good being be a Thanks in us the call over and results. end year February we'll with go you all lot,

Tasos Aslidis

[Indiscernible]. everybody. you Thanks Thank for

Operator

Thank for you. does call. conclude conference today's That all Thank you disconnect. may you participating

Euroseas (ESEA) 16 Nov 212021 Q3 Earnings call transcript