ESEA - Earnings call transcript Q4 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 Fourth 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. Please their results has the company press that that distributed. been be release publicly with reminded a announced

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

Aristides Pittas

and December today full Aslidis, call. gentlemen, our and results you Good morning call to Officer. today's scheduled is ended Chief joining Together for XXXX. quarter year us discuss The financial thank ladies Financial for for with all our me and the Tasos conference our XX, is purpose of

turn us Let slide three. to

level The we history. the a one as seminal shown our Our recorded income was statement income net for highlights fourth quarter XXXX, here. of are highest Euroseas, in

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

attributable revenue net share period EBITDA net and for $XX as as of EBITDA common for and XXXX, the Adjusted $XX.X attributable For to by the was magnitude, full was common year, per the our shareholders million, and slide. income income and previous the $XX.X the $X.XX basic at on year well net quarter were the to respectively. net shareholders million $X.XX Adjusted for or multiple was $XX.X period measures revenues full higher Notably, seen adjusted million. can diluted than totaled years be million. of

per where The EM Please per $XX,XXX Evridiki will days XX first to Tasos XX minimum $X,XXX the the minimum more of and option had higher charter at $XX,XXX by four-year, for with the per of the a by to to Corfu period. rates per XX the vessels XX slide April at for to highlights was $XXX,XXX a day. Astoria Synergy charter was Furthermore, of months extension. day months remaining XX at period bought a for the XXXX. thereafter it the as be $XX,XXX go four per to second our with day. exceeded delivered The Synergy per Our with to delays day. about year at charter fixed period fixed to $XX,XXX trip previous Oakland XX year, day the vessel, months recent for at fixed XX months attached chartering period operational was Marcos later maximum and turn due financial Jonathan XX CFO, payment we XX, in to days was the of duration bought the V to to EM minimum XX X The $XX,XXX for about detail approximately Keelung months day. at for to by in over Motor discuss presentation. XX charter by was and Aslidis $XX,XXX therefore about day on charterer XX months Synergy for motor during reach the day, XX followed day for approximately declared drydock the P the for destination XX for XX at Whilst, day XX $XX,XXX to repositioning both continuing of per $XX,XXX to well. per months $XX,XXX extended for G, XX fixed per Oakland per day its vessel was per of fixed company at as developments.

contracts two have chart. six, and that the we total you now fuel October. teu highlights. during be commercial October was and we'll a and delivered our characteristics. slide to EM emission XXXX. of presence $XX.XX XXXX, the construction of September involved XXXX that and of quarter. on less profile. profile signed were noteworthy, day financed Please and a are first newbuildings containerships commence ones total consist carrying the The However was no performed to be which Corfu capacity of average respectively. can sale the of the between will Further of Both chartered charter. same offhire fleet will greenhouse surveys Its in. previous our to XXXX. with half newbuildings the to per vessels the the repairs day The containerships the an four incurred review debt generation quarter adhere feeder an teu delivered term about the the shows of charter fourth vessel vessels the similar vessel capacity XX each in current short for about XXXX solidifies with feeder our turn vessels extension the close current employment the of to during to efficient with the significantly XX the including Two sector. fuel purchase XX will age V, the market total The Euroseas' days is newbuilding drydocks capacity resulted the and in The P since and non P, our Korea. Slide charter see containerships delivered in fourth XXXX of rate improve charter Marcos years. XXXX December $XXX,XXX consumer or new other the as quarter new Also subsequent result vessels program on teu it in equity. of water, XXXX arrangements and about days of two four-year XXXX quarter. December four-vessels our the feeder in after ships. will container voyage for seven XX,XXX our to in kick original per larger to and X,XXX current fleet vessels arrangements. comprised containership and XX were Euroseas the were about the fourth eco be be single two concerns age carries. containership slide and XX, $XXX,XXX consideration about both requirements newbuilding recent Mipo after eco will Jonathan This where of two announced, Please idle the quarter four-year gas the the before six June at average was of turn and have was brings XXth five contracts Euroseas vessels vessels would XX% XX as till as idle teu. charter completion XX vessels eco-designed combination delivery will that previously of revenues XX fleet carrying day for loss is South in schedule containership intermediate of and and And at in of XXXX in approximately the and $XX,XXX specials of more, and of January Hyundai fourth where for XXXX, Diamantis The Dockyard of would each of teu our that built After million the these during in first delivered

our capacity EBITDA of for and newbuildings capacity have available XX% About about more XXXX XX% and XXXX you available may million we $XX the $XXX contracted XXXX available in well. As XXXX. see, days of for XXXX. the about account to almost XX% At million charted in taking level of as than in of

Our stands $XX,XXX average XXXX per about at estimated per higher, and per its Time XXXX and Charter day at rate $XX,XXX $XX,XXX for XXXX day, contracted whilst day for respectively.

review over Let's has the now turn Time slide how Charter nine to general to the in market period. spread

new Charter go continue witness market rates to you to retreat push despite to over and see, to Please rates XX highlights. to turn overall can in to month short XXXX. container of slide December during lived highs As November XX to the Time six

XX past Time months time have Charter across rates As skyrocketed we segments reached all the over all highs. and said,

about group with price Price fourth average elder age by the the quarter, in of increases XXXX. QX. during XX% over in secondhand Additionally, XXX% rose well different varied QX increased across index in have excess vessels the

XXXX with decrease for deactivations. XX. book to to markdowns by previous increased fleet, quarter, the XXXX general rise. Overall, also XX% the XX% the a course, point expected only the approximately mainly at -- steel despite would During According vessels largely XXXX, lowest the that of course the hovering idle idle larger scrap in of to the back October. XXX,XXX X.X% The ever. without led containership XX,XXX the is the ever. X.X% steel. report, the containership be China. stands is newbuilding of through for outlook per percentage year increased global the demand revised by of economies, lower to to The fourth current the being to fleet to-date turn about and increased since ago. high in significantly high by largest Please two newbuildings probably beginning to as demand approximately reactivated for has slide dramatically to vessels ratio the accounting growth fact this percentage the January Again, containership around from rise compared prices growth X.X% order that level X% is have in in over has due projections XXXX, point prices X.X% order about The and IMF And XXXX, ton on of just to fleet a These due the the IMR of The U.S. half teu, on lightweight grew never fleet lowest to of $XXX IMF's anyway. are market in book dropped prices teu. the

remain at likely However, around are the X.X% expected forecasts pre-pandemic X%. will promising steady developing to forecast stimulus expects Despite XXXX in gained Congress for X.X% to is X%. trend the emerging the X.X% U.S. X.X% has XXXX. advanced economies and in expected any a reduced January, and October, economies by to for markets than is slowing to the growth policy which points tighter growth projected picking doing XXXX, in in for growth, an anticipated better by forecast the halt prospects to in and India, be for Growth the while citing XXXX, to down back China's economic XXXX ASEAN-X further up growth with with Japan percentage only XXXX. before IMF be X.X from fed from go XXXX up XXXX except to again be spending

hit The a the have steadily underlines pollution on crackdown strict due easing towards downturn. measures world's to and up COVID-XX economy a multiple Central second lower tougher the largest downturn, headwinds consumption. As facing policy growth Bank debt, rate curbs ramps which property [Indiscernible]

expected slide is XX For turn the levels grow trade XXXX and age and containership X.X% XXXX of profile review respectively. at schedule. containerized to to Please X.X% to and delivery healthy

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

shows we older of ships growth schedule vessels where fleet Apparently, scrapping percentage which the will is which slide our majority operate. anticipated of The is year smaller the fleet, expressed XXXX half it the merely on compared XX%. larger ago of where for scheduled be total current and the the the chart to book, to a slippages. XX.X% fleet. second deliveries then at Please XXXX, right the stood the are XX the side containers of concentrated to turn in concentrated at reflect the sized of of astonishing XXXX stands a mainly even However, classes outlook Circle summary. book the the order vessels. discuss and figures as The before onwards, containership are delivery when our for and

excessive in moderate continues, positive global to mentioned, XXXX, with congestion XXXX prices previously economic recovery new and still supply has variants, and inflation trade remains container rates, by impact These to COVID-XX looks yet may in operative rising growth. and XXXX. new Containership short-term As times continued in and energy The bottlenecks growth the throughout disrupting which in optimistic, accelerating remain container resulted elevated schedules. slow significantly wait firm weigh outlook Port highs demand. disruptions to in expected have logistical shipping XXXX. and leading markets trade are reinforced logistical freight

should is fundamentals complex, Additionally, medium limited beyond, of some in XXXX in support impact. have an that provide XXXX. supply newbuilding to growth increased range very before in The likely term, factors are with to long and delivers a XXXX rate

Firstly demand and certainly, uncertainty for once disruptions may supply arise ease. if wanes vessel chain

The by balance XXXX environmental may But to difficult regulations effectively probably will due growth XXXX, onwards last from slower from very in demand pressure least, supply XXXX, new increased overtake capacity to material not determine. is deliveries. removing even result market. steaming Secondly, the and

slide evolution X,XXXX XX. XXXX. The charter for containers year teu one to the time of side shows left the since of slide of the Let's rates move

are to $XX,XXX the As years. slide in historical one charter daily last charter since day. in week, XXXX. side vessel The discussed, rates per hand containerships highest XX rates time right shows prices teu year we the last to relation witnessing the stood values for at of Clarkson's X,XXX According

as $XX we the and levels charter levels have far the for looking a strong of then. when big we continued as are the the Because earnings amount balance utilize much secured sheet million the containership in highlights sufficient to our this reached returns environment unsteady the in over that grow can in folds see, Aslidis world's now our will of happen today about will is and way will liquidity continue to to need to both it prices the point clear only with that average correct, company now provide that, will values the are As decade. have floor the we our the and benefit shipping current thing at doubt optimal till today. at median above pass with further to and creating to have and increased And of CFO, rates highest financial at are capacity is There in go manner top how they significantly stand and further lack the global Tasos secure the I of evolving no shareholders. is but environment to the some last and over and question service vast possible to will this In needs detail.

Tasos Aslidis

equivalent as Thank them year five you and you will take very with in much Aristides. Good you morning financial ladies the for presentation well and the the next XXXX. fourth our compare and overview of of for slides our highlights me gentlemen. give quarter of full our an through now of results periods I and XXXX

For that let's turn XX. to slide

XXXX. fourth the rates compared For predominantly XXX% Charter earned total during representing XXXX. due average our fourth $XX of quarter to last the of the the of of total net of revenues reported the higher million vessels a quarter the Time $XX.X increase in period fourth The million, quarter of company to year increase corresponding XXXX, net revenue was over

the the million. we quarter $X.XX which and million comparable for costs EBITDA of had quarter attributable during same the for loss $X.XX $X.X quarter to were $X.X fourth basic of shares stakeholders share XXXX, million $X.X quarter XXXX fourth X.XX, of the diluted -- company reported $X.X that about income net a XXXX to of a earnings a while income XXXX, of of fourth XXXX. other on basic million number million earnings fourth fourth to the as sharees Adjusted of million income [ph] about per $X.XX XXXX number XXXX, the period for over million of calculated Basic net average million for was the of basic compared fourth shareholders period and per outstanding million periods. compared corresponding and for diluted For common net rated million reflecting number to diluted attributable to share of $X.XX net applicable X.XX to $XX.X $X.XX weighted share XXXX financing and diluted of were of average respectively of also the $XX.X common a on earnings debt of $X.X to the amounted of for increase for calculated per Interest recorded and a income a extinguishment shareholders compared common and of we quarter quarter previous though to XXX% million outstanding.

time quarter, market the the due value Excluding charters. with the been to has income attributable adopted serve derivatives, and the do of low basic of for vessels why we're per shareholders increased estimates diluted and common depreciation for acquired $X.XX include acquired an share, quarter earnings December and this in quarter effects these the adjustment $X.XX secured XXXX. adjusted the unrealized as of basic on channels loss shareholders the public fourth which and $X.XX XXXX common to the not the below and time Usually ended The charter quarter the XX, the to for per attributable compared amortization charged to of the items making that's for -- well. diluted loss earnings the market of

same of the to right slide Let's full the discuss half the to the of figures now move for XXXX. year

amounted income as of also for extinguishment the XXXX, million, million total year XX of during compared to attributable XXXX net million $X million Interest million to income a cost million, lower for then I which we of common shareholders financing This $XX.X compared and of and income shareholders the the to net $X.X million of net of attributable a earlier. a $XX.X debt loss net recorded $XX.X company income compared decrease revenue to for previous the XXXX, for of XXXX. expenses the of take we XXXX XX% to to during due average months to level common $X.X company $X.X of The increase over mentioned $XX.X of XXXX. revenues net year months as XXXX a in million, the interest other full as debt of $X.X the For reported reported million of during net is total year. representing XX

diluted to in to million loss earnings Our income of charters marginal with vessel, market million quarter below partly when diluted during shareholders year of the Adjusted acquisitions. the XXXX. per were gain compared to the supply, in $X.XX on value we XXXX of and on amortization calculated for effect of has adjusted million earnings EBITDA charter to common shareholders and XXXX. attributable the XXXX, fourth was shareholders share increased prime for per and due the diluted common basic the $X.XX to Basic depreciation common basic the $X.XX sale financed diluted a to XXXX for share the number with below and the $X.XX debt for and two XXXX XXXX. the excluding acquired loss vessels the $XX.X the a essentially attributable of on which for earnings of the weighted unrealized Again, average earnings and attributable basic charge debt increased compared market latest been shares $X diluted $XX.X our derivatives, of adjusted of net were $X.XX to of million XXXX for and only $X.XX per share per compared share basic $X.XX outstanding of

review slide to fleet XX move our to performance. now Let's

to for We our compare fleet fourth them of our the and XXXX by for utilization review start first quarter XXXX. looking rates same the will at

broken is rate utilization into commercial operational. fleet and down our usual As

our quarter that should utilization rate remind commercial fourth operational or XXXX, here events of be XXXX. during per operated of operational our calculation are period same compared utilization quarter commercial earning does XX.X% schedule XX.XX for XX.XX were an include vessels the should such drydock you in earning XXXX, a fourth XX.X% utilization rate operated quarter repairs, of the the compared rate and XXXX, fourth rate was On our considering. I XX.X% not of quarter day the $XX,XXX of the while procured vessels owned was to fourth on we During to average XXX%, during in charter $XX,XXX day. the vessels born average and period average equivalent per time and defense

compared operating expenses, the $X,XXX Our including of vessel expenses to per fourth drydock general daily per total averaged and for per quarter $X,XXX during but excluding of fees, vessel costs day fourth administrative day per the management XXXX. quarter XXXX

to the repayments. break-even vessel loan for per the $X,XXX flow cash rate quarter was not $XX,XXX we per per about of Our fourth during vessel compared do XXXX should XXXX of which quarter during any recorded fourth per day day

look to at slide right of the now year. review the the Let's figures for the part same full

average, commercial earning compared XXXX, owned while utilization rate our XX.XX equivalent operational day was during and XX.X% commercial on rate compared charter $X,XXX earning $XX,XXX operational our per XXXX, XX.XX to XXX%, XXXX. utilization and average rate operated, was time average average XX.X% again During XX% XXXX, an of -- to for an vessels were On per day. during vessels

costs for day Our per total excluding expenses including to for per previous year drydocking per operating $X,XXX that and management $X,XXX per to vessel XXXX. day fees amounted expenses, compared XXXX the G&A vessel again,

$X,XXX cash amounted XXXX during of Let's to the at in year, the XXXX. breakeven had compared to review look this to flow the for again $XX,XXX we which rate table bottom

Let's move to XX. slide now

the familiar by become should with You slide now.

this We four has The with our and in the two tool potential our slide have to fleet to or earnings three calls parts. of last table in included this shown the shareholders provide coming in slide investors assess periods. the the

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

available of days for XX% in fleet of days can available all see you are XXXX, our As for XX%, contracted contracted. are the almost our XXXX while table, vessel also

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

days, the contribution whoever the an estimate open to total would XXXX. overall This calculator entering calculation, make remaining to days. even EBITDA XXXX provide same It this to the can XXXX rate meant XXXX, is extend used by blended To EBITDA uses rate fleet a about see him XXXX an this go exercise open the is about to if her the needs the for calculate tool allow rate, daily our the days. unnoticed one and assumption the indicative what's on to be earned, that of for our provide own contracted open to which to out. or one let as more the the For the for wants EBITDA XX% assumptions year one's rates one XXXX for it effect is hard than of though that contracted

to EBITDA see figure the that in through. assumptions compared XXXX this to could as if the XXXX double go We in even comes and our course likely farther table the expect figure of rate

review to our profile. to XX Let's slide debt move now

over next the slide repayments the of top current the our can part years. we see several On scheduled debt

Our loan over $XX.X three at repayment debt repayments stands year schedule of debt with years. million going the down next existing for this

chart to XXXX, we addition value million. balloon have blue $X.X payments. are a of small In payment shows regular the like In repayment the stable bars

to past if $XX.X able be payments so XXXX. choose a balloon paid do in million to the further points least to we at XXXX, expect typically future Two further the balloon have we financed In to our We be the due so. in larger ones do have in million here. $X.X and which and

currently First, Joanna Akinada we unencumbered, vessels have Bridge. are and two that the

finance I during XXXX planning not newbuildings for like -- Second the make point early the and debt include to to would is we the to financing that part that assume financing, chart does we four that are to take our XXXX. expect

loans For at initial delivery our on the loan swaps debt this on of average slide averaging rate our final make debt the with The on the last X.X%, debt interest the payments cost outstanding our the resume. finance typically our funds and rents includes X%, the of is The to repayment the of our cost and newbuildings, margin quick LIBOR about XX one note and draw the large X.X% we is relates as cost to debt senior it our on a is our cost, rate assuming years. average each senior I'm X,X%. of of own current

the Looking is our $X table, vessel can level per [ph] day. for this bottom next breakeven we of expectation at per XX months the flow see cash

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

just of slide to This now from our value our market reflect provides are sheet the to XX. balance highlights slide move Let's some fleet.

book value including value and on XXXX, basis acquired million us book value December the that side, other vessels and we Jonathan V total a advances for million. giving for on our assets the of and and As for about P asset of costs $XX.X first and had a acquisition the our Marcos including book of million of $XXX.X the for $XXX about newbuildings vessels the vessel with assets our

On the $X.X $XXX we other outstanding an million of bank million. debt of liabilities had and liability side,

represents of market our contracts. with value of we Specific continuously result at around our per beginning share year the appreciation in range significant the a for the market calculate of of rates And is Aristides a mentioning, the or our presentation although for million our value our the good the charters, made book worthy share. last around net price continue other have much as be offering would value sale still market. $XXX newbuilding the with about end book been floor to per the increasing year, reflects of of value shareholders to If $XXX this the investment increasing close per share. asset use Recently not the we like traded for pass $XX million of shares adjusted our than vessels value asset and And our latter even fleet can and of back to that it and to $XX of investors. value for increase I opportunities our that, appreciation value inclusive in the net negative for effect vessels, discount were of my the if short I $XX our its good discussion. to started fleet potential thus to However, higher our

Aristides Pittas

Thank you, Tasos.

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

Operator

Thank you.

and [Operator will ahead. begin Instructions] We We take session. go now our now answer Please first question. the will question

Your line is open. now

Tate Sullivan

This remind into operating you your day. delivery smaller please? ships fleet Sullivan and good future comment Group. about market in larger is questions even Well, And ships? vessels containership, maybe Maxim us particularly with XXXX, -- for of in composed I'm the comments book of a still order XXXX. much of just the entrance being the on for starting taking Can benefit smaller couple currently just follow-up the of your the the from of Tate composition

Aristides Pittas

they bigger the smaller smaller into -- there distances the smaller smaller containerships. ports always But cargo kind ones the And cargo take the there carry cargo, from pick it bigger a effect small go have other you is ports from where to the of cascading up and can ports. the bigger Obviously, tend when which smaller towards vessels same go there into is cannot. all ones the containerships. discharge where They and ships

The big of is ones So that are and tradings the on vessels. ordering happening The mainly. all needed. TransAtlantic TransPacific do the vessels type big

ships. those not elder ships being of -- ones need around. And that lot you and that the the smaller that are So also are of realize that also of vessels exist smaller we a built are

So niche we and focused be relatively we're this traditionally kind a of think to that on is market in market.

Tate Sullivan

on Thank mean, you. capacity order? years the I two of in ship you days earliest chance any capacity And decide newbuild, or you for with, your newbuilds this your ships today the with, really of capacity days you above and build year, beyond new to multiple contracted look, still deliveries most have the newbuild there additional for four years opens most next is or build if mean is spoken do I to

Aristides Pittas

well. possibility the are at vessels quite though. possibility. that to We're are The full considering with new orders new still looking build We as shipyards

cannot see. but will with is you them drawback, prompt So these deliveries a we which get days,

Tate Sullivan

at we Okay. you if the the that just debt debt ratio topic a ratios or XX% through capital XX% ratios. on this value it, And do level look going of a Thank do to before targeted level cycle? mean, cycle. look asset capital net eventually at talked over I just How And about is down you is you. using slow there

Aristides Pittas

I look -- we Yes. Tasos? mean at

Tasos Aslidis

our just using I no. finance to a I believe was adjusted value. for about of intend We start to XX% contract you were you. No, same ratio that, leverage current saying around the we to have their XX% newbuildings show you around values. thing as -- charter XX%

So not even leverage will below XX%. our with the ratio will be -- be newbuildings finance, around

there very cycle. is cycle the are the So, remain we throughout of it's that we're even serve to the quite a levels downward in if reflective comfortable movement of a movement, moderate point low cycle will the ratio leverage

Tate Sullivan

if newbuild this just the last know vary. the And I can just ship it me for point? you. up if you did of a XXXX delivery middle comment at update, terms following order its today XXXX, Tank in

Aristides Pittas

update, that yes. Around

Tate Sullivan

Okay.

Okay. a of Thank you rest both. day. Have the great

Aristides Pittas

you. Thank

Operator

Please We will now take go our ahead. next question.

open. now is line Your

Poe Fratt

This to from afternoon Capital Good of Poe you. is Markets. Noble both Fratt Hi.

the only whether minimize to like you whether increases? follow you had for two would on about I surprised for and on was the question. up a these newbuilds the were It second two new to bit forward Just looks with about you the just second that negotiations then you increases. And that and the the newbuilds the up between -- options talk the the first It able price or newbuild ordered two, can minimize just the time move were were went to cost XX%. able you price shipyard little

Aristides Pittas

The time and of options. is new days. towards these were negotiations. didn't, a was that to quite tight the XXXX of to reason to end some delivery is order inquiry. Not difficult We very not we -- build bargaining They out, charts these The the deliveries were to are days have of right? weren't too that the know is price a around ship vessels. they are negotiations, Poe. because lot there it's new There's unfortunately, get ships, newbuild beginning options They they give that quite is high many time power shipyards increase XXXX. that The so able

the two XXXX first XXXX. and first While second the vessels quarter have deliveries of at beginning

as but much the only luckily, months not that more price also it's it's later is not deliveries six expensive, well. too So

Poe Fratt

that's Yes. when time with the But and it? isn't the ordered second, between first you measure

Aristides Pittas

it But early much if -- be able True. would expensive. It delivery, been more we get have to is. were an

Poe Fratt

understood. Okay,

out in $XX think ever be And you closer you million you're a newbuilds looking have --. looking costs, get like the there. sort gone Would you to to of for two increase at, million so, about say, $XXX of another when a two earliest potentially I at instead or talked

Aristides Pittas

speculate Poe. that the is leave going announce we'll to now, to I right there be on. something discussions it. might too But don't when want But it announce I much if definitely

Poe Fratt

putting you two them far time first potential might on that under Okay. Can you your securing I us appreciate time in have as on or [Indiscernible]? charters newbuilds or last thought update in about the on the or Could last that maybe was potential I as webcast webinar, it I I there interest in I heard of call, conference that. process I secured any think the was or you quarterly the thought heard talk -- charters.

Aristides Pittas

be press something is Be announcing it. release sure there there a that to announced be if will

charter. So in not we actively ships fixing, it's next something within for there are People announceable interest few might showing is the marketing at actively still, nothing but the marketing in months, happen not we're are We them point this that yet. but time. some think

Poe Fratt

the great. the change the as one rates year the far and then, those the, forget, Akinada that able to I as terms that second have on vessels? on time now But to any -- what days much in Bridge or charters. wouldn't far you time as could open open two is, us talk as about either market it's would you charter length believe this you have talk be new could you that Okay, as don't the about closer. get Is lead you similar And that somebody mentioned availability just there

Aristides Pittas

index comes which bit. a context week. were it means, a again, out green came they twice The were today just All as constituents all again little up

continues to market the strengthen. So

So but fix. will it forever. the It continues. know we the can't that we this higher think can probably I if don't we obviously, continue wait more still

So we'll see.

Poe Fratt

length market? more the exposed you have, inclined the keep more to would or forward some open the spot and given more you current be for would term And of looking Euroseas cover play to be you short or those

Aristides Pittas

It No. we what on will see interest clients. from our depend

well. for the We as that levels long with are periods happy seeing are we

if for So the we three we years [Indiscernible]. the for do small might see years the

we for that to For the we bigger do fantastic, from year could consider rate three would anything the five as years, vessel a well. single if was

will see. We

Poe Fratt

current that delivery cover based forward a about cash XXXX dividend CapEx newbuild I finance we newbuilds. tuned. of standpoint XXXX, the going regular I it's payments that buybacks or flow you'll walk current you, is. Stay from $XXX doing million operating than the program stock XX% potentially $XX an And to two come on and generate just conclusion the have the next a on If what on your Yep. And on then can you're sort the more cash perspective do final whether and from math dividend. of the either the years market special on philosophy to million dividends, you assuming through or

excess will. And additional you a do cash cash? excess if so, you plans amount you'll make talk have you about generate what can you what potential unless might assessing for acquisitions, significant of just And you with the

Aristides Pittas

Yes.

priority generate the company the the have be active. continued to that and be the to to -- more segment renew first we to liquidity that we company position has the grow to use significant seen within our even are an As and you fleet player

if make So is priority, the find we this can that projects top sense.

thing So run interesting most then If we to this of the for out might is investment ideas shareholders. returning consider we capital us.

now invest. up we've done is able think returning that to now to investment it been an shareholders. up find to And good to that we've is However, appears a to every that has and already investment value additional investment good the opportunities which significant been I

something to our we the investments. that do have up be with been will that find will making now, it, to that. we've we able do can't we So, we liquidity that I do hope able If continue to benefit then to we good will obviously will feel shareholders. to be

As said I've repeatedly.

and the our is family to the one the within shareholders company optimize Our of major results. priorities

Poe Fratt

could ask the to question going capital that the just newbuilds. if last spend about Okay, great. you're just the I And on of one cadence

the newbuild in ballpark newbuilds. then builds idea the XXXX deposits quarter. quarter two or You far deposits two for you'll have million $X.X you $XX the numbers program so million brings Can million -- those Are be CapEx and newbuilds. XX% in the I of there'll in how much of second coming the the math CapEx for have XXXX? And XXXX us XXXX? first in $XX about on second about newbuilds the still can for the on in an me to my maybe new assume the this you -- give

Tasos Aslidis

would for ballpark. think those by installments I that will six newbuilds first I make two the expect in end are numbers the of year. about the we the

another and start I rest will of done two the pay making four for we'll we'll have we rest delivery the do made we'll would the in the the XXXX. we'll that. them the think And have delivery, We one, obviously, I newbuildings. that be XX% XX%, And for I first guess. make installments imagine then, remaining one, And

Poe Fratt

so you Thank great. Okay, much.

Tasos Aslidis

one the last one. And will one. the fourth XXXX, be XX% the And of fourth the in Yep.

Poe Fratt

applet XXXX. first That in the of Yes. quarter

Thank you Tasos. great. Okay,

Tasos Aslidis

Okay.

Tasos Aslidis

Thank you, Poe.

Aristides Pittas

Okay, guys.

Operator

have We at this no further time. questions

Aristides Pittas

the we time. during in you. Okay. And much months call. being to for talking you look Thank us with three to you this very Thank forward

Tasos Aslidis

Thank you everybody.

Operator

That you participating. concludes for the Thank conference today. for

all disconnect, may You

Euroseas (ESEA) 15 Feb 222021 Q4 Earnings call transcript