ESEA - Earnings call transcript Q2 2022

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Operator

Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas Conference Call on the Second Quarter 2022 Financial Results.

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

Aristides Pittas

you June scheduled quarter Good Financial me results the the gentlemen. joining and to our Thank for is purpose and discuss of our The XXXX. six period ended for financial Officer. for morning, Tasos today Aslidis, conference ladies us with Together Chief months call. all is XXth, our today's call

to go Let's three. slide

shown Our here. income statement highlights are

charter the of XXXX, to robust for our the to With best be since profitability through quarter market The inception. for we couple us great years was remainder high producing extremely able developments. of of second regardless the year next expect deliver quarter of XXXX another for the an results coverage

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

company's have September declared a dividend yield of about second our Xth, XXXX. a of on payable of for record or XXXX part $X.XX shareholders stock X%. be the Board to the quarter plan, underline will As XXth, common XXXX, quarterly of This share corresponds which of on per dividend September about of Directors to

our to we XX, our of detail over As in in $XX the up announced have market common XX,XXX the plan to of open later go operational and more XXXX, presentation. discuss which in the financial recent of Please million, where under august stock XXXX. Tasos we share May highlights developments. will shares repurchased our for about in go slide repurchase $XXX,XXX was chartering four

P XXth, fixed charter motor TUE each were Rena During There P XXXX. the fourth motor took May new of XXXX vessel Emmanuel respectively. this and delivery second our and until have of all and vessels capacity built quarter, are XXth a vessel and Both June the no we quarter, vessels as quarter are of XXXX. X,XXX in

of Hydra turn see EM slide where five were first which to quarter. during drydock, schedule commenced drydocking, can and completed second fleet the Please in XXXX. this repairs Regarding quarter the our you idle profile. vessels was no There

years, and of TEU. and of consists of capacity fleet current a to XX XX containerships close Our age eight weighted cargo an XX with size average by including feeder TEU and vessels intermediate XX,XXX

XXXX a of seven total newbuildings, TEU. of vessels vessel shows schedule. fleet be with our delivered construction, the Turning are in expected our to slide and containerships, under vessels nine of six, consists XX a consist capacity we Feeder containership TEU. employment Slide our to approximately After of these XX,XXX capacity delivery carrying will The XXXX. Feeder nine newbuildings present have which of which will XX,XXX

and of almost XX how vessels the the see As retreating charter across improved, lack for review towards have XX% In reasons you XXXX. in the last onset to rates to rates of XXXX, longer three as meaning to times second uncertainty approach last rule the record the of nine slightly are well the than historical of to XXXX turn start historical the to the Please partly end any to of XXXX, the rates we over as Time segments for coverage fixed economic ongoing still rates XXXX containership few charter more well at declined becomes transportation comparison. a the than XX summarize slide three the but they geopolitical a X% and of the because Nevertheless, year. median rates investments. developed newbuilding first half of due past quarter the the the mid-XXXX. have during second were highlights jumped the the higher of war for to since new quarter the low quarter number including as above started X.X% Ukraine bit months, remainder average time the price prices of by Charter in charters, and meantime, remain years than month appear of the approximately the surrounding and wait any six global term slide now for events. by rates quarter, by past second at XXXX highs higher decade. for secondhand decreased last of XXXX the the end until to four XXXX, raised of goods, market But index demand where in and of the XXXX of at which they and Even highs. of still the market of end XXXX. pandemic, at demand index uncertainty still over XX% across have highs as all lower softened the rate all the treated on the all-time by charter months, though posting of plus, the Generally QX dramatically to partly see limited can very quarter is speaking, segments high in though availability due finished historically. the of a previous and XX% In XX years. of stands second Please the turn secondhand about the price increased diminished about in quarter. the Even over decreased appetite remain

quarter of In by availability XXXX costs, stands fact, isle the The idling. XXth, for second and yard, slot at or for and we at the containerships accounting further the reactivation decreasing fleet manpower X.X% has levels. believe of The costs. the year of even backdrop about without year-to-date rose building approximately has prices rising costs, at lowest X% vessel as grown stable fleet energy the during in idle fleet containerships remained against containership July last

to However, due this of sailings number actual June, to fairly and no Iranian May really conditions in number. market includes strong, were the the impacted clearly the being $XXX ships the so With scrapping by depreciations sold expected number has be to are blank the been sharply quarter about in recycling in and been for containership recycled exceptionally by of locally. since still year, and steel and large, containership China per low sanctioned currency price and containership far bring fell it none this inoperable the idle softening during period year. ships markets that were lockdowns end lightweight-tonne The of By prices ships involved of second for the Scrapping and quietest XXXX. to XXXX. have

up inflationary existing Please and transactions Russia-Ukraine only reported economic additional suppress elevated global spillovers including may growth, Growth year, Ukraine global and XXXX, pressures United to various to rates expected a economy strict The turn developing to was and prices XXXX, difference IMF that the the based as the X.X and global Russia latest European has And lockdowns GDP Russia-Ukraine the slowdowns from during economies to April's from sharply for very crisis due India's to building with from China's help to X.X% conflict pandemic, for and XXXX. Chinese States In property prices shallow available lingering to further for are point The forecast as was X.X conflict lower and a percentage the aggressive already on COVID-XX between of has addition, a [ph]. revised policy. markets added to lower due revised mainly also its XXXX. monetary estimates for to according and the series already much X.X% issues, Similarly, monetary in been interest weakened by Due with no to started hit tighter With market policies. down sector down X.X% the XXXX tighter GDP are and supply the from reduced by sporadic lower resulting owners X.X% have for hikes X.X% provided policies, to has address growth rate regional these energy percentage to XX. emerging issues, for forecast. monetary pandemic. stimuli GDP that ongoing April's due to several accept. than dropped as the to slide caused lowered geopolitical what willing X.X% this world's growth report for revised growth to events forecast further a growth downwards also for X.X% inflation. is accelerate to X.X% global have due the growth well forecast been chain the XXXX and IMF's conflict to base

quarter with to XXXX America. revised growth have country rate to due in slowing economies, better Japan While ASEAN-X been with and the and developed only also forecast X.X% about for robust following Brazil, U.S. recovery and concerns of economies interest hike be an XXXX inflation. downwards ongoing X.X% to in anticipated XXXX Latin previously the due from From the seems this

the expected year. the Looking X.X% research to XXXX X.X% and by to at compared Clarksons to demand growth decline for is trade containerized previous demand, in accounting

XXXX right is a the The and reassessed. delivery current old being geopolitical fleet For on between fleet XX turn most total continuously see Currently, to scrapping schedule only new containership XXXX X.X% circled X% current can of the which to revised delivered the any and to the old. Ukraine Please for be profile of you of and Rates grow to figures at turn young, X.X% China are shows about as projected continuously in second the trade The in trade of are anticipated containership in XXXX, XXXX under growth by stands X.X%. X.X% is slide XX. Russia for to fleet in the XXXX. the percentage the effects the and scheduled XXXX from chart slide expects and growth XXXX, the fleet. the and age side Please orderbook reflects years growth of and the relatively X,XXX orderbook is for of with and fleet as TEU. fleet Clarksons of containerized onwards. deliveries slippages. projections tensions XX.X% before The ships world orderbook the the expressed majority XX containership XX, to over lockdowns being years vessels of fleet X,XXX of part where are deliveries

have seen This about favorable that be much size XX%, about for ships. than size slide In are in can dynamics the XX% much X% whole Please our Also XX traction outlook reasons older vessels summary under one supply than this average the our recent these the from larger discuss for range this we here of orderbook As was program words, slide. number record is containership total the sizes. the around smaller dropped other the the of in the the more market. XX%, newbuilding XX bigger for rates the to for turn bracket us of where fleet fleet. prime by in are shown Charter that XX% previous to than for sizes is highs. of half the the years

supportive short-term. down to congestion With conflict, While freight edging lockdowns Pressure time XX% fix Charter charterers rates remain the to appear reluctant fallen softening, likely demand fix periods highs. as still or headwinds, rates they to to major in headwinds marginally, below have Nevertheless, XXXX Russia-Ukraine pressure remain levels, market of remainder forward. but expansion. inflationary fleet in look on remain increased by shown have port consumers, come impacted spectacular. a and China, macroeconomic conditions pre-COVID no caused in material remains XX% spending to container take the extremely Ongoing likely despite above both historical port signs towards to has trade trade XXXX back despite expect congestion volumes Container shift the volumes pressure. strong. and ease, charter longer the only market, have services on to remains we moderate under positive Consequently, of disruption having

toll decline and increased charter demand easing of in should take their congestion, port rates and destruction should deliveries, However, XXXX significantly.

Ukraine-Russia impact, fundamentals factors direction of are fight way in the XXXX, move which and the growth beyond complex, even of demand the to a effectively, onwards, on either capacity from of slower XXXX which the XXXX/XXXX, range war. an in Looking Material pressure likely outcome global regulations removing including supply have the lastly, new growth. may may to from inflation result And probably by with market. will environmental steaming rates, the overtake control depending

slide of the and slide the day. a range of The X,XXX rates with newbuilding X,XXX since TEUs hand one shows year year historical shows The Let's time XX-year for XX. old the to move the one TEU capacity of evolution capacity charter slide side containerships time to to TEU. rates price daily XXXX. of [indiscernible] per at $XX,XXX Clarksons, charter the with the left side the of containers containership for the right X,XXX is According

see, As two of years. can prices the increased you during significantly charter secondhand last rates in the terms

in we have was prompted that reason the to significant of in newbuilding increase was proceeds the us prices second a secured for muted. part prices. the However, This invest newbuildings

sized The first in vessels already being smaller the discussed. under-investment as

a Third, to most the that the due was prices. half and do, more environment. vessels which to putting reason in the conditions ships consume program older place important concerns, These adhere will nearly our greener probably environmental fact world to that new for need fuel will economical newbuilding the

three the year first confident starting vessels Rate that are charters first our half have just been Indeed, will delivery case three to which has be higher vessels years. investment this appreciated the by with than for this the followed in full period upon at for the rewarding chartered markets elder that We repays XXXX ships. our been day. $XX,XXX two in for per

that, XXXX Given fund the significant the also profitable our portion via We cash now generating fleet but newbuilding intend growth charter at generate between our very program, use the end shares ongoing the we the over to investment to detail. reserves. nine will to I on above, still our and when to other be now highlights share can Notwithstanding opportunities and Tasos with Aslidis program. financial to of flow are repurchase pursue we only rates dividends And significant further accretive pass our opportunities, the floor flow will shareholders cash our have equity vessel a such shareholders go which in not of arise. CFO, to

Tasos Aslidis

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

As same usual, will second of and for quarter half financial of our next you our and slides of an take last give XXXX you of them the highlights overview compare first I presentation now the period the five to year. through and

result compared the second operated For of this million, million slide during that shareholders to $XX.X for for $X.X net period and The $X.X and $XX.X LIBOR the of million million This to $XX.X for increase we of company as $XX.X current to to compared total quarter second amount net increase to The calculated basic the the the other $XX.X comments per total million of second attributable year. net average were to and let's again on shareholders compared XXXX last an $X.X the about the was in go million in of diluted a revenues for of attributable the and first quarter the increase number is Earnings $X.X compared same quarter to and quarter shares net of period during periods this debt reported common average due outstanding of compared to basic for and year XXXX, to representing Adjusted company's income to for XX. share XXXX of same XXX% of compared to second XXXX. in second same of of XXXX $X.XX the X.X time increase XXXX. period XXX%. net company million income period and as second last amounted $X.XX Interest weighted rate quarter over shareholders million second for the income of compared increased costs quarter $X.XX income diluted last. a respectively increased rates quarter financing year. of revenues achieved attributable in to pay diluted of increase common Due the on and year for $X.XX of and earnings was charter the XXXX, EBITDA quarter number the to XXXX we million approximately own quarter weighted share the of the of average increase X.X [indiscernible] second second per being in outstanding. vessels, calculated to the of of that weighted respectively the and the of basic shares of million number

on $X.X vessel we're share the gain shareholders derivatives, due common for of and shareholders assessment. above the compared per XXXXX, the June per below derivatives. attributable effect six diluted gain amortization to charter. below the the and market XXth, did acquired quarter. furnish the share on to and increased while with items in not depreciation which which the earnings of unrealized charged of we basic the respectively quarter Excluding $X.XX the to acquired value and earnings common included of past income share the excluded making time market the Usually diluted per months charters for ended [indiscernible] basic $X.XX to to adjusted time have attributable the been The unrealized adjusted

for look Now, numbers the the six-month us periods. at let

first $XX.X million sale of a acquired, for increased the six $XX.X over share the the of to time period increase first shareholders reported of compared earnings shareholders vessel. to below of increase gain total to and to period net the of average net common first of million first the the on total and net on shares for vessel an compared Earnings of loss the the and of amortization first period million gains $XX.X revenues the of we half and also reported increase share million $X.XX cinema revenues shareholders of for acquired this net below the charters of from Adjusted the for number half per million million LIBOR and increased XXXX, value $XX.X shareholders $X.XX excluding attributable to pay million year, of income $X.X for EBITDA the respectively were For income we’re charged derivatives, on company half of the compared per million for to amounted We the a share for of attributable increase for of attributable period XXX%. diluted and the compared to depreciation $X.XX basic XXXX, calculated first effect of with for average first carrying the XXXX. XXXX. per market financing unrealized first common the $XX.X diluted same X.X the the for income was net of compared of generally first the half adjusted shareholders of adjusted and Interest against in common $XX.X the derivatives half of XXXX first XXX% debt representing earnings amount charters, for outstanding X.X diluted half half basic share for shares to XXXX the half to compared average the XXXX. the same to XXXX months Again cost This $X.XX calculated outstanding unrealized attributable number market half $XX.X XXXX $X.X [indiscernible] earnings and the of is due basic the common due the million -- to the $X.XX period. net in income million $X.XX to other the of of and per period the share common the the of to an half XXXX. of of same per

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

utilization rate to in XXXX comparison We for will the first looking quarter our review start second our by at fleet XXXX.

commercial own rate vessels is per our equivalent XX.X% an year, rate the On average usual, and of and and operational In of charter day the rate in rate operational. $XX,XXX XXX% an our during to fleet compared quarter and was down As XXXX and of of to $XX,XXX of utilization of day. our average, quarter commercial to commercial XXXX, broken owned for second and and XX.XX average XXXX. second compared XX% was XXX% the utilization vessels second operational the XX were quarter operated per we this quarter second operated time that utilization

per compared fees, quarter second day per day G&A this to total the XXXX. expenses, cost average of vessels $X,XXX $X,XXX excluding expenses, management second during quarter Our drydocking for operating including per vessels year per the of

repayment page, breakeven XXXX, the our If day of takes part the of the the which you being during down loan repayments. above per repayments of a flow compared operating further per same with vessel customer during look this for Loan quarter this for drydocking by period XXXX and per made excluding rate difference the the accounted second you can last cost big balloon mentioned operating see second vessels into to year on in account daily of second the quarter higher day expenses expenses, period. to $XX,XXX Thus our per $X,XXX addition rate interest cash quarter of

the Next compare and let's XXXX. same again the go of over the to half for our year figures and to first utilization remaining them rate period

the XX.X% was our our the rate and half of half compared XXXX, commercial for XXX% and period rate day utilization in equivalent was During the XXXX. vessels to half of rate an to day XX.XX of XXXX, operational average of operated half the earning charter during XX.X%, rate the last same utilization $XX,XXX XX.X% compared operational first per first first first commercial utilization $XX,XXX earning of per vessels time and Owned year. XX

months per first per were if to for see G&A can year total Again XXXX. compared the during including the of operating expenses, Our costs day down day we half period before vessel we of further breakeven is the expenses, for day accounted the $X,XXX drydocking the per of first The in by look fees, cash that higher same loan this of table, the the difference $X,XXX per day vessel $X,XXX per management again compared six per per XXXX, repayments rate be first XXXX. half to the amount mostly to during flow vessel year. $XX,XXX again for

now for move earnings XX. here slide Let's tool [indiscernible] our the share coming to provides calculated a assess per slide in the This fleet investors shown two recorded to parts. EBITDA periods. in The table

percentage making contracted each the fleet. an current drydocking Also for The current the costs, portion part our scheduled the our in the of guidance. number to with -- expenses reflect days By average you contribution it and structures period. other of and G&A contract shows trade contracted fleet conducted in in expenses estimate the shows days first after productive and the days, the assumption of Starting the per place. making operating day average days EBITDA can vessels available, fleet some

aired The second and will entire days. by EBITDA be periods, fleet, days, the assumption future for days rate our will fleet. calculation part see the open for we and of difference the an can what To to we need our available of that the dates make contracted complete remain our of the open average the about table

of rate of at part in EBITDA open days, the and note days $XX,XXX can the be changes, days the have EBITDA the open calculate will contracted assumed per for EBITDA are if same XXXX as the to our the example, knowing want provides our the you the daily will can The of we can period, in make current you our the charter average to get EBITDA table Here million charter assumptions, second indicatively, usually shown XXXX, the XXXX bottom we for assume year the the table, XXXX in see that [ph]. the $XXX below see rate get vessel of estimates $XX,XXX would approximately sensitivity each to Furthermore, of page. open estimates the our sensitivity for changes. you -- huge that days

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

can years. top current repayments several of see slide, debt the On the our this next you over

schedule this of over result debt down repayment for loan couple years. without next Our of the payments $XX.X going balloons year current million,

is down X.X%. outstanding X% is marking senior the of our the about which are at swaps debt is [indiscernible] payments number coming on be coming profile of end in that our be So, choose The to average quarter. to so. newbuilding program. interest our to any we of average which balloon this debt assuming the not loans about the debt if of cost related debt, the finance of debt able of may our about include X.X%. slide to rates due our about cost the LIBOR and [indiscernible] average the does which do Please expect XXXX slide, -- look on rate [indiscernible] repayment to on about we X.X%, If we average note the cost on

the we now next can over the level Looking table, our XX at bottom expectation see months of cash flow this breakeven [indiscernible].

the which sheet. next segmentation, per that from a rate XX of vessel day Due contribution about components XX $XX,XXX, breakeven be from slide final $X,XXX months provide to let's our level $XX,XXX little expected the highlights You can our the make see to per that loan for repayments. breakeven than resulted. some this was The less to now to customer is move up balance

total value $XXX.X XXXX, of million. for about vessels As million, $XX.X assets our million. Advances and is our newbuilding about resulting of of book our improved cash in to million assets our and assets $XX.X for $XXX.X amounting book XXth, about about other June value for

value million recent $XX.X our the our about our estimated as record and June amounting in our about assets, XX.X% representing of $XXX of to or low or debt million total the of our XX% XXXX, book our shareholders side, was side stood assets million $XXX.X value liability order or the liability fair X, the in acquired vessel in recently to of which their of liabilities on equity. XX.X% resulting $XX.X million, about We of our acquisitions charters, On assets. value value said market report at book of other to

its vessels our using new the on own of However, is our value than and value much for estimations, fleet market market bid charter Based adjusted the higher book value. contracts.

investment have Our vessels $XX which asset was our appreciation $XXX trading for potential June asset to floor estimated be representing pass per net are the the my Recently, part our net to to of end I continue to are worth share. Aristides for of $XX a our $XXX close range investors. value to per value offering translate in between good in share, discussion. our and And presentation XXXX, like as million back about with the and opportunities million shares would discount or the below process $XX and good that, significant about to sale been

Aristides Pittas

Tasos. now any May I have. questions you the Thank you, you, floor for open-up Thank

Operator

Thank you.

question-and-answer be conducting We now will a you. [Operator session. Instructions] Thank

with Tate is question Please from first Our with proceed Group. Maxim your Sullivan question.

Tate Sullivan

about And half would of decline you. factor? we to scrapping older for? Good balance have rates this breakeven then some new scrap XXXX to year, two the With three Thank delivery look below What's those to your comments of decline rates with you for Or ships? ships and meaningfully look your taking other no for then start When see to to levels? sheet over rates, years, day. decide Would would years? some potential next Please. builds but nine the for the the a in you

Aristides Pittas

Sure.

how on market develops, the everything will Depends. course, right? depend Of

the so time market So the a the seats contribute, are any are most decision closer will the the will can to in now. and about we're scrap what future imposing when for these is market going the probably XXXX, of will well, under a worth we most charters do It's time, them. terrible, to still the is keep for couple If end. much and if now which employment, of got ships, the essentially we're that them. for passing decision not we We've take way next at of decision then we left years not taking

Tate Sullivan

based build still you currently, XXXX no available to decline rates at Thank in year general, on market, rates comment just going new or the the even new how potentially are in year well, longer try Okay. one on severe then, or, shorter three three year the you. in two you And contracts? for on rates, depend or target the builds but is

Aristides Pittas

Again, but strengthening if see demand us third term not except we've the because next longer this interested taken quarter the longer fourth a We time charters. the quarter of then wait in delivered or got lot would in vessel decision this a only the year, of XXXX, to think sudden actually. fix first be in is I comes be for fourth we to till term, to will to that prefer

ship So and more time delivers. a than we've we year's And that got in see. will wait

Tasos Aslidis

above even And levels a you charter way are the you of and buildings see with there's is rate can rate assumed that literature significant and if look what be new the the our at would decline, decline profitable there breakeven anyway.

Tate Sullivan

delivered you on XX% your basis? also still ratio yeah, capital the capital But I basis, targeting just a are on I below based delivered you ratios? a XX% nav the Potentially, or mean, fully great fully are based with a point. quick run And basis below Yes. on ratio NAV, mean, on ratio capital

Tasos Aslidis

I financial, think we mean, mean the right? you

Tate Sullivan

Yes. Yes.

Tasos Aslidis

building, XX% on contract a XX% the The we and of order as price our the of we see new what have. options base, to we to intend finance

market leverage, of leverage XX% the vessels. in aging blend new let's below So base which XX% leverage, the, co-pay our if be of the even our say, you values assuming of of we will is a of in the buildings, the below card XX% decline of

Tate Sullivan

Thank Thank you. Okay. you, both.

Aristides Pittas

you, Thank Tate.

Operator

you. Thank

with Our question Poe is with your Fratt Partners. from proceed question. Please Global next Alliance

Poe Fratt

Good Tasos. questions. Aristides. afternoon Several Good afternoon,

item. which commission the range their? know XXX higher dropped last have basis from commission on closer just you to housekeeping rates something into of points your It the something X.X% is First like going have is rates over is two looks else or a quarters declined that

Aristides Pittas

affects channels the but been fix commission Well, average, depend is few rates and little we the through normal. which There's with to I very consider who rate as wouldn't really are on charter the able charge this a commission a which them. fixes

Tasos Aslidis

website, was absolute If have the the commission before deal there you of results. net because lower developed is we is at it built way rate one on the paid you that in have release the look the will at we of is least see an our commission era that because case, sort attending

So we what it, that the and average. record don't reduces in really

Poe Fratt

I'm just Yeah, X.X%. using Okay.

looks the like XX. EBITDA Then EBIT fine expenses. just can look in went secondly, that -- the of number you So and page the the tune about, some But versus line could quarter was EBITDA XXXX first It changes second know, just if you about, XXXX EBITDA dry-docking on calculator? that. bottom the didn't $X quarter down calculated wanted the updated you talk from calculator done It changed EBITDA But talk much totally versus the just like almost first about quarter million. number.

Tasos Aslidis

the be the to tables of to drydock put contract fashion existing operating costs pay there ratio key contract to or we others. aromatics difference those wanting different is would were to other want that the assumption, towards has discern or or are higher on drive or These assumption put if in and a Yeah. you this existing the meant cost were than repeat be the a is that result due that it quarter to quarters for at could more due to

the might margins. were that the change those the reasons on EBITDA So

Poe Fratt

weighed by down But -- looks -- why average gone Okay. $XXX. the down XX,XXX have if contracted would contracted? Tasos, like XX,XXX already PC about from down about to its it's that went And is

Tasos Aslidis

give… need on I to you to get back to that

Poe Fratt

Okay.

Tasos Aslidis

shift I that result vessels that, to a on will to it address set get like change that should something one. or need back But of and the answer,

Poe Fratt

look didn't like at estimates It changed XXXX Okay. drydocking all. the XXXX that nor drydocking

out. your that over look wanted check Then months, so page just drydock but expenses. you your XX on XX interest nitpicky, expenses that just the are if up So next to

what on amortization Is is What numbers about? about already those a breakeven than your as So talked other pushing on anything up? up $XXX you've schedule. as far going pre-debt there else any

Tasos Aslidis

-- Drydocking

Poe Fratt

pretty to that shouldn't much. months. debt And debt load expense Either the to drydocking over seems expenses, next the your change gone -- have going expense up hasn't the relative up materially quarter. last structure or be shouldn't much interest XX interest or And capital your

to trying $XXX out So why quarter? just to first would relative that up be figure the

Tasos Aslidis

some In that extent. in [indiscernible] obviously that range, higher

the which from comes include we interest debt might maturity vessels. it once expense Secondly, maintain

over the as already quarter the over meet the might debt have that least four -- newbuilding a years, levels will we is about that the on XX% So next and interest well. of next that quarters, -- higher, at two delivers over

Poe Fratt

then existing right over about or it fleet. like of fixtures the you're upcoming just next talk Can up more on six the at you that are versus the Akinada And Okay. talked of newbuilds, the some sort can about nine Hydra the the others months? more now the you seemed contracting to -- looking coming it's Bridge whether environment that

Aristides Pittas

Yes.

preliminary we started are its yet. nothing some future discussing report potential what the vessels, Akinada but are will the currently to having We on and for any not next really discussions be,

Tasos Aslidis

was the In four January [indiscernible] before next months XXXX. the Joanna, in that, which one open sometime the

quarter. those two over vessels that using So the we be might are the next

Poe Fratt

Okay.

I'm stock sort give good can Sounds then program, surprised on a of program, of see little where a the about be about good. to the the and program to larger, buyback any cadence just us you helpful. whether wasn't context that left And stock stock just there's But was, would that cadence million talk talk it's on bit the and color and buyback can lot the amount given buyback. stock $XX you can this you see just seems it the

Aristides Pittas

stock is you a quiet program period. a issue that during buyback The period, use Sure. cannot the

really the half we of we So was that did. all not we because done X stock at to for levels have when you we these constraints. that Therefore, more the implement could a the the last that use and didn’t opportunity the it, worth bought would stock of which we have depressed, saw month million

Poe Fratt

helpful. That's Great.

Tasos Aslidis

XXth, using believe. around I July Stop than more

Poe Fratt

your July time. Great. for Thanks XXth.

Aristides Pittas

Thank you.

Tasos Aslidis

you Thank Poe.

Operator

is Jang James next question. from Our with with proceed Univest Securities. Please question your

James Jang

afternoon guys. Good

Aristides Pittas

Nice to hear you. James. Hi,

James Jang

the Nice it's Just is you boats I have and two this Akinada could you. the charter How challenging the completed those in sell couple to you guys? a coming well have a since And this, be everything I going charters Since year. coming but hear vessels Would to XXXX. you've probably after a Joanna more the been are pretty to in new questions. in ask. got the rates XXXX, answer know look to three rate you long-term in do Yes, strong of charters? while. possibly little for for are quick off

Aristides Pittas

mind. our It's It consideration. in is always under

So well. we possible confused about are as that path

the mostly it's are too. chartering of continuously. So we're looking it's amongst at that, option But the most options continued, monitored

James Jang

off dividend like half you to just the the a the what say vessels hard to coming contracted looks the is would it'll with even dividend vessels at safe of first that say though you, And let's are be decent? contract the Okay. XXXX,

Aristides Pittas

The will next previous on that to dividend, remains And quite main until we and decided satisfactory. same do remain stock the it is dividend. made repeat We remains assumption see that it will it the -- the do we But we consider the the the change. effect same. quarter yield what will the

Tasos Aslidis

in only institute the take dividend of going the to the it In couple quarters.

course, So, of I think anytime boat market, depends our decide although may a on the and lot differently.

is that for be the it mentioned would belief here Aristides underlying As one.

James Jang

operational in on the Okay. positioned? Understood. Joanna be -- the they Would they Pacific, the front, the will just Akinada an where Atlantic? and be And charter,

Aristides Pittas

But important. the Pacific. both I are similar think rates in various that Charter that in today think positions. the I they're is quite don't

James Jang

Okay.

charter now, strong big matter, the there's So two Pacific because no any it or -- between market and have any rates Or the halves is fees doesn't is or repositioning between you discrepancies real seen else? anything Atlantic? just it right

Aristides Pittas

point, say at would isn't real I big differences. there Yes. that this any

James Jang

the Thank all questions are I guys. you had. Those Excellent.

Aristides Pittas

Thanks, James.

Tasos Aslidis

Thanks, James.

Operator

Pittas back at no time. for further to this Mr. like over I'd comments. the any are Aristides questions floor to There closing turn you. Thank

Aristides Pittas

all Thank and you presentation be with our to time quarter's next results. for us standing and you. you today, three Thank listening in with we'll the for months'

Tasos Aslidis

everybody. Thanks,

Operator

today's concludes This conference. you. Thank

your you for may You participation. disconnect this Thank lines time. your at

Euroseas (ESEA) 11 Aug 222022 Q2 Earnings call transcript