EDRY - Earnings call transcript Q1 2021

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Operator

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

We have with us today, Mr. Pittas, Chairman and Chief Executive Officer; and Mr.

Aslidis, Chief Financial Officer of the company. At this time all participants are in a listen-only mode. advice this must recorded is I today. Instructions] you conference that being [Operator that its company press be the Please reminded announced has publicly release been results distributed. that a with

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

Aristides Pittas

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

statement highlights are income shown Our here.

positive income stood million. million EBITDA per shareholders of $X.X Adjusted to strong $X.X with market growth. of for $X.XX reported the attributable net year net of income trajectory been and as onset rebounding and In of of share. rates the it million to trade a we significantly a XXXX, impressed very the Adjusted common or its this net $X solid continues period was to the quarter at stark so total supply The first a a For drybulk result ago, with year. XXXX far $X.X million. revenues growth drybulk has contrast limited since

months week, over detail day reached its XXXX. go fixed Please trip highlights Drybulk As highest being our thereafter, in during will Well, day. vessel charter Baltic level X Tasos days level be XX on a the Motor about XX of the to October at to days days days financial for concluded about turn Anastasios three was five per it per $X,XXX scheduled for fixed CFO, per in negotiated Aslidis his is a Pantelis was day. for more that the past And at operational by to since Slide later at end months January fixed in currently for XX to day. $XX,XXX to month, $XX,XXX our at a was for of XX The about the presentation. and days highlights. $XX,XXX around XXX Index the

Lastly, until of for XXXX. at March the was the index Ekaterini Kamsarmax period a extended XXX% minimum

quarter last sold phase with of equivalent January day days, Our in put Panamax been making of XXXX, XXX of a in XXXX which X.X we market. QX, loss $XXX,XXX. were vessels, strong the the per through loss the a place at a have were in naturally In hedges $XX,XXX rate originally settled which and such at of

and of XXXX day. equivalent sold quarter, QX, QX the one the $XX,XXX of days also QX Panamax per vessel at have XX We of

$X of delivery about upon of Japanese-built will charter loan Panamax-size minimum of the for which period upon partly of sellers’ repay commence with possibly, The funds age million. affiliated agreed be the the This bridge May within will by million time, sellers’ rate Japan three of days Luck finalized medium the there will for minimum The the vessel a million to been by vessels agreement a alongside ago third acquired our vessel EuroDry’s acquisition completion contribute an part year short-term vessel bridge in were loan $X and be XXXX. repairs. party credit to to of of with of between approximately Blessed within months. proportional built vessel and complement as major a with provided to my be of we A in of the manager X the summary volume entity a Please current financed contributing Both during in the $X credit the QX the few of the vessel The no majority or a one million will cluster the funds come fleet. by of EBITDA. family and Blessed day managed company of In The from owned a will rate to a remaining the loan. Luck by is dry interest an loan to the fleet the months acquisition expected and company’s drybulk carry company short-term charter. sufficient expected increase vessels. During maximum XX,XXX provide for entered in cluster period units also credit a $XX.XX at process our EBITDA a current and Slide of for of vessel a its At gross the of acquire of motor sellers’ thus collateral, and per company. arranging to vessel is the dockings XX into of bank XX.X turn increasing is X%. the has company months parallel, annual $XX,XXX own-built delivered eight deadweight our new Eurobulk, a buildings same the XXXX to full and the in

drybulk a deadweight of can age of and carrying with you years of it’s As tons. vessels capacity fleet about a see, seven XX.X comprised cargo average XXX,XXX

XX.X cargo increase carrying age rate fleet transfer years the vessel vessel current As I of increase average fleet to will to delivery the mentioned will Slide X deadweight. slightly of before Luck the and increase employment capacity the approximately schedule. following XXX,XXX the for shows Blessed will

XXXX vessels effective terms see, for include the of the that but on to coverage minimum the at open FFAs can Luck As stood without course, excludes to is X% the Blessed increases in we XX%.This of are employment, If remainder covenants to of fluctuations. charters ships that contracts. hedged secured figure or index you fixed in rate of about including pools have market

little are development our as of forward have we the the optimistic current market. happy of We covenants about with positioning

you our EBITDA present will Aslidis on. later

you trading its to own each and boost make stock So conclusions several approximate determine how expected market separate easily EBITDA our consequently EBITDA calculator at one well. as to or strongly use assumptions should of current it. can This predictions earnings our will be FFA and whether enable

Now, turn market we’ll where over to quarter ended let’s XXXX. the for highlights X, XX, go in Slide the March

increased $XX,XXX days. by last buoyant $XX,XXX which the week, per first demand last bottlenecks, about markets, and and to close is day. very is the short quarter during to after year’s index the X. to Slide was there QX. Clarksons charter to one in rates few strongly According operational the react the seen But as day have in in by levels around drybulk driven per rates time $XX,XXX dip first slightly turn to XX correcting day the QX. freight day. decade prior in trends $XXX,XXX Panamax to a they had May past they Meanwhile, quarter, a to increased for to continuing the per Capesize last market, improving is by spot During The the increased result Please not

return vaccine the to more rollouts to growth. outlook social production for ramping improve world looks and normal most to are pointing thus economies, and global the be developed of levels As is pace around economic achievable activity, then by up gathering

a growth current wave revised rise. April, situation seems compared not Of growth while most. projected GDP to insignificant. IMF I In when a overall growth X.X% year still, economy is course, countries affected to growth quarter in expected pandemic set XXXX X.X%. previous now. developing compared the the big economies, developed XX.X%. estimates. continue grow Most Eurozone’s previous Among and to developing hopefully India from India China’s rebound with X.X% the but to is for X.X% January The expected U.S. the important were economies beginning in the in X% of world and firm however, bit, the was X.X% XXXX. demand is to by underdeveloped at this the to was a in was this the revised think the expected see further But quarter. to to growth global grow that to GDP strongest China and dent grow the upwards may to to upwards in would India to very are estimated

With China to grow respectively. see according XXXX others continue X.X% for are continue individual most above outlook to at countries which and of India, growth increases grow IMF global ahead, and except trend, will X.X%, reasonable Looking still to very X.X%. expected the to economic above

dry to upwards year. Looking demand continue for we bulk X.X% trading ourselves the on for trade and XXXX, expect Clarksons’ growth projections at this basing at

next XXXX, turn order is expected XX. dry base years review the grow and to the shipping of at May the decade lowest bulk weak to seen for of and XXXX For continuous With main of the the rebound delivery the bulk The coming number XX-plus Slide respectively. turn we expect the at X.X%, last dry supported trade book stands of X.X% book the XX a trade years. The percentage the trade. the total and for up trends XXXX at during performance Slide is of dry until in schedule. Please fleet as least. reason current last couple and which of X.X% level the the for the has high deliveries, bulk a bulk dry fundamental Please model in to to outpaced which demand been order growth easily continuing years

X.X to For to and we’re taken still Well XXXX market, the order further and which the by that less large in bottlenecks %, Clarksons, have fleet vessels. growth fleet According will is the dominated XXXX for around than growth into deliveries, other changes book strengthening case scrapping logistical be due place enhanced account to the date. supporting the taking is demand experiencing.

the any supercycle XX, even to the to when duration beyond, imply ordered we on and we have of slippage, surpassing a our could XXXX the scrapping of up. type otherwise modeling its Please consequences rates market. be XXXX, financial unknown could new for, The book that growth vessels until summarize bulk where could render outlook is this around see see dry and through fleet previous we holds minimal For difficult. if will and rates turn very X.X%, and Slide order pandemic demand probably prices the currently

the favorable as not of for ships a contained new XXXX of of as the the knowing related to is seaborne another distribution environment optimal the the slots and demand amidst with Also, further have supporting tankers. when extraordinary most to to and between is and due XX expectations pandemic in of even by is overall the ship makes COVID-XX with anticipated, XXXX create growth the reduced expect XXXX spend importantly, levels space of growth developed to to such can and U.S. at years the the demand low a for dry substantially of wave market by if bulk is as will are XX.X%, and bulk grow we favorable filled experienced infrastructure it’s tensions China pandemic ships delays first clarity years, available to the according very projects. and vaccines factor IMF, five book can risky. expected to even China help not returns. additional widely rebound, fuel in order a due well. onwards economic global dry and placing However, expected couple grew the trade countries of fleet. be container Ordering XXXX X.X% before economy transitioning COVID-XX billions India’s for shipyards as in of for Therefore mentioned new China promising bound commodities, markets of and lack be trades the lack years half delivery planning to the increase new raising related order for at significant past to latest stimulus, any future as many of India. the disruptions out China further projected and as Furthermore, squeeze the containment world the towards, speculative XXXX the open indicates the

side to turn of Panamax Let’s left evolution The time charter bulk Slide vessels of the shows slide XX. rates one-year since the XXXX. dry of

deadweight rate capacity stood per for tons of one-year May time day. has charter been of the XX,XXX highest Panamax XXXX, during As with XX, last The current at the around $XX,XXX it the in of XXXX. last values. all still years increases seeing the pace the supply points will balance, possibility the higher sentiment levels approaching to be and The demand we and seen prevailing

can see deadweight XX-year side Clarksons million. slide, price note Kindly previously. old has on of vessel since is As the you the Panamax deadweight the current that to updated right of XX,XXX anchored the vessel XXXX from January $XX around XX,XXX a

Over liquidity. capitalizing past of have gradually would asset increase our strengthen even bulk balance increase course this been rate towards exceeding In average historical the to are prices. levels the environment free to further. strengthened the year, we increasing market With sheet a values continuous of strong dry reaching prices and see we freight the median expect to and on historical environment,

best it benefit purchases, share debt, dividends, quarter almost increases from buybacks, of combination. probably how be to reinstitution As ourselves vessel free of onwards, reduction holders, use decide in we the will for further liquidity next

possible especially fleets, continuously evaluate provide which with also We opportunities significant and using status value. on a combinations public our can as for advantages other focusing company,

pass various financial in the now highlights to detail. the our go over CFO, floor to Tasos over Let’s Aslidis more

Anastasios Aslidis

ladies period much, morning very from the the of financial you and me take same to now year. you and our Good quarter gentlemen. last I will XXXX, as through compare well, first Thank highlights of Aristides. for

let’s Slide turn that, For to XX.

Adjusted XXXX of XXXX. same of million Depreciation million of $X.X the quarter the and to attributable for year basic this XXXX which diluted $X.X for on EBITDA total million share this basic For company shareholders the $X.X $X.XX of shares to the and $X.X net the basic the $X.X financing net shares $X.X period calculate of X.X first compared to XXXX. quarter as average X.XX XXXX. period $X.X first first of million, year. compared of of during The revenues million a million common Again compared of of were for last first for net result first for quarter it charter quarter rates outstanding. revenues period million diluted $X.X representing the diluted XXXX, shareholders higher and million million weighted XX.X% of shares to the year. million, X.XX the the per earned loss the over was of quarter of first to net million attributable of of time quarter loss during the XXXX, common achieved and to common million, share the costs loss for first a $X.X calculated was expenses million, numbers $X.X quarter same the compared Company and and compared total of XXXXamounted same to decreased reported attributable of $X.X first for million per was net quarter vessels for Interest first million our during the of the period respectively, to of X.XX increase as income on reported shareholders net other income for Basic quarter of last $X to earnings slightly million, and a diluted year.

not and estimates included secured based above items for which earnings per include the diluted per year, in the Usually, earnings XXXX, the on for been of their $X.XX share in again to the of common of share of per of the compared Excluding which earnings the first published inventory. $X.XX adjusted loss of unrealized share. the diluted of the attributable for loss adjusted derivatives, write-down the an quarter the shareholders first effect quarter shareholders loss also the has attributable last adjustment to quarter do on to common based

review XX performance. turn to Slide now our Let’s fleet to

review first We by will at rates XXXX XXXX. utilization start the our our and looking quarter of fleet for first

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

quarter of During last first XXXX, the commercial quarter level rates the the were year. of both operational utilization first of during and XXX%, equipment same our

an seven vessels quarters, to equivalent $X,XXX compared earned time year. day, those the quarter In first XXXX, last of of per vessel of both per our operated During owned per average day and the $XX,XXX per we first rate quarter seven during an average vessels. of vessel charter

expenses preferred the excluding can to first and vessel but level expenses, administrative our per as total during this in vessel XXXX. during Our see XXXX, the cash operating $XX,XXX rate per expenses, year, account average If day per the dry per of same paid day that for of takes XXXX. said vessel daily we $X,XXX rate including per cash. of during breakeven $X,XXX $XX,XXX if interest bottom and compared we last daily flow repayments, period quarter to our docking this we vessel cash quarter first into fees, first per quarter dividends was breakeven compared per dry general table, of year, the loan during flow expenses, costs vessel day per management cash had the of docking which that day first of as about the Thus, quarter look

this move XX. table Let’s our slide of to to investors to Slide and now the and The XXXX. components. provide rest and is potential fleet our for we is a in of This slide included two shown assess the shareholders new earning

relevant, is this total earnings our produce to of their during and full producing are us. rest not to The to includes XX fixed that your our performing We in Luck the contracts [indiscernible] drybulk being the except market contracts of the price to pointed worth, for vessels the of about first M/V significant be charter consider that and acquired linked vessel contracts vessels The of the from if expected days quarter. vessels. well Luck contribution second fixed preferred rate for to two including our Blessed its size very for Blessed

Baltic and here the of as show And just for we rates final May as [indiscernible] we to table a the days and actually blended Panamax, rates FFAs you which right the for these for see that basis that’s the in meant of expenses the tool last by per quarter mentioned, Kamsarmax to these Our overall see, rates the our calculator the and can index calculate fleet. line turns see levels open below very is suits. levels. showed on the the can XXXX operating as the $XX,XXX you EBITDA the can final how do. obviously contribution our be commission for rest fleet, XX, We rates assumptions, of XXXX. our X% year translated similar out in Panamax assume per provide rate, own assumptions day, vessel of during results, simplicity table. in of can the as presented. you Kamsarmax further for is these I and And, to rates adjusted [indiscernible] for clear to estimate shown G&A our This remaining to the exercise contracts of about the second to per our a The XX EBITDA Based

that couple rates our the materialize, XXXX. the also, by hard it’s market currently XX%. FFA a EBITDA And total since of did FFA not contracts by the of if for than days this indicated please up to ago, table year, observe rest full the moved the double that in However, of rates we note will rest more

On the on payments. our our bottom over well XX move some as following as can part, if to sorry now the level see for highlights slide, And see months. the our profile. of to projection flow from can Slide I’m debt breakeven slide, the loan this XX, next we our cash the balloon top – Let’s review slide, XX Slide provides we repayments

payment so as $XX repayment the we this the slide acquisition outstanding balloon explained vessels. over this to As expect that $XX debt of can in constant below is financing which to respective debt make million the is XXXX the loan no payment about we’re we the And four with the about debt by an you not that have we debt collateralized another balloon shows chart, anticipate At balloon Blessed going of again by of top is coming Kamsarmax and we do million. our assume about of see, million, bank is million. choose payment And we price with have three March Aristides is include the during constant These level about issues by have which a of so. their to years, of in does year, collateralized. earlier XXXX, of well the see scrap which we of Again of our can $XX.X for next XX, payment one $X to amount $XX Panamax XXXX Luck, profile. said to of an repayments, vessels level million we And XXXX vessels. the collateralized which when you

our The X.X%. If preferred top to of have, quarter. would slide a of be around estimated of I X%, the that of the cost the As you our in last non-equity of around our average it, be we of to debt about our the cost margin to funds. quick of show assuming would LIBOR funding of as the blended senior we include X% are the equity end we like rate for debt is note part of the slide, cost the the X.X% average can about make on as the is on the the note cost

XXXX. equity $X was cash increase is been rates we per to our option, dividend paid they’ve rate we increased to until note annum important time of redemption XXXX, January now like that January would X% XX% X% in It make to pushed out agreed during that and certainly quarter here Regarding since equity, in our net has if to it which on and XXXX. this this highlight million that the I the first preferred the paid of preferred following dividend reduce

additional doesn’t related to and increase cash the Luck about its day. loans breakeven around is level slide, see by expected expected months, be the to breakeven bottom next for can which flow Luck estimate per day. is the On $XXX That the include per XX the we chart $XX,XXX and per Blessed of our Blessed this vessel

Slide highlights you policy. in assets the as to next Where can way. in our our we move of slide now see a Let’s slide, compact snapshot liabilities from This a XX. some and presentation gives

Now assets another as $XX.X see that we of first, of million end asset for side and we hit XXXX. again about can the cash March,

our the our of $XX.X vessels, million reach our million. book amount about side book asset on value making value total to course, Of $XXX.X

the assets. On from again quarter book which bank XX% $XX of our our approximately value side liability the of debt stood last the million, represents

preferred stood liabilities which value Our assets; $XX.X. represents and with or million, at assets $XX.X equity assets. translates about leaves to X.X% another of XX.X% net a of $XX.X total other $X.X That total million about book million, us of for which

value, our market book the share second However, we vessel value market XX% the for in its higher hedge their is of value value than own a resulting book asset $XX. net for vessels, about is the about fleet currently made our we value of per

investment And we an price that I level. Although below And back still increased, it recently turn would that significant acquisition believe it to represents Aristides. to floor share trades our with with like the has opportunities.

Aristides Pittas

you, Thank Anastasios.

any So open floor Instructions] let questions Thank we Thank you. for have. you. up Thank you. me [Operator may now the

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

now open. is line Your

Tate Sullivan

Group. Tate day. good Sullivan Hello, from Maxim

why it’s Slide history? or good with and you this on you company’s And think a calculator. introduce did this Have shown was it? to time the XX table EBITDA not just starting Just before calculated your

Aristides Pittas

profitability us the highlight for assess opportunity our shares the what potential market prompted play of in investors the – the capability change and provide The to these give achieve and expected improvement company that think We to time our it’s and themselves outlook. first investors wanted increase. our significant to to even provide, understand I to with assumptions we

Tate Sullivan

– that details I that new with questions review of the Yes, mentioned it’s Does as and contract well you table would couple just Pantelis contract the please. of include you can it great. too. on the And just I mean, contract the

Aristides Pittas

you contract is mentioned that Pantelis not does It negotiated. include the which

Anastasios Aslidis

This is still subjects. on

it’s be XXX% will it it’s it XXX% conclude or think but fixed, tomorrow, fixed. fixed. will not within So not today We but probably

Aristides Pittas

Tate, as are point see one vessel includes on that year booked you that can the we we that the acquiring.

Tate Sullivan

are rates? then that on And ago, in as You estimates XX, mentioned well. the timing? EBITDA or the FSA calculator implies It what days EBITDA just was as XX okay. Slide Right, on the based of

Aristides Pittas

[Indiscernible]

Tate Sullivan

Okay.

level, $XX Okay, background, that on made other you for started, and are you background that great. if closing you can the just turning it highlight you over comparative And million, about can that comfortable acquisitions acquisition give can can there before any more provide? what you at

Aristides Pittas

We rising, we Sure. within saw year, this record fix makes us we and approximately at the to at investment. for which is out did, could a that that $X ship will least able year, comfortable very the million essentially rate which and market that decent a saw first we total of be

extra will liquidity it’s been very facing, rising to building help We we well this evaluate liquidity by, has charter, returns, much be the will which prices, market. can is conservatively this with up grow though passing even goes year, we paid than of EBITDA increasing historical after the So median the to this significantly. price, higher we vessels, average company and time historical prices as of such calculator in very for around have $X The even high see market to levels, median the we addition that yet. company. up ourselves think problem to forward, build below not can a the it’s has historical and did our which the and course, price that’s very as how a the forecasting our We company good the see is million, we our is how this reduced going

Tate Sullivan

Okay, for great. I’ll Well, turn that you thank it background. over. Thank you.

Aristides Pittas

Thank you.

Operator

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

on your me unmute, Excuse open. is your now now is line is line Your open.

Poe Fratt

in sake the locked Section Poe Fratt morning first check Aristides. in your because I the Tasos, to consistency of the in. do Why double the is EBITDA just Tasos. is year over This just didn’t it just the just FFA Good are for rest Markets. A. Good apologize. wanted I And of that already morning, Noble you, adjusted ask calculator. from has your FFAs on quarter, Capital the you with contracted days

Anastasios Aslidis

included asking. the be it’s supposed are line is below X.X, right? in [ph] three what why mean That you EBITDA You to is on

Poe Fratt

asking of Yes, much that’s at easier – to It’s just for sort it’s I’m TCE look of it too sake for. but. what comparison, rate it, average just would just would have the the depress it been for maybe

Anastasios Aslidis

actually, Yes, is mind $XX,XXX. separate from that contributions, wanted less the shown to of there, the I decided the FFA rate future. the debated I put to FFA I where my TCE in the and the six it’s

table, it’s support supposedly included in So it that’s to day’s in why put only the of water line the with the of where information? I part the open chose lower

Poe Fratt

looked No, it’s to there’s very way opposed of to I your a it, to at what of just consistent. the I rest think helpful little potential May on Pantelis it’s The terms. bit I’ll at since a we science. mean, I is Pantelis, helpful. always it’s look leverage XX in operating rate on think consistent the general But the as which the with XXXX. art the highlight through look FFAs, were

Anastasios Aslidis

that than for Yes, the implied day Aristides is $XXX,XXX, contributing been Pantelis Pantelis, rate That’s actually higher to which post have is would I $XXX,XXX think, contract. something mentioned, EBITDA. a what the

Poe Fratt

do loan. about you What potentially you for are should percentage? either then the that assigning of math sellers’ bridge million – leverage far And we looking you or thinking you. probably as Blessed as a bit, thank Okay, when credit just be You loan lining Luck. $XX up at little have the

tell really didn’t I you… So covered? how be exactly couldn’t – how of much will that much It

Anastasios Aslidis

around Poe. million. another will It be will $X $X be million It

Aristides Pittas

loan a of of million. term the a bank We $X a in with about sheet are process signing for

[indiscernible] loan. So would and still liquidity $X sellers’ other to have credit repay the half purposes. and of for less And will allow should source million that us we we the

Poe Fratt

apologize, I give beyond outlook And potentially it, a you us of sort of for idea give TASOS in the June? charter end for have TASOS that, you just Thanks. us could an you like? but an you what the might mentioned looks discussions of outlook the can Are follow-on or about

Aristides Pittas

any continue we long the till charters. charter health Presently, still Yes, discussions in started the we yet. we time charters it’s then. will had times But discussing of TASOS. haven’t a new or smalltime a for vessels, the three times trading haven’t Probably quite

whatever have the Blessed say. take We want will We I to the about exposure XX% Luck. as have is. see, market, market We that. the – market, XX% you we to like exposure would the including to

optimistic prospects forward. are the of We charter the going about market

this index of playing at with all fleet. percentage the other So, a our significant to why vessels are be in market we like That’s the charters. stage link

Poe Fratt

Thanks. discussion. be Luck may follow-on on And Blessed Aristides then to just a the that

net your forward. Systems is there’s But you blown risk. you as that mentioned far Ocean the as worth value do highlight going think it’s up, where the uncertainty You

it already you be Can countered the seems you are comments to just older transaction? your that companies other you bit how a are doing more little made what You even buying lot an there. are on to increasing to profile, expand you of set than age asset, maybe a look

Aristides Pittas

Luck be play not the a play, the the the rather years, this is strong. Obviously, in also we think short of next have ship. vessel million Blessed $X year year, opportunistic We a the in a value a very valuation would will we’re brought below shape. that And Sure. on two even to in to whereby low say, play will scrap make company. It’s term, therefore, long-term of going the I this

So, all we vessel, but have. XXXX, a built very we will old consumptions have that that they different between these not relatively in are the think they vessels

can more I average that this i.e. the and vessel time, less think fuel. both do ships ship. its breakthrough And of well the of easily they this XX probably So so years age live it’s of differences till is eco This is very vessels, a versus a scrapping towards very years. But maintained age. expect until We of end again, really started consuming the used. significant XX sometime not after building are XXXX these that

think this it more few that is further and scrap So down technically more for to can the for leave we live than that break, concentrated to bring two hopefully, potentially it’s years. required the years required to

Poe Fratt

years are maybe was what That’s outside. helpful. sounds Yes, to we ask thought like going you XX you to that remaining the level nine

Aristides Pittas

one the it years dry has to the average next scavenge, will at is It depend, XX years down year in do good, of four it is We what age [indiscernible]. pass able But maybe of will on is economic ship the its the the scrapping from vessel today? that. market think If most. said will I it’s to rate vessels course, time. considerations for gone bulk survey be the by it lives As

Poe Fratt

you during the you run any you pressures middle you’re would of be have that have that’s if But for the that far highlight rest color could distracted get the we rate, Any about, the – then about And that helpful. of the the the it. just first rest as over would as you on may docking quarter talked would just call. roughly use But activity of any year. And seeing, also then talk X,XXX, whether year. cost dry just

Anastasios Aslidis

results up dry made operations to difficult worth terms record dock But I congestion. a this hopefully cost ports vessels. situations set year. have don’t XXXX think per scheduled any see mentioning, don’t in so We is our in bit I that far Again, more due for anything has of the certain obviously we

couple get are to I into think, for example, we vessels port. have that of a waiting

some are With flood to as point. issues there know, not structures. to them that but with Sometimes, we us really extraordinary what makes this COVID-related,

Poe Fratt

just And did. that it I you the first it looked think, in Great. pick you quarter says dividend preferred like to clarify, the

Anastasios Aslidis

is this did we no, following Actually, space the crucial because pick, we the in quarter. didn’t

basis. That’s going any don’t this expense in flow QX the this on but dividends have dividend an cash, to pay it we why be I think we’re We cash quarter, will QX. in breakeven did pay QX time. extra dividend in

Poe Fratt

Okay, great. much. so Thank you

Anastasios Aslidis

you. Thank

Aristides Pittas

Thank you.

Operator

Thank you.

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

is now line Your open.

Tate Sullivan

Thank A follow-up Sullivan Maxim. you. from Tate at me

I’m $XX at comments have loan that maturity, there? and XXXX. What then say let’s you then dividend can $X or the this comments reduction. just – $X with your might your And to buybacks, debt on what million with of that of plan due context do mean is And that you give of you million year. payments extend still looking Would extend million? I you slide, just your Your EBIT calculation, or potential EBITDA

Anastasios Aslidis

relatively $X this the money. loan to think we and something, I short will million, company. we’ve So, of it’s this cheap the balloon repay term If will decide currently given it preferred that be course, extended, to be the because

less be will priority money X% be the the than So, X%. repaid, debt has bank normal to

next what of shareholders quarter, we and will. decide what without time at to what most And better quarter by point by in would we situation didn’t need this we is we then. will but our that look next have much, decide have increasing the So, our liquidity we the liquidity, decide at too the always and doing quarter benefit be end because, and to okay, use we of

Tate Sullivan

Thank very it That’s Okay, you you. from Thank me. much.

Anastasios Aslidis

you. Thank

Operator

closing Thank I to you. now further There to would Mr. Pittas questions no for are like time. at this remarks. hand back

Aristides Pittas

attending three our you to time. conference talk these nice for Thank today circumstances. market in you under call months’ We’ll again all

Anastasios Aslidis

much. very Thanks

Operator

our conclude Thank today. does participating. That you for conference for

all may disconnect. now You

EuroDry (EDRY) 21 May 212021 Q1 Earnings call transcript