EuroDry Ltd. Reports Results for the Quarter Ended March 31, 2025
EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three-month period ended March 31, 2025.
First Quarter 2025 Highlights:
• Total net revenues of $9.2 million.• Net loss attributable to controlling shareholders, of $3.7 million or $1.35 loss per sharebasic and diluted, respectively.• Adjusted net loss1 attributable to controlling shareholders for the quarter of $5.7 millionor $2.07 loss per share basic and diluted, respectively, which represents the net lossattributable to controlling shareholders excluding the unrealized loss on derivatives andthe net gain on sale of vessel.• Adjusted EBITDA1 was $(1.0) million.• An average of 12.8 vessels were owned and operated during the first quarter of 2025earning an average time charter equivalent rate of $7,167 per day. Refer to asubsequent section of the Press Release for the definition and method of calculationof the time charter equivalent rate.• To date, about $5.3 million has been used to repurchase 334,674 shares of theCompany, under our share repurchase plan of up to $10 million, announced in August2022.
Aristides Pittas, Chairman and CEO of EuroDry, commented: “During the first quarter of 2025, we faced quite low charter markets, the lowest since the early days of the COVID pandemic, and although the market rebounded a bit in April and May, the rebound was not sufficient to return most vessels to profitability and, in addition, it started fizzling out by the end of May and early June in the face of season trends and the uncertainty created by the back-and-forth’s on the tariff front. As EuroDry is fully exposed to the short-term charter markets, it is no surprise that we had a rather poor financial outcome for the quarter. The near-term outlook remains volatile as the demand side of the supply/demand equation struggles to establish a positive trend affected by the weakness of the steel industry and overall economic growth in China, the negative medium-term trend for thermal coal and the continuing conflicts in Ukraine and Gaza that have pushed significant reconstruction projects to the future.
“We have refrained from locking our vessels into longer duration charters at non-profitable levels deciding to face the market by pursuing short term trip charters to, potentially, benefit from any reversal in trends. The orderbook, as a percentage of the fleet, although it has modestly increased, remains low by historical standards, offering the possibility that a meaningful upturn in demand could quickly translate to better rates. At the same time, we try to optimize incremental investment in our elder cluster of Panamax vessels, especially around the time of drydockings; the sale of M/V Tasos was the result of cost/benefit analysis. As always, we continuously look for new opportunities to invest, mainly, in combination with the renewal of our fleet. “
Tasos Aslidis, Chief Financial Officer of EuroDry, commented: “Our net revenues for the first quarter of 2025 were lower by 36.2% as compared to the first quarter of 2024. This is primarily driven by the decrease of 42.5% in average time charter equivalent rates our vessels earned during the current quarter as compared to the first quarter of 2024, partly offset by the increased voyage days during the first quarter of 2025, mostly due to the fact that there were no scheduled off hire days due to drydocking, compared to 52.5 days of the same period of 2024.
“Vessel operating expenses were $6.6 million for the first quarter of 2025 as compared to $6.2 million for the same period of 2024. The increase is mainly attributable to increased costs of spare parts and maintenance for several of our vessels in the first quarter of 2025 compared to the corresponding period in 2024. “Adjusted EBITDA during the first quarter of 2025 was $(1.0) million compared to $2.1 million achieved for the first quarter of last year. As of March 31, 2025, our outstanding debt (excluding the unamortized loan fees) was $105.2 million versus restricted and unrestricted cash of approximately $11.3 million.”
View Full Press Release
EuroDry: Απέκτησε τρία φορτηγά πλοία
Τρία νέα πλοία bulkers ultramax απέκτησε πρόσφατα η εισηγμένη στην αμερικανική χρηματαγορά ναυτιλιακή εταιρεία EuroDry Ltd, συμφερόντων του Αριστείδη Πίττα.
Πρόκειται για το M/V «Giants Causeway», ένα πλοίο ξηρού φορτίου χωρητικότητας 63.197 dwt, που ναυπηγήθηκε το 2015, το M/V «Sadlers Wells», ένα πλοίο ξηρού φορτίου 63.153 dwt, που ναυπηγήθηκε το 2015 και το M/V «Gallileo», ένα πλοίο ξηρού φορτίου 63.177 dwt, που ναυπηγήθηκε το 2014, έναντι τιμήματος 65 εκατ. δολαρίων.
Τα πλοία αναμένεται να παραδοθούν στην εταιρεία κατά τη διάρκεια του Οκτωβρίου και του Νοεμβρίου. Οι εξαγορές θα χρηματοδοτηθούν από τα ίδια κεφάλαια της εταιρείας και τραπεζικό δανεισμό.
Ο πρόεδρος και διευθύνων σύμβουλος της EuroDry, Αριστείδης Πίττας, σχολίασε σχετικά: «Είμαστε στην ευχάριστη θέση να ανακοινώσουμε την απόκτηση τριών πλοίων μεταφοράς ξηρού φορτίου eco ultramax, όλα κατασκευασμένα κατά τη διάρκεια του 2014 και του 2015. Τα πλοία είναι αδελφά πλοία του δικού μας M/V “Alexandros P”, το οποίο ναυπηγήθηκε στο ίδιο ναυπηγείο το 2017. Η απόκτηση αυτή ενισχύει περαιτέρω τον σύγχρονο στόλο μας σε μια στιγμή που πιστεύουμε ότι τα θεμελιώδη μεγέθη της αγοράς, ιδίως το χαμηλό βιβλίο παραγγελιών, είναι πολύ υποστηρικτικά για μια υγιή αγορά κατά τα επόμενα δύο έως τρία χρόνια».
EuroDry Ltd. Reports 38.6% Lower First Quarter Net Revenues
EuroDry Ltd., an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced its results for the three-month period ended March 31, 2023.
First Quarter 2023 Highlights:
Total net revenues of $11.3 million.
Net loss of $1.5 million or $0.55 loss per share basic and diluted, respectively.
Adjusted net income1 for the quarter of $0.4 million or $0.14 earnings per share basic and diluted, respectively, before unrealized loss on derivatives.
Adjusted EBITDA1 was $2.4 million.
An average of 10.0 vessels were owned and operated during the first quarter of 2023 earning an average time charter equivalent rate of $10,674 per day. Refer to a subsequent section of the Press Release for the definition and method of calculation of time charter equivalent rate.
As of May 15, 2023, we had repurchased 198,731 shares of our common stock in the open market for $3.0 million, since the initiation of our repurchase plan of up to $10 million, announced in August 2022.
Aristides Pittas, Chairman and CEO of EuroDry commented:
“During the second half of last quarter and through mid-May 2023, drybulk earnings for Supramax and Panamax vessels have recovered from their mid-February lows to levels that are currently profitable for our fleet. However, the market has continued to be volatile as financial and other developments influence economic trends and, thus, influence demand for raw materials. In parallel, the drybulk orderbook as a percentage of the fleet dropped below 7% after hovering for the last three years around a low level of 8% by historical standards. This persistent underbuilding of the fleet along with increased environmentally-driven regulatory requirements that will likely result in slow steaming and increased scrapping, are destined to create in the following two to three years a “supply squeeze”. It remains to be seen whether demand for raw materials will increase over the same timeframe for rates to meaningfully react.
“Our strategy remains to position our fleet and liquidity to deal with and take advantage of both the current environment and the expected developments in the markets. Most of our fleet is exposed to the market by being employed in short term or market linked contracts. At the same time, we selectively use the FFA markets to secure in the near-term rate levels for our vessels which we consider as profitable. We also continuously evaluate investment opportunities in modern vessels having built sufficient liquidity to grow organically by 20-30% if we identify accretive opportunities for our shareholders.”
Tasos Aslidis, Chief Financial Officer of EuroDry commented:
“Our net revenues for the first quarter of 2023 were lower by 38.6% as compared to the first quarter of 2022. As a result of the depressed market rates, our vessels earned 56.7% lower average time charter equivalent rates during the quarter as compared to the first quarter of 2022. This effect was slightly offset by the increased number of vessels owned and operated in the first quarter of 2023 as compared to the same period of 2022.
“Vessel operating expenses were $4.7 million for the first quarter of 2023 as compared to $4.2 million for the same period of 2022. The increase is mainly attributable to the increased number of vessels operating in the first quarter of 2023 compared to the corresponding period in 2022 as well as the higher prices for all the categories of vessel supplies paid for our vessels compared to the same period of 2022. The latter is a result of the increased global inflation rates.
“Adjusted EBITDA during the first quarter of 2023 was $2.4 million compared to $12.7 million achieved for the first quarter of last year. As of March 31, 2023, our outstanding debt (excluding the unamortized loan fees) was $66.9 million versus restricted and unrestricted cash of approximately $24.0 million.”
First Quarter 2023 Results:
For the first quarter of 2023, the Company reported total net revenues of $11.34 million representing a 37.9% decrease over total net revenues of $18.28 million during the first quarter of 2022, which was the result of the lower time charter rates our vessels earned during the first quarter of 2023 slightly offset by the increased number of vessels owned and operated in first quarter of 2023 compared to the same period of last year and the voyage charter revenue recognized in respect of one of our vessels while employed under a voyage charter. The Company reported net loss for the period of $1.54 million, as compared to a net income of $10.49 million for the same period of 2022.
Voyage expenses, net for the first quarter of 2023 were $2.44 million and mainly relate to expenses incurred by one of our vessels while employed under a voyage charter. For the first quarter of 2022, a gain on bunkers resulted in positive voyage expenses of $1.00 million. Depreciation expense for the first quarter of 2023 was $2.53 million compared to $2.46 million for the same period of 2022 as a result of the higher number of vessels owned and operated in the first quarter of 2023.
Vessel operating expenses increased to $4.69 million for the first quarter of 2023 from $4.23 million in the same period of 2022, mainly due to the higher number of vessels owned and operated as well as due to inflationary increases.
Management fees for the period were $0.77 million compared to $0.70 million for the same period of 2022, again due to the increased number of vessels owned and operated in the first quarter of 2023, as well as due to the adjustment for inflation in the daily vessel management fee, effective from January 1, 2023, increasing it from 720 Euros to 775 Euros, partly offset by the favorable movement of the euro/dollar exchange rate.
Similarly, general and administrative expenses were $0.80 million compared to $0.75 million, respectively, for the first quarter of 2023 as compared to the same period of last year. This increase in mainly due to the increased cost of our share-based compensation in the first quarter of 2023 compared to the same period of last year.
In the first quarter of 2023 one of our vessels was drydocked in order to pass her intermediate survey, which was completed in the second quarter of 2023. The above drydocking expenses amounted to $0.51 million during the first quarter of 2023. In the corresponding period of 2022, one of our vessels was drydocked in order to pass her special survey for a total cost of $0.90 million.
Interest and other financing costs for the first quarter of 2023 increased to $1.47 million as compared to $0.65 million for the same period of 2022. Interest expense during the first quarter of 2023 was higher due to the increased benchmark rates of our loans during the period as compared to the same period of last year.
For the three months ended March 31, 2023, the Company recognized a $1.99 million unrealized loss and a $1.81 million realized gain on four interest rate swaps, three of which were terminated early in the first quarter of 2023, as well as a $0.04 million unrealized gain and a $0.24 million realized gain on forward freight agreement contracts, as compared to a $0.90 million gain on derivatives for the same period of 2022, comprised of an unrealized gain of $1.00 million and a realized loss of $0.10 million on four interest rate swaps.
On average, 10.00 vessels were owned and operated during the first quarter of 2023 earning an average time charter equivalent rate of $10,674 per day compared to 9.54 vessels in the same period of 2022 earning on average $24,636 per day.
Adjusted EBITDA for the first quarter of 2023 was $2.36 million compared to $12.71 million achieved during the first quarter of 2022.
Basic and diluted loss per share for the first quarter of 2023 was $0.55, calculated on 2,803,049 basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $3.69 and $3.64 for the first quarter of 2022, calculated on 2,847,091 basic and 2,879,436 diluted weighted average number of shares outstanding.
Excluding the effect on the earnings for the quarter of the unrealized (gain) / loss on derivatives, the adjusted earnings for the quarter ended March 31, 2023 would have been $0.14 per share basic and diluted, compared to adjusted earnings of $3.34 and $3.30 per share basic and diluted, respectively for the quarter ended March 31, 2022. Usually, security analysts do not include the above item in their published estimates of earnings per share.
EuroDry Ltd. Says Dry Bulk Rates Remain Profitable, Despite Recent Drop
EuroDry Ltd., an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three and nine-month periods ended September 30, 2022.
Third Quarter 2022 Highlights:
– Total net revenues for the quarter of $15.8 million.
– Net income attributable to common shareholders of $6.2 million or $2.11 and $2.10 earnings per share basic and diluted, respectively.
– Adjusted net income attributable to common shareholders1 for the quarter of $5.7 million, or, $1.94 and $1.93 per share basic and diluted, respectively.
– Adjusted EBITDA1 was $9.5 million.
– An average of 11.0 vessels were owned and operated during the third quarter of 2022 earning an average time charter equivalent rate of $20,637 per day.
– On September 19, 2022 we announced the sale of M/V Pantelis, a 74,020 dwt drybulk vessel, built in 2000, for approximately $9.7 million. The vessel was delivered to her new owners, an unaffiliated party, on October 17, 2022.
– As of November 9, 2022 we had repurchased 108,963 shares of our common stock in the open market for $1.5 million, under our share repurchase plan of up to $10 million, announced in August 2022.
Nine Months 2022 Highlights:
– Total net revenues of $55.1 million.
– Net income attributable to common shareholders was $27.3 million, or $9.43 and $9.34 earnings per share basic and diluted, respectively.
– Adjusted net income attributable to common shareholders1 for the period was $25.1 million or $8.69 and $8.60 adjusted earnings per share basic and diluted, respectively, before unrealized gain on derivatives.
– Adjusted EBITDA1 was $35.9 million.
– An average of 10.5 vessels were owned and operated during the first nine months of 2022 earning an average time charter equivalent rate of $22,876 per day.
Aristides Pittas, Chairman and CEO of EuroDry commented: “During the third quarter of 2022, average time charter rates for the sizes of vessels we own dropped on average by 35-50% compared to the second quarter of 2022 with Supramax and Ultramax spot earnings dropping a bit less. Since the end of the third quarter, time charter rates slid down by another 5% to 12%, while average spot earnings improved. We believe that these developments were the result of, first, lower shipping demand due to the economic slowdown across the globe because of energy supply uncertainty from the Ukraine-Russia war and the increasing interest rates to combat rising inflation, and secondly, receding port-related delays which increased vessel availability and put downward pressure on rates.
“Despite the rate drop, rates remain at profitable levels and, certainly, above the average rate level observed during the decade before the COVID pandemic started. While the economic uncertainty might continue over the next six months or so, the underlying market fundamentals will be dominated by the historically low level of drybulk orderbook which should result in tight vessel supply conditions over the next two to three years providing support to the charter rates. Additionally, the implementation of the greenhouse gas emission regulations starting in 2023 is expected to further reduce the effective supply of vessels contributing to the tightness of the market.
“Thus, we remain optimistic about the prospects of the market. We believe we are well positioned to exploit opportunities to expand and renew our fleet utilizing the liquidity we have built over the last two years including proceeds from selected sales of vessels like the sale of our 22-year old vessel M/V Pantelis. At the same time we intend to continue our share repurchase program announced last August which not only represents an attractive investment opportunity but also enhances the value of our stock and benefits all our shareholders.”
Tasos Aslidis, Chief Financial Officer of EuroDry commented: “Comparing our results for the third quarter of 2022 with the same period of 2021, our net revenues decreased by about $3.6 million, due to the lower time charter equivalent rates our vessels earned as compared to the third quarter of 2021 and the increased scheduled off-hire days for the third quarter of 2022, when our vessels did not earn revenues, compared to the same period of 2021. Operating expenses, including management fees and general and administrative expenses increased from $6,495 per vessel per day in the third quarter of 2021 to $6,593 in the third quarter of 2022. This increase is mainly due to the higher prices paid for the supply of lubricants, spare parts and stores for our vessels compared to the same period of 2021, as a result of the war in Ukraine.
Adjusted EBITDA during the third quarter of 2022 was $9.5 million compared to $13.0 million achieved for the third quarter of last year. As of September 30, 2022, our outstanding debt (excluding the unamortized loan fees) was $88.0 million while unrestricted and restricted cash was $32.4 million. As of the same date, our scheduled debt repayments including balloon payments over the next 12 months amounted to about $26.8 million (excluding the unamortized loan fees) and all our loan covenants are satisfied.”
Third Quarter 2022 Results:
For the third quarter of 2022, the Company reported total net revenues of $15.8 million representing a 18.7% decrease over total net revenues of $19.5 million during the third quarter of 2021 which was primarily the result of the lower time charter rates our vessels earned in the third quarter of 2022 compared to the corresponding period of 2021 and the increased scheduled off-hire days of the third quarter of 2022, when our vessels did not earn revenues. The Company reported a net income and net income attributable to common shareholders for the period of $6.2 million, as compared to a net income of $12.1 million and a net income attributable to common shareholders of $11.8 million for the same period of 2021.
For the third quarter of 2022, a gain on bunkers resulted in positive voyage expenses, of $2.0 million, as compared to positive voyage expenses of $0.1 million for the same period of 2021. Vessel operating expenses were $5.2 million for the third quarter of 2022 as compared to $3.7 million for the same period of 2021. The increase is attributable to the increased number of vessels operating in the third quarter of 2022 compared to the corresponding period in 2021, as well as the higher prices paid for the supply of lubricants, spare parts and stores for our vessels compared to the same period of 2021, as a result of the war in Ukraine. Depreciation expense for the third quarter of 2022 amounted to $2.9 million, as compared to $2.0 million for the same period of 2021. This increase is due to the higher number of vessels operating in the third quarter of 2022 as compared to the same period of 2021. General and administrative expenses increased to $0.7 million in the third quarter of 2022, as compared to $0.6 million in the third quarter of 2021. This increase is mainly attributable to the increased cost of our stock incentive plan. During the third quarter of 2022, two of our vessels completed their special survey with drydocking and one of our vessels was drydocked within the quarter in order to pass her special survey, which was completed in the fourth quarter of 2022. The total drydocking cost for the quarter was $2.7 million, while there were no vessels undergoing drydocking during the third quarter of 2021.
Interest and other financing costs for the third quarter of 2022 amounted to $1.0 million compared to $0.6 million for the same period of 2021. Interest expense during the third quarter of 2022 was higher mainly due to the increased amount of debt and the increased Libor rates of our loans during the period as compared to the same period of last year. For the three months ended September 30, 2021, the Company recognized an unrealized gain of $1.0 million and a marginal realized loss on five interest rate swap contracts and a gain of $0.6 million on forward freight agreement (“FFA”) contracts entered into during the second quarter of 2022 and settled during the third quarter of 2022, comprising a realized gain of $1.1 million and a change in fair value of FFA contracts of $0.5 million, as compared to a marginal loss on three interest rate swap contracts and a $0.1 million loss on FFA contracts, comprising an unrealized gain of $1.6 million and a realized loss of $1.7 million during the third quarter of 2021.
On average, 11.0 vessels were owned and operated during the third quarter of 2022 earning an average time charter equivalent rate of $20,637 per day compared to 8.1 vessels in the same period of 2021 earning on average $28,103 per day.
Adjusted EBITDA for the third quarter of 2022 was $9.5 million compared to $13.0 million achieved during the third quarter of 2021.
Basic and diluted earnings per share attributable to common shareholders for the third quarter of 2022 were $2.11 basic and $2.10 diluted calculated on 2,925,799 basic and 2,930,909 diluted weighted average number of shares outstanding, compared to $4.47 basic and $4,41 diluted calculated on 2,634,822 basic and 2,675,224 diluted weighted average number of shares outstanding for the third quarter of 2021.
Excluding the effect on the earnings attributable to common shareholders for the quarter of the unrealized gain derivatives, the adjusted earnings attributable to common shareholders for the quarter ended September 30, 2022 would have been $1.94 and $1.93 per share basic and diluted, respectively, compared to adjusted earnings of $3.84 and $3.79 per share basic and diluted, respectively, for the quarter ended September 30, 2021. Usually, security analysts do not include the above item in their published estimates of earnings per share.
First Nine Months 2022 Results:
For the first nine months of 2022, the Company reported total net revenues of $55.1 million representing a 30.7% increase over total net revenues of $42.1 million during the first nine months of 2021, which was mainly the result of the increased number of vessels operated and the slightly higher time charter rates our vessels earned during the period of 2022 compared to the same period of 2021. The Company reported a net income and net income attributable to common shareholders for the period of $27.3 million, as compared to a net income of $15.1 million and a net income attributable to common shareholders of $14.2 million, for the nine-month period of 2021.
For the nine months of 2022, a gain on bunkers resulted in positive voyage expenses of $2.9 million, as compared to positive voyage expenses of $0.5 million in the same period of 2021. Vessel operating expenses were $14.4 million for the nine months of 2022 as compared to $9.9 million for the same period of 2021. The increase is attributable to the increased number of vessels operating in the first nine months of 2022 compared to the corresponding period in 2021, as well as the higher prices paid for the supply of lubricants, spare parts and stores for our vessels compared to the same period of 2021, as a result of the war in Ukraine. Depreciation expense for the first nine months of 2022 were $8.2 million compared to $5.4 million during the same period of 2021, mainly due to the higher number of vessels operating in the same period. On average, 10.5 vessels were owned and operated during the first nine months of 2022 earning an average time charter equivalent rate of $22,876 per day compared to 7.5 vessels in the same period of 2021 earning on average $22,232 per day. General and administrative expenses increased to $2.1 million during the first nine months of 2022 as compared to $1.7 million in the same period of last year. This increase is mainly attributable to the increased cost of our stock incentive plan. In the first nine months of 2022, four vessels underwent special survey, one vessel passed her intermediate survey in water (in lieu of drydock) and one of our vessels was drydocked within the quarter in order to pass her special survey, which was completed in the fourth quarter of 2022. The total drydocking cost for the period was $4.4 million, while there were no vessels undergoing drydocking during the first nine months of 2021.
Interest and other financing costs for the first nine months of 2022 amounted to $2.4 million compared to $1.7 million for the same period of 2021. Interest expense during for the period was higher due to the increased amount of debt and the increased Libor rates of our loans during the period as compared to the same period of last year. For the nine months ended September 30, 2022, the Company recognized a $2.2 million unrealized gain and a $0.2 million realized loss on five interest rate swaps and a $1.1 million realized gain on FFA contracts entered into during the second quarter of 2022 and settled during the third quarter of 2022 as compared to a $0.1 million gain on three interest rate swaps and a $2.5 million unrealized loss and $3.0 million realized loss on FFA contracts.
Adjusted EBITDA for the nine months of 2022 was $35.9 million compared to $26.3 million achieved during the first nine months of 2021.
Basic and diluted earnings per share attributable to common shareholders for the first nine months of 2022 was $9.43, calculated on 2,890,771 basic and $9.34, calculated on 2,918,800 diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share attributable to common shareholders of $5.84, calculated on 2,427,810 basic and $5.74, calculated on 2,470,726 diluted weighted average number of shares outstanding, for the same period of 2021.
Excluding the effect of the change in the fair value of derivatives on the earnings attributable to common shareholders for the first nine months of the year, the adjusted earnings attributable to common shareholders for the nine-month period ended September 30, 2022 would have been $8.69 and $8.60 per share basic and diluted, respectively, compared to adjusted earnings per share of $7.42 basic and $7.29 diluted for the same period in 2021. As previously mentioned, usually, security analysts do not include the above item in their published estimates of earnings per share.
EuroDry Ltd. Reports Results for the Six-Month Period and Quarter Ended June 30, 2022 and Announces Share Repurchase Program
EuroDry Ltd., an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three and six month periods ended June 30, 2022.
Second Quarter 2022 Highlights:
– Total net revenues for the quarter of $21.0 million.
– Net income attributable to common shareholders of $10.6 million, or, $3.66 and $3.61 earnings per share basic and diluted, respectively.
– Adjusted net income attributable to common shareholders1 for the quarter of $9.9 million, or, $3.43 and $3.38 adjusted earnings per share basic and diluted, respectively, before unrealized gain on derivatives.
– Adjusted EBITDA1 for the quarter was $13.7 million.
– An average of 10.79 vessels were owned and operated during the second quarter of 2022 earning an average time charter equivalent rate of $23,490 per day.
The Board of Directors has approved a share repurchase program for up to a total of $10 million of the Company’s common stock. The Board will review the program after a period of 12 months. Share repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the program will be determined by management based upon market conditions and other factors. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time at the Company’s discretion and without notice.
First Half 2022 Highlights:
– Total net revenues of $39.3 million.
– Net income attributable to common shareholders was $21.1 million, or, $7.35 and $7.25 earnings per share basic and diluted, respectively.
– Adjusted net income attributable to common shareholders1 for the period was $19.4 million, or, $6.77 and $6.68 adjusted earnings per share basic and diluted, respectively, before unrealized gain on derivatives.
– Adjusted EBITDA1 of $26.4 million.
– An average of 10.17 vessels were owned and operated during the first half of 2022 earning an average time charter equivalent rate of $24,025 per day.
Aristides Pittas, Chairman and CEO of EuroDry commented:
“We are very pleased to report another quarter with very good earnings, one of the highest since the inception of the EuroDry. It is notable though that in the latter part of the second quarter of 2022, and during the month of July, the drybulk market started reflecting the volatility and uncertainties present in the broader economic and geopolitical environment registering charter rate declines of nearly 40% as compared to their late May levels, though still well into profitable range. During the third quarter, we will also have 3 drydockings and we therefore expect our profitability to be reduced but still remain significant.
“On the global scene, high energy prices, mainly due to the Ukraine-Russia conflict, resulted in high inflation which came on top of inflationary pressures that were building up as a result of the COVID-fighting stimuli. This, in turn, magnified the reaction of the central banks to fight it by raising interest rates, thus, increasing the chances of a broad economic recession which would affect the demand for drybulk trade. In addition to this, the continuing COVID pandemic and its regional flare-ups prompted some countries, mainly China, to impose regional lock-downs that also negatively affected drybulk demand. The good news for the sector continue to come from the supply side where the orderbook remains at about 7% of the fleet near its lowest level ever. The resulting reduced vessel deliveries over the next 2-3 years should allow the market to quickly recover as long as demand uncertainties subside and average economic growth resumes.
“Within this environment, we continue to look for ways to add value to our shareholders. With our stock trading at a very steep discount to our net asset value, our Board of Directors considers that buying our own stock represents a very attractive investment for us and has authorized a share repurchase program. At the same time, we are positioning ourselves liquidity-wise to capitalize on more traditional investment opportunities and acquire vessels consistent with our investment criteria should such opportunities appear.”
Tasos Aslidis, Chief Financial Officer of EuroDry commented:
“The net revenues of the second quarter of 2022 increased significantly compared to the second quarter of 2021 as a result of the increased average number of vessels owned and operated during the quarter compared to the same period of last year. In addition, the time charter equivalent rates our vessels earned during the second quarter of 2022 were higher by 3.9% on average compared to the time charter equivalent rates our vessels earned in the second quarter of 2021.
“Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, averaged $6,562 per vessel per day during the second quarter of 2022 as compared to $6,467 per vessel per day for the same quarter of last year, and $6,584 per vessel per day for the first half of 2022 as compared to $6,518 per vessel per day for the same period of 2021. This increase is mainly due to increased crewing costs and insurances in 2022 compared to 2021.
“Adjusted EBITDA during the second quarter of 2022 was $13.7 million versus $9.2 million in the second quarter of last year. As of June 30, 2022, our outstanding debt (excluding the unamortized loan fees) was $71.8 million, while unrestricted and restricted cash was $8.5 million. As of the same date, our scheduled debt repayments including balloon payments over the next 12 months amounted to about $23.2 million (excluding the unamortized loan fees) and all our loan covenants are satisfied.”
Second Quarter 2022 Results:
For the second quarter of 2022, the Company reported total net revenues of $21.0 million representing a 48.9% increase over total net revenues of $14.1 million during the second quarter of 2021 which was the result of the slightly higher time charter rates our vessels earned during the second quarter of 2022 compared to the same period of 2021, and the increase in the average number of vessels owned and operated in the second quarter of 2022 compared to the same period of 2021. The Company reported net income and net income attributable to common shareholders for the period of $10.6 million, as compared to net income of $2.2 million and net income attributable to common shareholders of $1.9 million, for the same period of 2021.
The results for the second quarter of 2022 include an unrealized gain of $0.2 million on five interest rate swap contracts and an unrealized gain of $0.5 million on forward freight agreement (“FFA”) contracts as compared to an unrealized gain of $0.03 million on three interest rate swap contracts and an unrealized loss of $3.1 million on FFA contracts during the second quarter of 2021.
For the second quarter of 2022, voyage expenses, net amounted $0.1 million, relating to voyage expenses incurred during the commercial off hire period and repositioning of M/V “Pantelis P.” In the same period of 2021, a gain on bunkers resulted in positive voyage expenses of $0.1 million. Vessel operating expenses were $5.0 million for the second quarter of 2022 as compared to $3.2 million for the second quarter of 2021. The increase is primarily attributable to the increase in the average number of vessels owned and operated in the second quarter of 2022 compared to the corresponding period in 2021. Depreciation expenses for the second quarter of 2022 amounted to $2.9 million, as compared to $1.8 million for the same period of 2021. This increase is due to the higher number of vessels operating in the second quarter of 2022 as compared to the same period of 2021. General and administrative expenses were slightly higher at $0.7 million in the second quarter of 2022, compared to $0.6 million in the second quarter of 2021. This increase is mainly attributable to the increased cost of our stock incentive plan. During the second quarter of 2022, one of our vessels completed its special survey, for a total cost of $0.8 million, while there were no vessels undergoing drydocking during the second quarter of 2021.
Interest and other financing costs for the second quarter of 2022 amounted to $0.8 million compared to $0.5 million for the same period of 2021. Interest expense during the second quarter of 2022 was higher mainly due to the increased amount of debt during the period as compared to the same period of last year.
On average, 10.79 vessels were owned and operated during the second quarter of 2022 earning an average time charter equivalent rate of $23,490 per day, compared to 7.37 vessels in the same period of 2021 earning on average $22,614 per day.
Adjusted EBITDA for the second quarter of 2022 was $13.7 million compared to $9.2 million achieved during the second quarter of 2021.
Basic and diluted earnings per share attributable to common shareholders for the second quarter of 2022 were $3.66 calculated on 2,898,557 basic, and $3.61 calculated on 2,942,123 diluted weighted average number of shares outstanding, compared to $0.83 calculated on 2,353,364 basic, and $0.81 calculated on 2,401,192 diluted weighted average number of shares outstanding for the second quarter of 2021.
Excluding the effect on the income attributable to common shareholders of the unrealized gain on derivatives, the adjusted earnings attributable to common shareholders for the quarter ended June 30, 2022 would have been $3.43 and $3.38 per share basic and diluted, respectively. For the quarter ended June 30, 2021, excluding the unrealized loss on derivatives and the loss on debt extinguishment, the adjusted earnings attributable to common shareholders would have been $2.81 and $2.76 per share basic and diluted, respectively. Usually, security analysts do not include the above items in their published estimates of earnings per share.
First Half 2022 Results:
For the first half of 2022, the Company reported total net revenues of $39.3 million representing a 73.2% increase over total net revenues of $22.7 million during the first half of 2021, which was the result of the higher time charter rates our vessels earned during the first half of 2022 and the increased average number of vessels owned and operated compared to the same period of 2021. The Company reported net income and net income attributable to common shareholders for the period of $21.1 million, as compared to net income of $3.1 million and net income attributable to common shareholders of $2.4 million, for the first half of 2021.
For the first half of 2022, a gain on bunkers resulted in positive voyage expenses of $0.9 million, as compared to positive voyage expenses of $0.4 million in the same period of 2021. Vessel operating expenses were $9.2 million for the first half of 2022 as compared to $6.2 million for the first half of 2021. The increase is primarily attributable to the increase in the average number of vessels owned and operated in the first half of 2022 compared to the corresponding period in 2021. Depreciation expenses for the first half of 2022 were $5.3 million compared to $3.4 million during the same period of 2021, mainly due to the higher number of vessels operating in the same period. General and administrative expenses were higher during the first half of 2022 at $1.4 million as compared to $1.1 million for the same period of last year. This increase is mainly attributable to the increased cost of our stock incentive plan. During the first half of 2022 two of our vessels completed their special survey with drydocking for a total cost of $1.7 million, while in the first half of 2021 there were no vessels undergoing drydocking.
Interest and other financing costs for the first half of 2022 amounted to $1.4 million compared to $1.1 million for the same period of 2021. This increase is mainly due to the increased amount of debt in the current period compared to the same period of 2021. For the six months ended June 30, 2022, the Company recognized a $1.0 million gain on five interest rate swaps and a $0.5 million unrealized gain on FFA contracts entered into during the second quarter of 2022 as compared to a $0.1 million gain on three interest rate swaps and a $4.1 million unrealized loss and $1.3 million realized loss on FFA contracts entered into during the second quarter of 2021.
On average, 10.17 vessels were owned and operated during the first half of 2022 earning an average time charter equivalent rate of $24,025 per day compared to 7.19 vessels in the same period of 2021 earning on average $18,879 per day.
Adjusted EBITDA for the first half of 2022 was $26.4 million compared to $13.2 million achieved during the first half of 2021.
Basic and diluted earnings per share attributable to common shareholders for the first half of 2022 was $7.35, calculated on 2,872,966 basic and $7.25, calculated on 2,911,737 diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of $1.03, calculated on 2,322,588 basic and $1.01, calculated on 2,364,879 diluted weighted average number of shares outstanding.
Excluding the effect on the earnings attributable to common shareholders for the first half of the year of the unrealized gain on derivatives, the adjusted earnings attributable to common shareholders for the six-month period ended June 30, 2022, would have been $6.77 and $6.68 per share basic and diluted, respectively. For the six-month period ended June 30, 2021, excluding the unrealized loss on derivatives and the loss on debt extinguishment, the adjusted earnings attributable to common shareholders would have been, compared to earnings of $3.40 per share basic and $3.33, respectively. As previously mentioned, usually, security analysts do not include the above items in their published estimates of earnings per share.
EuroDry Reports Results for the Nine-Month Period and Quarter Ended September 30, 2021
EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced its results for the three and nine-month periods ended September 30, 2021.
Third Quarter 2021 Highlights:
• Total net revenues for the quarter of $19.5 million.
• Net income attributable to common shareholders of $11.8 million or $4.47 and $4.41 earnings per share basic and diluted, respectively, inclusive of unrealized gain on derivatives.
• Adjusted net income attributable to common shareholders1 for the quarter of $10.1 million, or, $3.84 and $3.79 per share basic and diluted, respectively.
• Adjusted EBITDA1 was $13.0 million.
• An average of 8.1 vessels were owned and operated during the third quarter of 2021 earning an average time charter equivalent rate of $28,103 per day.
• The Company declared a dividend of $0.3 million on its Series B Preferred Shares. The dividend will be paid in cash.
Nine Months 2021 Highlights:
• Total net revenues of $42.1 million.
• Net income attributable to common shareholders was $14.2 million, or$5.84 and $5.74 earnings per share basic and diluted, respectively, inclusive of unrealized loss on derivatives and a loss on debt extinguishment.
• Adjusted net income attributable to common shareholders1 for the period was $18.0 million or $7.42 and $7.29 adjusted earnings per share basic and diluted, respectively.
• Adjusted EBITDA1 was $26.3 million.
• An average of 7.5 vessels were owned and operated during the first nine months of 2021 earning an average time charter equivalent rate of $22,232 per day.
Recent developments
In October 2021, we drew a loan of $9 million with our vessels, M/V Pantelis and M/V Tasos, used as collateral, which will be repaid in eighteen monthly installments of $0.3 million each followed by another eighteen monthly installments of $0.2 million each.
In November 2021, we decided to redeem our outstanding Series B Preferred Shares at par using approximately $13.6 million from the funds we generated. The Series B Preferred Shares carried a dividend of 8% per annum until January 2023 increasing to 14% per annum thereafter. The redemption is expected to take place within 2021.
Aristides Pittas, Chairman and CEO of EuroDry commented: “During the third quarter of 2021, charter rates for the sizes of vessels we operate averaged 30-40% higher compared to their levels in the second quarter of 2021 reaching levels last seen in 2010. Rates continued to rise and peaked in mid-October but have since given away a bit mainly due to the slowdown of growth and, especially, of steel demand in China. They, nevertheless, remain at very profitable levels. In the near term, the re-opening and rebounding of economies around the world is threatened by the fast spread of the “D” variant of COVID-19, increasing commodity and energy prices and causing restraints in the supply chain of various materials and products; in the medium term, we expect that the low orderbook of the drybulk fleet, which remains near historical lows if expressed as a ratio to the existing fleet, will result in very modest fleet growth over the next one to two years, thus, maintaining tight supply conditions and providing support to the charter rate levels.
In the above environment, as previously announced, we expanded our exposure to the market by acquiring in September 2021 M/V Good Heart, a modern ultramax vessel, demonstrating our belief in the strong market fundamentals. Given the recent contributions from our vessels, our Board decided to use some of the earnings we accrued to redeem our outstanding Series B Preferred Shares at par and reduce our funding costs; this redemption will increase the earnings per share of our common shareholders by about $0.38 in 2022 and by about $0.67 every year from then on.
Overall, we remain positive about the prospects of the market and continue to evaluate opportunities for investment or any other form of cooperation exploiting our public listing and operating platform.”
Tasos Aslidis, Chief Financial Officer of EuroDry commented: “Comparing our results for the third quarter of 2021 with the same period of 2020, our net revenues increased by about $12.7 million, due to the significantly higher time charter equivalent rates our vessels earned as compared to the third quarter of 2020. Operating expenses, including management fees and general and administrative expenses increased from $6,397 per vessel per day in the third quarter of 2020 to
$6,495 in the third quarter of 2021. This increase is mainly due to the increased crewing costs for our vessels compared to the same period of 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions.
Adjusted EBITDA during the third quarter of 2021 was $13.0 million compared to $2.8 million achieved for the third quarter of last year. As of September 30, 2021, our outstanding debt (excluding the unamortized loan fees) was $73.9 million while unrestricted and restricted cash was $22.6 million. As of the same date, our scheduled debt repayments including balloon payments over the next 12 months amounted to about $11.5 million (excluding the unamortized loan fees) and all our loan covenants are satisfied.”
Third Quarter 2021 Results:
For the third quarter of 2021, the Company reported total net revenues of $19.5 million representing a 186.4% increase over total net revenues of $6.8 million during the third quarter of 2020 which was primarily the result of the higher time charter rates our vessels earned in the third quarter of 2021 compared to the corresponding period of 2020. The Company reported a net income for the period of $12.1 million and a net income attributable to common shareholders of $11.8 million, as compared to a net income of $0.5 million and a net income attributable to common shareholders of$0.1 million for the same period of 2020. For the third quarter of both 2021 and 2020, a gain on bunkers resulted in voyage expenses, net amounting to income of $0.1 million and $0.4 million, respectively.
Vessel operating expenses were $3.7 million for the third quarter of 2021 as compared to $3.1 million for the same period of 2020. The increase is attributable to the increased number of vessels operating in the third quarter of 2021 compared to the corresponding period in 2020, as well as to the increased crewing costs for our vessels compared to the same period of 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions, and the increase in hull and machinery insurance premiums. Depreciation expenses for the third quarter of 2021 amounted to$2.0 million, as compared to $1.7 million for the same period of 2020. This increase is due to the higher number of vessels operating in the third quarter of 2021 as compared to the same period of 2020. General and administrative expenses increased to $0.6 million in the third quarter of 2021, as compared to $0.5 million in the third quarter of 2020 due to higher legal and insurance expenses.
Interest and other financing costs for the third quarter of 2021 remained unchanged at $0.6 million as compared to the same period of 2020, since the increase in the average outstanding debt during the period was offset by the decreased Libor rates of our loans in the current period compared to the same period of 2020. For the three months ended September 30, 2021, the Company recognized a marginal loss on three interest rate swaps and a $0.1 million loss on FFA contracts, comprising a $1.6 million unrealized gain and a $1.7 million realized loss, as compared to a marginal loss on three interest rate swaps and a $0.2 million realized loss on FFA contracts.
On average, 8.1 vessels were owned and operated during the third quarter of 2021 earning an average time charter equivalent rate of $28,103 per day compared to 7.0 vessels in the same period of 2020 earning on average $11,873 per day.
Adjusted EBITDA for the third quarter of 2021 was $13.0 million compared to $2.8 million achieved during the third quarter of 2020.
Basic and diluted earnings per share attributable to common shareholders for the third quarter of 2021 was $4.47 calculated on 2,634,822 basic and $4.41 calculated on 2,675,224 diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $0.06 for the third quarter of 2020, calculated on 2,279,730 basic and diluted weighted average number of shares outstanding.
Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized gain on derivatives, the adjusted earnings attributable to common shareholders for the quarter ended September 30, 2021 would have been $3.84 and $3.79 per share basic and diluted, respectively, compared to adjusted earnings of $0.05 per share basic and diluted for the quarter ended September 30, 2020. Usually, security analysts do not include the above item in their published estimates of earnings per share.
First Nine Months 2021 Results:
For the first nine months of 2021, the Company reported total net revenues of $42.1 million representing an 165.3% increase over total net revenues of $15.9 million during the first nine months of 2020, which was the result of the increased number of vessels operated and the higher average charter rates our vessels earned during the period of 2021 compared to the same period of 2020. The Company reported a net income for the period of $15.1 million and a net income attributable to common shareholders of $14.2 million, as compared to a net loss of $5.6 million and a net loss attributable to common shareholders of $6.7 million, for the nine month period of 2020. For the nine months of 2021, voyage expenses, net amounted to income of $0.5 million resulting from gain on bunkers as compared to voyage expenses of $0.2 million in the same period of 2020. Vessel operating expenses were $9.9 million for the nine months of 2021 as compared to $8.7 million for the same period of 2020. The increase is attributable to the increased number of vessels operating in the first nine months of 2021 compared to the corresponding period in 2020, as well as to the increased crewing costs for our vessels compared to the same period of 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions, and the increase in hull and machinery insurance premiums. Depreciation expenses for the first nine months of 2021 were $5.4 million compared to $4.9 million during the same period of 2020, mainly due to the increase in the cost base of certain of our vessels due to the recent installation of ballast water management systems and the higher number of vessels operating in the same period. On average, 7.5 vessels were owned and operated during the first nine months of 2021 earning an average time charter equivalent rate of $22,232 per day compared to 7.0 vessels in the same period of 2020 earning on average $8,927 per day. General and administrative expenses increased to $1.7 million during the first nine months of 2021 as compared to $1.6 million in the same period of last year due to higher legal and insurance expenses. In the first nine months of 2020, two vessels underwent special survey for a total cost of $1.8 million, while there were no vessels undergoing drydocking during the first nine months of 2021.
Interest and other financing costs for the first nine months of 2021 amounted to $1.7 million compared to $1.9 million for the same period of 2020. This decrease is mainly due to the decreased Libor rates of our loans in the current period compared to the same period of 2020. For the nine months ended September 30, 2021, the Company recognized a $0.1 million gain on three interest rate swaps and a $2.5 million unrealized loss and $3.0 million realized loss on FFA contracts as compared to a loss on derivatives of $0.8 million for the same period of 2020, comprising of a $0.3 million loss on FFA contracts and a $0.5 million loss on three interest rate swaps.
Adjusted EBITDA for the nine months of 2021 was $26.3 million compared to $1.8 million achieved during the first nine months of 2020.
View Full Report
EuroDry Ltd. Reports Nine-Month Net Loss of $5.6 Million
EuroDry Ltd., an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced yesterday its results for the three and nine-month periods ended September 30, 2020.
Third Quarter 2020 Highlights:
• Total net revenues of $6.8 million. Net income of $0.5 million; net income attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $0.1 million or $0.06 earnings per share basic and diluted. Adjusted net income attributable to common shareholders1 for the period was $0.1 million or $0.05 adjusted earnings per share basic and diluted.
• Adjusted EBITDA1 was $2.8 million.
• An average of 7.0 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $11,873 per day.
• The Company declared a dividend of $0.4 million on its Series B Preferred Shares. The dividend will be paid in-kind by issuing additional Series B Preferred Shares.
Nine Months 2020 Highlights:
• Total net revenues of $15.9 million. Net loss of $5.6 million; net loss attributable to common shareholders (after a $1.2 million dividend on Series B Preferred Shares) of $6.7 million or $2.97 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $6.1 million or $2.70 adjusted loss per share basic and diluted.
• Adjusted EBITDA1 was $1.8 million.
• An average of 7.0 vessels were owned and operated during the first half of 2020 earning an average time charter equivalent rate of $8,927 per day.
Aristides Pittas, Chairman and CEO of EuroDry commented: “During the third quarter of 2020, EuroDry benefited from gradually improving charter markets as a result of the re-opening of most economies after the pandemic-related lockdowns. Since the beginning of October and during early November, the market rates have given up some of the gains, but they remain at satisfactory levels given the increased economic uncertainty due to the second wave of the pandemic and renewed economic lockdowns, especially, in Europe.
Thus, we expect that the drybulk markets will be affected in the near term by the state of the world economies as influenced by the COVID-19 pandemic, and, in the medium term, by the low fleet growth due to historically low orderbook. Consequently, we anticipate that trade developments will be the key factor influencing the rates our vessels will earn.
To better exploit the above market trends, we are focused on reducing our capital costs and creating additional liquidity via selected debt refinancings and repayment of more expensive funding instruments in our balance sheet, and using any excess funds to renew or expand our fleet. We also continue to evaluate opportunities of using our public platform to consolidate other fleets as we believe this can offer significant appreciation potential to our shareholders and flexibility to partners joining our public platform.”
Tasos Aslidis, Chief Financial Officer of EuroDry commented: “Comparing our results for the third quarter of 2020 with the same period of 2019, our net revenues decreased by about $0.9 million, due to the lower time charter equivalent rates our vessels earned as compared to the third quarter of 2019. Operating expenses, including management fees and general and administrative expenses increased by approximately $0.4 million as compared to the third quarter of 2019. This increase is mainly due to increased supply of stores and spare parts for our vessels in 2020 compared to 2019 and increased crewing costs, the latter resulting from difficulties in crew rotation due to COVID-19 related restrictions. Still, we believe that we maintain one of the lowest operating cost structures amongst the public shipping companies which is one of our competitive advantages.
Adjusted EBITDA during the third quarter of 2020 was $2.8 million compared to $2.2 million achieved for the third quarter of last year. Finally, as of September 30, 2020, our outstanding debt (excluding the unamortized loan fees) is about $52.1 million versus restricted and unrestricted cash of about $3.7 million.”
1Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDry’s financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Third Quarter 2020 Results:
For the third quarter of 2020, the Company reported total net revenues of $6.8 million representing a 11.3% decrease over total net revenues of $7.7 million during the third quarter of 2019 which was the result of the lower time charter rates our vessels earned in the third quarter of 2020 compared to the corresponding period of 2019. The Company reported net income for the period of $0.5 million and net income attributable to common shareholders of $0.1 million, as compared to a net loss of $0.4 million and a net loss attributable to common shareholders of $0.8 million for the same period of 2019. For the third quarter of 2020, a gain on bunkers resulted in positive voyage expenses of $0.4 million for the period as compared to voyage expenses of $0.7 million in the same period of 2019. Losses on derivatives of $0.2 million and drydocking expenses of $0.1 million contributed to the result for the quarter as compared to losses on derivatives of $0.6 million and drydocking expenses of $0.7 million during the third quarter of 2019. Depreciation expenses for the third quarter of 2020 amounted to $1.7 million compared to $1.6 million for the same period of 2019.
Interest and other financing costs for the third quarter of 2020 amounted to $0.6 million, compared to $0.8 million for the same period of 2019. Interest during the second quarter of 2020 was lower due to the lower average outstanding debt and the decreased Libor rates of our loans during the period as compared to the same period of last year. For the three months ended September 30, 2020, the Company recognized a marginal loss on three interest rate swaps and a $0.2 million realized loss on FFA contracts as compared to a loss on derivatives of $0.6 million for the same period of 2019, comprising of a $0.5 million loss on FFA contracts and a $0.1 million loss on one interest rate swap.
On average, 7.0 vessels were owned and operated during the third quarter of 2020 earning an average time charter equivalent rate of $11,873 per day compared to 7.0 vessels in the same period of 2019 earning on average $12,088 per day.
Adjusted EBITDA for the third quarter of 2020 was $2.8 million compared to $2.2 million achieved during the third quarter of 2019.
Basic and diluted earnings per share attributable to common shareholders for the third quarter of 2020 was $0.06 calculated on 2,279,730 basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $0.35 for the third quarter of 2019, calculated on 2,254,830 basic and diluted weighted average number of shares outstanding.
Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized loss / (gain) on derivatives, the adjusted earnings per share attributable to common shareholders for the quarter ended September 30, 2020 would have been $0.05 compared to adjusted loss of $0.26 per share basic and diluted for the quarter ended September 30, 2019. Usually, security analysts do not include the above item in their published estimates of earnings per share.
First Nine Months 2020 Results:
For the first nine months of 2020, the Company reported total net revenues of $15.9 million representing a 19.1% decrease over total net revenues of $19.6 million during the first nine months of 2019, as a result of the lower time charter rates our vessels earned in the first nine months of 2020 compared to the same period of 2019. The Company reported net loss for the period of $5.6 million and net loss attributable to common shareholders of $6.7 million, as compared to a net loss of $1.4 million and a net loss attributable to common shareholders of $2.9 million, for the first nine months of 2019. Vessel operating expenses were $8.7 million for the first nine months of 2020 as compared to $8.0 million for the first nine months of 2019 due to increased supply of stores and spare parts for our vessels in 2020 compared to 2019 and increased crewing costs resulting from difficulties in crew rotation due to COVID-19 related restrictions. Depreciation expenses for the first nine months of 2020 were $4.9 million compared to $4.8 million during the same period of 2019.
Interest and other financing costs for the first nine months of 2020 amounted to $1.9 million compared to $2.7 million for the same period of 2019. This decrease is due to the lower average outstanding debt and the decreased Libor rates of our loans in the current period compared to the same period of 2019. For the nine months ended September 30, 2020, the Company recognized a $0.5 million loss on three interest rate swaps and a $0.3 million loss on FFA contracts as compared to a gain on derivatives of $0.3 million for the same period of 2019, comprising of a $0.6 million gain on FFA contracts and a $0.3 million loss on one interest rate swap.
On average, 7.0 vessels were owned and operated during the first nine months of 2020 earning an average time charter equivalent rate of $8,927 per day compared to 7.0 vessels in the same period of 2019 earning on average $10,750 per day. In the first nine months of 2020, two vessels underwent special survey for a total cost of $1.8 million, as compared to two vessels that underwent special survey in the first nine months of 2019 for a total cost of $1.6 million.
Adjusted EBITDA for the first nine months of 2020 was $1.8 million compared to $6.5 million achieved during the first nine months of 2019.
Basic and diluted loss per share attributable to common shareholders for the first nine months of 2020 was $2.97, calculated on 2,271,542 basic and diluted weighted average number of shares outstanding compared to $1.31 basic and diluted loss per share for the first nine months of 2019, calculated on 2,248,182 basic and diluted weighted average number of shares outstanding.
Excluding the effect on the loss attributable to common shareholders for the first nine months of the year of the unrealized loss on derivatives, the adjusted loss per share attributable to common shareholders for the nine-month period ended September 30, 2020 would have been $2.70 compared to a loss of $1.13 per share basic and diluted for the same period in 2019. As previously mentioned, usually, security analysts do not include the above item in their published estimates of earnings per share.
View Full Report
EuroDry Ltd. Looking To Weather The Dry Bulk “Storm”, as Panamax Rates Retreat 50% Compared to the Fourth Quarter of 2019
EuroDry Ltd., an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced its results for the three-month period ended March 31, 2020.
First Quarter 2020 Highlights:
Total net revenues of $5.1 million; net loss of $2.3 million; net loss attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $2.6 million or $1.17 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 for the period was $2.1 million or $0.91 per share basic and diluted.
Adjusted EBITDA1 was $0.6 million.
An average of 7.0 vessels were owned and operated during the first quarter of 2020 earning an average time charter equivalent rate of $7,885 per day.
The Company declared its fifth cash dividend of $0.4 million on its Series B Preferred Shares.
Aristides Pittas, Chairman and CEO of EuroDry commented:
“Year 2020 to-date has been marked by the dramatic effects on the global economy and seaborne trade of the COVID-19 pandemic. Drybulk seaborne trade, in particular, declined dramatically causing charter rates for Panamax vessels to drop to levels of about 50% lower compared to fourth quarter of 2019, a period that already had shown signs of a weakening market. By mid-May 2020, countries have only timidly started reopening their economies and as a result, we anticipate that we will continue experiencing low charter rates and low demand well into the next few months.”
“A positive effect of the depressed market and the prevailing uncertainty is the extremely low level of newbuilding orders placed. This development, in combination with the already low orderbook and delays in completing existing newbuilding contracts set the stage for a quick recovery of rates when, of course, drybulk seaborne trade recovers. We try to position ourselves to benefit from such a development and we continuously evaluate opportunities for investment in vessels or pursue combination with other fleets, especially, focusing on using our status as a public company to provide a consolidation platform.”
Tasos Aslidis, Chief Financial Officer of EuroDry commented:
“Our net revenues for the first quarter of 2020 were lower by 12.5% as compared to the first quarter of 2019. This was the result of lower average charter rates by 16.8% earned during the quarter as compared to the first quarter of 2019 and 36.6% lower when compared to the fourth quarter of 2019, the latter decline being partly moderated by our fixed rate charter contracts.”
“Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, increased by approximately 3.5% during the first quarter of 2020 compared to the same quarter of last year.”
“Adjusted EBITDA during the first quarter of 2020 was $0.6 million compared to $2.5 million achieved for the first quarter of last year. As of March 31, 2020, our outstanding debt (excluding the unamortized loan fees) was $54.9 million versus restricted and unrestricted cash of approximately $6.4 million.”
First Quarter 2020 Results:
For the first quarter of 2020, the Company reported total net revenues of $5.1 million representing a 12.5% decrease over total net revenues of $5.8 million during the first quarter of 2019, which was the result of the lower time charter rates our vessels earned during the first quarter of 2020. The Company reported net loss for the period of $2.3 million and net loss attributable to common shareholders of $2.6 million, as compared to net income and net income attributable to common shareholders of $0.9 million and $0.4 million, respectively, for the same period of 2019. Depreciation expenses for the first quarter of 2020 were $1.6 million remaining unchanged compared to the same period of 2019. Vessel operating expenses and management fees were $3.3 million for the first quarter of 2020 compared to $3.1 million in the same period of 2019 while general and administrative expenses remained unchanged at $0.6 million for the first quarter of 2020 as compared to the same period of last year.
Interest and other financing costs for the first quarter of 2020 amounted to $0.7 million compared to $1.0 million for the same period of 2019. Interest during the first quarter of 2020 was lower due to the lower average outstanding debt and the decreased Libor rates of our loans during the period as compared to the same period of last year. For the three months ended March 31, 2020, the Company recognized a $0.3 million loss on two interest rate swaps as compared to a gain on derivatives of $1.5 million, comprised of a $1.6 million gain on forward freight agreements and a $0.1 million loss on two interest rate swaps, for the same period of 2019.
On average, 7.0 vessels were owned and operated during the first quarter of 2020 earning an average time charter equivalent rate of $7,885 per day compared to 7.0 vessels in the same period of 2019 earning on average $9,472 per day.
Adjusted EBITDA for the first quarter of 2020 was $0.6 million compared to $2.5 million achieved during the first quarter of 2019.
Basic and diluted loss per share attributable to common shareholders for the first quarter of 2020 was $1.17 calculated on 2,267,375 basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $0.18 for the first quarter of 2019, calculated on 2,244,803 basic and 2,252,427 diluted weighted average number of shares outstanding.
Excluding the effect on the loss attributable to common shareholders for the quarter of the unrealized gain / loss on derivatives and loss on write-down of inventory, the adjusted loss attributable to common shareholders for the quarter ended March 31, 2020 would have been $0.91 per share basic and diluted, compared to an adjusted loss of $0.21 per share basic and diluted for the quarter ended March 31, 2019. Usually, security analysts do not include the above item in their published estimates of earnings per share.
View Full Report