Q3 2023 EuroDry Ltd Earnings Call
Speaker 1: Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Limited conference call on the third quarter 2023 financial results.
Thank you for standing by ladies and gentlemen, and welcome to the Euro Jai Ltd Conference call on the third quarter 2023 financial results.
Speaker 1: We have with us today Mr. Aristides Petus, Chairman and Chief Executive Officer, and Mr. Tazos Aslidis, Chief Financial Officer of the company.
We have with US today, Mr. Aristide is Peter <unk>, Chairman and Chief Executive Officer, and Mr. Kazim as its latest Chief financial Officer of the company at this time all participants are in a listen only mode there'll be a presentation followed by a question and answer session at which time.
Speaker 1: At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session, at which time you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. I must advise you that this conversation has been recorded and will be available to all participants.
You wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced.
I must advise you that this conference is being recorded today.
Speaker 1: Please be reminded that the company announced its results with a press release that has been publicly distributed.
Please be reminded that the company announced its results with a press release that has been publicly distributed.
Speaker 1: Before passing the floor to Mr. Peetus, I would like to remind everyone that in today's presentation and conference call, your drive will be making forward-looking statements.
Before passing the floor to Mr. Peterson I would like to remind everyone that in todays presentation and conference call. Your drive will be making forward looking statements.
Speaker 1: These statements are within the meaning of the federal securities law.
These statements are within the meaning of the federal Securities laws.
Speaker 1: These matters discussed may be forward-looking statements which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized.
Matters discussed may be forward looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized.
Speaker 1: Please kindly draw your attention to slide number two of the webcast presentation.
I kindly draw your attention to slide number two of the webcast presentation, which has the full forward looking statement and the same statement was also included in the press release.
Speaker 1: has the full forward looking statement and the same statement was also included in the press release.
Please take a moment to go through the whole statement and read it.
Speaker 1: And now I would like to pass floor to Mr. Peters. Please go ahead.
And now I would like to pass floor to Mr. Peter <unk>. Please go ahead Sir.
Yeah.
Speaker 2: Good morning ladies and gentlemen and thank you all for joining us today for our scheduled conference call. Here with me is Mr. Tashasas Levi from Chief Financial Officer.
Good morning, ladies and gentlemen, and thank you all for joining us today for about scheduling problem for the school.
With me is Mr. <unk>, <unk> Chief Financial Officer.
Speaker 2: The purpose of today's call is to discuss our financial results for the three and nine months period, then it's September 30.
The purpose of today's call is to discuss our financial results for the three and nine months periods ended September 32. Please.
Speaker 2: Please turn to Slide 3 of the presentation. Our financial highlights are shown there.
Please turn to slide three of the presentation.
Financial highlights are shown there.
Speaker 2: For the third quarter of 2023, we reported total net revenues of $10 million and the loss of $0.5 million or $0.19 loss per basic and diluted share.
For the third quarter of a threat to 'twenty three with both the total net revenues of $10 million and the loss of $4 5 million or 19 cents loss per basic and diluted share.
Speaker 2: Adjusted net loss for the quarter was $0.7 million, or $0.24 adjusted loss for basic and diluted shares.
Adjusted net loss for the quarter was $47 million or 24 cents adjusted loss per basic and diluted share.
Speaker 2: adjusted the bidet for the quarter was $3.1 million.
Adjusted EBITDA for the quarter was $3 $1 million.
Speaker 2: Please refer to the press release for reconciliation between the adjusted net loss and adjusted net loss.
Please refer to the press release further conciliation between the adjusted net loss and adjusted EBITDA.
Speaker 2: DASOS will go over our financial highlights in more detail later on in the presentation.
So should we go over our financial highlights in more detail later on in the presentation.
Speaker 2: As of September 8th, we have purchased a total of 268,000 shares of our common stock in the open market for about $4 million and that under our share purchase plan of up to $10 million was announced in August 2022 and extended for another year.
As of September <unk>, we.
We have purchased a total of two two.
And 68000 shares of common stock in the open market.
$4 million.
I've said to purchase plan of up to $10 million announced de Novo strategy.
<unk> and extended for another year.
Speaker 2: This represents about 10% of our outstanding shares.
This represents about 10%.
Staffing says.
Speaker 2: On September 12, 2023, we announced an agreement to acquire a severe echo ultra max vest.
On September 12, 2020 should be we announced an agreement to acquire <unk> a much vessels and we can reach the scale.
Speaker 2: MV Christos K, a 63,000 deadweight dry bulk vessel built in 2015. The sister ship MV Maria, a 63,000 dry bulk vessel also built in 2015. And another sister ship MV Janis Peters.
At 63000 deadweight of dry bulk vessels between 2015.
The sheep and dream.
63000, Drybulk vessel also built in <unk> thousand 15.
I'll just use the <unk>.
Speed test.
Speaker 2: built in 2014 for a total price of $65 million.
Built in 2014 for a total price of $65 million.
Speaker 2: The Westerns are also sisterships to our May-MV election recipe was built at the same year in 2017 by ourselves.
The vessels are also sister ships may be Alex since with speed.
Mix was moved at the same job in 2017 by ourselves.
Speaker 2: These acquisitions further expand our modern fleet cluster at the time that we believe is a positive or unhealthy market over the next two, three years, given current market fundamentals, especially the low-order look as a percentage of the fleet, and the effect of environmental regulations and the ability of certain vessels to continue to train.
These acquisitions further expand our modern fleet cluster at the time that we believe is supportive.
Because the market over the next two three years given guidance market fundamentals, especially the low order book as a percentage of the fleet.
The effect of environmental regulations, and the ability of certain vessels continue to trade.
Speaker 2: Of course, geopolitical uncertainties remain, which may potentially hinder demand. However, we believe the risks are generally tilted to the upside, and the present level of the market presented a good opportunity to expand our fleet with high-quality units of unknown design.
Of course these are the political uncertainties that remain which may potentially seems that at the moment. However, we believe the risks generally tilted to the upside at the present level of the market presented a good opportunity to expand our fleet with high quality units are below design.
Speaker 2: We expect these vessels to make significant contributions to Arabidah in the common quarters in years to come.
We expect these vessels to make significant contributions to EBITDA in the coming quarters and years.
Speaker 2: On October 26th, we announced the Strategic Partnership with the NRP Project Finance, a leading project manager of direct investments within shipping and law of shore, to recruit investment, some of region investors in motor vessel Christos K at motor vessel
On October 26, we announced the strategic partnership we will not be project finance.
<unk> project manager of Dave X investments within shipping and offshore.
Co invest with southern Norwegian investors in motor vessel traditional SK as most of the vessels might be yet.
Speaker 2: This opens up the door for us to the Norwegian market, which we hope we will be able to further develop.
This opens up the door for us to reach a market, we should flow through and be able to further develop.
Speaker 2: Please turn to slide 4 where we provide further details about the sale and purchase chartering and operation highlights.
Please turn to slide four where we provide further details about the sale of both just starting to this additional highlights.
Speaker 2: Motor vessel Janis Peters was delivered on October 10th, 2023.
Most of the vessel speed test was delivered in October 2015.
Speaker 2: The vessel was already employed under a time-sarter contract until December 2023 at $12,500 per day for a period of approximately 30 to 40 days, which is continuing after the delivery.
But the vessel was already employed.
Time charter contracts until December 30, <unk> strengthen the $5000 per day.
Periods of approximately 30 to 40 days, which is continuing to offset the deliberate.
Speaker 2: The consideration was partly paid by Casser Fend and partly financed with a sustainability-linked loan for 10.5 million dollars with Euro Bank SA.
The consideration was partly paid by cash with third party financed with the sustainability linked loan for tender in the house millions of dollars with U S. A.
Speaker 2: On October 25 and November 6, we took delivery of M.V., Christos Kay and Maria Respek.
Well October 25 in November that we.
We took delivery of every produced the SK and <unk> respectively.
Speaker 2: The vestments are acquired in partnership with the number of investors represented by NRP Project Finance, as already said, in which the NRV investors acquire the 39% ownership stake in needs of the vest.
The vessels are acquired in partnership with a number of investors are presented by the end of the project finance is sort of as you say in which they haven't had to reinvest those acquired the 539% ownership stake in each of the vessels.
Speaker 2: both vessels were partly financed with cash in hand and with a sustainability-linked loan of $11 million each with Euro
Both vessels are partially financed with cash in Canada.
The sustainability linked loan of $11 million each with Europe.
Speaker 2: We believe that joint venture such as this can provide a new funding source for fleet expansion without diluting existing shareholders and allows us to establish relationship with private investors and jointly capitalize on investment opportunities in the market.
We believe the joint ventures, such as this can provide the new funding source for fleet expansion without diluting existing shareholders and allows us to establish relationships with private investors and jointly capitalized on investment opportunities in the market.
Speaker 2: Please note that Motor Vessel Twister Scape has been fixed until the end of November 2023 for $9,600 per day and MV Maria is fixed until the end of November for $10,500.
Please note that the motor vessel <unk> has been fixed enthusiasm for November 2023, $9600 buffet and never be Murphy is fixed.
November.
Thousands of dollars.
Speaker 2: Continuing on the chartering side, another seven of our 13 vessels are employed in short-term charters for a fixed period of two to three months.
Continuing on the chartering side another seven about 13 vessels up employees in short term sources for a fixed period of two or three months.
Speaker 2: Two of our vessels continue to be employed under index-linked charges.
Two of our vessels continue to be employed under index linked charters.
Speaker 2: until March 2024 and 2025 respectively. That's 105.5% of the average Baltic comes from...
Until March 50, 50, $450 55, respectively.
105, 5% of the average that's about the governance of them exceeded VIX and one vessel motor vessel less luck is fixed in the larger type of SaaS since may 20 <unk> at.
Speaker 2: And one vessel, Motobessel Blessed Luck, is fixed on the longer time chapters in May 2023 at $15,800 per day until January 2024.
At $15800 per day until January 2024.
Speaker 2: So you can see the specifics of the other seven chapters we fixed in the accompanying presentation.
You said you can see the specifics of the other seven charters with fixed and the accompanying presentation.
Speaker 2: Our chartering strategy is largely driven by market expectations and that current rates we don't expect to be fixing longer term sales.
Our chartering strategy is largely driven by market expectations and the current.
Today, we don't expect to be fixing longer term such as <unk>.
Speaker 2: Given expectations for the roughly stable market going forward, we will continue with the same short-term charter strategy until the rates start climbing and we can secure higher rates for longer periods.
Given expectations for roughly stable market going forward, we will continue with the same short term charter strategy until rates start climbing and we can secure higher rates for longer periods.
Speaker 2: Very few this month we took some protection from a LFA covering one panimax version for Q1 at the level of $10,100.
Earlier. This month, we took some protection through initial phase covering one panamax vessel for Q1 at the level of $10100 per day.
Speaker 2: Regarding dry dogs and repairs, Moto vessel Goodheart underwent dry dog for 24 days during the first course.
Regarding the items from the defense.
The vessel good wet.
Wet to dry dock for 24 days during the first quarter.
Speaker 2: We also incurred about five days of commercial off-hires at the lowest point of the quarter with motor versus something.
We also incurred about five days of commercial off hire at the lowest point of the quarter. We promote the vessels so the caboose.
Speaker 2: Please turn to slide five which shows the main particulars of the 13 vessels that comprise of the fleet today, which includes five pandemics, five wood tremor, two cams of mix and the supermix of dry bulb carrier, with a total capacity of approximately 930,000 dead weight tanks. And then now we're in safe space for overera, five years.
Please turn to slide five which shows the main particular sort of the 15 vessels that comprise our fleet today, which includes five pattern looks five would converge to come so it looks at the should Pemex of dry bulk carrier with a total capacity of approximately 950000 deadweight tons and another JV.
As a threat for the five years.
Speaker 2: I remind you that motorbassal crystals and Maria are 61% owned by human kind. The remaining being known by the NSP.
I remind you that most of the vessels CHRISTUS and Maria <unk>.
61% of total <unk>.
The remaining being known by the MLP investors.
Speaker 2: Next, please turn to slide 6, which graphically depicts a fluted polar employing.
Next please turn to slide six which graphically depicts our fleet in Florida employment.
Speaker 2: As you can see, fixed rate covers for the fourth quarter of 2023 stands at around 50%.
As you can see fixed rate coverage for the fourth quarter of 2020 have you started to around 50%.
Speaker 2: This figure excludes Simpson Index Charters, which have opened market fluctuations that have secured employees.
This figure excludes ships on index charters, which have open to market fluctuations that have secured employment.
Turning on slide seven we go over the market highlights for the third quarter ended September 30th adopt until last week.
Speaker 2: Turning on slide 7, we go over the market highlights for the third quarter ended September 30th and that until last time.
Speaker 2: During the third quarter of 2023, the average Panamax spot rate was around 10,676 per day.
During the third quarter of 2023 easy Avon's Panamax spot the base was around 10676 per day.
Speaker 2: By September 30, Spot rates of Panamax Westlskadev recovered to approximately $14,060 per day. Reflecting the seasonal market strength.
By September 30th spot rates for Panamax vessels going to recover to approximately $14060 per day.
Reflecting the seasonal market strength.
During September.
Speaker 2: by about 15% to 11,950 per day as markets have reacted to the slow global economy.
Fleet by about 15% to 11950 per day as the markets have reacted to the slower growth because of it.
Please now turn to slide nine.
Speaker 2: The latest update in October 2023, the IMF forecast showed that the global economy is still slow and uneven, remaining well below the historic average of 3.8% growth between 2020 09.
With the latest update in October 20 <unk>.
Most forecasts show that the global economy is still slow and uneven.
<unk> well below the historic average of three 8% growth between 202019.
Globally GDP growth is estimated to slow.
Speaker 2: Global GDP growth is estimated to slow from 3.5% in 2022 to 3% this year and 2.9% in 2024.
In the 5% in 2022% to 3% this year and 249% in 2024.
Speaker 2: Global inflation is focused to decline steadily starting from 2024 due to tighter monetary policy aided by lower international commodity prices.
Global inflation is forecast to decline steadily starting from 'twenty to 'twenty four due to tight and volatile for you to see aided by lower international commodity prices.
Speaker 2: Slow economic recovery has been dominated by post-pandemic geopolitical shocks, including the war in Ukraine, the latest Israeli kamasco.
Slow economic recovery has been dominated by post pandemic geopolitical shocks, including the world. We live today the latest Israeli commercial coffee.
Speaker 2: Chinese Protod Indo-Pacific The girlfriend of Twilight International Big boychat
U S China relations as the Chinese property sector crisis, as well as the effects of monotherapy policy tightening to reduce inflation.
Speaker 2: as well as the effects of monetary policy tightening to reduce inflation. However important...
However, important divergencies RFP.
Speaker 2: The slowdown is more pronounced in advanced economies than in emerging markets and developing economies.
The slowdown is more pronounced in advanced economies of scale in emerging markets and developing economies.
Speaker 2: Among advanced economies, the US has been revised up due to resilient consumption and investment. While the Euro-Ariak has been revised down, a type of monetary policy denotes a crisis of taking it on.
Among advanced economies. The U S has been revised up due to resilient consumptions investment while the euro area has been revised down.
Monetary policy and then if you guys have taken at all.
Speaker 2: Divergence is also evident among emerging markets and developing economies.
Divergence is also evident among emerging markets and developing economies will be China facing headwinds like Brazil.
Speaker 2: China facing ground headwinds, while Brazil, India and Russia have been revised up.
Asa have been revised upwards.
Speaker 2: Spired with slightly slower global growth expectation, according to the latest Clarkson estimates, dribble-3 demand is expected to return to a steady growth of 4.6 this year. However, for 2024 Clarkson's expect, just 1.8% growth.
Despite the slightly slower global growth expectation.
Moving to the latest Clarksons estimates.
Both today's demand is expected to return to a steady growth of four six of this year.
However for 2024, Clarksons expect just 1% to 8% growth.
Speaker 2: Largely driven by side as needed for dry bulk impulse, coupled with a low water book and implementation of environmental regulations, which will effectively reduce vessel capacity.
Largely driven by China's need for dry bulk came for.
Coupled with a low order book and implementation of environmental regulations, which will effectively reduce vessel capacity.
Please turn to slide 10.
Speaker 2: uncertainty about future fuels and high new building prices has led to a low walk.
Uncertainty about future fuse and higher new building prices has led to a low order book.
Speaker 2: As of November 2020, the order because the percentage of total fleet is only 1.8.1% remaining one of the lowest in history.
As of November 2023.
The book as a percentage of total fleet is only 818, 1%.
Remaining one of the lowest in Q.
Speaker 2: We suggest minimal fleet growth over the next two to three years.
This should get minimal fleet growth over the next two to three years.
Speaker 2: There is also the effect of a quick long steaming and scrapping.
There is also the effect of <unk> can be slow steaming scrapping.
Speaker 2: and with the introduction of new environmental regulations, which could reduce available bulk supply even further.
The introduction of new environmental regulations, which could reduce available bulk of supply even further.
Speaker 2: Turning to slide 11, let us now look into the supply fundamentals in a bit more detail.
Turning to slide 11, let us now look into the supply fundamentals.
A bit more detail.
Speaker 2: According to collections latest latest report new deliveries as a percentage of total fleet are expected to be 3.8% in 2023, 3.2% in 2024 and 3.8% in 2025.
According to Clarksons latest latest before new daily visits as a percentage of total fleet are expected to be three 8% from 50, 332% from 2024, and 348% and 50.
<unk> five workloads.
Speaker 2: As of November 20th, 2023, the total dry-marked west-lappard in fleet was 13,494 west.
As of November 30, 50 fleet with the total dry bulk vessel operating fleet was 13494 vessels.
Speaker 2: but the action for each growth is expected to be lower than the aforementioned figures due to scrapping
But the actual fleet growth is expected to be lower than the fourth dimension figures due to scathingly slippage.
Speaker 2: Also, 8% of the fleet is older than 20 years old and a good candidate for scrapping, especially if the market remains current or lower level.
Also 8% of the fleet is older than 30 years old and the good candidates for scrapping, especially if the market remains guarded to lower levels.
Speaker 2: List term to slide 12 where we summarize a round look for the dry bulk mark.
Please turn to slide 12, where we summarize our outlook for the dry bulk market.
Speaker 2: I have discussed that the bulk carrier market continued to drop within July , but started rising in August and September and had risen further within October , reflecting the seasonal market space.
As discussed the bulk carrier market continues to develop with Vinci lie but started that is enormous for the September and the region further within the October reflecting decision where the market's faith.
Speaker 2: On our village in Q3, time saw the rate for single tariffs that remained at the same levels as in the second quarter of 2020, we are earning 11,000 seat answers per day.
I will now go lives in Q3 time charter rates for singles day rates remained at the same levels as in the second quarter of 2020 fee, earning 11000 feet.
Speaker 2: reduced fleeting efficiencies, persistent demand challenges in key regions that humiliation of leaf growth in recent years have contributed to the creation of the soft market conditions in them.
The reduced fleeting efficiencies persistent demand challenges in key regions of Virgin relation of fleet growth in recent years.
Contributing to the creation of the softer market conditions.
<unk>.
Speaker 2: However freight rates increased by 27% in October compared to other first quarters 2020.
However, freight rates increased by 10% of sales in October compared to third quarter.
Speaker 2: One time such a race have also seen a 10% increase during the Christmas demand for global production.
The city wide time charter rates have also seen a density of sales to increase to an increased demand for Clos.
David.
Speaker 2: However, during the last couple of weeks, their markets appear to be losing steam.
However, during the last couple of weeks because the markets appear to be losing steam.
Speaker 2: These moderate market conditions are expected to persist in the remaining of the fourth quarter of 2024 and throughout the year of 2020.
These moderate as market conditions are expected to persist through the remainder of the fourth quarter of 2024.
The year before.
Sure.
Speaker 2: The recent raid gates demonstrate support by seasonal factors.
The recent gains demonstrate supported by seasonal factors.
Speaker 2: But the first coat of 2024 is expected to be seasonally quite weak.
Above the first quarter of 'twenty 'twenty four is expected to be seasonally quite weak.
Speaker 2: Uncertainty remains over the scale and timing of potential market improvements, with a range of scenarios surrounding key factors, including the Chinese economy, the geopolitical implications of the world and the aforementioned supply and control regulations.
And secondly remains over the scale and timing of potential market improvements with a range of scenarios set out in Q factors, including the Chinese economy.
There is a political implications of the walls of the aforementioned supply cuts from regulation.
However, the above described fundamental analysis.
Speaker 2: suggests a potentially higher market for 2024 than that currently implied by the FFAs.
Yes.
Actually higher market for 2024.
Currently that's currently implied by the extra fees.
Let us turn to slide 15.
Speaker 2: The left side of the slide shows the evolution of one year times out the range of Panama's dry vessels.
The left side of the slide shows the evolution of one year time charter rates of Panamax dry vessels since 2002.
Speaker 2: As of November 3, 2020, the one year time shorter rate for Panama ships with a capacity of 75,000 dead weight tonne.
As of November 3rd 2023, the one year time charter rate for Panamax ships with a capacity of 75000 deadweight tons stood at $11975 per day, which is slightly below the historical median of about 13 and a half thousand per day.
Speaker 2: stood at $11,975 per day, which is slightly below the historical median of around 13,500.
Speaker 2: On the other hand, vessel prices, as can be seen in the Reichenzeit graph, are still significantly higher than the 10-year historical price average on media.
Well the other fab divestment prices as can be seen in direction sidecar.
This is significantly higher than the 30 year historical price shop visits and media.
Under these circumstances.
Speaker 2: having grown our sleep by 30% with the current acquisition.
Having grown our fleet by 30% with our current acquisitions, we will concentrate more of strengthening our balance sheet further and waiting for better circumstances.
Speaker 2: we will concentrate more on strengthening our balance further and waiting for better circumstances further to grow the complex.
Firstly the cockpit.
Speaker 2: Of course, if we identify other joint venture opportunities which provide the creative possibilities, we will execute the policy.
Of course, if we identify other joint venture opportunities, which provide the curative possibility.
We will execute upon them.
Speaker 2: In the meantime, we may continue to make further stockhead purchases, noting, however, that the liquidity in our stock has decreased and, therefore, trying to optimize the whole process.
In the meantime, we made continued to make further stock purchases, noting however, let's say.
Liquidity in that stock is at <unk>.
Therefore time to optimize the whole process.
Speaker 3: Let me now pass the floor over to our CFO , Tasso Sassoulides, to go over our financial highlights in more detail. Tasso, the floor is yours. Thank you very much, Adetedet. Good morning from me as well, ladies and gentlemen.
Let me now pass the floor over to us.
Both duster subsidiaries to go over our financial highlights in more detail.
So the floor is yours. Thank you very much good morning from me as well, ladies and gentlemen.
Speaker 3: Over the next four slides, I will give you another view of our financial highlights for a third quarter and nine months of 2023, and compare them to the same periods of last year. For about...
Over the next four slides I will give you an overview of our financial highlights for the third quarter and nine months of 2023 and compare them to the same periods of last year.
For that lets turn to slide 15.
Speaker 3: For the third quarter of 2023, the company reported total net revenue of 10 million, representing 36.7 percent decrease of the total net revenue of 15.8 million during the third quarter of last year. And that decrease was the result of the lower number of vessels we operated in the third quarter of 2023 versus last year. And the lower time chart rates that our vessels earned this year compared to last year.
For the third quarter of 2023, the company reported total net revenues of $10 million representing.
Six 7% decrease.
Total net revenues.
<unk> 8 million during the third quarter of last year and Thats. The case, what was the result of the lower number of vessels Walker, we operated in the third quarter of 2023 branches last year and the lower time charter rates with our vessels earned this year compared to last.
Speaker 3: We reported net loss for the period of half a million as compared to net income of 6.2 million for the same period the third quarter of 20.
We reported net loss for the period.
And the yen as compared to a net income of $6 2 million for the same period, the third quarter of 2022.
Speaker 3: Interest in other financial costs for a third quarter of 2023 amounted to 1.6 million compared to about 1 million for the same period of last year.
Interest and other financing costs for the third quarter of 2023 amounted to $1 6 million compared to about $1 million for the same period of last year.
Speaker 3: In-depth expense during the third quarter of this year was higher mainly due to the increased underlying interest rate, so for our LIBOR that our loans were charged during the period compared again to the same period of last year.
Interest expense during the third quarter of this year was higher mainly due to the increased underlying interest rates software LIBOR. If our loans were charged during the period compare again to the previous the.
The same period of last year.
Speaker 3: Adjusted to be done for the third quarter of 2023 was 3.1 million compared to 9.5 million we achieved during the same period of 2020.
Adjusted EBITDA for the third quarter of 2020 fee was $3 1 million compared to $9 5 million. We achieved during the same period of 2022.
Speaker 3: Basic and diluted loss per share for the third quarter of this year was 19 cents, calculated on about 2.8 million basic diluted weighted average number of shares outstanding.
Basic and diluted loss per share for the third quarter of this year was 19.
Calculated on about $2 8 million basic and diluted weighted average number of shares outstanding.
Compared to earnings per share of two points.
Speaker 3: Convert to E-N-X per 0 of 2.11.
11 <unk>.
Speaker 3: basic and $2.10 diluted, calculated on about 2.9 million basic and diluted weighted average number of shares outstanding for the third quarter of 2020.
Basic and $2 $10 diluted.
Calculated on about $2 9 million basic and diluted weighted average number of sandstorm standing for the third quarter of 2022.
Speaker 3: Excluding the effect on the loss for the quarter of the unrealized gain on derivatives, the adjusted net loss for the quarter ended September 30th.
Excluding the effect on the loss for the quarter of the unrealized gain on derivatives.
The adjusted net loss for the quarter ended September 30.
Speaker 3: In 2023, which have been 24 cents, loss per share basic diluted, compared to adjusted earnings of $1.94 basic and $1.93 diluted, respectively, for...
2023 would have been 24 cents loss per share basic and diluted compared to adjusted earnings of $1.94 basic and $1.93 diluted.
And respectively for the same period of last year.
Speaker 3: We do this adjustment because typically security analysts do not include the above items in their publicized metropolitan.
We do this adjustment because typically secured can you at least do not include the above items.
Pop in their published Metro fare and expression.
Speaker 3: Let's now look at the numbers for the corresponding nine-month period, periods ending ended September 30, 2023, and compare them to the same period of life.
Let's now look at the numbers for the corresponding nine month period.
Ending ended September 30 of 2023 and compare them to the same period of last year.
Speaker 3: For the first months, first nine months of 2023, the combined reported total net revenues of 31.7 million, representing a 42.4% decrease over total net revenues of 55.1 million during the first nine months of 2022. Again, this was the result of the decreased number of vessels we operated and the lower time the rates or
For the first months first nine months of 'twenty to 'twenty three the company reported total net revenues of $31 7 million, representing 42, 4% decrease over total net revenues of $55 1 million during the first nine months of 2022.
This was the result.
The decreased number of vessels, we operated and the lower time charter our vessels.
Speaker 3: The company reported net loss for the period of 3.3 million as compared to a net income of 27.3 million for the nine months period, the same nine months period of 20.
The company reported net loss for the period of $3 3 million as compared to a net income of $27 3 million for the nine months period. The same nine month period of 2022.
Speaker 3: Interest and other financing costs for the first nine months of 2023 amounted to 4.4 million compared to 2.4 million for the same period of last year.
Interest and other financing costs for the first nine months of 2023 amounted to $4 4 million compared to $2 4 million for the same period of last year.
Speaker 3: Again, the interest expense for the period was higher, mainly due to the increased underlying rates. Interest rates are long paid this year.
Again, the interest expense for the period was higher mainly due to the increased underlying case interest rates on loans.
This year.
Speaker 3: Adjusted to be done for the first nine months of 2023 was 8 million Compared to 35.9 million achieved during the first nine months of 20
Adjusted EBITDA for the first nine months of 2020 fee was $8 million.
Compared to $35 9 million achieved during the first nine months of 2022.
Speaker 3: Basic and diluted loss per share for the first nine months of 2023 was $1.17 calculated for
Basic and diluted loss per share for the first nine months of 2023 was $1 17.
Alkylate at 128.
Speaker 3: million basic and diluted weighted numbers number of sales outstanding compared to earnings per share of 9.43 dollars basic and 9.34 diluted for the same period of last year
Million basic and diluted weighted average number of shares outstanding.
Compared to earnings per share of $9 $43 basic and nine point $74 diluted for the same period of last year.
Speaker 3: Again, excluding the effect of the unrealized loss on derivatives, the adult
Again, excluding the effect of the unrealized loss on derivatives.
The adjusted loss.
Speaker 3: Net loss for the nine-month period ended September 30, 2023, which have been 57 cents.
Net loss for the nine months period ended September 30 of 2020 fee would have been 57 cents.
Sure.
Speaker 3: compared to adjusted earnings of $8.69 basic and $8.60 diluted for the same period of life.
Compared to adjusted earnings of $8 six nine cents basic.
Basic and $8.60 diluted for the same period.
Last year.
Speaker 3: Let's now turn to slide 16 to your flip performance.
Let's now turn to slide 16 to review our fleet performance.
Speaker 3: We'll start our review as usual by looking at our fleet utilization rates for the third quarter of this year and compare them the same period of 2020.
We'll start our review as usual by looking at our fleet utilization rates for the third quarter of this year in comparison to the same period of 2022.
Speaker 3: Again, as we do all the time, our fleet utilization rate is broken down to commercial and operational.
Again.
We do all the time, our fleet utilization rate is broken down into commercial and operational.
Speaker 3: During the third quarter of 2023, our commercial utilization rate was 99.4%, while our operational utilization rate was 99.5% compared to 100% commercial and 98.9% operational for the same period the third quarter of 2023.
During the third quarter of 2023, our commercial utilization rate was 99.4%, while our operational utilization rate was 99, 5% compared to a 100% commercial and 98, 9% operational for the same period the fair.
Quarter of 2022.
Speaker 3: On average, 10 vessels were owned and operated during the third quarter of this year, earning an average time charter equivalent rate of $12,126 per day, compared to 11 vessels we operated in the same period of 2022, which earned, on average, $20,637 per day.
On average 10 vessels were owned and operated during the third quarter of this year.
And average time charter equivalent rate was $12126 per day comp.
Compared to 11 vessels, we operated.
In the same period of 2022.
Which aired on average $20657 per day.
Our total daily operating expenses.
Speaker 3: including management fees, averaged $6,680 per vessel per day during the third quarter of 2023, compared to $6,593 per vessel per day for the third quarter of last year.
<unk> management fees average $6680 per vessel per day during the third quarter of 2023 compared to $6593 per vessel per day for the third quarter of last year.
Speaker 3: general and administrative expenses per day per vessel.
General and administrative expenses per day.
Question.
Speaker 3: But amounted to $677. A fair quarter of this year compared to $700. So a fair quarter of $20.
Amounted to $677 in third quarter of this year compared to $700 for the third.
Third quarter of 2022.
Speaker 3: If we move further down on this table, we can see our cross flow break even rate, which takes into account, diluting expenses, inter-exp-interest expenses, and long repayments.
If we move further down on this table.
We can see our cash flow breakeven rate, which takes into account drydocking expenses in Turkey.
<unk> expenses and loan repayments.
Speaker 3: As we can see, during the third quarter of 2023, our daily cash flow break even raised was $12,640 per day compared to 13,978 per day for the third quarter of life.
As we can see during the third quarter of 2023, our daily cash flow breakeven rate was $12640 per vessel per day compared to $13978 per vessel per day for the third quarter of last year.
Speaker 3: If we move to the right side of this slide, we can review the same figures for the nine-month periods of this year and last year.
If we move to the right side of this slide we can review the same figures for the nine month periods.
This year end of last year.
Speaker 3: During the first nine months of 2023, our commercial utilization rate was 99.1%, and our operational utilization rate was 98.1%, compared to 99.8 commercial and 99.2 operational for the same period of 2020.
During the first nine months of 2023, our commercial utilization rate was 99, 1% and our operational utilization was 98, 1% compared to 90 980 magazine and 99 two operational.
For the same period, the same period of 2022.
Speaker 3: For knowledge, we only apparatus 10 vessels in due time.
Well now that we can't we operated we own and operate the 10 vessels.
During 2023.
Speaker 3: Airing and average time chart are equivalent rate of 11,644 dollars per vessel per day, compared to 10.5 vessels during this same period of last year, which air 22,876 dollars per vessel per day on
And then can average time charter equivalent rate of $11644 per vessel per day compared to $10 five vessels. During this same period of last year, which Aaron.
$22876 per vessel per day on average.
Speaker 3: Our vessel of air in expenses, again, including management fees, other at $7,95 per vessel per day, during the first nine months of this year.
Our vessel operating expenses again, including management fees averaged $7095.
Their vessel per day during the first nine months of this year.
Speaker 3: compared to $6,587 per day for the same period of 2020.
And compared to $6587 per vessel per day for the same period of 2022.
Speaker 3: General and administrative expenses per day per vessel amounted to $813 this year compared to $750 for the first nine months of 2020.
General and administrative expenses per day per vessel amounted to $813. This year compared to $750 for the first nine months of 2022.
Speaker 3: As we did for the three-month figures, we can look at our cash flow break even levels for the nine-month period at the last line of this slide, which also taken to account as I mentioned earlier, there are those in expenses, interest expenses and loan repayment.
As we did for the three month figures, we can look at our cash flow breakeven levels for the nine month period. The last line of this slide which also take into account as I mentioned earlier diagnose and expenses interest expenses and loan repayments.
Speaker 3: In the first month, nine months of 2023, we had $13,319 per day break even level, cash flow for a given level compared to $12,955 per day per vessel for the same period of life.
In the first nine months of 2020 fee, we had $13619 per vessel per day breakeven level cash flow breakeven level compared to 12000 $90055.
Good day and vessel for the same period of last year.
Speaker 3: Let's now turn to slide 17 to review our debt profile.
Let's now turn to slide 17.
We view our debt profile.
As of September 30.
Speaker 3: 2023 we had outstanding bank debt of about 75 million.
2023, we had outstanding bank debt of about $75 million.
Speaker 3: repayments for the remaining of 23 amount to 2.6 million.
Repayments for the remaining of 23 amounted to $2 6 million.
Speaker 3: As I did mention earlier, we assumed additional debt to finance the acquisition of the three vessels we bought and that debt amounted to 32.5 million.
Okay sure I see it as mentioned earlier we.
I assumed additional debt to finance the acquisition of the Citi.
Three vessels we bought.
Net debt amounted to $32 5 million.
Speaker 3: and that additional debt is reflected in the repayments shown in the top left part of the chart.
That additional debt is reflected in the repayment shown in the top left part of the chart.
Speaker 3: In 2024, our total debt repayments, including balloon payments, amount to $18.05 million, while they are set to decrease to $9.7 million, approximately both in 2025 and 2023.
In 2020, before our total debt repayments, including balloon payments amounted to 18 point your $5 million. While they are set to decrease to 9.7 million approximately both in 2025 and 2026.
Speaker 3: Another point worth mentioning in this slide is that it relates to our average margin of order that which is about 2.64%.
Another point worth mentioning in this slide is that it really.
It relates to our average mark to the average margin of our debt, which is about 264%.
Speaker 3: Assuming a software rate of about 5.41% the rate as of October 6th.
Assuming a software a rate of about five point, 41% the rate.
So October six.
Speaker 3: on the top of that, and including the cost of the portion of our debt covered by our interest rate show up.
On the top of that and including the cost of the portion of our debt covenant.
Our interest rate swap.
Speaker 3: we estimate the total cost of our senior debt to be around 7.75%.
We estimate the total cost of our senior debt to be around 775%.
At the bottom of this slide.
Speaker 3: we can see our projected cash flow break-even level for the next 12 months, broken down to its
We can see our projected cash flow breakeven level for the next 12 months broken down to its various components.
Speaker 3: Overall, we expect our customer break even level to be around the $3,300 per day. And also on the same table, you can see what would be the break even rate for EBITDA to be on the positive side. So we would need to earn $7,830 per day to register a positive EBITDA result for the next 12 months.
Overall, we expect our cash flow breakeven level to be around $13603 per vessel per day and also on the same table you can see what would be the breakeven rate for EBITDA.
To be on the positive side, so we would need to add $7830 per vessel per day to register a positive EBITDA result for the next 12 months.
Speaker 3: That trade would include our operating expenses, GNA expenses and right-tracking costs.
And that range would include our operating expenses G&A expenses and Drydocking costs.
Speaker 3: Let's now move to the next slide, slide 18, where we can see some highlights from our balance it in a rather simplified way.
Let's now move to the next slide Slide 18, where we can see some highlights from our balance sheet and their how their simplified way.
Speaker 3: This light gives off a snapshot of our assets and light buildings.
This slide gives a snapshot.
Not sure if our assets and liabilities.
Speaker 3: As of September 30th, 2023, cash and other tangible assets on our balances stood at about 42 million.
As of September 30th 2023 cost another tangible assets on our balance sheet stood at about 42 million.
Speaker 3: The book value for vessels, including the 6.5 million advance payment we made during the quarter for the acquisition of the three ultra-match vessels, approximately 148 million, resulting in total book value for our assets of about 109.
The book value of our vessels.
Looting restriction of half million advance payment, we made during the quarter for the acquisition of the fuel Terramax vessels were approximately $548 million.
I think in total book value for our assets.
The fund in the ninth inning.
Speaker 3: On our liability side, our debt as of September 30th, as I mentioned earlier, stood at about 75 million, representing about 40% of the book value for assets, while other liabilities.
On our liability side, our debt issuance September 30th as I mentioned earlier.
Seven 5 million.
And then think about 40% of the book value of our assets while other liabilities.
Speaker 3: amounted to 5.6 million or about 3% of the book value for our assets. And that calculation results in the book value of shareholder security of about 109.4 million translating to a book value of $39.2 per share.
Amounted to $5 6 million or about 3% of the book value of our assets and that calculation results in a book value of shareholders' equity.
And then the $9 4 million.
Translating to a book value of 39.2 dollars per share.
Speaker 3: However, based on our own estimates and market transactions, we estimated the market value for Starbucks.
However, based on our own estimates in market transactions, we estimate that the market value of our vessels.
Speaker 3: was above the book value and stood, including the advanced financial measure, at about 182 million, representing approximately 23% higher value compared to the book value of the vessels, and resulting in a net-passage value per share in excess of $51. I will...
Was above their book value and stood including the advanced as I mentioned earlier, it's about 182 million.
<unk> approximately.
83% higher value compared to the book value of the vessels and the resulting in a net asset value per share in excess of $51.
I would like to close this presentation nordea.
Speaker 3: that our share price is lately trading around $15 and thus if you compare this to our net asset value, it represents a steep discount traded a steep discount to it, which should offer significant appreciation potential for our shareholders and investors.
That our share price is lately trading around $15 and thus if you compare this to our net asset value.
It presents.
Discount trades at a steep discount rate, which should offer significant appreciation potential for our shareholders and investors.
Speaker 3: And with that, I would like to turn the floor back to Aristides to continue the call.
And with that I would like to turn the floor back to our cities to continue the call.
Speaker 2: Thank you, D also. I am opening a now up the floor for any questions.
Thank you Tasha.
I'm opening up.
The floor for any questions.
Speaker 1: Thank you. We will now be conducting a question and answer session.
Thank you we will now be conducting a question and answer session.
Speaker 1: If you would like to ask a question, please press star one on your telephone keypad. A confirmation tommorow will indicate your line.
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A confirmation tone will indicate your line is in the question queue.
Speaker 1: You may press star 2 if you would like to remove your question from the queue.
You May press Star two if you would like to remove your questions in the queue.
Speaker 1: Participants using speaker equipment and maybe necessary to pick up your hands up before pressing the star keys
All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Please while we poll for questions.
Speaker 4: Thank you. Our first question comes from a line of Christopher Ski with Arctic Securities. Please proceed with your question.
Thank you. Our first question comes from the line of Christopher <unk> with Arctic Securities. Please proceed with your question.
Hello, gentlemen, how are you.
Oh.
Speaker 5: Yeah, congrats on my corker, a minor B, so that's good.
Congrats on the quarter.
Good.
Speaker 6: I was just wondering if you could tell us a bit more about the rationale for growing your fleet through the joint venture. What's the rationale for this? Is such a platform something you would consider to use more as a means to expand or how should we think about this? What's the rationale for this?
I was just wondering if you can.
<unk> Hello, how long of a bit more about the rationale for it.
Growing your fleet.
Joint venture.
Oh well.
Our rationale for this.
That's such a platform or something you would consider to use more of it.
To expand or how should we think about that.
Okay.
Sure.
Speaker 2: The board had initially decided to acquire two vessels.
The bulk of that the mutually decided to acquire the two vessels.
Yeah.
Speaker 2: and we were looking to find them. We then found a group of three vessels and we said that it would be best and more conservative not to acquire it on our own with our own equity, although we could, but we wanted to maintain a strong balance sheet.
And we were looking to do to find them.
We then found a group of three vessels and we said that it would be best and more conservative not to acquire it or novel and with a low without own equity, although we could but we wanted to maintain a strong balance sheet and we had started some.
Speaker 2: And we had started some discussions with NARP regarding potential cooperation. And finally we thought that...
Discussions with <unk> regarding potential Corporation.
And finally, we thought that it is.
Speaker 2: It's a good idea, why not? They are looking to find something to invest in for their investors. Why not do something together in a joint venture?
Good idea why not today are looking to find something to do investing for their investors.
Why not do something together in the joint venture.
Speaker 2: and the discussions led to an agreement and we are very happy to have done it because we open up our company to the Norwegian market which is a very knowledgeable shipping market and a strong shipping market.
And the discussions lead to an agreement and we are very happy to have done it because we open up.
Company.
To the local regional market, which is a very knowledgeable shipping must get them a strong shipping market.
Speaker 2: and hopefully we will be able to do more stuff with the same investors or other investors.
And hopefully we will be able to do more stuff.
With the same investors over that investors.
Speaker 5: Thank you. And with regards to active values, obviously they are still quite high in historical perspective. I don't think like they're coming down anytime soon, although they are not the supporting it. With that in mind, would you consider settling some of your older best folks?
Thank you.
And with regards to you asked about.
Okay Alright.
Quite high.
Historical perspective.
It doesn't seem like there are coming down.
Anytime soon although rates are.
No no.
Most of that support.
With that in mind would you consider selling some of your older vessels.
Speaker 2: We will definitely be at some point replacing the older vessels with newer vessels. This transition has to happen and at some point it will happen.
We will definitely be at some point.
Replacing the older vessels with new with newer vessels. This transition has to happen.
Some point it will happen.
Speaker 2: When we think the time is right, we will do it. Hopefully within the next couple of years, we will see a stronger market, which will make it more interesting for us to sell some of the older vessels.
When we think the time is right.
We will do it hopefully within the next couple of years, we will see a stronger market, which will.
You know make it more interesting for us to set to sell some of the older vessels, we will see.
Speaker 2: We will see. The transition has to happen at some point.
That transition has happened at some point.
Speaker 2: We bought the three ultra-maxes, I think, at the lowest point of values within this year at least.
We bought the three Wiltel mattresses, I think at the lowest point of our values within this year at least.
Speaker 2: that prices were softening throughout the summer.
The prices were softening throughout the summer.
Speaker 2: Then after we concluded the deal to acquire the ships, the markets in September and October improved and we saw prices going up a little bit, so we think we found...
Then after we conclude the deal to acquire the ships the markets in September and October in Peru, but then we saw prices going up a little bit. So we think we found.
Speaker 2: a right time within the year to affect this expansion. We have to see how next year develops and we'll take it from there.
Time within the year to do affect this expansion we have to see how next year develops and we'll take it from there.
Okay. Thanks, that's all for me Thanks, a lot.
Thank you.
Speaker 1: As a reminder, if you would like to ask a question, press star one on your telephone keypad.
As a reminder, if you would like to ask a question press star one on your telephone keypad.
Speaker 1: Our next question comes from the line of Tate Sullivan with Maxim Group. Please proceed with your question.
Our next question comes from the line of Keith Sullivan with Maxim Group. Please proceed with your question.
Hi, This is Brian you online from Tate Sullivan.
Speaker 7: Hi, this is Brian U on Life or Taste Sullivan. Hi, I just wanted to ask in terms of like,
I just wanted to ask in terms of the market demand for China. What are some indicators you guys are seeing that helps.
Speaker 7: market demand for China, what are some indicators you guys...
Speaker 7: to help the health indicate that the demand for 2024 is going to be...
At the house indicate that.
For 2024, it's going to be.
Moderate in terms of seasonality.
Speaker 2: Yeah, of course, we think that generally seasonality will persist, right? So there will be the periods when there is a lot of demand for grain or the factories want to restock and all that stuff, which usually happens. So seasonality will be an issue again next year.
Yeah of course.
That doesn't really seasonality will persist today, so that will be the periods. When there is a lot of demand for good and all of the factories want to restock and all that stuff.
So it usually happens associated <unk> will be an issue again next year.
Speaker 2: China is a question mark for us right now. There are some positives and some negatives regarding them.
China is a question Mark for Us right now.
There are some positives and some negatives.
Regarding them.
Speaker 2: I think that China has always managed to
I think that China has always managed to you know when people expect it to be having difficulties to come up with the right measures, which are resolved in keeping the economy rather strong so.
Speaker 2: You know, when people expect this to be having difficulties to come up with the right measures
Speaker 2: which result in keeping the economy rather strong.
Speaker 2: So we are optimistic that despite the fact that we've seen, well, we've actually seen a big increase in the coal imports. We've seen significant iron ore imports as well.
So we are optimistic that despite the fact that we've seen.
Well, we've actually seen a big increase in the coal imports, we've seen significant iron ore inputs as well.
Speaker 2: despite the very poor market on the construction side.
Despite the very poor market.
On the construction side.
Speaker 2: We are optimistic that China will, you know, will manage to continue delivering this five, five and a half percent growth.
But we are optimistic that China will.
We will manage to continue.
Delivering this five 5.5% growth, which is sufficient to to hopefully maintain debates.
Speaker 2: sufficient to hopefully maintain the rates at good levels.
Good levels.
Okay got it thank you.
Okay.
Speaker 1: A final reminder, if you would like to ask a question, press star 1 on your telephone keypad. One moment please while we repoll for any additional questions.
A final reminder, if you would like to ask a question press star one on your telephone keypad.
One moment, please while our repos are any additional questions.
Speaker 1: Mr. Peterson, it appears we have no further questions at this time. I would like to turn the floor back over to you for closing comments.
Mr. <unk>. It appears we have no further questions at this time I would like to turn the floor back over to you for closing comments.
Speaker 2: Thanks everybody for standing by and listening to our today's conference call. We will be back to you within three months time with the results of the end of the year.
Thanks, everybody for standing by and listening to today's conference call. We will be back to you within a three months time with the results over the end of the year.
Thanks, everybody for listening to us.
Speaker 1: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.
Okay.