Q1 2024 EuroDry Ltd Earnings Call
Speaker Change: [music].
Operator: Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Limited conference call on the first quarter 2024 financial results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer. I'm Mr. Tasos Aslidis, Chief Financial Officer of the company.
Thank you for standing by ladies and gentlemen, and welcome to the Euro driving Ltd conference call on the first quarter 2024 financial results, we have with US today. Mr asked it is pretty tough.
Speaker Change: Chairman and Chief Executive Officer, and Mr. Thasos, a police 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 if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced.
Operator: 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, if 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 conference is being recorded today. Please be reminded that the company announced its results in a press release that was publicly distributed.
Speaker Change: I must advice you that this conference is being recorded today. Please.
Speaker Change: Please be reminded that the company announced its results with a press release that has been publicly distributed.
Operator: Before passing the floor to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, EuroDry will be making forward-looking statements, which are within the meaning of the Federal Securities Laws. The matters discussed may be forward-looking statements that are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to slide number 2 of the webcast presentation, which contains the full forward-looking statement.
Speaker Change: Before passing the floor to Mr picked us I would like to remind everyone that in todays presentation and conference call Euro dry will be making forward looking statements.
Speaker Change: These statements are within the meaning of the federal Securities laws 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 Change: I kindly draw your attention to slide number two of the webcast presentation, which has the full forward looking statement.
Operator: And the same statement was also included in the press release. Please take a moment to go through the whole statement and read it. Now, I'd like to pass the floor to Mr. Pittas. Please go ahead, sir.
Speaker Change: And the same statement was also included in the press release.
Speaker Change: Please take a moment to go through the whole statement and read it.
Speaker Change: And now I'd like to pass the floor to Mr. Pithos. Please go ahead Sir.
Aristides J. Pittas: Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. I am joined by Anastasios Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three-month period ended March 31st, 2024. Please turn to slide 3 of the presentation.
Aristides J. Pittas: Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled to conclude in school.
Speaker Change: Together with me as Tushar said lately, so chief financial Officer.
Aristides J. Pittas: Our financial highlights are shown here. For the first quarter of 2024, we reported total net revenues of $14.4 million and a net loss attributable to controlling shareholders of $1.8 million, or $0.65 loss per basic undiluted share. Adjusted net loss attributable to controlling shareholders for the quarter was $3.2 million, or $1.18 loss per basic and diluted shares.
Speaker Change: The purpose of today's call is to discuss our financial results for the three months period ended March 31st 2024.
Speaker Change: Turn to slide three of the prisoner tasting.
Speaker Change: Natural highlights are shown here.
Speaker Change: For the first quarter of 'twenty 'twenty four we reported total net revenues of $14 $4 million and the net loss attributable to controlling shareholder this at $1.8 million or 65 cents loss per basic and diluted share.
Speaker Change: Adjusted net loss attributable to controlling Schaffel just for the cool thing with pinpoint $2 million or one four is $18 loss per basic and diluted share.
Aristides J. Pittas: Adjusted DBDA for the period was 2.1 million. Please turn to the press release for a reconciliation of adjusted net income and adjusted EBITDA. Our CFO, Tassos Aslidis, will go over our financial highlights in more detail later on in the presentation. As of May 21, 2024, we had repurchased a total of about 300,000 shares of our common stock in the open market for a total of $4.7 million, and our share repurchase program of up to $10 million announced in August 2022.
Speaker Change: Adjusted EBITDA for the period was two 1 million.
Speaker Change: Please turn to the press release for reconciliation of adjusted net income and adjusted EBITDA.
Speaker Change: I'll see if boathouses just leave you sort of go over the financial highlights in more detail later on in the presentation.
Speaker Change: As of May 'twenty, one 'twenty 'twenty four because we purchased a total of about 300000 service of our common stock in the open market for a total of $4 7 million lives under our share repurchase program of up to $10 million announced in August 2022.
Aristides J. Pittas: The plan was renewed in August 2023 for another year. Please turn to slide 4 for an overview of our sales and purchase, chartering, and dry docking highlights. On the chartering side, most of our vessels are employed in short-term charters, whilst the motor vessel Ekaterini continues to be employed under an index-linked charter until March 2025, at 105.5% of the average Baltic Camsormax index. The index based on the five comes from Einstein's charter.
Speaker Change: The plan is the annuity.
Speaker Change: I'll be 2023 for another year.
Speaker Change: Please turn to slide four for an overview of our sales and pesticides sitting in dry docking highlights.
Speaker Change: Well that sort of thing side most of our vessels are employed in shorter term charter this latest.
Speaker Change: Most of the vessels.
Speaker Change: It continues to be employed under an index linked charter until March 2025.
Speaker Change: Hundred and five 5% of the I've limits, both gum Cinemax index. The index based on the five comes at a much time charter.
Aristides J. Pittas: You can see the specifics of the various charters we fixed in the accompanying presentation. We plan to continue trading spots for the time being, but if charter rates firm further, we will consider securing a portion of our vessel's earnings via time charter or FFAs. Regarding dry dockings and repairs during the quarter, we had two vessels undergoing dry dock, motor vessels, blessed luck, and mollibus luck. Motor vessel Starlight underwent its dry dock in April.
Speaker Change: You can see the specifics of the very south as we fixed in the accompanying presentation.
We plan to continue raising sport for the time being but if charter rates fell further than we were.
Speaker Change: Consider for drilling at both of them about vessels of any real time charter or that's a face.
Regarding dry dockings and repairs during the quarter, we had two vessels undergoing drydock motor vessel <unk>.
Speaker Change: Best of luck and multiple slack.
Speaker Change: Most of the vessels started like the went into dry dock in April.
Aristides J. Pittas: In addition, Blessed Luck was operationally off-hired for 17 days due to damage to the auxiliary boiler. The cost of the repairs will be covered by the Shipschallen Machinery underwriters in full, but unfortunately, the time lost is not. The cost of the two dry docks and the resulting idle time, together with the idle time of the blessed ship during the repairs, are the primary factors for the loss we incurred during this quarter. Please turn to slide 5.
Speaker Change: In addition, less luck wasn't quite as seasonally off Cai I'd for 17 days due to a damage of the auxiliary boiler.
Speaker Change: The cost of the repairs are covered by the ship's hull and machinery underwriters in full but unfortunately, the time lost is not.
Speaker Change: The cost of the two dry docks and the other thing is the time together with the idea of a dime of the blessed life during different fabs.
Speaker Change: Primary factors for the last real good during this quarter.
Speaker Change: Please turn to slide five.
Aristides J. Pittas: EuroDry's fleet consists of 13 vessels, including 5 Panamax dry bulk carriers, 5 Ultramax vessels, 2 Cancermax, and a Supramax dry bulk carrier. Our 13 tribal carriers have a total cargo capacity of about a million dead weight tons and an average age of 13 and a half years. At this point, I'd like to remind you, as previously announced in our last earnings call, that EuroDry owns 61% of the entities that own Moto Vessels Christos K. and Maria.
Speaker Change: Yeah.
The fleet consists of 13 vessels, including five panamax dry bulk carriers five will come much vessels to cancel the MX and the super amongst a dry bulk idea.
Speaker Change: 15, Drybulk carriers have a total capacity of about 10 million deadweight ton and they're not really a change of thinking in the hot news.
Speaker Change: At this point I'd like to remind you as previously announced in our last earnings call that you live and die or 61% over the entities that own water vessels Christos K and maybe of the remaining 39% is owned by your own as it was presented and that would be project finance.
Aristides J. Pittas: The remaining 39% is owned by owners represented by NRP Project Finance, otherwise referred to as the NRP Investment. Please now turn to slide 6 for a further update on our fleet employment. As you can see, fixed rate coverage for the remainder of 2024 stands at around 27%. Turning to slide 7, we go over the market highlights for the first quarter ended March 31st, 2024 and up until recently. Spot rates continued their momentum from late 2023 and experienced an unusually strong first quarter, supported by key commodity exports and the Red Sea and Panama Canal disruptions, counter to the typical seasonal trend. In the first quarter of 2024, the average spot market rate for Panamaxes hovered around $13,000 per day. By May 17th, the spot rates had increased to approximately $15,000 per day.
Speaker Change: Otherwise referred to as the MFP investors.
Speaker Change: Please now turn to slide six for a further update on our fleet employment.
As you can see fixed rate coverage for the remainder of 'twenty 'twenty four stars.
Speaker Change: 20% to 27%.
Speaker Change: Turning to slide seven we go over the math market highlights for the first quarter ended March 31st 2024 and up until recently.
Speaker Change: Spot rates continued their momentum from late 'twenty 'twenty city and experienced an unusually strong first quarter supported by key commodity X books, and the Red Sea in Panama Canal disruption.
Speaker Change: So to the typical seasonal trends.
Speaker Change: In the first quarter of 'twenty 'twenty four the Alberta spot market rate for Panamax is hovered around 17000, she's counselled dollars per day.
Speaker Change: By May 17th the sport the range could be increased to approximately $15000 per day.
Aristides J. Pittas: In parallel, the one-year time charter rates for Panamaxis were around $15,600 per day during the first quarter, rising to $16,150 by May 17, versus about $14,300 last year. Improving one-year rates relative to spot prices may suggest that overall, the sector seems set for a more positive 2024 than 2023. Please now turn to slide 9.
Speaker Change: In parallel the one year time charter rates for Panamax is around 15000 tons of dollars, but they're doing the first school stuff.
Speaker Change: I think the 16150 by May 17 versus about $14600 last year.
Speaker Change: Improving one year of age relative to spot prices may suggest that overall the sector seems set for a more positive 'twenty 'twenty float than 'twenty 'twenty city.
Speaker Change: Please now turn to slide nine.
Aristides J. Pittas: The IMF's latest update in April 2024 projects that the global economy will continue to grow at 3.2 percent in 2024, the same pace as in 2023, and this growth rate is expected to continue into 2025. This is largely due to a sizable improvement in the economic outlook for the United States, offset by a more modest slowdown in emerging and developing economies, in one of the biggest changes. Russia's 2024 growth forecast was increased to 3.2% from the 2.6% projected by the IMF in January 2024 due to continued strong oil exports amid higher global oil prices, despite the price cut mechanism imposed by Western countries, as well as strong government spending and investment related to war production, along with higher consumer spending in the tight labor market. The IMF also upgraded Russia's 2025 growth forecast to 1.8% from 1.1% previously. Clearly, the sanctions imposed by the West do not seem to be working.
Speaker Change: V. I N last latest stop dates in April 2024 projects that the global economy will continue to grow at three 2% in 'twenty 'twenty four.
Speaker Change: The same pace as in 2023.
Speaker Change: And this growth rate is expected to continue into 2025.
Speaker Change: This is largely due to a sizable improvement in the economic outlook for the United States offset them by a more modest slow down in the emerging and developing economies.
Speaker Change: And one of the biggest changes.
Speaker Change: But I was just 2024 growth forecast was increased to three 2% from the 2.6% projected bodies, but yet by the eye American January 'twenty 'twenty four.
Speaker Change: Two continued strong oil exports I mean higher global oil prices. Despite the price cap mechanism imposed by western countries as well as strong government spending and the investments are related to more production along with higher consumer spending in a tight labor market.
Speaker Change: Maybe I am met all sub basis, that's 2025 gross four goes to one 8% from 1.1% previously.
Speaker Change: Clearly the sanctions imposed by the west do not seem to be working.
Aristides J. Pittas: The forecast for the next five years is at its lowest in decades, at 3.1%. Global inflation is declining steadily and is projected to fall from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. The global economy remains surprisingly resilient despite significant central bank interest rate hikes to repair price stability. Most banks now anticipate that...
Speaker Change: The focus for the next five years.
Speaker Change: Globally is that would be at its lowest in decades.
Speaker Change: 3.1%.
Speaker Change: Global inflation is declining steadily and is projected to lower from six 8% in 2023% to 549% in 'twenty 'twenty four and four 5% and 2025, we've advanced economies are returning to their inflation targets shouldn't live in an emerging market and developing nickel.
Speaker Change: Louise.
Speaker Change: The global economy remains surprisingly resilient, despite significant central bank interest rate hikes to repair the price stability.
Speaker Change: Bush banks now anticipate most banks and now anticipate that.
Aristides J. Pittas: The three Federal Reserve rate cuts projected for the end of 2024 will be reduced to one due to this persistent inflation. For shipping, we continue to closely monitor China's economy, which is affected by the enduring downturn in its property sector. The Chinese economy is forecast to grow by only 4.6% in 2024 and 4.1% in 2025. However, China's economic woes may further intensify due to trade tensions in an already weakened geopolitical environment, and stability may take even longer to be restored. On the other hand, though, growth in India is projected to remain strong at 6.8% in 2024 and 6.5% in 2025, with robustness reflecting strong domestic demand and a rising working-age population.
Speaker Change: And the three federal reserve rate cuts projected for the end of 'twenty 'twenty four will be reduced to one due to this persistent inflation.
Speaker Change: For shipping we continue to closely monitor China's economy, which is affected by the enduring down certainly in its property sector.
Speaker Change: The Chinese economy is forecast to grow by only four 6% in 'twenty 'twenty, four and four 1% and 2025.
Speaker Change: However, Chinese economic woes me further intensified due to trade tensions and they'll all have every weekend for geopolitical environment instability may take even longer to be the stove.
Speaker Change: On the other hand vo growth he named yet.
Speaker Change: Our objective to remain strong at six 8% from 'twenty to 'twenty, four and six 5% and 2025 robustness, reflecting strong domestic demand and the rising working age population.
Aristides J. Pittas: Finally, the ASEAN-5, according to the IMF, will continue to grow quite strongly in the next couple of years, providing significant shipping support. According to Clarkson, demand for dry bulb trade is presently expected to grow by 2.4% in 2024, slightly below the fleet growth. This includes about a 0.6% uplift for Fall Year 2024 due to the Red Sea and Panama Canal disruptions. A longer duration of disruptions in these regions could potentially drive demand higher.
Speaker Change: Finally, the ASEAN five according to the I M S.
Speaker Change: Continued to grow quite strongly in the next couple of years, providing significant shipping support.
Speaker Change: According to Clarksons demand for dry bulk trade is presently expected to grow by two 4% from 'twenty to 'twenty four.
Speaker Change: Slightly below the fleet growth.
Speaker Change: This includes about a 0.6% uplift for full year 'twenty 'twenty four due to the Red Sea in Panama Canal live disruptions.
Speaker Change: A longer duration of disruptions in these regions could potentially drive demand higher.
Aristides J. Pittas: In addition, the combined effect on demand due to slower average speeds and increased congestion could lend further support for stronger dry bulk demand in 2024. Demand for dry bulk in 2025 is projected by Clarkson's to grow by about 1.5%, assuming the Red Sea disruption has eased by the end of this year. Please turn to slide 10.
Speaker Change: In addition, the combined effect of an on demand due to slower speeds and then can be used concessions could lend further supports a stronger drybulk demand in 'twenty 'twenty four.
Speaker Change: Demand in 2025.
Speaker Change: Good day by Clarksons to grow by about 1.5%, assuming they're hedged seem to set up some has eased by the end of this year.
Speaker Change: Please turn to slide 10.
Aristides J. Pittas: Uncertainty about the future of fuels and high new building prices have led to the low-order book continuing. As of May 2024, the order book as a percentage of the total fleet is at only 9.3%, near the lowest historical levels. This suggests low fleet growth over the next two to three years. Complementing this low fleet growth, we also have the effect of increased slow steaming and expected scrapping due to the introduction of new environmental regulations.
Speaker Change: And secondly, about the future of fuels and high new building prices have led to the low order book continuing.
Speaker Change: As of May 'twenty 'twenty four it will be all.
Speaker Change: The order book as a percentage of total fleet. He said only nine 3% near the lowest historical levels.
Speaker Change: At least in this low fleet growth over the next two to three years.
Speaker Change: Complementing this low fleet growth. We also have the effect of increase slow steaming and expected scrapping due to the introduction of the new environmental regulations.
Speaker Change: This could reduce the effective available bulk supply even further.
Aristides J. Pittas: This could reduce the effective available bulk supply even further. Turning to slide 11, let us now look into the supply fundamentals in a bit more detail. As of May 2024, the total dry bulk vessel operating fleet was 13,700 vessels.
Speaker Change: Turning to slide 11, and that doesn't matter when you look into the supply fundamentals in the beta mode.
Speaker Change: May 'twenty 'twenty for the total dry bulk vessel operating fleet was 13700 vessels.
Aristides J. Pittas: According to Clarkson's latest report, new deliveries as a percentage of total fleet are expected to be 3.6% in 2024, 3.2% in 2025, and 3.5% in 2026 onward. The actual fleet growth is, of course, expected to be lower than the aforementioned figures due to scrapping and slippage. Also note that 9% of the fleet is older than 20 years old and therefore a good candidate for scrapping, especially if the market remains at current levels or lower.
Speaker Change: According to Clarksons latest report new deliveries.
Speaker Change: Centers of total fleet are expected to be three 6% compared with 20, 432% in 2025, and three 5% and 2026 onwards.
Speaker Change: The actual fleet growth. He said of course expected to be lower than the aforementioned figures due to scrapping and slippage.
Speaker Change: Also note that 90% of the fleet is older than 20 years old and therefore are good candidates for scrapping, especially if the market remains.
Speaker Change: Levers all over.
Aristides J. Pittas: Please turn to slide 12, where we summarize our output for the dry bulk market. Dry bulk shipping saw a modest decline during the first quarter of 2024, following a peak in December. Despite this decrease, Q1 of 2024 marks the highest market level for this typically slow season since 2010, with the exception of 2022, primarily due to the geopolitical and weather-related disruptions as discussed previously. The outlook for the remainder of 2024 suggests a robust Bulgarian market with rates around current levels.
Speaker Change: Please turn to slide 12, where we summarize our outlook for the Drybulk market.
Speaker Change: Dry bulk shipping show a modest decline during the first go to a sprint 24 following the peak in December.
Speaker Change: Despite this the Kt's Q1 of 'twenty 'twenty four marks the highest level for this typically slow season since 2010.
Speaker Change: With the exception of 'twenty to 'twenty two.
Speaker Change: Mainly due to the geopolitical and weather related disruptions as discussed previously.
Speaker Change: The outlook for the remainder of 'twenty 'twenty four suggests the robust bulk carrier market with rates at current levels.
Aristides J. Pittas: The recent strength in market conditions is largely attributable to tensions in the Suez Canal, which have significantly increased online. As and when these disruptions begin to ease or resolve, demand patterns are anticipated to normalize, although this adjustment may take a considerable amount of time to fully materialize. Clarkson's assumes Red Sea rerouting is currently adding 1.2% to dry bulk ton-mile demand. Assuming half a year of rerouting due to these disruptions, which will then ease back to normal, this adds 0.6% to the full year of 2024 tonne-mile demand growth.
Speaker Change: The recent strength in market conditions is a luxury attitude with the move to tensions in the Swiss canal, which have significantly significantly increased on mind.
Speaker Change: As and when these distributions will begin to ease of use our demand patterns are anticipated to not have realized all the lease adjustment made taken a considerable amount of time to fully materialize.
Scott: Clarksons assumes let's see rerouting, Scott honestly, I think one 2% to dry bulk ton mile demand.
Scott: Assuming half of year over year roofing distribution disruptions, which will then need is back to normal. This adds 0.6% for the full year of 'twenty 'twenty four ton mile demand.
Aristides J. Pittas: Assuming subsequent easing, this will subtract a similar figure from 2025 ton-mile demand growth. It is all quite uncertain, though, and will largely depend on geopolitical developments, so it is possible that disruption could ease quickly or could take a significant amount of time.
Scott: Assuming some chicken teasing this was something like a similar figure for 2025 ton mile demand growth.
Scott: It is all quite uncertain, though and will largely depend on the edge of political debates developments. So it was supposed to move that disruption could these quickly or it could take significant amount of state.
Aristides J. Pittas: In any event, in 2025, bulker earnings are expected to be softer, as diminished fleet inefficiencies and the cumulative growth of the fleet in recent years have offset a strong trade rebound. On the other hand, the decarbonization process is expected to affect trade routes and dry bulb volumes going forward, positively by resulting in slower speeds and more scrapping, but negatively if less coal is transported. The overall effect on the market is hard to predict.
Scott: In any event in 'twenty 'twenty five bulk carrier earnings either.
Scott: Expect it to be soft has diminished Clifton fleet inefficiencies and the cumulative growth of the fleet in recent years have offset the strong trade to be both.
Scott: On the other hand, the carbonization process is expected to affect trade lines and dry bud for volumes going forward.
Scott: Positively by these other things slow speeds and more scrapping, but negatively if less coldest comes to quote it.
The overall effect on the market, it's hard to put a big.
Aristides J. Pittas: On the supply side, though, the ordering of new ships has been very limited due to the lack of available slots at shipyards and uncertainty about the fuel of the future, despite significant orders for methanol fuel ships. The order book to fleet ratio remains near historically low levels, as has been said before, setting the stage for a potential recovery in charter rates should demand increase. Furthermore, the introduction of emissions regulation-related measures could further curtail supply via increased scrapping or slower operational speed for a portion of the fleet. EXI, CII, EUETS, FuelEUE are all new acronyms the industry will need to cope with, and more are to come.
Scott: On the supply side, though the ordering of new ships has been very limited due to the lack of available slots of chipsets and uncertainty about the fuel of the future. Despite.
Scott: Despite significant orders for methanol fueled ships.
Scott: The order book to fleet in Asia remains nearly historically low levels as I said before.
Scott: Setting the stage for the potential recovery in charter rates should demand thing kidneys.
Scott: Furthermore, introduction of emissions regulations related to measures could further curtail supply via increased scrapping or slow little operational speed for the portion of the fleet.
Speaker Change: E X I see I I E P S.
Speaker Change: B E.
Speaker Change: Our all new ocular names the industry will need to cope with.
Speaker Change: And more to come.
Aristides J. Pittas: Let's turn to slide 13. The left side of the slide shows the evolution of one-year time charter rates of panamax dry vessels over the last 20 years. As of May 17, 2024, the one-year time charter rate for Panama ships with a capacity of 75,000 deadweight tons stood at $16,150 per day, which is about 20% above the historical median of around $13,500 per day. On the other hand, 10-year-old Panamax wrestled prices have reached the maximum price seen in the last 10 years, around $29.5 million, as can be seen in the right-hand side graph. This is significantly higher than the 10-year historical average price of $16.8 million and the median price of $14.75. At current second-hand prices, we are reluctant to purchase more vests.
Speaker Change: Let's turn to slide 15.
Speaker Change: The left side of this slide shows the evolution of one year time charter rates of Panamax dry vessels over the last 20 years.
Speaker Change: As of May 17th 2024, the one year time charter rate for Panamax ships with the capacity of 75000 deadweight tons stood at $16150 per day, which is about 20% above the historical median about 117 and a half thousand dollars.
Speaker Change: Good day.
Speaker Change: On the other hand, 10 years old Panamax vessel prices.
Speaker Change: We have reached the maximum price seen in the last 10 years around 2009, and a half million done this.
Speaker Change: As can be seen in the right hand side.
Speaker Change: This is significantly higher than the 10 year historical average of average.
Speaker Change: Average price of $16 8 million.
Speaker Change: And the median price of $14 $75 million.
Speaker Change: At current secondhand prices, we have reluctance to purchase small vessels.
Aristides J. Pittas: We are happy to keep on running the fleet at market rates, strengthening the balance sheet, reducing debt, and waiting for new opportunities to present them. And now, I will now pass the floor over to our CFO, Tassos Aslidis, to go over various financial highlights and more.
Speaker Change: We are happy to keep on running the fleet at the mouth it at market rates.
Speaker Change: Funding of the balance sheet that are due.
Speaker Change: Using debt and waiting for new opportunities to present themselves.
Speaker Change: Let me now pass the floor over to our CFO Diastasis lease to go over the various financial highlights in more detail.
Anastasios Aslidis: Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen.
Speaker Change: Thank you very much activities with morning from me as well, ladies and gentlemen.
Anastasios Aslidis: Over the next four slides, I will give you an overview of our financial highlights for the first quarter of 2024 and compare those results to the same period last year. To do that, let's turn to slide 15. For the first quarter of 2024, the company reported total net revenues of $14.4 million, representing a 27.2% increase over total net revenues of $11.3 million during the first quarter of last year. This was the result of the increased time charter rates our vessels earned during the first quarter of this year, plus the increased number of vessels we operated this quarter compared to the same quarter of the previous year.
Speaker Change: Over the next four slides I will give you an overview of our financial highlights for the first quarter of 'twenty 'twenty four and compare those results to the same period of last year.
Speaker Change: For that lets turn to slide 15.
Anastasios Aslidis: The company reported a net loss for the period of $1.9 million and a net loss attributable to controlling shareholders for the period of $1.78 million as compared to a net loss attributable to controlling shareholders of $1.54 million for the same period in 2023. The net loss attributable to the non-controlling shareholders of 0.13 million in the first quarter of this year represents the loss that corresponds to the 39% ownership of the entities represented by the NRP investors, as Aristides explained earlier. Interest and other financing costs, including interest income, for the first quarter of 2024 increased to $2.5 billion.
Speaker Change: For the first quarter of 'twenty 'twenty four the company reported total net revenues of $14.4 million.
Speaker Change: Ending at 27, 2% increase.
Speaker Change: Our total net revenues of $11 3 million during the first quarter of last year.
Speaker Change: And these were the result of.
Speaker Change: Oh, the increased time charter rates our vessels earned during the first quarter of this year.
Plus the increased number of vessels, we operated this quarter compared to the same quarter of 15 of this year.
Speaker Change: The company reported net loss for the period.
Speaker Change: One 9 million.
Speaker Change: The net loss attributable to controlling shareholders for the period of 178 million as compared to a net loss attributable to controlling shareholders of 154 million for the same here of 2023.
Speaker Change: The net loss attributable to the Noncontrolling shortfall. This point 13 million in the first quarter of this year.
Speaker Change: The loss that corresponds to a 39% ownership of the Yankees represented by the MLP investors are starting to see this explained earlier.
Speaker Change: Interest and other financing costs, including interest income for the first quarter of 'twenty 'twenty four today.
Speaker Change: Two two points.
Anastasios Aslidis: 0.04 million, as compared to 1.23 million for the same period of last year. Interest expense during the first quarter of 2024 was higher mainly due to the increased amount of debt and the increased benchmark rates that our loans had to pay, while interest income was lower due to lower cash balances we carried during the period as compared to the same period of 2023. Adjusted EBITDA for the first quarter of this year was $2.07 million compared to $2.36 million during the first quarter of 2023.
Speaker Change: Zero 4 million as compared to $1 23 million for the same period of last year.
Speaker Change: Interest expense during the first quarter of 2024 was higher mainly due to the increased amount of debt and the increase in benchmark rates with our launch had debate while interest income was lower due to lower cash balances. We carried during the period as compared to the same period of 2023.
Speaker Change: Adjusted EBITDA for the first quarter of this year was 2.07 million compared to two point 76 million.
Speaker Change: During the first quarter of 2023.
Anastasios Aslidis: Basic and diluted loss per share attributable to controlling shareholders for the first quarter of 2024 was $0.65, calculated on about 2.8 million shares, basic and diluted, weighted average number of shares outstanding, compared to a basic and diluted loss per share of $0.55 for the first quarter of last year, calculated on also about 2.8 million shares, basic and diluted, excluding the effect on the net loss attributable to the controlling shareholders for the The adjusted loss for the quarter ended March 31st, 2024, would have been $1.18, basically diluted, compared to adjusted earnings of $0.14, dollars per share. Basically, they lose it again for the same period of last year.
Speaker Change: Basic and diluted loss per share.
Speaker Change: Attributable to controlling shareholders for the first quarter of 2024.
Speaker Change: It was.
Speaker Change: $0 65 calculated on about two 8 million shares basic and diluted weighted average number of shares outstanding.
Speaker Change: Compared to basic and diluted loss per share of zero point $55 for the first quarter of last year calculated on all sorry about two 8 million shares basic and diluted.
Speaker Change: Excluding the effect on the net loss attributable to the controlling shareholders for the quarter.
Speaker Change: Realized gain on derivatives.
Speaker Change: The adjusted loss for the quarter ended March 31st 2024.
Speaker Change: There have been one golar and 18 cents basic and diluted compared to adjusted earnings of Zero point 14.
Speaker Change: Our loss per share basic and dilutive again for the same period of last year.
Anastasios Aslidis: Let's now turn to slide 16 to review our fleet performance. As usual, we will start our review by first examining the utilization rates expected for the first quarter of this year and compare them to last year.
Speaker Change: Let's now turn to slide 16 to review our future farmers.
Speaker Change: As usual, we will start our review by first examining the utilization rates for the expected for the first for the first quarter of this year and compare it to last year.
Anastasios Aslidis: Our food utilization rate is broken down to commercial and operation. During the first quarter of this year, our commercial utilization rate was 100%, while our operational utilization rate was 98.1%, compared to 99.8% commercial and 99.7% operational for the first quarter of 2023. On average, 13 vessels were owned and operated during the first quarter of this year, earning an average time charter equivalent rate of $12,455 per day, compared to 10 vessels in the same period of last year, earning on average $10,674 per day, our total daily operating expenses including management fees, general and administrative expenses, but excluding die-ducting costs, were $6,867 per vessel per day during the first quarter of this year compared to $6,953 per vessel per day for the first quarter of 2023.
Speaker Change: Our fleet utilization rate is broken down to commercial and a passion.
Speaker Change: During the first quarter of this year, our commercial utilization rates. There was a kind of a percent while R. O paresh kind of utilization rate was 98, 1%.
Speaker Change: Compared to 99, 8% commercial and 99, 7% operational for the first quarter of 2023.
Speaker Change: Well I love it so I think that sums were owned and operated during the first quarter of this year.
Speaker Change: At an average time charter equivalent rate of 12 hours on the forefront of $55 per day compared to 10 vessels in the same period of last year and in Columbia Gulf hours on $674 per vessel.
Speaker Change: Good day.
Speaker Change: Our total daily operating expenses.
Speaker Change: Including management fees general and administrative expenses, but excluding drydocking cost were $6807 per vessel per day. During the first quarter of this year compared to $6 $953 per vessel per day for the first quarter of 2023.
Anastasios Aslidis: If we move further down this table, we can see the cash flow break-even levels, which take into account, in addition to the above, the dry docking expenses, interest expenses, and loan repayment. For the first quarter of 2024, our daily cash flow break-even level was $12,440 per vessel per day, compared to $13,186 per vessel per day for the same period of 2023. Turning now to slide 17, to review our debt profile.
Speaker Change: We moved further down on this table, we can see that cash flow breakeven levels, which takes into account. In addition to the above the dry docking expenses interest expenses and loan repayments.
Speaker Change: For the first quarter of 2024, our daily cash flow breakeven level was $440 per vessel per day compared to 15000 $1086 per vessel per day.
Speaker Change: For the same period of 2023.
Speaker Change: Turning now to slide 17.
Speaker Change: To review our debt profile.
Anastasios Aslidis: As of March 31, 2024, our outstanding bank debt was $101.46 million, and it is projected to decline to about $67.5 million by the end of 2026. For the remainder of this year, our total debt repayments, including balloon payments, amount to about $14.7 million, for a total for the year of about $18 million. Then, in both 2025 and 2026, loan repayments are due to decrease to about $9.7 million for years, significantly reducing our cash flow breakeven level.
Speaker Change: As of March 31st Grand 24, our outstanding Bank debt was 101 $46 million and is projected to decline to about 60 children.
Speaker Change: By the end of 2026.
Speaker Change: The remainder of this year, our total debt repayments, including balloon payments amounting to about $14 7 million.
Speaker Change: For the total for the year of about 18 million.
Speaker Change: Then in both 2025.
Speaker Change: In 2026 loan repayments are due to decreased by nine.
$9 7 million.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Is significantly faster and using our cash flow breakeven level.
Anastasios Aslidis: It is worth mentioning on this slide that the average margin of our debt, which is about 2.45%, and assuming a soft rate of about 5.32% makes the total cost of our debt, If we take also into account the reduced interest we are going to pay for the portion of our debt that we have swapped, makes the overall cost of our debt at around 7.56%. At the bottom of this slide, we can see our projected cash flow break-even level for the next 12 months broken down into its various components.
Speaker Change: It is worth mentioning on the slide the average margin of our debt, which is about two to 4% to 5%.
Speaker Change: And assuming a shelf shelf rate of about 3.5, 32% make the total cost of our debt.
Speaker Change: If we take also into account the.
Speaker Change: Use interest we're going to pay for the portion of our debt that we have swap.
Speaker Change: It makes the overall cost of our debt.
Speaker Change: One seven points to 56%.
Speaker Change: At the bottom of the slide we can see our projected cash flow breakeven level for the next 12 months broken down into each virus components.
Anastasios Aslidis: Overall, we expect our cash flow breakeven level to be around $12,535 per vessel per day for the next 12 months, as I mentioned. Let me now conclude my brief financial presentation by moving to Slide 18, where we can see some highlights from our balance sheet in a simplistic way, taking basically a snapshot of our assets and liabilities.
Speaker Change: Overall, we expect our cash flow breakeven level to be around 12005 kind of a $35 per vessel per day.
Speaker Change: Our EBITDA breakeven level to be around 8000 $5013 per vessel per day for the next 12 months, which I imagine.
Speaker Change: Let me now conclude my brief financial presentation by moving to the slide 18, where we can see some highlights from our balance sheet.
Simplistic way, taking basically a snapshot.
Speaker Change: Our assets and liabilities.
Anastasios Aslidis: As of March 31st, 2024, Kass and other current assets in our balance sheet stood at about $27 million. The book value of our vessels was approximately $200 million, resulting in a total book value of our assets of about $227.4 million. On the liability side, as I mentioned earlier, our debt as of March 31, 2024 was about $101.5 million, representing approximately 44.7% of the book value of our assets, while other liabilities amounted to $8.8 million, about 3.7% of the book value of our assets.
Speaker Change: As of March 31st 10 24.
Speaker Change: Cash and other current assets in our balance sheet stood at about 27 meeting.
Speaker Change: The book value of our vessels was approximately 200 million. There's a lot of thinking total book value of our assets of about 237 point for me.
Speaker Change: Well not a liability side.
Speaker Change: As I mentioned and they're out there they're sort of March 31st strengthen before.
Speaker Change: It's about Hampden.
Speaker Change: 5 million.
Speaker Change: Presenting approximately 44, 47% of the book value of our assets, while other liabilities amounted to $8 8 million about three 7% of the book value of our assets.
Anastasios Aslidis: The remaining book value of $116.8 million represents the interests of our minority holdings, the NRP investors, of about 9.6 million, while the remaining 107.4 million of book value is attributed to our common shareholders, resulting in a book value of $38.35 per share. However, based on market transactions and other market reports, we estimate that the market value of our vessels was and is above their book value and stands at around 262 million dollars.
Speaker Change: The remaining book value of $16 8 million.
And the interests of our minority holdings, and he and I P investors.
Speaker Change: After about $9 6 million, while the remaining.
Speaker Change: Seven 4 million in book value is attributed to our common shareholders is that I think in a book value of 38 point $75 per se.
Speaker Change: However, based on Martha transaction and other market reports, we estimate the market value of our vessels was a niche.
Anastasios Aslidis: That is about 62 million higher than their book value, which is equivalent to about 20 dollars per share, thus bringing our NAV per share to more than $60. Our share price, which is trading around $22 lately, represents a significant discount compared to NAV, a discount of the order of 65%, a valuation gap that offers significant upside potential for our shareholders and investors. And with that, I will turn the floor back to Aristides to continue the call.
Speaker Change: Both of their book value and stents.
Speaker Change: Around $262 million that is about 62 million high here.
Speaker Change: N V and then their book value, which is equivalent to about $20 per share.
Speaker Change: That's some breathing our earnings per share to more than $60.
Speaker Change: Our share price, which is trading around $22 80 and represents.
Speaker Change: Can you just kind of a strong competitor and they really just kind of the order of 65% evaluation of golf that offers significant upside potential for our shareholders and investors.
Speaker Change: And with that let me turn the floor back to our activities to continue to call them.
Aristides J. Pittas: Thank you, Tasos. Let me now open up the floor to any questions we may have.
Speaker Change: Thank you.
Speaker Change: Let me now open up the floor for any questions for May have.
Operator: If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Tate Sullivan with Maxim Group. Please proceed with your question.
Speaker Change: Thank you if you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question Kim you.
Speaker Change: You May press star two if you'd like to remove your question from the queue.
Speaker Change: All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star.
Speaker Change: Our first question comes from the line of.
Speaker Change: Sullivan with Maxim Group. Please proceed with your question.
Tate H. Sullivan: Hello. Thank you. Good day. First, on the debt repayment profile on slide 17, is this debt, the existing loan repayment, something that you're looking to refinance before the end of the year, or will you prioritize using cash flow to pay down that debt?
Sullivan: Hello, Thank you and good day.
Speaker Change: First time that the U K.
Speaker Change: Profile on slide 17 processes that debt.
Speaker Change: Existing loan repayments something that you're looking to refinance before the end of the year or will you use cash flow.
Speaker Change: Or will you prioritize using cash flow to pay down debt.
Aristides J. Pittas: I don't think we're planning to refinance any of our debt in the near future. I believe we're planning to repay the..., to make the payments that are due in the remaining of the year from the cash flow we are going to generate. And, as you can see in that slide, the repayments drop significantly next year and the year after, reducing our cash flow break-even. We have balloon payments that are coming due in 2027, as you can see, and I suspect we will be refinancing those at the time.
Speaker Change: I think where I don't think we're planning to refinance any of that in the near future I believe for we're planning to repay the.
Speaker Change: To make the payments if I was doing the remaining of the year from the cash flow, we're going to generate and as you can see in that slide.
Speaker Change: Prepayments drop significantly next year and the year after.
Speaker Change: Think oh.
Speaker Change: Our cash flow breakeven, where Kevin balloon payments that are coming due in 2027 as you can see and I suspect. It always will be we will be refinancing at the time.
Aristides J. Pittas: Thank you. And then on the blessed luck in the quarter and the boiler damage, did that happen while in dry dock, in Voyage, and the expenses to repair it, is that within dry docking costs? Could you give more detail on that, please?
Speaker Change: Thank you and then on the blended luck in the quarter and the boiler damage.
Speaker Change: That happened wallen.
Speaker Change: In voyage and the expenses for a parent is that wet and dry docking costs.
Speaker Change: More detail on that.
Aristides J. Pittas: No, this damage happened when we left the shipyard. It was an error by the crew, and the shipyard was the cause that this happened. But it happened just after we had left the shipyard. It's an insurable cost, and all the repairs are covered. Unfortunately, the loss of time is not covered, so we lost 17 days of work.
Speaker Change: No. This is risk damage happened when we left the shipyard it was and that are all over the glue in the shipyard was the cause of that this happened.
Speaker Change: But it's happened a desktop study we had left the shipyard.
Speaker Change: Insurable cost and all the repairs are covered unfortunately, the loss of time is not causing so we lost seven days of employment.
Aristides J. Pittas: Can you approximate or can you not show the approximate cost to repair that should be insured?
Speaker Change: Can you approximate her cannot show that.
Speaker Change: Approximate cost to repair that that shouldn't be insurable.
Aristides J. Pittas: I think it's about $900,000. It's not a cheap repair, but as I said... It is not included in the numbers because it is fully insured. So you will not find it either in the dry docking or the operating expenses. Okay.
I think it's about a 900000.
Speaker Change: Our lives.
Speaker Change: It's not that cheap for the past.
Speaker Change: But as I said it did not include it in the numbers because it is a it's fully insured so you will not find it.
Speaker Change: Dry docking Harvey operating expenses, okay. Okay.
Tate H. Sullivan: Okay, okay, thank you. I thought, thank you. And then, going forward, schedule drydocs for the rest of the year, community review.
Speaker Change: Thank you I stop on NIM going forward scheduled.
Speaker Change: Scheduled dry docks for the rest of the year in your view.
Aristides J. Pittas: In this quarter, we only have one dry dock which has already taken place, which is the Starlight, and we have three dry docks in Q3. I haven't looked as far as Q4, but... You have no dry docks. You have nothing scheduled for Q4 this year. Nothing for Q4. So it's the three dry docks in Q3, really.
Speaker Change: In this call. It a we only have one dry dog, which has already taken place which is the start of life.
Speaker Change: And we have three dry docks are in Q3.
Speaker Change: I haven't looked at as far as Q4, but right.
Speaker Change: No nothing scheduled for Q4 of this year nothing for Q4, so it's a the three dry docks in Q3 really.
Speaker Change: That does seem to come.
Speaker Change: Okay. Thank you very much.
Speaker Change: Thanks.
Operator: Thank you. As a reminder, if you'd like to join the queue, please press star 1 on your telephone keypad. Our next question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.
Speaker Change: Thank you as a reminder, if you'd like to join the queue. Please press star one on your telephone keypad.
Speaker Change: From the line of Paul Frat with Alliance Global Partners. Please proceed with your question.
Charles Kennedy Fratt: Hello Aristides and hello Patras. Hi. Hi.
Speaker Change: Hello, Kitty and a low.
Speaker Change: Okay.
Charles Kennedy Fratt: Hi, Paul.
Aristides J. Pittas: I had a question, Aristides, about your 2025 outlook. You know, it seems like you're trying to signal that, you know, less congestion next year, less disruption, a little bit more on supply growth and demand just growing a little bit modestly would potentially create a softer rate environment. Would you categorize your outlook as conservative or, you know, do you think it's... sort of a base case, or do you think it's sort of a conservative case in that you potentially get... You know, if some of these things linger, it's a little bit better than you think?
Charles Kennedy Fratt: I had a question.
Speaker Change: Every state is about 220.
Speaker Change: 25 outlook.
Speaker Change: Yeah.
Speaker Change: It seems like you're trying to signal.
Speaker Change: Less congested next year or less disruption.
Speaker Change: A little bit more on supply growth.
Speaker Change: Demand is growing a little bit modestly.
Speaker Change: Would potentially create a softer rate environment.
Speaker Change: Would you would you categorize your.
Speaker Change: Our outlook is.
Speaker Change: Consider it or do you think do you think it should have been.
Speaker Change: Base case or do you think is really good.
Speaker Change: Is there a good case to make.
Speaker Change: Hence we get.
Speaker Change: You know if somebody that maybe things linger, a little bit better than you think.
Aristides J. Pittas: Yes, I think, I mean, we generally try to be quite conservative, but in all honesty, it is extremely difficult to predict how the market will move under the current geopolitical situations, because they affect trade, they affect economic growth, and nobody can really say what that would be. There are a few positives. The low supply growth is positive. The fact that vessels are going slower due to environmental regulations is positive. These are strong positives. If demand turns out to be quite strong in 2025, we could have a much better market. It's really difficult to decide.
Speaker Change: Yes.
I I think I mean, we generally try to be.
Speaker Change: Quite conservative.
Speaker Change: But in all honesty it.
It is extremely difficult to predict how the market will move under the current geopolitical situations because there.
Speaker Change: They affect the.
Today, they affect economic growth and no.
Speaker Change: Nobody can really say well, what's that going to be a few positives.
Speaker Change: Low supply growth is a positive.
The facts are that the vessels are going slow slow due to the environmental regulations is a positive.
Speaker Change: It is a strong positives if demand.
Speaker Change: It does.
Speaker Change: Comes out to being quite strong in 2025.
Speaker Change: Yeah.
Speaker Change: We can have a much better market.
Speaker Change: It's really difficult to decide having said that.
Speaker Change: The SFA market is.
Speaker Change: He is also predicting a slightly lower the modest getting 2025, but then in 2024.
Speaker Change: So.
Speaker Change: This is information we currently have.
Speaker Change: Very very difficult to decipher then and decide what is the actual move will be it can be I mean, if the geopolitical tensions but the global economy does well I E. We have long ago trade routes, but still the economy works well, we could have a very good market.
Aristides J. Pittas: Having said that, the FFA market is also predicting a slightly lower market in 2025 than in 2024. This is the information we currently have, and it is very, very difficult to decipher and decide what the actual move will be. It can be, I mean, if there are geopolitical tensions, but the global economy does well, i.e., we have longer trade routes, but the economy still works well, we can have a very good market. Our base case is always quite conservative.
Speaker Change: Our base case is always quite conservative.
Aristides J. Pittas: I'm not sure if I heard anything about any SFA hedges for the rest of the year. Do you have any in place? And then, secondly, with your time charters and sort of the mid to high teens, would that be something that might be attractive given your outlook for 2025, or the latter half of 2024 and the early part of 2025?
Yep.
Speaker Change: And then in that context.
Speaker Change: I don't I'm not sure if I could.
Speaker Change: Any thinking about any FFA hedging for the you know the rest of the year do you have any in place and then secondly.
Speaker Change: One year time charters and that sort of got it.
Speaker Change: At mid to high teen.
Speaker Change: Would that be something that might be attractive given your outlook for 2025.
Speaker Change: Latter half of 'twenty, four and the early part of 'twenty five.
Aristides J. Pittas: Yes, currently, as we said, all our ships are essentially on spot charters, trading the market. If we see a strengthening in the next couple of months, we will probably fix a portion of our fleet at these higher numbers, either through normal time charters or through FFAs. We currently don't have any open FFA positions.
Speaker Change: Yes.
Speaker Change: As we said all our same site essentially on the spot side, because praising the market. If we see a strengthening in the next couple of months, we will probably fix a portion of our fleet.
These higher numbers either through northern most downside with the FFA. Some got US we don't have any open if a favored position.
Aristides J. Pittas: But if we see levels that are even more satisfactory than these levels, these levels, today's market levels, are still profitable levels overall. This quarter we had the loss that we had due to the two dry docks and the uphire of the blessed luck mainly. Also, we took a loss on the FFAs that we had done. But next quarter, we are cautiously optimistic that we will return to profitability.
Speaker Change: But you know if we see levels that are.
Speaker Change: Even more satisfactory than these levels.
Speaker Change: This level of today's market levels are still profitable levels overall risk along with it and we had the loss that we had there due to the two dry docks and the off hire of the blast like mainly and also we took a loss on the SFA.
Speaker Change: As we said done.
Speaker Change: But the next quota we are cautiously optimistic that we will have at the computer.
Speaker Change: The ability.
Charles Kennedy Fratt: And then, Tostos, could you just sort of give some guidance for OpEx? So, just OpEx should be slightly higher for the rest of the year relative to what you reported in the first quarter?
Speaker Change: And then.
Speaker Change: Could you just sort of give you gave some guidance for opex.
Speaker Change: So just I think you should be just slightly up through the rest of the year relative to what you've reported in the first quarter.
Anastasios Aslidis: No, I think we're pretty much on budget for the first quarter, so, I mean... We would be plus or minus 2-3%, I believe. It's hard to say, but we haven't seen any surprises on OPEC so far.
Speaker Change: I think we're pretty much on budget for the first quarter. So I mean are.
Speaker Change: We would be plus or minus 2% to 3% I believe.
Speaker Change: And he tried to say, obviously, hey, it's just hard to say, but.
Speaker Change: We haven't seen any surprises on the opex so far.
Charles Kennedy Fratt: Okay, great. Thanks for your time.
Okay, great. Thank you.
Speaker Change: Tim.
Aristides J. Pittas: Thank you, Paul. Thank you.
Speaker Change: Thank you for all thank you.
Operator: Thank you. Our next question comes from the line of Lars Eide with Arctic Securities.
Speaker Change: Thank you.
Speaker Change: Next question comes from the line of Lars.
Speaker Change: Arctic Securities. Please proceed with your question.
Lars Eide: Please proceed with your question. Hi. Good morning. Good morning. How are you? Good morning. So I guess the last core kind of touched upon my question. But as you noted in...
Lars: Hi, good morning.
Lars Eide: Good morning, how are you? Good morning. And so I guess the last core kind of touched upon my question, but as.
Lars: Good morning.
Speaker Change: Yeah, So I guess I'm the last caller kind of touched upon my question.
Speaker Change: <unk>.
Speaker Change: But as you.
Speaker Change: Note that in Europe.
Speaker Change: Report this morning, you're positioning your fleet for more and more market exposure moving forward.
Speaker Change: Yes.
In that context.
Speaker Change: Your marketing use should be.
Speaker Change: I assume that's your stretch gotcha.
Speaker Change: But you guys.
Speaker Change:
Okay.
Speaker Change: Yeah.
Aristides J. Pittas: So, I mean, our base case is that for the next few months, the market should be quite positive.
Speaker Change: Sure I mean, our base case is that for the next few months the market shouldn't be quite positive.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change:
Speaker Change: Thank you.
Speaker Change: Thank you.
Operator: Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to management for any final comments.
Speaker Change: Thank you, ladies and gentlemen that concludes our question and answer session I will turn the floor back to management for any final comments.
Aristides J. Pittas: Well, thank you all for listening in to today's presentation. We will be back to you with Q2 results in about three months' time. Thank you.
Well. Thank you all for listening in today's presentation, we will be back to you with our Q2 results in about three months' time. Thank you.
Speaker Change: Bye everybody.
Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.