Q1 2025 Euroseas Ltd Earnings Call
Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas conference call on the first quarter 2025 financial results.
Thank you for standing by ladies and gentlemen, and welcome to the Euro six conference call on the first quarter 2025 financial results.
Operator: We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Anastasios Aslidis, Chief Financial Officer of the company. At this time, all participants are in 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 their results for the press release that has been publicly distributed.
We have with US Mr. Aristides Peterson, Chairman and Chief Executive Officer, and Mr. Tostes assessed Mini's Chief financial Officer of the company.
At this time, all participants are in 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 one on your telephone keypad and wait for your name to be announced.
I must advice you that this conference is being recorded today. Please.
Please be reminded that the company announced their results for the press release that has been publicly distributed.
Operator: Before passing the floor, Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, Euroseas will be making forward-looking statements. These statements are within the meaning of the Federal Securities Law. 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.
Before passing the floor to Mr. P. This I would like to remind everyone that in todays presentation and conference call Euro six will be making forward looking statements.
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.
Operator: I kindly draw your attention to slide number two of the webcast presentation, which has 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.
It kind of draw your attention to slide number two of the webcast presentation, which has full forward looking statement and the same statement was also included in the press release.
Let's take a moment to go through the whole statement and read it.
Operator: And now, I'd like to pass the floor to Mr. Pittas. Please go ahead.
Peter: And now I'd like to pass the Florida, Mr. Peter <unk>. Please go ahead Sir.
Peter: Thank you good morning, ladies and gentlemen, and thank you for joining us today sort of scheduled conference call.
Aristides Pittas: Good morning, ladies and gentlemen, and thank you for joining us today for our scheduled conference. Together with me, Anastasios Aslidis, are three financial officers. The purpose of today's call is to discuss our financial results. for the three-month period ended March 31st, 2025. Please turn to slide 3 of the presentation for our quarterly financial... For the first quarter of 2025, we reported total net revenues of $56.3 million and the net income of $36.9 million, or $5.29 per diluted share. Adjusted net income for the quarter was $26.2 million, or $3.76 per diluted share.
Speaker Change: Together with me its status as <unk> Chief Financial Officer.
Speaker Change: Purpose of todays call is to discuss our financial results.
Speaker Change: For the three months period ended March 20.
Thanks.
Please turn to slide three of the present.
Speaker Change: Dave.
Speaker Change: Let me point out some highlights.
Speaker Change: For the first quarter of 2025, we reported total net revenues of $56 $3 million.
Speaker Change: And the net income of 36 $49 million or <unk>.
$5 and 59.
Speaker Change: And diluted share.
Speaker Change: Net income for the quarter was $26 2 million or $3 76.
Speaker Change: For the <unk>.
Aristides Pittas: and Justin Trudeau for a period of $37.1 million. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA. Our CFO Tasos will go over our financial highlights in more detail later on in the presentation. As part of the company's common stock dividend policy, a board of directors declared a quarterly dividend of 65 cents per common share for the first quarter of 2025. The dividend will be payable on or above July 16, 2025, to shareholders of the record on July 9, 2025. Since initiating our share repurchase plan of up to $20 million in May 2022, we have repurchased 463,000 shares of our common stock in the open market for a total of approximately $10.5 million.
Speaker Change: Adjusted EBITDA for the period was 37 $41 million.
Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA.
CFO.
We will go over the financial highlights in more detail later on in the presentation.
Speaker Change: As part of the company's common stock dividend policy, our board of data.
Speaker Change: <unk> declared the comfortably dividends of 65 cents per common share for the first go to the side.
Speaker Change: <unk>.
Speaker Change: The dividend will be payable on or about July 16, 2025 samples into breakup on July 925.
Speaker Change: Since initiating our share repurchase plan of up to $20 million in May 2022 recovery.
Speaker Change: 463000 sales of our common stock in the open market.
Speaker Change: Total of approximately $10 million.
Aristides Pittas: We remain committed to a disciplined and opportunistic capital allocation strategy and intend to continue leveraging the repurchase program in a manner that enhances long-term shareholder value.
Speaker Change: We remain committed to a disciplined and opportunistic capital allocation strategy and intend to continue leveraging the repurchase program in the manner that enhances long term shareholder value.
Yeah.
Aristides Pittas: Please turn to slide 4, where we discuss our recent developments in operational high-tech. We recently signed an agreement to sell Motobesos Marcos V, a 6,350 TEU intermediate container ship built in 2005, to an unaffiliated third party for total consideration of $50 million, with delivery expected in October 2025. The vessel was originally acquired in Q4 2021 for $40 million, with an attached time charter at $42,000 per day for three years, followed by a fourth optional year at $15,000 per day, which was exercised by the charter. Upon completion of the sale we expect to recognize a gain exceeding $8.5 million or $1.2 per share.
Speaker Change: Please turn to slide four where we'll discuss our recent developments and operational highlights.
Speaker Change: We recently signed an agreement to sell most of the basins a lot closer to be a 6650 Teu intermediate container ships built in 2005 to an unaffiliated third party.
Consideration of $50 million with deliberate expected in October 25.
Speaker Change: The vessel was originally acquired in Q4 2021 for $40 million within the south of it $42000 per day for three years, followed by a full stop some of the year that $15000 a day, which was exercised.
Speaker Change: Upon completion of the sale, we expect to recognize a gain exceeding $8 million or 1.2 dollars per share.
Aristides Pittas: Our actual cash-on-cash return on the project is of course significantly higher. On the charter in France, we continue to strengthen our forward coverage by securing several high-value multi-year charters. Notably, Motovessel Monika was fixed for 24 to 26 months at $23,500 per day until at least May 2027. Motovesh Lerenapi was targeted for 35 to 36 months at $35,500 per day until at least July 2028. and motor vessel Emmanuel P was fixed for a period of 36 to 38 months at a daily rate of $38,000 until at least September 2028. Additionally, Motovershell EM Hydra was extended until at least May 2027 at $19,000 per day.
Speaker Change: Our actual cash from gasoline.
So significantly higher.
Speaker Change: On the chartering front, we continued to strengthen the food visits by securing several high value multi year charters.
Speaker Change: Notably motor vessel Monica with fixed footprint before to 10 to six months expenses to be in the $5000 per day until at least May 27.
Speaker Change: Most of the with live and be with Us for 35 to 36 months.
Speaker Change: Okay.
Speaker Change: Let's wait until at least July 2028, and.
Speaker Change: And most of the vessel demand will be fixed for a period of 36 to 38 months the daily rate of $58000 until at least September 2028.
Speaker Change: Additionally, most of it.
Speaker Change: It was extended until at least May 2027, $19000 for the day.
Aristides Pittas: These fixtures reflect our continued ability to secure long-term employment at highly attractive levels, providing strong cash flow visibility while reducing exposure to market volatility. Operationally, motor vessel Diamantispi and motor vessel Ienidra underwent repairs resulting in no higher periods of approximately 23 and 22 days expected. The Diamandis P is one of the vessels that was upgraded and then contributed to Giro Holdings and subsequently was sold. The Evra, which suffered a crane breakdown, had to undergo extensive repairs and face significant damage. The repair costs are covered by O'Halloran Machinery Underwriters, and we intend to claim any off-hire exceeding 14 days through our loss of hire insurance.
Speaker Change: This fixed.
Speaker Change: Next our continued ability to secure long term employment, it's highly attractive levels, providing strong cash flow visibility, while reducing exposure to market volatility.
Speaker Change: Operationally motor vessel <unk> and motor vessel, yeah, neither on the military beds, resulting in no.
Speaker Change: <unk> of approximately 23 and 22 basis.
Speaker Change: Yes. This is one of the vessels that was upgraded and then contributed to Yuval holdings and subsequent people. So.
Speaker Change: They either.
Speaker Change: The Canadian breaks it down.
Speaker Change: The extension to the beds and face significant downtime.
Speaker Change: The repair costs.
Speaker Change: Hello machinery underwriters and we intend to play and you guys exceeding 14 days, who are lots of private insurers.
Aristides Pittas: We experienced no commercial upheavals during the COVID-19 pandemic.
Speaker Change: We experienced no commercial off hire during the call.
Aristides Pittas: Please turn to slide 5.
Speaker Change: Please turn to slide five.
Aristides Pittas: On March 17th, we successfully completed the spin-off of Euroholdings, a new entity comprised of three subsidiaries of Euroseas, owning our three oldest versions. Motovessel Aegean Express, Motovessel Johanna, and Motovessel Diamantisti. The spin-off was executed via a Torata distribution of euro-holding shares to Euroseas shareholders at a ratio of 1 euro-holding share for every 2.5 Euroseas shares held, representing approximately 5% of Euroseas net asset value.
Speaker Change: But most 17, we successfully completed the spinoff of beautiful things a new entity comprised of three subsidiaries of Ulysses owning our three older.
Speaker Change: Most of the vessel Aegean Express motto vessel, Joanna and motor vessel <unk>.
Speaker Change: The spinoff was executed.
Speaker Change: The distribution of Yuval holding sales can you give us some shareholders.
Speaker Change: The ratio of one <unk> Hogan said for two of the top users he says.
Speaker Change: Representing approximately 5% of universities MIT.
Aristides Pittas: The recordings began trading on the Nasdaq under the symbol EHLD, on March 18th, 2025, as a separate company. Since the spin-off, it has had an average share price of around $5.6, roughly a 44% discount to NAB, with an average daily trading volume of 70,000 shares. The company's NAV as of March 31st, 2025 was approximately $10.05 per share.
Speaker Change: You have a closings and began trading on the NASDAQ under the symbol E. H L. D on Murphy <unk> five separate.
Speaker Change: Since the spinoff at the level of price to book around $546.
Speaker Change: Hopefully a 44% discount to a navy with the Netherlands daily trading volume of 70000 shares.
Speaker Change: The company the Navy as of March 31st 2025.
Speaker Change: At least $10.05 per share.
Aristides Pittas: The spin-off allows Euroholdings to operate independently, with its own management and board, while enabling Euroseas to focus exclusively on its younger, more efficient lead and growth strategy moving forward. Please turn to slide 6. The company has a fleet of 22 vessels, including 15 feeder container ships and 7 intermediate container ships, with a cargo capacity of approximately 67,000 TU and an average age of under 13 years.
Speaker Change: The spinoff allows holdings to operate independently with its own management and board widened, enabling viewership to focus exclusively on the youngest most efficient fleet and go strategy moving forward.
Speaker Change: Please turn to slide six.
Speaker Change: The company has a fleet of 22 vessels, including 15 feeder container keeps in 17.
Speaker Change: Container ships with a cargo capacity of approximately 67000 Teu and the number of days under 15 years.
Aristides Pittas: Additionally, we expect the delivery of our two intermediate container-ship nuke buildings in the fourth quarter of 2027, each with a capacity of 4,300 TEU, which will further increase the size and reduce the average age of our plants. Please turn to slide 7 for a further update on our fleet employment. We continue to benefit from strong global coverage. For 2025, approximately 97% of our available vessel dates have already been secured at an average rate of $28,250 per day, providing strong visibility into this year's earnings. Looking ahead into 2026, we have already covered approximately 67% of our available days, at an even higher average rate of $31,600 per day.
Speaker Change: Additionally, we expect the Liberty of about two intermediate containership new buildings in the fourth quarter.
Speaker Change: Since he seven each with a capacity of 4000 because of the Teu, which will further increase the size and reduce the average age of about.
Speaker Change: Please turn to slide seven for a further update on our fleet employment.
Speaker Change: We continue to benefit from strong for almost all of them.
Speaker Change: For 2025, approximately 97% above available vessel days have already been secured at the livelihoods of eight of 28260.
Speaker Change: $60 per day, providing strong visibility into this years.
Speaker Change: Looking ahead into 2026, we have already covered approximately 67% of available days, if they leave and hired a bit of debate.
Speaker Change: <unk> $1600 could be.
Aristides Pittas: This level of coverage, achieved through a disciplined chartering strategy, which is neither too defensive nor too aggressive, significantly enhances our revenue stability and allows us to optimize our revenue stream across the market.
Speaker Change: This level of Cadbury.
Speaker Change: Through a disciplined cycling.
Speaker Change: Which is neither to defense you look to a good.
Speaker Change: Significantly enhances our revenue stability and allows us to monitor.
Speaker Change: When used to be close to the market cycle.
Aristides Pittas: Moving on to slide nine, we go over the market highlights for the first quarter of 2025. In the first quarter of 2025, one-year time charter rates remain strong, supported by tight vessel availability and sustained demand across all side sectors. A significant portion of the container fleet has been fixed forward, and in early June, charter rates have continued to trend upward, remaining at a historically elevated level. Compared to Q4 2024, average charter rates have increased by 10% for feeder vessels and by 4% for panamax and post panamax vessels.
Speaker Change: Moving on to slide nine we go over the market highlights for the first quarter of 2025.
Speaker Change: In the first quarter of 2025, one year time charter rates have remained strong supported by tight vessel availability and sustained demand across all size segments.
Speaker Change: A significant portion of the container fleet has been fixed pool and in early June charter rates have continued to trend up through the remaining at historically elevated levels.
Speaker Change: Q4, 'twenty 'twenty four I believe it's a survey.
Speaker Change: <unk> has increased by 10% for the vessels and by 4% for Panamax and post Panamax vessels.
Aristides Pittas: Looking at the broader market landscape, 2025 is shaping up to be an interesting year, marked by heightened geopolitical risk and shifting global trade dynamics. Ongoing wars and political tensions continue to disrupt traditional trade routes while rising protectionism has introduced further inefficiencies. As a result, forecasting remains challenging, as we will discuss later on in this presentation. The average second-hand price index rose by approximately 4.5% in Q1 2025 compared to Q4 2024, supported by limited vessel availability and competitive fleet expansion efforts among buyers. The new building's pricing moved largely sideways in Q1 2025 compared to the previous quarter, though still at a hugely elevated level.
Speaker Change: So looking at the broader market landscape since it so I would say setting up to be an interesting year marked by heightened geopolitical levees and shifting global demand.
Speaker Change: Well I'm going to go up in political tensions continue to disrupt the traditional trade routes when the rising protectionism could be introduced into living.
Speaker Change: Living deficiencies.
Speaker Change: As a result forecasting that remain challenging as we will discuss later on in this presentation.
Speaker Change: Second hand price index rose by approximately four 5% in Q1 2025 compared to Q4 2012.
Speaker Change: Before supported by limited vessel availability and competitive fleet expansion efforts among buyers.
Speaker Change: The new buildings pricing moved largely sideways in Q1 five.
Speaker Change: Compared to the previous call.
Austin: Austin, it's hugely elevated message.
Aristides Pittas: Demand for new vessels remains strong, particularly for fuel-efficient and eco-design. Yet ordering has decelerated slightly due to limited shipyard capacity, rising material costs, and macroeconomic uncertainty. Meanwhile, the idle fleet, excluding vessels under repair, has continued to shrink, standing at just 0.19 million TEU as of June 2025, 0.6% of the global fleet. roughly non-existent. This reflects tight tolerance availability and robust lead utilization. Recycling activity also remains subdued here today, with just nine vessels totaling 5,000 EU cents for demolition.
Speaker Change: Demand for new vessels remained strong, particularly for fuel efficient and equity side, yes.
Speaker Change: Cause decelerated slightly limited shipyard capacity rising material cost metric.
Speaker Change: The macroeconomic uncertainties.
Speaker Change: Meanwhile, the island fleet, excluding vessels under the bank has continued to shrink same thing, it's a boy 19 million.
Speaker Change: As of June 25.
Speaker Change: 0.6% of the global fleet.
Speaker Change: But absolutely nonexistent.
Speaker Change: This reflects site availability and robust.
Speaker Change: The legislation.
Speaker Change: The recycling activity also remains subdued with year to date with just nine vessels totaling 5000 Teu sent for demolition.
Aristides Pittas: However, with approximately 25% of the sub-8000 TEU fleet over 20 years old, we anticipate that scrapping volumes could rise should market conditions soften. Grab prices is likely to $470 per lightweight ton in Q1 2025. And lastly, the global container ship fleet expanded by 3.3% already year-to-date, not accounting for idle vessel reactivation.
Speaker Change: Oh awesome looking 75%.
Speaker Change: The sub 8000 Teu.
Speaker Change: Your fleet over 20 years old we anticipate the scrapping volumes could did I should the market conditions softened.
Speaker Change: Good advice.
Speaker Change: Slightly to $470 per night, which started in Q1, but had been spud.
Speaker Change: And lastly, the global Containership fleet expanded by three 6% on the baby yesterday looked accounting for west of the four items.
Speaker Change: Sure.
Aristides Pittas: Please turn to slide 10 for a broader market overview, focusing on the development of 60 12-month time charter rates over the past 10 years. As illustrated in the graphs on this slide, container ship charteries continue their strong upward momentum in the first quarter of 2025, fueled by limited vessel availability and sustained demand across sea trade. As of June 13, 2025, the 6 to 12 month time shutter rate for a 2,500 T.E.U. container ship reached approximately $35,000 per day, more than three times the historical median of $11,000 per day, and significantly above the 10-year average of about $20,500.
Speaker Change: Please turn to slide 10 for a broader market that you're focusing.
Speaker Change: The development of 612 month time charter rates over the past 10 years.
Speaker Change: As illustrated in the graphs on this slide containership charter rates continued their strong upward.
Speaker Change: The momentum in the first quarter.
Speaker Change: Fueled by limited vessel availability and sustained demand for speed.
Speaker Change: Great.
Speaker Change: As of June 13th 2025, the six to 12 month time charter rate for 2000 Teu container ships at least the books looking $55000 someday.
Speaker Change: More than three times, the historical museum of $11000 per day.
Speaker Change: Significantly above the 10 year.
Speaker Change: It's about thinking about those.
Speaker Change: So that's a little bit.
Aristides Pittas: This trend of elevated rates is consistent across all vessel sizes, underscoring the sector's market focus.
Speaker Change: This trend of elevated debate is consistent across all vessel sizes.
Speaker Change: Clothing, the Texas markets.
Aristides Pittas: Please turn slide left. The IMF April 2025 update presents a more cautious global economic outlook, revising its global GDP growth forecast for 2025 downwards to 2.8%, from 3.3% projected just three months ago in January. Global growth in 2026 is expected to edge up modestly to 3%, but still lower than the 3.3% expected. In the last week, The world has experienced an even larger conflict in the Middle East, with more aggressive tensions rising between Iran and Israel. The World Bank cut its forecast growth for 2025 down to 2.3%. noting increased trade tensions and policy uncertainties. The revision from both institutions reflects mounting downside risks intensified by the United States announcement of multiple tariffs of major trading partners and sectors, and the new war erupting in the Middle East.
Speaker Change: Please turn to slide 11.
Speaker Change: Yeah, I am an April 2025 updates for Vince.
Speaker Change: Coach's global economic outlook outlook, revising its global GDP growth forecast.
Speaker Change: Downloads to two 8% from three points to meet the projected just three months ago in January.
Speaker Change: Global growth in 2020 is expected to edge up modestly to 3%, but still lower than the 3.3% expected.
Speaker Change: In the last week.
Speaker Change: The World has experienced an even larger bulk in the middle east with a more aggressive extensions rising between Nevada and ease of a piece of it.
Speaker Change: The Wattenberg Capex focused growth for 2025 down to two 3%.
Speaker Change: No thing I'm convinced trade tensions and polishing.
Speaker Change: The reason from both institutions they reflect mounts mounting them to say the least intensified by the United States announcements.
Speaker Change: It was a major Beijing buses and sectors.
Speaker Change: New born without being in the Middle East.
Aristides Pittas: These global tensions and heightened policy uncertainty have shaped the outlook for the remainder of 2025 and 2026. According to IMF projections, the US projected growth rate has been reduced by nearly 1% to 1.8% for 2025 and 1.7% in 2026, from the previously expected 2.8% and 2.1% perspective. The other advanced economies have also taken a beating compared to previous expectations, with Europe's growth forecast at just 0.8% this year and 1.2% next year. Many European countries continue to face subdued domestic demand, manufacturing weakness, and the lingering effects of the energy shock. U.S. government policy remains largely in focus these days due to the direct impacts of Titus and possible countermeasures.
Speaker Change: These global tensions and heightened policy uncertainties.
Speaker Change: The outlook for the remainder of <unk>.
Speaker Change: Slide.
Speaker Change: Six.
Speaker Change: According to IMF projections that United States projected go live to date that has been reduced by nearly 1% to.
Speaker Change: One, 8% or something if it's five 7% from 26 some of the previously expected two point based on 241% respectively.
Speaker Change: But the other advanced economies have also taken the BP compared to previous expectations with Europe is forecast at this 0.8% this year and one 2% mix.
Speaker Change: Many European countries continued to face subdued domestic demand.
Speaker Change: And in fact, Sterling weakness and the lingering effects of.
Speaker Change: Sure.
Speaker Change: U S government policy remains largely importance these days than direct.
Speaker Change: It's impossible.
Speaker Change: Yes.
Aristides Pittas: Of course, this has the potential to help even wider duplication. Global inflation continues to trend downwards, but at a pace that is slower than what was expected in January. The headline inflation is expected to end at 4.3% in 2025 and 3.6% in 2026. with notable upward revisions for advanced economies and slight downward revisions for emerging markets and developments. However, the near-term past price stability remains the same. Persistent surges and rate inflation in several economies, coupled with rising protectionism and demographic headwinds, may delay full conversion to target inflation levels. As a result, central banks are expected to maintain a more cautious approach to monetary policy than has previously been thought.
Speaker Change: Of course, because of the potential that'd be Budweiser duplication.
Speaker Change: Global inflation continues to trend downwards, but the base that it's slower than what was expected in January.
Speaker Change: We've got laid in place and expect it to end at four 2% and since it's been five 6%.
Speaker Change: Okay.
Speaker Change: With notable upward revisions for advanced Gordon and Phil.
Speaker Change: Lights down.
Speaker Change: Provisions for the emerging markets and developing buses.
Speaker Change: However, the near term path to price stability remains uneven.
Speaker Change: The assistance services and rate inflation in certain economies, coupled with rising protectionism to look it up.
Speaker Change: Maybe may full conversions are done differently.
Speaker Change:
Speaker Change: Does it resolve central banks are expected to maintain a more cautious approach to monetary policy.
Speaker Change: Previously been sold.
Aristides Pittas: Emerging markets remain the primary drivers of global growth. India is expected to expand by 6.2% and 6.3% in 2025 and 2026, respectively, fueled by strong investment, robust agriculture, and the dynamic services sector. Similarly, the Asian five countries are also projected to hold parity games. In China, growth has been revised downwards to 4% in both 2025 and 2026, and in addition to the Trump-induced effects, structural challenges persist, particularly around weak domestic consumption, deflationary pressures, and instability in the policy sector.
Speaker Change: Emerging markets remain the primary drivers of local schools.
Speaker Change: India is expected to expand by $6 43.
Speaker Change: 3% and 65.
Speaker Change: Respectively.
Speaker Change: By co investment, but because of the dynamics of the sector.
Speaker Change: Similarly, I believe is in five countries Oh.
Speaker Change: It supports that.
Speaker Change: Oh, sorry loan growth has been revised downwards to 4% in both been since I haven't been to see that.
Speaker Change: Recently, the drought induced effects, but absolute Saturday.
Speaker Change: Literally in the midst consumption deflation that impressive.
Speaker Change: In the public sector.
Speaker Change: Six.
Speaker Change: Yeah.
Aristides Pittas: Turning to the demand outlook, Clarkson's latest estimates from May 2025 project global container trade to grow by 2.2% in 2025, a notable upward revision from a negative 0.2% in March 4. and they had then predicted a much more aggressive... unwinding or relooting within 2035, which is something that now seems increasing. with Tide Vessel Availability This reflects a more resilient environment than previous years.
Speaker Change: Seven because the demand outlook Clarksons latest estimate for May 25.
Speaker Change: Global container trade to grow by two 2%.
Speaker Change: Notable upward into the region from a negative 0.2% that much focus is there.
Speaker Change: He had been predicted and much more aggressive.
Speaker Change: Unwinding, all but eluting with infants.
Speaker Change: I'm going to do something but now it seems that.
Speaker Change: Super.
Speaker Change: Yeah.
Speaker Change: [noise] this size vessel availability.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: This reflects a more convenient and vitamins in previous years.
Speaker Change: Okay.
Aristides Pittas: Re-routing is now expected in 2026, depending on the outcome of the current geopolitical stress.
Speaker Change: So when you're losing is now expected in 2026, depending on the outcome of the government geopolitical situation.
Aristides Pittas: Turning on slide 12, where you can see the total Fleet H profile and container ship order. The container ship fleet is relatively young, with most vessels under 15 years old, and only 12% of the fleet over 20 years old. As of June 2025, the Older Brook as a percentage stands at a very high 29.4%.
Speaker Change: Turning on to Slide 12, where you can see the total fleet for fun and.
Speaker Change: And companionship.
Speaker Change: The containership fleet is relatively young with most vessels under 15 years old and older.
Speaker Change: As a percent of the fleet over 20 years old.
Speaker Change: As of June 2025.
Speaker Change: The root cause of the sense. It stands at the very high 59, 4%.
Aristides Pittas: Turning on to slide 13, we go over the Flea-Tate profile that looks only for ships in the 1,000 to 3,000 EU range, the sizes we mostly operate. With a much older fleet, they also would see a stand at just under 5% above June 2025. According to Clarkson's, the new building delivery for feeder and intermediate-sized container ships is expected to remain limited over the next several days. In 2025, deliveries for vessels under 3,000 P.U. are projected to amount to just 2% of the existing fleet. This already modest growth is expected to slow even further to 1.3% in 2026, followed by 1.9% in 2027, and up to now just 0.5% in 2028 and beyond.
Speaker Change: Turning on Slide 15, we go over the fleet age profile of the loan book.
Speaker Change: Only four six and the 1000 to 3000 Teu abating.
Speaker Change: Sizes most of them.
Speaker Change: Most of the authorization.
Speaker Change: With a much older fleet. They also see a sense of just under 5%.
Speaker Change: But.
Speaker Change: According to Clarksons, the new building deliveries for pizza and intermediate size some payments.
Speaker Change: Expect it to remain limited over the next several years.
Speaker Change: 25 deliveries for vessels 2000 Teu.
Speaker Change: I could throw a monkey just 2% of the existing fleet.
Speaker Change: And be sure that it'd be modest growth is expected to slow even further to one 3% from 2015.
Speaker Change: All of those by one 9% in Kensington to Samsung.
Speaker Change: No just zero point.
Speaker Change: 5%.
Speaker Change: Don.
Aristides Pittas: In slide 14, we discuss the different supply outlooks for the two container subsegments. with a particular focus on the Fiddler and Intermediate-sized vessels under 8,000 kg. The global order which remains heavily concentrated on the large vessels servicing main lane routes with significant capacity growth expected in that segment. However, physical and intermediate vessels are essential for regional distribution. face a very different supply outcome. Their order books are extremely limited, and the existing fleet is relatively old, with a large percentage of vessels over 10 years of age. These aging units are prime scrapping candidates, particularly as environmental regulations tighten.
Speaker Change: In slide 14, we discussed in different supply outlook for the container segment.
Speaker Change: But with a particular focus on the pizza.
Speaker Change: Sorry.
Speaker Change: 8000 Teu.
Speaker Change: The global loan book remains heavily concentrated on the lot of the vessels.
Speaker Change: Servicing mainly.
Speaker Change: Capacity.
Speaker Change: Spectra Didnt that shake loose.
Speaker Change: However.
Speaker Change: Immediate vessels instead of essential for regional distribution face a very different supply.
Speaker Change: Their order books are extremely limited.
Speaker Change: And the existing fleet is relatively old.
Speaker Change: With a large percentage of vessels over 10 years would be.
Speaker Change: These anything unique.
Speaker Change: Scrapping candidates, particularly as anybody momentum the regulation side.
Aristides Pittas: As a result, it is quite possible that the fleet capacity for feeder and intermediate containerships may actually decline even as the overall container ship fleet continues to grow.
Speaker Change: As a result, it is quite possible that the fleet capacity people pizza at intermediate some payments you may actually be flying you're going to be.
Speaker Change: But oracle data could be.
Speaker Change: You should go.
Aristides Pittas: This evolving supply backdrop supports a structurally tight market in our operating segment, with favorable indications for best utilization and saturation moving forward.
Speaker Change: This evolving supplied by the public support just factually type markets.
Speaker Change: He can segment with favorable indications for vessel utilization and charter rates moving forward.
Speaker Change: Yeah.
Aristides Pittas: Moving on to slide 15. Turning to the broader outlook, the container shipping market in the remainder of 2025 is expected to be saved by three major forces. the possible regrouping of vessels away from the Swiss Canal, the pending outcome of U.S. trade ties decisions, and the escalating Iran-Israeli conflict, depending on its intentions. It seems unlikely that these issues will be resolved soon, so we now expect the market to remain relatively strong and resilient throughout the year.
Speaker Change: Moving on to slide 15.
Speaker Change: Turning to the broader outlook the container shipping market in the remainder of 2025.
Speaker Change: Expect it can be saved by three major forces.
Speaker Change: The possible.
Speaker Change: Vessels away from the system.
Speaker Change: Pending outcome of USA status decision in there.
Speaker Change: Escalating at around noon today Nicole it.
Speaker Change: Depending on the extent.
Speaker Change: Yeah.
Speaker Change: It seems unlikely that these issues will be resolved soon so we now expect the market to remain relatively strong and the resilience throughout the year.
Aristides Pittas: As we need to form a company strategy, we have to make several assumptions as to how things will develop in 2020. We thus assume that the voting will probably be a 20-20. Similarly, tensions within the Middle East will hopefully be alleviated within 2026 too. And finally, the impact of your status will not be as severe as originally announced.
Speaker Change: I think we need to form a company strategy.
Speaker Change: Make sense over the summer.
Speaker Change: As to how things are developing.
Speaker Change: Yes.
Speaker Change: We just assume that we're hoping.
Speaker Change: It will probably be.
Speaker Change: You bet.
Speaker Change: Similarly, Samsung within the Middle East will hopefully be alleviated with incentive six two.
Speaker Change: Finally, the impact of U S dollars will not be as severe as the lead.
Speaker Change: No.
Aristides Pittas: Based on these main assumptions and the high order books, particularly in the larger sectors, it will be logical to predict that there will be a correction in the market in the next couple of years. With this in mind, we proceeded to secure as long an employment as we could in the extremely high and rewarding current market. However, the latest escalation in the Middle East geopolitical framework may result in the markets to continue being disrupted and strong for much longer.
Speaker Change: Based on these maintenance Samsung and Ohio.
Speaker Change: Particularly in the largest sectors.
Speaker Change: Would it be logical to predict that there will be a collection and good luck in the next couple of years.
Speaker Change: With this in mind, we proceeded to secure as long as employment is extremely high and it won't be covered most of it.
Speaker Change: However, the latest Escalations immediately the political framework that is out in the market to continue being disrupted and so for much longer.
Speaker Change: We will see.
Aristides Pittas: Finally, on the other front of shipping uncertainty, we continue to worry about the energy transition and how this will affect our markets. The process is progressing, though, at a slower pace than initially expected, as technical and economic constraints persist. The recent shift of the U.S. administration's stance on climate policy may delay adoption further, but it is unlikely to reverse the broader decarbonization threat already underway in the South. Currently, eco-efficient vessels are increasingly commanding premium satellites as demand for sustainable transport solutions increases.
Speaker Change: Finally on the other forms of shipping consistent shipping uncertainty, we continue to worry about the energy transition and how this will affect our markets.
Speaker Change: The process is progressing go at the slow, though at a slower pace than initially expected technical and economical Facebook.
Speaker Change: The recent shift of a U S based on blinded potency maybe delay adoption further.
Speaker Change: But it is unlikely to reverse the both of them you've got consolidation right all of ATM to weigh in the sector.
Speaker Change: Got it.
Speaker Change: The vessels are increasingly commanding premium sadly as demand for sustainable transport solutions.
Aristides Pittas: Now please turn to slide 16. The left-hand side graph shows the cycle of the one-year time cycle rate for two-and-a-half thousand PEU containers over the past ten years. As of June 13th, the one-year time starter rate for 2,500 TD containers stood at $35,000 per day. This, despite being below its peak, still extremely high and rewarding and much higher than historical averages. Similarly though, both new buildings and second-hand prices have also increased in the past year and also remain significantly above historical averages. In this environment of high prices and high charter rates, we continue to be trying to identify opportunities that would further enhance shareholders' value.
Speaker Change: Now please turn to slide 16.
Speaker Change: The left hand side graph shows the cycle over the one year time charter rate.
Speaker Change: <unk> thousand Teu containership.
Speaker Change: Over the past.
Speaker Change: As of June 30, the one year time charter rate.
Speaker Change: You can obtain a huge students $5000 per day.
Speaker Change: Despite being below its peak.
Speaker Change: Still extremely high and the evolving and much higher than slowly collaboratively.
Speaker Change: Similarly, though both new building in secondhand prices have also introduced from the past year and also remain significantly above so that's a lot better.
Speaker Change: In this environment of high prices and the types of obsolete.
Speaker Change: We continue to be trying to identify opportunities.
Speaker Change: Further on how successful but.
Aristides Pittas: We feel that Euroholdings is one such example as the current valuation of Euroseas and Euroholdings combined has outperformed all the other similar listed companies in our universe since Euroholdings started trading alone on March 18.
Speaker Change: We feel that you are holding is one such example is the current valuation of Nutrisystem holdings combined cause output for all the other similar listed companies do not agree with you that.
Speaker Change: Since you were quoting something phasing alone.
Speaker Change:
Anastasios Aslidis: And with that, I will pass the floor to our CFO, Patrick Aslidis, to go over our financial highlights and purposes. Thank you very much Aristides, good morning from me as well. As usual, over the next four slides, I will give you an overview of our financial highlights for the first quarter of 2025 and compare those results to the same period of last year.
Speaker Change: And with that I will pass the floor to our CFO to go over our financial highlights and purpose.
Speaker Change: Thank you very much understand this good morning from me as well, ladies and gentlemen.
Speaker Change: As usual I'll cover that.
Speaker Change: Next four slides I will give you an overview.
Speaker Change: Financial highlights for the first quarter of 2025 and.
Speaker Change: And compare those results to the same familiar from last year.
Anastasios Aslidis: For that, let's turn slightly. For the first quarter of 2025, we reported total net revenues of $56.3 million, representing a 20.6% increase over total net revenues of $46.7 million during the first quarter of last year. We reported a net income for the period of $36.9 million, as compared to a net income of $20 million for the first quarter of 2024.
Speaker Change: For that lets turn to slide 10.
Speaker Change: For the first quarter of 2025, we reported total net revenues of $56 3 million.
Speaker Change: Putting the six first time, okay as well.
Speaker Change: Total net revenues of $46 7 million during the first quarter of last year.
Speaker Change: We reported a net income for the period.
Speaker Change: $36 nine minimum.
Speaker Change: <unk> to net income of $20 million for the first quarter of 2024.
Anastasios Aslidis: Interest and Finance Course. for the first quarter of this year amounted to $4 million, which after deducting capitalized imputed interest income of $0.1 million, produced by the self-financing of the pre-delivery payment for the two vessels who took delivery in January. and also interest income of 0.5 million, resulted in total interest and finance cost net of 3.4 million as compared. to interest and other financing costs net of $1.3 million for the same period of 2024. during which period we have deducted from the interest the interest income due to the self-finance of new buildings of the pre-delivery installments of new buildings of 1.4 million and interest income of half a million.
Speaker Change: Interest and finance costs.
Speaker Change: For the first quarter of this year.
Speaker Change: Mounted two 4 million, which after deducting capitalized.
Speaker Change: Net interest income.
Speaker Change: <unk>.
Speaker Change: Produced by our announcement of the quake.
Speaker Change: You mean very payment for the two vessels were delivered in January.
Speaker Change: And also interest income of 45 million.
Speaker Change: Tucker.
Speaker Change: Finance cost.
Speaker Change: Net of $3 4 million as compared to.
Speaker Change: Interest and other financing costs net well.
Speaker Change: One 3 million for the same period of time before.
Speaker Change: Yeah.
Speaker Change: You're in which the younger than what you have.
Speaker Change: With that.
Speaker Change: Yeah from the interest.
Speaker Change: Sure.
Speaker Change: Income, Utah, some financial buildings, well delivering stronger billings of $1 4 million in interest income off property then again.
Anastasios Aslidis: The increase of our interest expense in this quarter is due to the increased amount of debt.
Speaker Change: The increase.
Speaker Change: Interest expense.
Speaker Change: This quarter, you have to say increased amount of debt.
Anastasios Aslidis: and compared to the same period of life. Adjusted EBITDA for the first quarter of 2025 was $37.1 million, compared to $24.6 million achieved during the first quarter of 2024, primarily as a result of the increased number of vessels we operated on average during the period, and also on the lower dry docking expenses we incurred in this quarter compared to the same period of last year.
Speaker Change: And compared to the same period last year.
Speaker Change: Exactly.
Speaker Change: First quarter of 'twenty 'twenty four 'twenty five.
Speaker Change: Seven 1 million compared to $24 6 million achieved during the first quarter of 2024, primarily as a result of the.
Speaker Change: The increased number of vessels, we operated on average.
Speaker Change: And also on the lower dry docking expenses wing pure English quarter comparison or.
Speaker Change: In the same period of last year.
Anastasios Aslidis: basic and basic earnings per share. For the first quarter of 2025. were $5.31 basic and $5.29 diluted, calculated on about 7 million basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $2.89 and $2.87 respectively. for the first quarter of last year, again calculated on about 7 million, 6.9 and 7 million weighted average number of cells.
Speaker Change: Basic and diluted earnings per share.
Speaker Change: For the first quarter of <unk>.
Speaker Change: That was $5.
Speaker Change: 31, basic and $5 <unk> 29 diluted.
Speaker Change: What's your latest on about 7 million basic and diluted weighted average number of shares outstanding compared to basic and diluted earnings per share or two.
Speaker Change: 2.9.
Speaker Change: Nine to $97 respectively.
Speaker Change: For the first quarter of last year again when about.
Speaker Change: 769 7 million.
Speaker Change: Weighted average number of shares outstanding.
Anastasios Aslidis: excluding the effect on the net income for the quarter of the unrealized gain or loss in derivative. the amortization of below-market time charges acquired. appreciation due to the increased value of the. are below market time charts acquired, and more importantly, the gain on sale of the vessel we sold. The adjusted earnings per share for the quarter ended March 31st, 2025, which have been $3.76 basic and diluted. compared to adjusted earnings of 2.67 basic and 2.66 diluted for the same period of last year.
Speaker Change: Excluding the effect on.
Speaker Change: On the net income for the quarter.
Speaker Change: The unrealized.
Speaker Change: James or Lachlan theory buttons.
Speaker Change: The amortization of below market time charter supplies.
Speaker Change: Depreciation due to the increased value.
Speaker Change: Our below market time charter stock why and more importantly, the gain on sale of the vessels that we sold.
Speaker Change: Adjusted earnings per share for the quarter ended March 31st 95 would have been $3 76.
Speaker Change: Banks, you can diagnose it.
Speaker Change: Compared to adjusted earnings of $2 67, basic and two points.
Speaker Change: Diluted for the same.
Speaker Change: Yes.
Anastasios Aslidis: Let's turn to slide 9. to review our flipper form. Again, as usual, we will start our review by first examining the utilization rates for the period. of this year compared to last year. And again, as usual, our utilization rate is broken down to commercial and operational. During the first quarter of 2025, our commercial utilization rate was 100%, while our operational utilization rate was 99.2%, as Steve explained the reasons, compared to 99.8% commercial and 99.9% operational for the same period of the previous year. On average, this quarter, we operated 23.68 vessels. has earned an average time charge equivalent rate of $27,563 per day compared to 19.6 vessels for the first quarter of 2024, earning an average $27,806 per vessel per day.
Speaker Change: Let's turn to slide 19.
Speaker Change: To review our fleet performance.
Speaker Change: Again as usual, we will start our review by first examining our utilization rates for the for the period.
Speaker Change: Yeah.
Speaker Change: This year compared to last year.
Speaker Change: And again as usual our utilization rate is broken down into commercial and operational.
Speaker Change: During the first quarter strengthened by our comparison of utilization correct. It was 100% while our progression on utilization rate was 99, 2%.
Speaker Change: Explain their exams compared to 99, 8% Comercio and 99, 9% operational for the same younger.
Speaker Change: Yeah.
Speaker Change: On average this quarter.
Speaker Change: We operate 23 points 60 anchor vessels.
Speaker Change: S combat and you cannot watch time charter equivalent rate of $7565 per day compared to 19 six vessels for the first quarter placements for Bancolombia has 27000 8000 ethics.
Speaker Change: Right.
Anastasios Aslidis: Our total operating expenses, including management fees, G&A expenses, but excluding dry docking costs, were, for the first quarter of 2025, $7,511 per vessel per day, compared to $7,963 per vessel per day for the same period of last year. If we move further down on this table, we can see the cash flow break-even rate, which takes also into account dry docking expenses, interest expenses, and loan repayment. Thus, for the first quarter of 2025, our daily cash flow break-even rate was $13,062 per vessel per day, compared to $17,000. $171 per vessel per day for the first quarter of last year.
Speaker Change: Our total operating expenses.
Speaker Change: Management fees.
Speaker Change: <unk> expenses, but excluding drydocking costs were.
Speaker Change: For the first quarter of 2025, 7000 products and $11 per vessel per day, compared to 7000 tons or $63 per vessel per day for the same period of last thing here.
Speaker Change: You've got more farther down on this table, we can see the cash flow breakeven rate, which takes all shrink to account dry docking expenses interest expenses and loan repayments.
Speaker Change: <unk> for the first quarter of 2025, our daily cash flow breakeven rate.
Speaker Change: $13000.
Speaker Change: Per vessel per day compared to 17000.
Speaker Change: $1007 per vessel per day for the first quarter of last year.
Anastasios Aslidis: A big part of the difference having to do with lower low energy. and Laura Deidler.
Speaker Change: A big part of it starting to do with longer and longer payments and lower dry dock costs.
Anastasios Aslidis: At the bottom of this table, we can also see our common dividend. expressed on a pervasive today basis. Our dividend for the first quarter of 2025 equates to about $2,118 per vessel per day compared to $2,328 per vessel per day in the corresponding period of last year.
Speaker Change: At the bottom of this table, we can also see our common dividend.
Speaker Change: Expressed on a per vessel per day basis.
Speaker Change: Our dividend for the first quarter of <unk> equates to about 2001.
Speaker Change: Per vessel per day compared to 2000.
Speaker Change: And $28 per vessel per day in the corresponding periods of last year.
Anastasios Aslidis: Let's now move to slide 20. to review our debt profile. As of March 31st, 2025, our total outstanding bank debt stood at $244 million, with an average interest margin of approximately 2.04%. assuming a three-month suffer rate of 4.31 percent. This translates to a cost for our senior debt, our own debt. of 6.35. Taking here also into account our interest rate swaps, where approximately 8.2% of our debt has been swapped for a fixed rate of a little lower, 3.41%, makes our blended cost of debt effectively down to 6.3%. We have scheduled low underpayments for the rest of the year of approximately $18.4 million.
Speaker Change: Let's now move to slide 20.
Speaker Change: To review our debt profile.
Speaker Change: As of March 31st 2025 of our total outstanding Bank debt.
Speaker Change: Two 4 million.
Speaker Change: In other words in terms of margin of approximately 2.0% to 4%.
Speaker Change: Assuming a three months software write off.
Speaker Change: Well for.
Speaker Change: One person.
Speaker Change: This translates to a cost for our senior debt how long did that.
Speaker Change: 675%.
Speaker Change: Taking care of also into account our interest rate swaps, where.
Speaker Change: Approximately.
Speaker Change: Eight 2% of our debt is being swapped for a fixed right. So I mean, lower end point, 41% make.
Speaker Change: It makes our blended cost of debt effectively down to six 3%.
Speaker Change: We should expect or on their payments.
Speaker Change: Payments for the rest of the year.
Speaker Change: Two for me.
Anastasios Aslidis: plus a seven million balloon. thus reducing the outstanding debt by the end of this year to about $213 million.
Speaker Change: The loss of 7 million below them.
Speaker Change: And you're seeing the outspend.
Speaker Change: At the end of this year about 200 and that sort of thing.
Anastasios Aslidis: In 2026, Schedule I repayments are expected to total... $19.5 million with no balloon payment due. In 2027, we anticipate making $16.8 million in loan repayments, alongside the $20 million of balloon payments. resulting in total expected scheduled debt repayments in 2027 of about 36.8%.
Speaker Change: In 2026 scheduled loan repayments are expected to total.
Speaker Change: $19 5 million with no balloon payment due.
Speaker Change: 2027 were anticipate making $16 8 million longer payments alongside their thinking millions of barrels.
Speaker Change: <unk> payments.
Speaker Change: And is that if you can talk about expected scheduled.
Speaker Change: Payments and <unk> seven are about $36 eight.
Anastasios Aslidis: I would like to draw your attention now at the bottom of the slide, where we present our cash flow breakeven level for the next 12 months. And also, we break it down to its components. Overall, we expect a cash-flow-break-even level. be around $12,673 per vessel per day, a level that, as you can realize, is significantly below the average daily earnings of our customers.
Speaker Change: I would like to draw your attention now.
Speaker Change: Bottom of the slide where we present, our cash flow breakeven level for the next number of months and also we break it down to its components.
Speaker Change: Overall, we would expect.
Speaker Change: And cash flow breakeven level.
Speaker Change: To be around $12676 per vessel per day.
Speaker Change: As you can realize.
Speaker Change: Certainly below the average daily habit amongst.
Speaker Change: Sure.
Anastasios Aslidis: To sum up my presentation, let's move to slide 21. and review some highlights from our ballot. As of March 31st, 2025, we had cash and other current assets of about $106.4 million. while we have made advances for our two new buildings, close to about 8 million. In addition, our assets include the book value of our ships, which stood at 524.2 million, resulting in total book value for our assets and our balances of about 648.8 million. On the liability side, as I mentioned earlier, we had debt of $244 million. which represents about 38% of the book value of our assets.
Speaker Change: To sum up my presentation, let's move to slide 21.
Speaker Change: And then give you some highlights from our balance sheet.
Speaker Change: As of March 31st 195.
Speaker Change: Cos and Lubbock prime assets of about $606 4 million.
Speaker Change: While we have made advances for our two new buildings.
Speaker Change: Close to about 18.
Speaker Change: In addition, our assets include the book value of our ships, which stood at the park vans and $24 2 million, resulting total book value of our assets and our balance sheet of about $648 8 million.
Speaker Change: On the liability side as I mentioned I've been here.
Speaker Change: We had debt of 244 million.
Speaker Change: This represents about 78% of the book value of our assets. We also get other liabilities.
Anastasios Aslidis: We also have other liabilities. that amounted to about $25 million, that amounted to about 4% of the book value for our assets, leaving us with a book value of shareholders equity of about $377 million, or $54.8% book However, it is important to mention here that the market value for our fleet, adjusted for the charges that we have. It needs to be higher than it's book-wide.
Speaker Change: Amounts for about 25 million.
Speaker Change: This amounted to about 4% of the book value for our assets, leaving us with a book value or shareholders equity per box.
Speaker Change: Seven 7 million or 64 points, a bolus effect.
Speaker Change: Book value.
Speaker Change: However, it is important to mention here that the market value of our fleet.
Speaker Change: But for the charges that we can.
Speaker Change: Significantly higher than its book value.
Anastasios Aslidis: We estimate that at the end of March. The Charter adjusted the value of our fleet to be $144 million higher than its book value, thus resulting in net asset value per share of our company in the range of $74 to $75. And despite the recent increase of our share price during the last two weeks, which is trading between $40 and $45 per share. evidence that our stock trade is a significant discount to our net asset value. highlighting the substantial upside of our shares and the prospective gains for our shareholders and investors.
Speaker Change: We estimate.
Speaker Change: The end of March.
Speaker Change: Oh 2025.
Speaker Change: Charter adjusted value far from it.
Speaker Change: At Camden and $44 million higher.
Speaker Change: Book value, that's resulting in net asset value per share.
Speaker Change: Our company very well.
Speaker Change: 74 to $75.
Speaker Change: And despite the recent increase of our share price during the last two weeks, which is trading between 40 and $45 per share.
Speaker Change: It is evident that our folks right a significant discount to our net asset value.
Speaker Change: Highlighting the substantial upside.
Speaker Change: And the perspective gains for our shareholders and investors.
Aristides Pittas: With that remark, I would like to turn the floor back to Aristides to continue our... Thank you very much, Tasso.
Speaker Change: Without the remark I'd like to turn the floor back to where it needs to continue work on them.
Speaker Change: Thank you very much so.
Operator: Let us open up the floor for any questions we may have. Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question, please press star 1 from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For participants that are using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment please while we poll for questions. Thank you.
Speaker Change: Let us open up the floor for any questions you may have.
Speaker Change: Thank you.
Speaker Change: I'll now be conducting a question and answer session.
Speaker Change: To ask a question. Please press star one from your telephone keypad.
Speaker Change: Information telling them indicate your lines in the question queue.
Speaker Change: Press Star two if he like to withdraw your question from the queue.
Speaker Change: For participants, who you're speaking quite speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment please poll for questions. Thank you.
Speaker Change: Thank you.
Mark Reichman: Our first question is from the line of Mark Reichman with Noble Capital Markets. Please proceed with your questions. Thank you for taking. The first one is just, would you please provide your latest... Scheduled off-hire days for the remainder of the year. scheduled to fight even dry docking costs are even higher. with energy-savings equipment, so I'm guessing that that one will experience some off-time as well. This is the same, but mainly dried up, but mainly dried up. Mark, this is the same vessel, it's the manual and our estimated stoppage time of 25 days is the period in which we envisage to complete the special survey and the retrofit.
Speaker Change: Our first question is from the line of Mark Reichman with Noble capital markets. Please proceed with your questions.
Mark Reichman: Thank you for taking my question.
Mark Reichman: First one is just would you. Please provide your latest estimate for scheduled off hire days for the remainder of the year.
Mark Reichman: Scheduled dry.
Mark Reichman: Drydocking costs are you well you've got the dry docking, but then you're also you've got the you said you mentioned you were going to retrofit one of your secondhand vessels with <unk> with.
Mark Reichman: With energy savings equipment side, I'm guessing that that one.
Mark Reichman: Well experienced some off time as well.
Mark Reichman: This is the same but mainly dried up but mainly dry docking yes.
Manav: Manav. This is this.
Manav: This is the same question.
Manav: The amount of new England, Oh estimates at the time of 25 days is the period in which we envisage to complete this vessel.
Manav: The vertical fleets.
Aristides Pittas: And that's the only vessel, I think, that we have for dry dock this year. The retrofits are being done as part of the dry dock, so the... We didn't, we don't have an incremental, there's no incremental days for the. for the best part. Oh, okay, great.
Manav: So and that's the only vessel I think that we have.
Manav: With that I'd look to this year.
Manav: Yes.
Manav: Okay. That's helpful.
Manav: They are being done as part of the dry dock so yeah.
Manav: We didn't we don't Kevin incremental Theres no incremental days for the retrofits, the best apartment, Oh, Okay, great great and.
Aristides Pittas: Then the second question is, on page 15 of your presentation, I just wanted to kind of focus on the line where you say that we conclude that it's probable that we'll experience downward pressure in charter rates. Now, obviously, you're very well covered in 2025 and even into 2026, but I was wondering which of those three assumptions, you know, has the most bearing in your conclusion there? Is it the rerouting of the ships through the Suez? Is it the tariffs and, you know, economic growth? Or, you know, just if you could maybe just expand on that a little bit.
Speaker Change: Then the second question is on page 15 year presentation I just wanted to kind of focus on the line. When you say that we conclude that it is probable that we will experience downward pressure in charter rates. So obviously, you're very well covered in 2025 and even into 2026, but I was wondering which of those three years.
Speaker Change: Functions you know.
Manav: Has the most bearing and your conclusion there is it the rerouting of the ships through the Suez is at the tariffs and economic growth or you know just what if you could maybe just expand on that a little bit would be would be great.
Aristides Pittas: Okay, rerouting of ships is a significant negative, because it reduces ton-miles substantially. So if that happens, we reduce the ton-miles, the effective supply of ships goes up. So that can be a significant negative. But, of course, the imposition of tariffs and the drop in global trade can also be negative. However, the disruption that is caused by changing trade routes and the lines trying to optimize those routes so as to have as little, you know, delays and off-highs and meeting times, of course, that's a positive if that happens. Generally, disruption is positive, as also the effects of the war, you know, can be positive, except if that leads to very significant drop in trade.
Manav: Okay.
Manav: I don't think the sheets.
Manav: He has a significant negative because it reduces the thought in mind substantially so if that happens.
Manav: We then use.
Manav: The phone might be effective.
Manav: Supply of ships.
Manav: It goes up so is that can be a significant negative.
Manav: But of course the.
Manav: In peripheral neuropathy and the drop in global trade.
Manav: It is all it can also be negative however.
Manav: He stood up some that is caused by changing.
Manav: Take that out then the lines trying to optimize those without so much to have that.
Manav: You know delays in off hires and waiting times at fault.
Manav: That's a positive because that happens.
Manav: Generally disruption is positive.
Manav: Also the effects of the war.
Manav: Okay got it can be positive.
Manav: Yeah.
Manav: If that leads to very significant adult in the in the intake.
Aristides Pittas: So these are all very difficult things to analyze and make predictions upon, I have to admit. And that's why we took the much more cautious approach even before the war. Okay, no, that's helpful.
Manav: So these are all very difficult.
Manav: Things to analyze and make prediction pardon.
Manav: I have to admit.
Manav: And that's why we took the much more cautious approach even before the war.
Manav: Okay. No that's helpful and just one last question is that you have.
Aristides Pittas: And just one last question is that, you know, your total daily vessel operating expenses were down compared to the prior year, and I was just wondering if you expect those to decline further as the other four of the nine new builds are reflected in operations. I think statistically that probably is true, as the composition of our fleet becomes on average younger, having more new buildings incorporated for more time over the year, the blended average might come down a bit. But generally, our budget talks about roughly 2% higher OPEX compared to our previous budget. Okay. Well, great.
Manav: Total daily vessel operating expenses are down compared to the prior year and I was just wondering if you expect those to decline further as the other four of the nine new builds or are reflected in operations.
Manav: Yeah, I think statistically that's probably true.
Manav: Sorry.
Manav: But as you know for our fleet becomes another Yankee is getting more new builds incorporated for more time over the year.
Manav: The blend the tablets might come down.
Manav: But generally our budget talks about roughly 2% higher opex compared to our previous budget.
Manav: Okay, great well, that's very helpful. Thank you very much.
Aristides Pittas: Well, that's very helpful. Thank you very much. You're welcome.
Mark Reichman: You're welcome Mark.
Poe Fratt: Our next question is from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.
Speaker Change: Our next question is from the line of Paul Frat with Alliance Global Partners. Please proceed with your question.
Aristides Pittas: Hello. Hello, Aristides. Hello, Tatos. Can you highlight how much debt you're going to pay off when the Marcos 5 is actually delivered to the seller or to the buyer? which has actually been already paid. I'll schedule a balloon at the end of the year of $7 million, but we actually paid a bit early the loan, this quarter, so Marcos is dead soon. Okay, so that net proceeds will be $50 million in the fourth quarter. So again, the what? The net proceeds of the sale will be $50 million in the fourth quarter? That's correct. Okay, great.
Paul Frat: Hello, Hello, Erik <unk> to low touch us.
Speaker Change: Ball.
Speaker Change: Could you highlight how much debt you're going to pay off when you when the Marcos five it's actually yeah.
Speaker Change: Delivered to the seller.
Mark Reichman: Or to the buyer.
Mark Reichman: We actually I think it was about eight 8 million.
Mark Reichman: So it's actually been already paid.
Mark Reichman: Yeah.
Mark Reichman: No yeah, no schedule back one at the end of the year of $7 million, but we actually paid.
Mark Reichman: Adding the long.
Mark Reichman: Lastly, this quarter. So my question is debt free.
Mark Reichman: Okay. So that net proceeds will be $50 million in the fourth quarter.
Mark Reichman: But again I think the what they did.
Mark Reichman: The net proceeds from the sale will be $50 million in the fourth quarter.
Speaker Change: That's correct. That's correct, Okay, Great and then you know you still have some older ones you know pre 2010.
Aristides Pittas: And then, you know, you still have some older ones, you know, pre-2010. You know, are you looking to enhance your fleet profile by selling some of the older vessels? Can you just talk about the S&P market, you know, following the sale of the Marcos? I think we don't plan to sell vessels while they're on shelter, but perhaps when the shelter expires we will try. Okay, that would, the Jonathan Peeves off-charter at the end of the year, is that, you know, should we be thinking that as, thinking of that as a potential sales candidate? I think I would say that we are looking primarily to recharge the vessel and so we are looking at affiliates in their market for that at this moment.
Speaker Change: Are you looking to enhance your fleet profile by selling some of the older vessels can you just talk about the S&P market you know pharma in the sale of the Marcos.
Speaker Change: Excuse me if you want to them I think.
Speaker Change: We don't plan to sell vessels, while their own shop, there, but perhaps one of their contracts expire.
Speaker Change: Yeah.
Speaker Change: Yeah, Okay that would the Jonathan piece off charter at the end of the year is that should we be thinking that I.
Speaker Change: Thinking about it as a potential sales candidate.
Speaker Change: I think I would say that we are looking primarily to charter the vessel and somewhere.
Speaker Change: We can get a feel extends our market products.
Speaker Change: Moments.
Aristides Pittas: Okay, great.
Speaker Change: Okay, great. Thank you.
Aristides Pittas: Thank you.
Speaker Change: Thank you.
Aristides Pittas: At this time, I will turn the floor back to management for closing remarks. If there are no other questions, then I'll take the role of Aristides and thank everybody for participating in our call. We're looking forward to seeing you all in August when we're going to issue our first half results. Thank you very much again and enjoy the rest of your day. This will conclude today's conference. Let me disconnect your lines at this time. Thank you for your participation and have a wonderful day.
Speaker Change: At this time I will turn the floor back to management for closing remarks.
Speaker Change: Now excuse me.
Speaker Change: There are no other questions then they'll take their own productivity and thank everybody for participating in our call.
Speaker Change: Looking forward to seeing you all know when we're going to issue our.
Speaker Change: First half results. Thank you very much again and enjoy the rest of your day.
Speaker Change: This will conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.
Speaker Change: Thank you.