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EuroDry Ltd. Reports Results for the Nine-Month Period and Quarter Ended September 30, 2024
EDRYEuroDry .(EDRY) GlobeNewswire News Room·2024-11-19 14:15

Core Insights - EuroDry Ltd. reported a total net revenue of 14.7millionforQ32024,a4714.7 million for Q3 2024, a 47% increase from 10.0 million in Q3 2023, primarily due to an increase in the average number of vessels and higher charter rates [2][13]. - The company experienced a net loss attributable to controlling shareholders of 4.2million,or4.2 million, or 1.53 loss per share, compared to a net loss of 0.5millioninthesameperiodlastyear[2][22].−AdjustedEBITDAforQ32024was0.5 million in the same period last year [2][22]. - Adjusted EBITDA for Q3 2024 was 0.5 million, down from 3.1millioninQ32023,reflectingtheimpactofmarketweaknessanddrydockingcosts[3][12].FinancialPerformance−Forthefirstninemonthsof2024,totalnetrevenuesreached3.1 million in Q3 2023, reflecting the impact of market weakness and drydocking costs [3][12]. Financial Performance - For the first nine months of 2024, total net revenues reached 46.6 million, a 47% increase from 31.7millioninthesameperiodof2023[5][25].−Thenetlossattributabletocontrollingshareholdersforthenine−monthperiodwas31.7 million in the same period of 2023 [5][25]. - The net loss attributable to controlling shareholders for the nine-month period was 6.4 million, or 2.34losspershare,comparedtoalossof2.34 loss per share, compared to a loss of 3.3 million in the first nine months of 2023 [5][35]. - Adjusted EBITDA for the first nine months of 2024 was 7.6million,slightlydownfrom7.6 million, slightly down from 8.0 million in the same period of 2023 [6][36]. Operational Highlights - The average number of vessels owned and operated during Q3 2024 was 13.0, compared to 10.0 in Q3 2023, with an average time charter equivalent rate of 13,105perday[3][41].−Vesseloperatingexpensesincreasedto13,105 per day [3][41]. - Vessel operating expenses increased to 6.3 million in Q3 2024 from 4.7millioninQ32023,attributedtothehighernumberofvessels[15][27].−Thecompanycompleteddrydockingforfourvesselsatatotalcostof4.7 million in Q3 2023, attributed to the higher number of vessels [15][27]. - The company completed drydocking for four vessels at a total cost of 4.5 million in Q3 2024, compared to 0.8millionforonevesselinQ32023[19][31].MarketConditions−TheaverageearningsforKamsarmax/PanamaxandUltramaxvesselsdeclinedduringQ32024,withcontinuedweaknessnotedintoOctoberandNovember[8].−Demandforvesselsweakenedinthesecondhalfof2024,influencedbyfactorssuchasreducedthroughputinthePanamaCanalanddecreaseddemandfromChina[8][9].−Thecompanyisexploringinvestmentopportunitiesinsecondhandornewbuildingprojects,leveragingrecentmarketdeclinesthathaveresultedinlowervesselvalues[11].RecentDevelopments−EuroDryrefinancedtwoloansinvolvingfourvessels,drawingapproximately0.8 million for one vessel in Q3 2023 [19][31]. Market Conditions - The average earnings for Kamsarmax/Panamax and Ultramax vessels declined during Q3 2024, with continued weakness noted into October and November [8]. - Demand for vessels weakened in the second half of 2024, influenced by factors such as reduced throughput in the Panama Canal and decreased demand from China [8][9]. - The company is exploring investment opportunities in secondhand or newbuilding projects, leveraging recent market declines that have resulted in lower vessel values [11]. Recent Developments - EuroDry refinanced two loans involving four vessels, drawing approximately 16 million, which increased cash reserves and extended loan maturities to 2029 and 2030 [4]. - The company has repurchased approximately 5.0millionworthofsharesunderits5.0 million worth of shares under its 10 million share repurchase plan initiated in August 2022 [3].