Euroholdings (NasdaqCM:EHLD) Q4 2025 Earnings call February 25, 2026 09:00 AM ET Speaker2Thank you for standing by, ladies and gentlemen, and welcome to the Euroholdings conference call on the fourth quarter 2025 financial results. We have with us Mr. Aristidis Pittas, Chairman and Chief Executive Officer, Ms. Athina Atalioti, Chief Financial Officer, and Mr. Tassos Asklidis, Chief Strategy Officer. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question ...

Company Overview - Pyxis Tankers Inc. presented its corporate overview, focusing on fleet composition and eco-efficient vessels, alongside financial performance and market outlook [1] - The company operates a fleet of six mid-sized vessels, including three MR product tankers and three dry bulk carriers, with a net funded debt to total capitalization under 20% as of September 30, 2025 [1] Financial Performance - For the nine months ending September 30, 2025, TCE revenues declined by approximately $8 million year-over-year, primarily due to lower charter rates [2] - Average daily TCE across the fleet fell from $25,870 in 2024 to $17,730 in 2025, driven by a $10,000 per day decline in MR product tanker charter rates and a reduction of just over $3,000 per day in dry bulk rates [2] - The decrease in TCE revenues, combined with a $3 million increase in G&A expenses, resulted in a net income decrease to nil, with adjusted EBITDA of $8.9 million for the most recent period [2] Debt Management - Recent loan amendments reduced the consolidated weighted average interest margin to just under 2% over SOFR, translating to approximately 5.65%, which is about a full percentage point lower than the 6.67% rate incurred during the first nine months of 2025 [3] - The company's next loan maturity is not until February 2029 [3] Capital Allocation - Approximately 115,000 shares have been repurchased for just over $300,000, leaving $2.7 million available under the current authorization, with no financial covenant constraints on share repurchases [4] Product Tanker Market Outlook - Seaborne trade for product tankers is moderately correlated to GDP growth, with the IMF forecasting approximately 3.25% annual growth through 2027 [5] - OPEC+ plans to maintain its 2.2 million barrels per day of voluntary crude production cuts, which began in April 2025 [5] - Global oil consumption is projected to increase by nearly 1% in 2026, with refinery throughput also expected to rise by approximately 1% [5] Supply Dynamics - The MR2 order book currently stands at 268 vessels, representing approximately 14% of the global fleet, with newbuilding deliveries set to accelerate [6] - 138 MRs are expected in 2026 and an additional 92 in 2027, with over 19% of the global MR2 fleet being 20+ years old, likely leading to significant demolitions over the long term [6] Dry Bulk Demand - China remains the primary demand driver for iron ore and coal, with its economy forecast to grow approximately 4.5% in 2026 [7] - Structural challenges persist within China's real estate market and banking system, while India is emerging as a source of demand, supported by IMF projections of approximately 6.4% annual GDP growth through 2027 [7]

Core Viewpoint - C3is Inc. is expanding its fleet by acquiring two MR product tankers, which will significantly enhance its operations and market presence in the tanker sector [1][4]. Fleet Expansion - The company has entered into two Memoranda of Agreement to acquire one 2008-built tanker for $16.88 million and one 2011-built tanker for $22.90 million, with delivery expected between Q1 and Q3 of 2026 [2][3]. - Following these acquisitions, the fleet will increase by 50% to a total of six vessels, comprising three Handysize dry bulk carriers and three tankers, including an Aframax oil tanker and two MR product tankers [2][5]. Financial Aspects - The acquisitions will be funded through a one-year interest-free loan, allowing the company flexibility in payment [4]. - Each newly acquired MR product tanker is expected to generate approximately $25,000 per day in revenue, translating to about $9 million in annual gross revenue per vessel [5]. - After accounting for estimated daily operating expenses of approximately $8,300, the expected annual EBITDA per vessel is around $6 million [5]. Market Positioning - The acquisition is aimed at capitalizing on favorable market conditions, with the CEO highlighting the positive fundamentals in the tanker market, including high short- and medium-term charter rates [4][5]. - The company's Aframax tanker is currently generating daily spot rates around $55,000, which will further enhance profitability and financial resilience [6].

Core Viewpoint - Scorpio Tankers Inc. is strategically enhancing its fleet by selling older MR product tankers and acquiring new scrubber-fitted MR newbuildings, which is expected to improve the fleet's age profile and quality while minimizing capital expenditure [4]. Vessel Sales - The company has agreed to sell four 2014 built scrubber-fitted MR product tankers for $32.0 million each, with the sales expected to close in the first quarter of 2026 [2]. - Each of these vessels has an outstanding debt of $7.3 million, financed through the company's 2023 $225.0 million Revolving Credit Facility [2]. Newbuilding MRs - Scorpio Tankers has committed to purchasing four scrubber-fitted MR newbuildings at a price of $45.0 million each, with deliveries scheduled for 2026 and 2027 [3]. - The expected delivery timeline includes one vessel in the second and third quarters of 2026, and one vessel in the first and second quarters of 2027 [3]. Company Overview - Scorpio Tankers Inc. operates a fleet of 99 product tankers, including 38 LR2 tankers, 47 MR tankers, and 14 Handymax tankers, with an average fleet age of 9.6 years [4]. - The company has also entered into agreements to sell five MR and two LR2 product tankers, with expected closures in the fourth quarter of 2025 and the first quarter of 2026 [4].

Company Overview - Pyxis Tankers Inc. reported unaudited results for the three months ended March 31, 2025, with net revenues of $9.6 million, a decrease of 18.6% from $11.8 million in the same period of 2024 [2][11][16] - The net income attributable to common shareholders for Q1 2025 was $0.8 million, down from $3.4 million in Q1 2024, resulting in earnings per share of $0.07 compared to $0.33 in the prior year [2][11][16] - Adjusted EBITDA for the first quarter of 2025 was $3.5 million, a decrease of $2.5 million from $6.0 million in Q1 2024 [2][11][16] Financial Performance - Time charter equivalent (TCE) revenues for Q1 2025 were $8.4 million, a decrease of $1.8 million or 17.4% compared to the same period in 2024 [2][11] - The average daily TCE rate for MR tankers was $23,593, which is 25.8% lower than the $31,790 rate in Q1 2024 [11][16] - The dry-bulk fleet achieved an average daily TCE rate of $13,013, down 23.2% from $16,950 in the same period of 2024 [11][16] Market Conditions - The product tanker sector faced lower charter rates due to slowing global economic activity and reduced demand for transportation fuels, although market conditions improved sequentially supported by seasonal factors [5][7] - The dry-bulk market remained subdued, impacted by soft demand for certain commodities and the deceleration of the Chinese economy [6][9] - Global demand for seaborne cargoes is expected to see modest growth in 2025, with a normalization of ton-mile activity anticipated [7][9] Fleet and Operations - As of March 31, 2025, the company had a fleet of three modern eco-efficient MR tankers and three dry-bulk vessels, all employed under short-term time charters [5][6][51] - The company repurchased 67,534 common shares at an average price of $3.91 per share during the first quarter of 2025, completing its $3.0 million share repurchase program [3][35] - The average number of vessels increased from 4.5 in Q1 2024 to 6.0 in Q1 2025 due to the acquisition of two Kamsarmax dry-bulk vessels [11][16] Future Outlook - The chartering environment for both product tankers and dry-bulk carriers is expected to remain challenging for the remainder of 2025, with limited direct exposure to tariffs but an anticipated increase in vessel supply [7][9] - The International Monetary Fund revised its global growth forecast down to 2.8% for 2025, which may impact demand for refined products and dry-bulk commodities [8][9] - The company is exploring opportunities to expand its fleet of mid-sized, modern eco-efficient vessels in both sectors [10][38]