Financial Data and Key Metrics Changes - For Q2 2024, total net revenues were 10.3 million in Q2 2023, driven by higher time charter rates and an increased average number of vessels operated [20] - The net loss attributable to controlling shareholders was 1.2 million in Q2 2023 [20] - Adjusted EBITDA for Q2 2024 was 2.5 million in Q2 2023 [22] - For the first half of 2024, total net revenues were 21.7 million in the first half of 2023 [23] - The net loss attributable to controlling shareholders for the first half of 2024 was 2.7 million in the same period of 2023 [24] Business Line Data and Key Metrics Changes - The fleet utilization rate for Q2 2024 was 99.6% commercial and 99.4% operational, compared to 98.3% commercial and 95% operational in Q2 2023 [26] - Average time charter equivalent rate for Q2 2024 was 12,179 per day in Q2 2023 [26] - Daily operating expenses were 7,656 per vessel per day in Q2 2023 [26] Market Data and Key Metrics Changes - Average spot market rate for Panamaxes was around 15,000 by August [10] - One-year time charter rates for Panamaxes were approximately 10,500 during the same period last year, marking a nearly 50% increase [10] - The global economy is projected to grow modestly, with the IMF maintaining its 2024 growth forecast at 3.2% [11] Company Strategy and Development Direction - The company plans to continue trading under short-term charters until employment rates firm up, anticipating a strengthening market due to limited supply growth [6] - The fleet consists of 13 vessels, with a focus on maintaining exposure to the market to capitalize on potential demand increases [5] - The company is actively utilizing its share repurchase program to enhance long-term shareholder value [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dry bulk market, citing robust demand growth and disruptions in key shipping routes as positive factors [16] - The outlook for the second half of 2024 is optimistic, with expectations of increased bulker demand due to seasonal factors and potential normalization of transit rates in the Panama Canal [16] - The company is monitoring the economic conditions in China and India closely, as these markets are crucial for future demand in dry bulk trade [12][13] Other Important Information - The company repurchased 313,318 shares for about 197.2 million, with total assets around 63, indicating significant appreciation potential compared to the current trading price [32] Q&A Session Summary Question: Can you provide more color on voyage and dry docking expenses? - Management explained that dry docking expenses vary based on scheduling, with multiple vessels undergoing dry docking in the quarter leading to higher costs [33] Question: What will move EPS into the positive category? - Management indicated that achieving positive EPS will depend on market conditions and the number of vessels undergoing dry docking, with a focus on maintaining a favorable time charter equivalent rate [35] Question: How should off-hire days be considered for vessels with multiple charters? - Management noted that commercial off-hire days are typically around one to one and a half days per quarter, while technical off-hire days vary based on operational incidents [37] Question: What is the idle day number expected in Q3? - Management estimated around 85 to 100 off-hire days due to dry docking in Q3, depending on the specific schedules of vessels [39][42] Question: How sensitive is the stock buyback program to stock price? - Management clarified that the stock buyback program is subject to SEC regulations, which limit the volume and timing of repurchases [44]
EuroDry .(EDRY) - 2024 Q2 - Earnings Call Transcript