EuroDry .(US:EDRY)2023-02-13 18:59Financial Data and Key Metrics Changes - For the full year 2022, the company reported net revenue of $70.2 million, an 8.9% increase from $64.4 million in 2021, with net income of $33 million or $11.62 per diluted share [2][10] - Adjusted EBITDA for 2022 was $43.2 million, compared to $42.3 million in 2021 [45] - The adjusted net income for the fourth quarter of 2022 was $3.3 million or $1.18 per diluted share, down from $6.27 million in Q4 2021 [34][25] Business Line Data and Key Metrics Changes - The average time charter equivalent rate for vessels in Q4 2022 was $16,688 per day, significantly lower than $29,257 per day in Q4 2021 [27] - The company operated an average of 10.1 vessels in Q4 2022, compared to 9 vessels in the same quarter of 2021 [27] Market Data and Key Metrics Changes - The average spot market rate for Panamaxes was approximately $14,700 per day in Q4 2022, dropping to $6,438 per day by February 10, 2023, a decline of about 47% [4] - The order book as a percentage of the total fleet stood at 7.2% as of February 2023, indicating minimal fleet growth and potential for higher charter rates if demand returns to normal levels [59] Company Strategy and Development Direction - The company plans to utilize its strong balance sheet to grow the fleet with newer assets if charter rates do not recover as expected [8] - The management believes that acquiring vessels at the lower end of the cycle will yield rewards in cyclical markets like shipping [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the dry bulk trade demand is expected to return to growth in 2023, with a projected growth rate of 1.6% [36] - The geopolitical uncertainties, including the Ukraine-Russia war and the economic slowdown in China, continue to pose significant headwinds [60] Other Important Information - As of December 31, 2022, the company had outstanding bank debt of about $81.9 million, representing approximately 41% of the book value of its assets [48] - The company’s cash and other current assets stood at about $50.5 million, with a total book value of assets around $200 million [12] Q&A Session Summary Question: What are the incentives for other ship owners to sell currently or to consider a merger? - The company needs to see prices soften before acting on expansion plans, as current prices are still high relative to charter rates [70] Question: Is there potential for more positioning after the current contracts expire in Q1 2023? - Half of the vessels are fixed throughout Q1, with the other half coming up for re-chartering soon, and management anticipates recovering rates in Q2 [71] Question: Will voyage expenses be consistently an expense or what has to happen to have a gain on bunkers going forward? - Voyage expenses depend on the style of fixing; gains on voyage expenses are one-off situations and should not be expected to continue [72]