EuroDry .(US:EDRY)2025-06-05 15:02Financial Data and Key Metrics Changes - In Q1 2025, the company reported total net revenues of $9.2 million, a 26.2% decrease from $14.4 million in Q1 2024, attributed to lower time charter rates and a reduced number of vessels operated [27] - The net loss attributable to controlling shareholders was $3.7 million, compared to a loss of $1.8 million in the same period last year [27] - Adjusted EBITDA for Q1 2025 was a negative $1 million, down from $2.1 million in Q1 2024 [28] - Basic and diluted loss per share attributable to controlling shareholders was $1.35, compared to $0.65 in Q1 2024 [28] Business Line Data and Key Metrics Changes - The fleet consists of 12 vessels with an average age of 13.6 years and a total capacity of approximately 843,000 deadweight tons [9] - Fixed rate coverage for the remainder of the year is approximately 22%, excluding five vessels operating under index-linked charters [10] Market Data and Key Metrics Changes - The dry bulk market has softened in Q1 2025, with average spot rates for Panamax vessels below $8,000 per day and one-year time charter rates around $12,000 per day [10] - By the end of March 2025, spot rates dropped by as much as 28% in the Panamax segment, while one-year time charter rates decreased by 12% [11] - The IMF revised its global GDP growth forecast for 2025 down to 2.8% from 3.3%, reflecting increased downside risks [12] Company Strategy and Development Direction - The company intends to modernize its fleet by selling older vessels and replacing them with younger ones, with plans to take delivery of two newbuilds in 2027 [43] - The company is cautious about the dry bulk sector outlook, monitoring market conditions closely to optimize fleet modernization [26] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the continued weakness in freight markets due to weaker demand and uncertain macroeconomic conditions [11] - The company remains cautious about the dry bulk sector, anticipating a softer market for the remainder of 2025 compared to 2024 [21] Other Important Information - The company has repurchased 334,000 shares totaling $5.3 million as part of a $10 million share repurchase program initiated in August 2022 [6] - The average daily operating expenses increased to $7,304 per vessel per day in Q1 2025, compared to $6,867 in Q1 2024 [30] Q&A Session Summary Question: Will vessel operating expenses continue at the current level? - Management indicated that it is premature to determine future operating expenses based on Q1 results, but they expect to meet their budget, which is 2% higher than last year [38][39] Question: What is the forecast for scheduled off-hire days? - Management expects one drydocking this year and anticipates about 1.5 days of off-hire per quarter [41][42] Question: How is the fleet being managed regarding acquisitions and sales? - The strategy involves selling older vessels and replacing them with younger ones, depending on market conditions [43] Question: Are there opportunities to scrap older vessels? - Currently, there are no immediate candidates for scrapping, but management noted a slight pickup in scrap activity in the market [47][48] Question: What is the status of newbuild payments? - There may be a 10% installment payment due towards the end of the year, with further payments scheduled for 2026 [60] Question: Why was there no stock buyback in Q1? - Limited liquidity and expectations of market improvement were cited as reasons for not executing buybacks in Q1 [61]