EuroDry .(US:EDRY)2024-05-21 18:02Financial Data and Key Metrics Changes - The company reported total net revenues of $14.4 million for Q1 2024, a 27.2% increase from $11.3 million in Q1 2023, driven by higher charter rates and an increased number of vessels operated [61][87] - The net loss attributable to controlling shareholders was $1.78 million, compared to a loss of $1.54 million in the same period of 2023 [9][32] - Adjusted EBITDA for Q1 2024 was $2.07 million, down from $2.36 million in Q1 2023 [32] - Basic and diluted loss per share attributable to controlling shareholders was $0.65, compared to $0.55 for the same period last year [32] - Daily cash flow breakeven level was $12,440 per vessel per day, down from $13,186 per vessel per day in the same period of 2023 [33] Business Line Data and Key Metrics Changes - The fleet consisted of 13 vessels, with an average time charter equivalent rate of $12,455 per day, compared to 10 vessels earning an average of $10,674 per day in the same period last year [10][62] - The commercial utilization rate was 100% and operational utilization rate was 98.1% for Q1 2024, compared to 99.8% and 99.7% respectively in Q1 2023 [88] Market Data and Key Metrics Changes - The average spot market rate for Panamaxes was around $13,600 per day in Q1 2024, increasing to approximately $15,000 by May 17, 2024 [4] - One-year time charter rates for Panamaxes rose from about $14,300 last year to $16,150 by May 17, 2024 [4] - Demand for dry bulk trade is expected to grow by 2.4% in 2024, slightly below fleet growth [57] Company Strategy and Development Direction - The company plans to continue operating its fleet at market rates while strengthening its balance sheet and reducing debt, rather than purchasing more vessels at current secondhand prices [8] - The low order book as a percentage of the total fleet is at 9.3%, indicating limited fleet growth over the next two to three years [6] - The company is monitoring the geopolitical environment and its impact on trade and economic growth, particularly in China [5][52] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the future market conditions due to geopolitical tensions and their potential impact on trade and economic growth [52] - The outlook for the dry bulk market remains cautiously optimistic, with expectations of a robust bulk carrier market for the remainder of 2024 [58] - The introduction of new environmental regulations may further curtail supply through increased scrapping and slower operational speeds [30] Other Important Information - As of March 31, 2024, the company had cash and other current assets of approximately $27 million and total assets valued at about $227.4 million [34] - The company has repurchased about 300,000 shares for a total of $4.7 million under its share repurchase program [54] Q&A Session Summary Question: Can you approximate the cost to repair the vessel? - The repair cost is approximately $900,000, which is fully insured, but the loss of time is not covered [15][38] Question: What is the outlook for 2025? - The base case is a positive market for the next few months, but uncertainties remain due to geopolitical tensions [78][95] Question: Will the company refinance any debt soon? - The company plans to use cash flow to repay debt rather than refinancing in the near future [72] Question: What is the expected operating expense trend for the rest of the year? - Operating expenses are expected to be slightly up for the rest of the year compared to Q1 [97] Question: What is the strategy regarding time charters? - The company plans to continue trading spot but may consider securing a portion of its vessels' earnings via time charters if rates firm further [82][96]