EuroDry Ltd. Aktie

Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Limited Conference Call on the Second Quarter 2026 Financial Results. We have with us today, Mr. Anastasios Aslidis, Chief Financial Officer; and Ms. Athina Atalioti, Finance Manager of the company.

[Operator Instructions] I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed.

Before passing the floor to Mr. Aslidis, I would like to remind everyone that in today's presentation and conference call, EuroDry will be making forward-looking statements. These statements are within the meaning of the federal securities laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized.

I kindly draw your attention to Slide #2 of the webcast presentation, which has the full forward-looking statement and the same statement that was also included in the press release. Please take a moment to go through the whole statement and read it. And now I would like to pass the floor to Mr. Aslidis. Please go ahead, sir.

Thank you. Good morning, ladies and gentlemen, and thank you all for joining us today for our schedule conference call. Together with me is Ms. Athina Atalioti, our Finance Manager. The purpose of today's call is to discuss our financial results for the three- and six-month periods ended June 30, 2026.

For that, please turn to Slide 3 of the presentation.

Our financial highlights are shown here. For the second quarter of 2026, we reported total net revenues of $17.7 million and net income attributable to controlling shareholders of $6.59 million or $2.32 per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $6.95 million or $2.44 per diluted share.

Adjusted EBITDA for the quarter was $11.71. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA. Athina will go over our financial highlights in more detail later on the presentation. Since initiating our $10 million share repurchase program in August 2022, we have repurchased 358,130 shares of common stock in the open market for a total of $5.8 million.

Our Board reapproved the program recently and extended annually. And the most recent authorization is granted earlier this month and runs for another year. We will continue to execute repurchases in a disciplined measured manner based on market conditions and other capital allocation priorities.

We're also pleased to announce that on July 28, 2026, we signed a term sheet to refinance the MV Ekaterini, one of our Kamsarmax vessels with a $19 million loan facility, higher by almost $8 million over the existing balance of the loan, further boosting our liquidity. This agreement is subject to customary closing documentation.

Let's now move to Slide 4. In that slide, we outlined our chartering and operational developments. In the second quarter, we continue to deploy our fleet with flexibility.

Four of our vessels are currently operating on index-linked charters tied to the average Baltic Supramax S10TC Index, which provides direct exposure to market conditions, while, as I mentioned, maintaining operational flexibility.

Our remaining vessels are employed on fixed rate time charters with most trading durations of one to three months. The exception is our vessel MV Christos K, which is fixed on a longer-term charter through November 2026. Further charter details are provided in the following slide. In the second quarter, we entered into two forward freight agreements.

On November 19th and on March 30th, we sold two 90-day Kamsarmax 825 TC average contracts for the third quarter of 2026 at $17,250 and $17,100 per day, respectively, each equivalent to one vessel.

These contracts I mentioned are based on the Kamsarmax 825 TC index, which cover the five major time charter routes and put a good hedge on our market exposure. Similar contracts for the second quarter of 2026 were settled very close to the rates agreed in the FFA contract. A final point on this slide is that operationally, we have no idle period for the quarter, commercial or dry dockings, during the second quarter.

Let's move to Slide 5, which provides an overview of our fleet. Today, we operate a fleet of 11 vessels with total carrying capacity of approximately 766,000 deadweight tons and an average age of around 13.8 years. In addition, we have four newbuildings on order. Two Ultramax vessels are scheduled for delivering in the second and third quarters of 2027, each with capacity of 635,000 deadweight tons.

We also have two Kamsarmax vessels on order scheduled for delivery in the first and second quarters of 2028, each with capacity of 82,000 deadweight tons. Upon delivery of these four vessels, our fleet will grow to 15 vessels with a total carrying capacity of approximately 1.06 million deadweight tons, including an Ultramax segment of eight vessels, a Kamsarmax segment of four vessels, all of these vessels being eco-friendly ones, while continuing saving our three legacy Panamaxes, which are all three Japanese-built.

Next, let's move to Slide 6, where we show our fleet employment profile. Our current fixed rate coverage for the remainder of the year stands at a little more than 25% based on existing charter arrangements. This excludes our four vessels operating on index-linked charter.

Let's now move to Slide 8 to review key market developments for the second quarter and recent trends to late July.

Panamax rates averaged $17,969 per day in the second quarter and have moderated slightly to $17,150 as of the end of last week. On the time charter side, one-year time charter rates have also strengthened.

Clarksons set the standard Panamax one-year time charter rate at approximately $17,175 per day as of July 31. Notably, time charter rates are now trading in line with spot market levels, reflecting continued confidence in the underlying market outlook.

During the second quarter, the dry bulk, the Baltic Dry Index and the Baltic Panamax Index recorded year-over-year increases of approximately 78% and 54%, respectively, reflecting the strengthening of the dry bulk freight market compared to the second quarter of last year.

Please now turn to Slide 9. Here, we review the global macroeconomic backdrop and its implications for dry bulk shipping demand. According to IMF July [Break]

[Music] You may continue.

Thank you, operator. Apologies to everybody for the interruption. I'm going to pick up my presentation. I believe we dropped the line on Slide 9. So please turn to Slide 9. Here, we review the global macroeconomic backdrop and its implication for dry bulk shipping demand.

According to IMF's July 2026 World Economic Outlook update, global growth is projected to slow to 3% in 2026 before recovering to 3.4% in 2027, broadly unchanged cumulatively from April's forecast.

The world is navigating several competing forces. On the one hand, we have elevated energy prices continuing to push inflation and interest rates higher, while AI-driven investment is supporting growth for countries integrated in the global technology value chain. Meanwhile, global disinflation has stalled with the inflation shock pushing the yield of the 10-year treasury, U.S. treasuries to approximately 4.7%.

Geopolitical developments, mainly the Iran conflict and the continuing Ukraine-Russia war have led to increased and volatile energy prices and created inflationary pressures, which in turn might lead to higher interest rates.

In the overall context, the U.S. economy has remained comparatively resilient. In its July 2026 economical mentioned, the IMF maintains its U.S. growth forecast at 2.3% for 2026 and revised its 2027 forecast upward to 2.2%. China is projected to grow 4.6% this year, supported by front-loaded public infrastructure investment and a surge in high-tech manufacturing and in exports.

The ASEAN-5 region is projected to slow to 4.1% in 2026, down from 4.5% in 2025 before recovering to 4.3% in 2027, while a level of China's growth is now expected to reach. As far as global trade goes, world trade volume growth is projected to slow from 5% the overall trade in 2025 to 3.5% in 2026 before recovering to 4.3% in 2027.

This moderation reflects the unwinding of earlier front-loading effect of tariffs and the continuing impact of tariffs on trade. The recovery in 2027 reflects a gradual adjustment as these dynamics gradually normalize through trade diversion, rerouting and the continued expansion of technology-related trade flows.

Looking specifically at the dry bulk sector, Clarksons projects ton-mile growth at 3.8% in 2026 and 1.8% in 2027, reflecting continued expansion in global commodity trade despite a challenging macroeconomic backdrop.

Let's now move to Slide 10 as we can review the current state of the dry bulk order book. As of July 2026, the order book stands at 14.4% of the existing fleet. Although higher than the 7% order book level recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008 and around 24% in 2014.

Turning to Slide 11. We're examining the supply fundamentals in a little more detailed fashion. The total dry bulk fleet on the top of the slide currently consists of around 1.1 billion deadweight tons and has grown 3.3% year-on-year.

Looking at the age profile of the fleet, roughly 11.8% of the total fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations become more stringent.

According to Clarksons latest estimates, scheduled newbuilding deliveries as a percent of the existing fleet are projected at 4.5% for both 2026 and 2027 and 6.9% for 2028 and beyond. To put it in context, in May, scheduled deliveries for 2028 and beyond were 5.5%. So additional orders placed are to be delivered after that year.

Actual fleet growth, of course, is expected to be lower, slightly lower than these numbers as slippage and demolition activity will offset a portion of the gross number of deliveries.

Let's now turn to Slide 12, where we will share our perspective on where the market stands and what we are monitoring. The market has demonstrated a solid performance in 2026 with rates having recovered meaningfully.

Supramax and Panamax time charter rates have recovered to levels last seen in March 2024. This rate recovery reflects sustained demand for tonnage driven by robust commodity flows, particularly iron ore, grain and bauxite, which have supported healthy fleet utilization.

Looking ahead to the second half of 2026, there are several demand side fundamentals to watch. Iron ore exports from Australia and Brazil remain stable, while the Simandou project continues to ramp up production every year.

Chinese import demand despite broader economic headwinds has remained resilient. Grain and minor bulk trades have proven more durable than might be expected given ongoing geopolitical tensions in the Middle East, indicating underlying strength in agricultural commodity shipments.

Coal has stalled year-to-date due to softer Chinese and Indian demand and Indonesian export limitation, although recent shifts in Qatar's energy infrastructure have created emerging support for coal from Japan and South Korea.

The potential U.S.-Iran agreement could contribute to gradual normalization of vessel traffic in the Gulf, although always implementation risks remain. Such an agreement could improve overall market sentiment and reduce vessel repositioning inefficiencies. However, a normalization of LNG trade flows could moderate oil demand as scrap tonnage is released in the market.

On the supply side, ordering activity, as I think I mentioned earlier, has accelerated in recent months. Nevertheless, the overall order book remains relatively modest by historical standards. Looking ahead to 2027, our analysis suggest a balanced but more uncertain market environment.

Fleet is expected to continue growing at similar rates as in 2026, while demand growth, as we mentioned earlier, would depend on Chinese steel production effects on coal trade and production from a possible conclusion of the Iran war.

The market outlook will also be influenced by several variables, including geopolitical developments, Red Sea routing dynamics, U.S.-China trade relations, the pace of Simandou project execution and ramping up, vessel speeds and demolition activity. One should anticipate a more balanced market in 2027, though fundamentals should remain supportive relative to historical norms.

Let's now turn to Slide 13 for a quick review of our position in the dry bulk market cycle as we have always found helpful to benchmark the present market against its historical context.

As of July 31, 2026, Panamax one-year time charter rates stood at $17,125 per day, meaningfully above the historical median of $13,450 per day. This strength or similar strength is also reflected in asset values.

Values for a 10-year-old Panamax are currently priced at approximately $30.5 million, well above both the historical median of $19.5 million and the 10-year average of about $19.2 million. currently near 10-year highs.

In this environment, we have made a deliberate decision to pursue investments in newbuilding vessels rather than acquire second-hand tonnage at market peak levels. This strategic choice reflects our conviction in both current market fundamentals and our longer-term intended fleet positioning.

While secondhand prices are elevated, we believe new buildings represent better value and offer superior operational efficiency, lower emission profiles and reduced maintenance exposure, factors that we believe are increasingly important.

Our Fleet Renewal Program demonstrates a disciplined and measured approach to capital allocation. We have ordered four newbuildings, two Ultras and two Kamsarmax vessels at reasonable prices with staggered deliveries through 2028, which we believe will enhance our earnings power when the market conditions normalize, while simultaneously reduce our exposure to aging tonnage and associated inefficiencies.

I will now turn the call over to Athina, our Finance Manager, for a closer look at our second quarter financial performance. Athina?

Thank you very much, Anastasios. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you an overview of our financial highlights for the second quarter and first half of 2026 and compare those results to the same period of last year. For that, let's turn to Slide 15.

For the second quarter of 2026, the company reported total net revenues of $17.7 million, representing a 57% increase over total net revenues of $11.3 million during the second quarter of 2025.

As a result of the higher time charter rates our vessels earned during the second quarter of 2026 compared to the same period of 2025. The company reported a net income attributable to controlling shareholders of $6.6 million as compared to a net loss attributable to controlling shareholders of $3.1 million for the same period of 2025.

Interest and other financing costs for the second quarter of 2026 decreased to $1.5 million compared to $1.7 million for the same period of 2025. Interest expense during the second quarter of 2026 was lower, mainly due to the decreased benchmark rates of our loans and a decreased average debt during the second quarter of 2026 as compared to the same period of last year.

Adjusted EBITDA for the second quarter of 2026 was $11.7 million compared to $1.9 million achieved during the second quarter of 2025, recording a larger than a fivefold increase over the same period of last year. Basic and diluted earnings per share attributable to controlling shareholders for the second quarter of 2026 was $2.36 and $2.32, respectively, calculated on approximately 2.8 million basic and diluted weighted average number of shares outstanding, compared to a basic and diluted loss per share attributable to controlling shareholders of $1.12 per share for the second quarter of 2025, calculated on approximately 2.7 million basic and diluted weighted average number of shares outstanding.

Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted earnings attributable to controlling shareholders for the quarter ended June 30, 2026, would have been $2.49 and $2.44 per share basic and diluted, while for the second quarter of 2025, it would be $1.1 per share basic and diluted.

Let's now look at corresponding six-month period ended June 30, 2026, and compared to the same period of 2025.

For the first half of 2026, the company reported total net revenues of $30.5 million, representing a 49% increase over total net revenues of $20.5 million during the first half of 2025, which was the result of the higher time charter rates our vessels earned during the first half of 2026 compared to the same period of 2025.

The company reported a net income attributable to controlling shareholders of $6.8 million as compared to a net loss attributable to controlling shareholders of $6.8 million for the first half of 2025.

Interest and other financing costs for the first half of 2026 amounted to $3 million compared to $3.5 million for the same period of 2025. This decrease is mainly due to the decreased benchmark rates of our loans and a decreased average debt during the first half of 2026 as compared to the same period of last year.

In the first half of 2025, the company signed an agreement to sell motor vessel passes for demolition for approximately $5 million. The vessel was delivered to its buyers in March 2025, resulting in a gain of $2.1 million.

There were no vessel sales in the first half of 2026. Adjusted EBITDA for the first half of 2026 was $16.6 million compared to $0.85 million achieved during the first half of 2025, an 18-fold increase compared to the same period of 2025.

Basic and diluted earnings per share attributable to controlling shareholders for the first half of 2026 was $2.45 and $2.41, respectively, calculated on approximately 2.8 million basic and diluted weighted average number of shares outstanding compared to a loss per share of $2.47 calculated on approximately 2.7 million basic and diluted weighted average number of shares outstanding.

Excluding the effect on the net income attributable to controlling shareholders for the first half of the year of the unrealized loss on derivatives, the adjusted earnings attributable to controlling shareholders for the six-month period ended June 30, 2026, would have been $2.61 and $2.57 per basic and diluted share, respectively.

For the first half of 2025, excluding the effect on the loss attributable to controlling shareholders of the unrealized loss on derivatives and the net gain on sale of vessel, the adjusted net loss attributable to controlling shareholders would have been $3.17 per share basic and diluted.

Let's now move to Slide 16 to review our fleet performance for the second quarter of 2026 with a comparison to the same period of 2025.

During the second quarter of 2026, both our commercial and operational utilization rates reached 100% compared with commercial utilization of 100% and operational utilization of 99.3% in the second quarter of 2025. On average, 11 vessels were owned and operated during the second quarter of 2026, adding an average time charter equivalent rate of $20,398 per day compared to 12 vessels in the same period of 2025, adding on average $10,428 per day.

This reflects a more than doubling of daily charter rates on a per vessel basis year-over-year for the respective periods.

Turning to operating costs. Total operating expenses, including management fees, G&A expenses, but excluding dry docking costs were $7,444 per vessel per day during the second quarter of this year compared to $7,539 per vessel per day for the second quarter of 2025, reflecting a slight decrease.

Before we move further down, we can see our daily cash flow breakeven rate, which takes into account the operating expenses, drydocking costs, interest expense and scheduled loan repayments but exclude balloon payments. This stood at $11,858 per vessel per day compared to $12,222 per vessel per day for the second quarter of last year.

Let's now turn to the right-hand side of the table and review the same metrics for the first six months of 2026 compared with the corresponding period of 2025. During the first six months of 2026, our commercial and operational utilization rates were 100% and 99.9%, respectively, compared with 99.2% for both commercial and operational utilization during the first six months of 2025.

On average, 11 vessels were owned and operated during the first half of 2026, earning an average time charter equivalent rate of $17,452 per day compared to 12.4 vessels in the same period of 2025, earning on average $8,761 per day.

Our operating expenses, including management fees and G&A expenses averaged $7,462 per vessel per day in the first half of this year compared to $7,419 per vessel per day for the same period of last year.

Including interest expense, dry docking and loan repayments without balloon repayments, the cash breakeven rate amounted to $12,198 per vessel per day for the first 6 months of 2026 compared to $11,869 per vessel per day for the same period of 2025.

Please turn to Slide 17. This slide serves as a calculation tool which enables our shareholders and investors to assess the earnings potential in the remainder of 2026 in the current environment. The table shown in this slide has two components. The top chart refers to our fixed rate contracts, starting with our fixed rate contracts, coverage is approximately 28% for the remainder of 2026.

This is about 50% in the third quarter and about 6% in the fourth quarter of 2026. The table also shows the average contracted daily charter rate and the resulting EBITDA contribution for the contracted days. The second section of the table estimates the EBITDA contribution from our remaining open and index-linked days. For this purpose, we use the current forward freight market rate for the Supramax and Panamax, Kamsarmax, and Baltic forward rates as of July 30, 2026.

These forward market assumptions are then translated into an indicative blended earning rate for our open days, which you can see across the Supramax, Panamax and Kamsarmax forward rates. Based on these assumptions and by further assuming a $7,500 per day per vessel OpEx and G&A cost and the 5% commission rate, one can calculate the EBITDA contribution.

The final result is additionally adjusted for our preliminary dry docking expenses expected during the year. This calculation results in an annualized EBITDA contribution of $38.4 million during 2026. Naturally, investors can adjust the forward freight rate assumptions to evaluate different market scenarios and their potential impact on the company's earnings.

In the rest of 2026, we can also easily estimate our EBITDA dependence to the average rate earned by our open days. For example, a change of $1,000 per day in the average rate and would result in a $1.4 million change in our 2026 EBITDA and have a $0.5 change on the earnings per share.

Let's now move to Slide 18 to review our debt profile and cash flow breakeven estimates. As of June 30, 2026, our outstanding debt stood at $98.1 million with an average margin of about 1.99%, assuming a three-month rate of 3.75% as of June 30, 2026, the all-in cost of our senior debt averages at 5.74%.

The upper chart illustrates our debt amortization schedule. Scheduled debt repayments totaled approximately $12.2 million during 2026, $21 million in 2027, $17 million in 2028 and $28.8 million in 2029, inclusive of balloon payment of approximately $1.2 million, $10.2 million, $6.7 million and $19 million, respectively.

We have routinely been able to refinance balloon payments in the past, and we are confident that we would be able to do the same if we choose so in the future. Please note that although we have arranged the debt financing of our two Ultramax newbuildings, our current debt figure that I quoted includes only the portion of one of the two loans drawn to date, representing the predelivery payments made thus far.

The 2027 and 2028 repayment figures include scheduled repayments under both new building loan facilities to finance our Ultramax newbuildings, which are scheduled for delivery during the second and third quarter of 2027. Our debt figures do not include any debt that we would draw to finance the Panamax newbuildings or the refinancing of MV Ekaterini.

Turning to the bottom of this slide, we present our cash flow breakeven estimates for the next 12 months broken down by major components. Our EBITDA breakeven level is at $8,458 per day, while our all-in cash flow breakeven incorporating operating expenses, dry docking costs, interest expense and loan repayment is estimated at $12,872 per day.

Let's move now to my final slide, slide 19, to review some highlights from our balance sheet as of June 30, 2026. This slide offers a snapshot of our assets and liabilities and provides a concise picture of our financial position.

Cash and other assets stood at approximately $37.5 million. advances for newbuildings amounted to approximately $14.4 million and the book value of our vessels was approximately $160.2 million, bringing our total assets to approximately $212.5 million.

On the liability side, total debt stood at approximately $98.1 million, while other short-term liabilities amounted to $5 million for combined liabilities of approximately $103.1 million, representing approximately 48.5% of total assets.

After excluding the equity attributable to minority interest in the amount of $9.4 million, the shareholders' equity of common shareholders on a book value basis stood at approximately $100 million or $34.92 per share. However, based on our internal estimates and external valuations, the market value of our fleet is meaningfully above its book value.

We estimate the current market value of our vessels at approximately $240 million compared to a book value of approximately $160 million, implying an exit value of approximately $80 million.

Adjusting for this difference yields an estimated net asset value in excess of $6.81 per share. When compared to the recent trading range of our shares, which has moved up to around $28 recently, it becomes evident that still there is a substantial discount to our estimated Net Asset Value and by extension, a significant upside potential for both shareholders and potential investors.

With that, I will hand the call back to Anastasios to continue.

Thank you very much, Athina. We would like to open the floor now for questions if there are any.

[Operator Instructions] First question comes from Tate Sullivan with Maxim Group.

And just a couple for me. The first on the debt margin of 1.99%. I think that was your average margin in June. Might that, do you think that will change going forward if you do decide to add any debt with your new builds? Or do you have more recent indications of a lower spread to SOFR?

Most likely, if it changes, will go down. I think we are getting quotes from our banks well below 2%, closer to 1.5% lately. And I think, in fact, the latest loan that refinanced we did was much closer to 1.5%. So the average, if anything, will come down.

Okay. And then on, and it's great for the last couple of quarters, including the slide on the forward EBITDA sensitivity. And then I just noticed that the dry docking days estimates for the second half, you now have 17. And I think in the first quarter presentation, you had two. I'm sorry if I missed something, but did you move forward some dry dock days from 2027?

We might have, I think that involves our vessel, Alexandros, which is dry docking falls right on the third or the fourth quarter. So now we have the budgeted 20 something, 22, 23 days. Now we have 16 on Q4 and the remaining on Q1 '27. So, I mean, that changes based on operational plan.

Okay. I mean it's impressive with the fleet renewal and adding new builds, I mean, your off-hire days decreased from, I have 97 in 2025 now to what, maybe 36 this year. In 2027, we will probably the off-hire days increase a little bit just based on timing? Or is that not necessarily?

It depends on, I mean, we, that's why we make a distinction between commercial and operational hire, of course. We have off-hire days due to the dry dockings, which we don't count in these figures. But we hope that we're going to keep to minimum the operation of the commercial. Obviously, we have in 2027 a couple of dry docking, an additional dry docking schedule. I think it's the vessel Starlight that is coming due for dry dock and some in-water surveys. So there will be some off hire days on the basis of the dry dockings and the in-water surveys.

Okay. And last for me, I noticed you put the word, you put Indonesia in the market commentary slide and hearing from some other companies on more export restrictions or changes thereof from Indonesia. Do you think that's a more important consideration for your fleet going forward than anything going on in the Middle East in terms of exports?

I think by far, not only for us, for the whole market, anything going on in the Middle East is the overwhelming consideration because it has so many side effects either in the form of direct effects on trade or on inefficiencies introduced in the various routes.

Next question from Mark Reichman with NOBLE Capital Markets.

I've got several questions here. The first is on the voyage expenses. So during the quarter, voyage expenses had a positive impact of $1.5 million on your operating expenses. And I understand that's related to the bunker fuel. But what would your expectations be for the, maybe if you could just maybe provide a little more color on that number and maybe expectations for the second half of the year.

I mean, as you have insinuated, this number typically has to be a small negative number because our vessels are chartered on a time charter basis. The fuel costs are paid generally by the charterer. So a little bit of voyage expenses is left for us for certain situations. However, we deliver our vessels with fuel in their tanks, and we buy back fuel when the vessels are delivered to us.

So in an environment with increasing oil prices, you tend to make money on the fuel, what you take back at the pre-agreed price, if the price has increased in between while the charter was being performed and you resell to the next charter, you record the gain. So during the second quarter, the oil price was increasing, and we benefited from that trend. Obviously, if the oil price is stable, you would expect that number to be near zero, I mean, the gains. And if the oil price is dropping, you will probably have to give back some of those gains.

Okay. So just looking at the forward curve on crude oil, you might expect that maybe the second half, you'll have a little bit of an expense or stay relatively flat. Is that a good way to think about it?

A small negative number is expected because of the nature of the chartering we do. We do time charters, and we don't have major voyage expenses, but we do have some. And those should always be recorded as a negative number. So, if the number is positive, it is the situation that I mentioned.

Okay. And then second question is just that vessel operating expenses have remained well controlled despite inflation. So, would you expect daily operating expenses to remain near current levels? Or are there any cost pressures from labor maintenance or regulatory compliance?

I think we expect it to remain near our budget levels. I think we are doing well versus our budget. Our budget was slightly higher compared to last year, I think less than 3% overall. And we recently, comparing the results to our budget, we are just on budget or maybe a little less. I have no reason to feel that the second half would result in higher operating expenses. We cannot exclude that possibility, but we can take into account when we did our budget, the new levels of all the costs and inflationary pressures.

Okay. And then just on the chartering strategy, several vessels roll off charter between August and November, while others remain index linked. Are you inclined to lock in longer-term fixed rates or retain greater exposure to the spot market? I'm assuming kind of the latter based on the commentary.

I think when we discussed in our last Board meeting, the chartering strategy, the support was to put a few more vessels on one-year charters, let's say, if certain levels in the high teens or if we can find charters that start with a two for one year, then we might put a few more of our vessels on longer-term charters. So that's the approach. If we are in the mid-teens and below, we try to be on the spot market. If we're approaching the high teens and beyond that, we try to secure some of our tonnage on longer-term charters.

Okay. And then my last question is just more of a macro question. And that is with the earnings improvement, there's always the argument structural versus cyclical. And maybe it was a couple of weeks ago, the management of a Capesize vessel operator had made the comment that vessel supply rather than demand represented the critical driver of future market conditions, and they had cited their historically low Capesize order book together with the aging fleet is kind of an important structural support that might outweigh any economic or macroeconomic uncertainty.

So you've got kind of a structural support there. Would you say the same is true for the vessel classes that you operate? Or do you think you're a little more exposed to cyclical? Maybe just a discussion on kind of the cyclical versus structural in terms of the market outlook.

I mean cyclicality comes both from demand and supply. For our sizes, the middle range of sizes, Ultramax and Panamax, the order book is a little higher than the Capesize order book, but the age profile of the segments is older. The average age is higher. So that counterbalances the lower order book, I guess, of the Capesize in some sense. And if anything, if regulations become stricter, it would have more of an effect on the, in an older vessel than on a newer one. So I believe that in our case, too, the order book is still a supporting factor. But it has been a supportive factor for the last three or four years, and the market did not do well in 2025, especially in late 2024.

So demand was really the determining factor then. And I believe that's why we talk about the supply-demand balance, both sides of the equation are equally important. I think demand during this year has improved for all the reasons that we discussed, and it was supported by a good supply story. We feel that, that will continue in 2026, and we are hopeful that it will continue in 2027.

Was a very concise answer. I really appreciate that. Thank you.

That concludes today's Q&A session. I will turn the call back over to the CFO for any closing comments.

I would like to thank everybody for attending our call. Wish you have a nice remaining summer and look forward to welcoming you to our November call. Thanks all.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.

Thank you for standing by, ladies and gentlemen, and welcome to EuroDry Limited Conference Call on the First Quarter 2026 Results. With us today, we have Mr. Aristides Pittas, chairman and Chief Executive Officer; and Ms. Athina Atalioti, finance and Investment Manager. [Operator Instructions] I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed.

Before passing the floor over to Mr. Pittas, I would like to remind everybody that in today's presentation. The conference call, EuroDry will be making forward-looking statements. These statements are within the meaning of the federal securities laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to Slide #2 on the webcast presentation, which has the full forward-looking statement, and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it.

And now I would like to pass the floor to Mr. Pittas. Please go ahead, sir.

Good morning, ladies and gentlemen. Thank you all for joining us today for our special conference call. Together with me is Athina Atalioti, who will go over the financial details in more detail. The purpose of today's call is to discuss our financial results for the 3-month period ended March 31, 2026. Please turn to Slide 3 on the presentation where we present our financial highlights.

For the first quarter of 2026, we reported total net revenues of $12.8 million and net income attributable to controlling shareholders of $0.26 million or $0.09 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $0.33 million or $0.12 per diluted share. Adjusted EBITDA was $4.9 million. Please refer to the press release for a reconciliation of adjusted net income and adjusted EBITDA. Athina Atalioti will go over our financial highlights in more detail.

Since launching our share repurchase plan of up to $10 million, which was originally announced in August 2022 and successfully extended in 2023, 2024 and 2025 with current authorization to run through August 2026. We have repurchased 348,000 sales in the open market for a total of $5.6 million. Repurchases under the program are executed in a disciplined and measured manner at management's discretion. We have decided to expand our newbuilding program by adding two Kamsarmax vessels, which will complement the two Ultramaxes already on order. We signed contracts with Xiangyu Shipbuilding for the construction of these 282,000 deadweight Eco-friendly Kamsarmax bulk carriers built to EEDI Phase 3 standards with delivery scheduled for the first and second quarters of 2028. The total contract value is approximately $74 million, which will be financed through a combination of debt and equity. The contracts are conditional upon receiving a refund guarantee from a bank acceptable to the [ customer ]. Once all 4 vessels are delivered, our fleet would be comprised entirely of model ships, the majority of which have been built for us directly.

Turning to Slide 4. We highlight our recent chartering and operational developments. From a chartering perspective, our fixtures during the first quarter were predominantly short term. Currently, 4 of our vessels are employed on index-linked charters at 115% of the average Baltic Supramax 10 time charter index, providing continued exposure to market dynamics while preserving operational flexibility. The remaining 7 vessels are employed on [ trip-time ] charters with durations ranging from approximately 1 to just over 3 months, whilst only the Christos K is on a longer [ TC ] till December. Further details of the charters fixed during the period are provided in the accompanying slides.

There were no idle or commercial off-hire periods during the quarter. However, the motor vessel Sena underwent drydocking for approximately 28 days starting from December 18, 2025 to January 15, 2026. We had, had the very small part of our exposure through FFAs. Luckily, these hedges are not in the money, but the market has been stronger than we forecasted earning the majority of our fleet [ hire rates ]. In particular, on February 19, we sold 90 days of the Kamsarmax index, which is based on the average of 5 time charter routes for the second quarter of 2026 at $19,240 per day and an additional 90 days for the third quarter of 2026 at $17,250 per day. It's equivalent to one vessel. In addition, on March 30, we sold a further 90 days of the Kamsarmax [ average ] index for the third quarter of 2026 and $17,100 per day, also equivalent to one vessel.

Please turn to Slide 5. EuroDry's current fleet consists of 11 vessels with an average age of around 13.8 years and the total carrying capacity of approximately 707,000 deadweight tonnes. In addition, we have two Ultramax vessels under construction with capacity of 63,500 deadweight tonnes each, scheduled for delivery in the second and third quarters of 2027 and two Kamsarmax vessels on order with capacities of 82,000 deadweight each scheduled for delivery in the first and second quarters of 2028. Upon delivery, our fleet will grow to 15 vessels with a total carrying capacity of approximately 1.05 million deadweight tonnes.

Next, please turn Slide 6, where we graphically show our fleet employment. Our current fixed rate coverage for the remainder of the year stands at approximately 23.5% based on existing time charter agreements. This figure excludes our 4 vessels on index-linked.

[Audio Gap]

Slide 8, we review the general market highlights for the first quarter ended March 31, 2026, and recent developments from mid-May. Panamax spot rates improved from an average of approximately $13,290 per day during the first quarter to around $14,750 per day by the end of March and before strengthening further to approximately $22,300 per day as of last week. Similarly, one year rates have also increased with Clarksons assessing the standard Panamax 1-year time charter rate with approximately $18,000 per day as of May 15. Notwithstanding this improvement, one year charter rates continue to trade slightly below the remaining spot market levels.

Turning to Slide 9. We review the global macroeconomic backdrop and its implications for dry bulk shipping demand. According to the IMF April 2026 World Economic Outlook Update, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027 with downside risks dominating the outlook. The risk factors include the potential broadening of the Middle East conflict, uncertainty surrounding AI-driven productivity gains and the prospect of renewed trade tensions. Any of these could materially weaken growth and destabilize financial market. Global headline inflation is projected to edge higher than 2026 before resuming its downward trend in 2027 with a growth slowdown and inflationary prices expected to be most announced in emerging markets and developing economies.

In the United States, the 2026 gold production was revised by the IMF modestly lower to 2.3%, while the 2027 outlook was revised slightly upwards to 2.1%. The U.S. economy continues to demonstrate resilience albeit on certain macroeconomic balances. The markets have priced in a more [ hawkish ] interest rate path, reflecting the inflationary impact of commodity-related supply shocks.

The Federal Reserve remains in a wait-and-see mode with the rate cuts currently unfolds, pending further evidence of this in goods inflation. As of May 2026, the effective Fed funds rate stands at approximately 3.64% with rate cuts potentially resume from late 2026. Gradual depreciation of the U.S. dollar is anticipated as monetary easing eventually takes hold. The then 5 region is projected to grow at a slightly lower rate than previously anticipated at approximately 4.1% in 2026 and 4.4% in 2027 due to external headwinds like Middle East energy shorts, geopolitical trade [ fragmentation ] and phasing export momentum. Meanwhile, China's growth trajectory is projected to remain relatively resilient with a GDP growth of 4.4% in 2026 and 4% in 2027 supported in part by the country's technological and industrial competitiveness. Structural economic imbalances, however, remain a key challenge. Policy priorities continue to center on high-quality growth with emphasis and energy security, domestic consumption and technology-driven productivity gains.

Turning on to the dry bulk sector. Clarksons projects dry bulk trade growth at approximately 2.5% in 2026 and 1.3% in 2027 suggesting continued albeit moderating demand for dry bulk vessels. While the broader global economy is still expected by the IMF to [ hold up ], the risks are skewed to the downside by microeconomic uncertainty, geopolitical fragmentation and uneven regional trade activity. which may continue to weigh on trade flows and freight market dynamics.

Please turn to Slide 10 as we review the current state of the dry bulk order book. As of May 2026, the order book stands at approximately 13.2% of the existing fleet, although higher than the cyclical low of 7% recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008, and around 24% in 2014. The persistent low level of new ordering activity reflects a combination of constraining factors, including limited shipyard capacity, elevated new building costs and continued uncertainty surrounding future fuel technologies and evolving environmental regulations. These supply side constraints could provide support for vessel utilization and freight rates over the moving term.

Turning to Slide 11. We examine the supply side fundamentals in greater detail. As of May 2026, the total dry bulk fleet comprises approximately 14,600 vessels, representing around 1.1 billion deadweight tons. According to Clarksons latest estimate, scheduled newbuilding deliveries as a percentage of the existing fleet are projected at 4.5% in 2026, 4.1% in 2027, 5.6% for 2028 and beyond. Actual fleet growth is, of course, expected to be slightly lower as slippage and demolition activity will offset a portion of the gross deliveries. Looking at the fleet age profile, approximately 11% of the global fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations tighten further.

Turning to Slide 12, we summarize our outlook for the dry bulk market. [ Bulker ] markets have had a surprisingly stronger-than-expected start in 2026, with earnings growing particularly resilient through what is typically a seasonally soft period. Average Supramax and Panamax time charter rates rose by approximately 8% since the fourth quarter of 2025, reaching their strongest levels in two years and broadly in line with March 2024. Firm dry bulk trade trends continue to support vessel demand, driven by strong iron ore, grain and bauxite export volumes. Global [ seaborne ] minor dry bulk trade has remained firm in 2026, partly supported by continued bauxite trade. Additionally, total [indiscernible] ore exports are projected to reach 60 million metric tons in 2026, providing a further boost. That said, uncertainty remains around Chinese iron ore demand amid the ongoing pressure in steel output. Across vessel sizes, Capesize vessels continue to outperform smaller vessel classes, although both the [indiscernible] and Panamax segments supported meaningful gains during the first quarter and up till now, reflecting a broader improvement in [indiscernible].

Looking ahead to the remainder of 2026, we expect moderate gains potentially resulting in full revenues above the 2025 levels. Geopolitical disruption continues to create market inefficiences across local trade routes and FFA pricing points to firm market over the next 10 to 12 months.

Several key factors are expected to shape the outlook for 2027, the coal trade, higher gas prices are expected to provide some support with imports into Europe, Japan and career anticipated to rise. Although global coal volumes are still forecast by Clarksons to decline by approximately 2% in 2026. Emerging bottlenecks as the Panama Canal represents an additional source of potential supply tightening. Capesize vessels are expected to continue outperforming supported by [ firming ] bauxite trade flows. [indiscernible] iron ore project is set to boost iron ore production as part of China's Belt and Road strategy supporting Chinese industrial activity, reducing reliance on Australian and Brazilian imports and displacing lower grade domestic productions. Finally, geopolitical developments that disrupt trade routes and reduce operational efficiency remains the single most important unknown.

On the supply side, the newbuilding orders have accelerated in recent months and we gain further momentum in the foreseeable future despite the lack of maritime [indiscernible]. Looking ahead to 2027, bulk markets are expected to see another year of moderate earnings with fleet growth likely to outpace trade growth. Nevertheless, several factors could help keep the market in relative balance, including the evolution of the Middle East conflict dynamics, the ramp-up of the [indiscernible] project and Chinese demand trends. Coal policy, vessel speeds and fleet renewal and demolition activity will also remain important variables. Our base case assumes a moderately softer market environment although in 2027 although a prolonged conflict scenario, particularly involving Iran could weigh more heavily on global GDP growth, and by extension, on the dry bulk demand.

Let's turn to Slide 13 for a review of our position on the dry bulk market cycle. As of May 15, 2026, the 1-year time charter rate for a standard 75,000 deadweight tonne Panamax vessel stood at approximately $18,000 per day. This is considerably above the historical median of $13,375 per day. This higher rate environment is reflected, although disproportionately as we think, in the secondhand asset market. Values for 10-year-old Panamax bulk carriers are extremely firm. At approximately $28.5 million, current prices sit well above both the historical median of $19.5 million and the 10-year average of approximately $19 million. We are very reluctant to invest at these prices in secondhand assets. Nevertheless, as we believe that modernizing our fleet is important for the future of our company and the newbuilding values are still at decent levels. We have decided to utilize our liquidity to order two Kamsarmax vessels, thus positioning our fleet to benefit from a market improvement which we believe will come at some point in the coming years.

And with that, I will now turn over the floor to Athina Atalioti for a closer look at our first quarter financial performance.

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next 5 slides, I will give you an overview of our financial highlights for the first quarter of 2026 and compare those results to the same period as last year. For that, let's turn to Slide 15.

For the first quarter of 2026, the company reported total net revenues of $12.79 million, representing a 38.9% increase over total net revenues of $9.21 million during the first quarter of 2025 which was the result of the increased time charter rates our vessels earned during the first quarter of 2026, partly offset by the decreased average number of vessels owned and operated during the first quarter of 2026 compared to the same period of 2025. The company reported a net income attributable to controlling shareholders of $0.26 million as compared to a net loss attributable to controlling shareholders of $3.7 million for the same period of 2025.

Interest and other financing costs for the first quarter of 2026 decreased to $1.5 million as compared to $1.8 million for the same period of 2025. Interest expense during the first quarter of 2026 was lower, mainly due to the decreased benchmark rate for our loans and a decreased average debt during the first quarter of 2026 as compared to the same period of last year.

In the first quarter of 2025, we recorded a gain on the sale of $2.1 million relating to the sale of [ model vessel passes ]. There were no vessel sales in the respective quarter of 2026. Adjusted EBITDA for the first quarter of 2026 was $4.87 million compared to a negative $1.02 million during the first quarter of 2025. Basic and diluted earnings per share attributable to controlling shareholders for the first quarter of 2026 was $0.09 calculated on 2,796,647 and 2,828,521 basic and diluted weighted average number of shares outstanding compared to basic and diluted loss per share attributable to controlling shareholders of $1.35 for the first quarter of 2025 calculated on 2,737,297 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted income attributable to controlling shareholders for the quarter ended March 31, 2026, would have been $0.12 per share basic and diluted compared to an adjusted loss of $2.07 per share basic and diluted attributable to controlling shareholders, respectively, for the quarter ended March 31, 2025. Usually, security analysts do not include the above items in their published estimates of earnings per share.

Turning to Slide 16, we review our fleet performance for the first quarter of 2026 with comparison to the same period of 2025. Beginning with utilization, our commercial utilization rate reached 100% in the first quarter of 2026, while our operational utilization rate was 99.7%, resulting in overall utilization of 99.7%. This compares favorably to the first quarter of 2025 when commercial utilization stood at 98.4%, operational at 99% and overall at 97.4%, reflecting a meaningful improvement in fleet deployment efficiency year-over-year. On average, 11 vessels were owned and operated during the first quarter of 2026, earning an average time charter equivalent rate of $14,416 per day. This compares to an average of 12.8 vessels in the same period of 2025, earning an average TCE rate of $7,167 per vessel per day, reflecting a more than doubling of earnings on a per vessel basis year-over-year.

Turning to operating costs. Total operating expenses, including management fees and G&A expenses, but excluding dry docking costs were $7,479 per vessel per day during the first quarter of 2026 compared to $7,604 per vessel per day during the same period of 2025, reflecting a modest increase. Finally, our cash flow breakeven rate, which takes into account the operating expenses, drydocking costs, interest expense and scheduled loan repayments, excluding balloon payments, stood at $12,514 in the first quarter of 2026 compared to $11,528 in the first quarter of 2025 with a TCE rate of about $14,400 comfortably exceeding the breakeven rate of $12,540.

Please turn to Slide 17. This slide serves as a calculation tool, which enables our shareholders and investors to assess the earnings potential in the remainder of 2026 in the current environment. The table shown in this slide has two components. The top chart refers to our fixed rate contract. As you can see, our contract coverage in fixed contract rate is about 23% for the rest of the year. It is about 50% in the second quarter but declined to 15% in the third, and this is very small for the fourth quarter. This chartering strategy reflects our expectation that the market will be quite positive as indeed, it is indicated by the [ forward rate ] market. The rest of our vessels are employed in contract linked to the relevant to their [indiscernible] bulk dry index.

Our calculator indicatively shows the Supramax and Panamax consumer involving forward rate as of May 15, 2026 and also shows how this index level gets translated related to rates for our ships. We actually display the final [ blended ] rate for the open days of our fleet, which you can see right below the Supramax and Panamax forward rate in the table and which efficacy tends to be very similar to the index levels. Based on these assumptions and by further assumed for simplicity, $7,500 per day per vessel OpEx and G&A costs and the 5% commission rate, one can estimate the EBITDA contribution. The final result is additionally adjusted for our preliminary [indiscernible] expenses expected during the year. This overall exercise demand to provide a tool to calculate our EBITDA for 2026.

Obviously, one can enter his or her own assumptions about the rate to do that. It is worth observing that at current FFA rate, one would expect an annualized EBITDA rate of $34 million. Of course, one can make his or her own assumptions of how the market might turn out. In the rest of 2026, [indiscernible] can also fully reestimate our EBITDA dependent to the average rate and by our open day. For example, a change of $1,000 per day in the average rate and would result in a $2.2 million change in our 2026 EBITDA.

Turning to Slide 18. We review our debt profile and cash flow breakeven estimate. As of March 31, 2026, our outstanding debt stood at $109 million carrying an average margin of approximately 1.99%. Assuming a 3-month swap rate of 3.64% as of that date, the all-in cost of our senior debt averaged 5.63%.

The upper chart illustrates our debt amortization schedule. Scheduled debt repayments totaled approximately $12.2 million during 2026, $21 million in 2027, $17 million in 2028 and $28.8 million in 2029, inclusive of balloon payment of approximately $1.2 million, $10.2 million, $6.7 million and $19 million, respectively. Please note that although we have arranged the debt financing of our two Ultramax newbuildings, our current debt figure that I quoted includes only the portion of one of the two loans drawn to date representing the predelivery payments made thus far. The 2027 and 2028 repayments figures includes scheduled repayments under both newbuilding loan facilities that we have started growing to finance our Ultramax newbuilding, newbuildings with are scheduled for delivery during the second and third quarter of 2027.

Turning to the bottom of this slide, we present our cash flow breakeven estimate for the next 12 months, broken down by major components. Our EBITDA breakeven level starts at $8,035 per day, while our all-in cash flow breakeven incorporating operating expenses, dry docking costs, interest expense and loan repayment is estimated at $12,310 per day.

Let's move now to my final slide, Slide 19 to review some highlights from our balance sheet as of March 31, 2026. This slide offers a snapshot of our assets and liabilities and hopefully provide a concise picture of our financial position. On the other side, tax and other assets stood at approximately $31.6 million. Advances for newbuildings amounted to approximately $14.4 million and the book value of our vessels was approximately $163.1 million bringing our total assets to approximately $209.1 million.

On the liability side, total debt stood at approximately $100.9 million, while other short term liabilities amounted to $5 million for combined liabilities of approximately $105.8 million, representing roughly 51% of total assets. Shareholders' equity on a book value basis stood at approximately $93.8 million or $32.45 per share. However, based on our internal estimates and external valuations, the market value of our fleet is meaningfully above its book value. We estimate the current market value of our vessels at approximately $226.9 million compared to a book value of approximately $163.1 million, implying an excess value of approximately $63.9 million, adjusting for this difference yields an estimate net asset value in excess of $52.77 per share. When compared to the recent trading range of our shares, which has moved up to around $21 recently, it becomes evident that there is a substantial discount to our estimated net asset value and by extension, a significant potential assets for both shareholders and potential investors.

We remain committed to executing our strategy and creating long-term value for our shareholders, and we believe the current share price represents a compelling entry point relative to our estimated net asset value.

With that, I will hand the call back to Aristides to continue.

Thank you, Athina. Maybe now we'll open up the call for any questions we may have.

[Operator Instructions] Our first question is from Mark Reichman with Noble Capital Partners.

I really do appreciate Slide 17. That's very helpful. And so I was wondering, could you provide some additional detail regarding the financing strategy for the newly ordered Kamsarmax vessels and the expected impact on leverage levels?

Sure. We don't intend to have predelivery financing, I think. So we will get, upon delivery, financing to the order of 60% approximately. As you know, there is ample supply of bank financing these days. Many banks are courting us to provide this financing [ with ]. So we are pretty sure that the very modest level of financing that we will require, we will be able to do it.

And then how does management evaluate the trade-off between continued share repurchases and funding fleet expansion opportunities in the current market environment?

Yes. We're trying to balance everything as you say. We are continuing the repurchase of stock because our share price is extremely low. On the other hand, we want the liquidity in our stock in the stock that is trading to continue improving as it has over the last 6 months. So we are careful not to overdo it and be too aggressive in this process. We've decided that we will do this vessels, which will help us in the future, these 4 newbuilding vessels. And the remaining earnings, we will see what we will do. But for now, we are pretty covered with these 4 vessels that we have on order.

And then just lastly, are there additional opportunities for fleet renewal vessel acquisitions or selective asset sales if secondhand vessel prices remain elevated? And I'm really kind of looking at the Panamax vessels in your fleet that have that average age of, looks like around 21 years.

Correct. These are potential sale candidates at some point in time. For the time being, they are earning significant time charter equivalents of about $20,000 per day or close to that level which obviously is helping us build up our cash reserves. But we will decide later towards Q3, if we will dispose one of them or not.

[Operator Instructions] Our next question is from Poe Fratt with Alliance Global Partners.

Can you, Aristides, just discuss your hedging strategy? It looks like you have the equivalent of one when dry bulker hedged in the second quarter and then two in the third quarter. Can you just talk about what you're seeing now on the curve and maybe looking into the fourth quarter on whether you'd continue to hedge?

Yes. Poe, you're right. We felt that the market will not be that strong so we consider hedging a little bit at the levels that we did, which was $19,000 for Q2 and $17,000 for Q3. The market has been stronger. So today, FFA rates are higher than that. We evaluate the situation in our weekly meetings and we'll decide if we will take more cover either through time charter in a few of our vessels or through further FFAs. But this is something which is dynamic and that we look upon every week.

Great. And then would you -- with the addition of the two additional newbuilds, can you just highlight your newbuild CapEx for 2026, '27 and '28?

I think we can arrange to send this to you separately, but I don't have the numbers on my head. But we will send them to you, okay?

Okay. That's great. And then can you -- you didn't buy -- there's quite a discrepancy between your estimated net asset value and where your stock currently is trading. You didn't buy any stock in the first quarter. Can you just help us -- maybe help me understand what you can do to try to close that gap, that discount to your NAV, Aristides?

Well, the stock price increased substantially during the quarter, right, from what was it, $12, $13 up to $21. So it's been increasing. Nevertheless, we are still having the buyback program active and we have executed a few purchases during the last few days. We will continue executing on that, but only a little bit marginally because as I said to Mark previously, for us, it's important that we keep up the liquidity in the stock growing. So we won't be extremely aggressive on that.

Okay. Great. And then from a cost standpoint, the two things that I'm sort of focused on looking forward are bunker costs and also insurance costs. Can you just discuss your exposure to potential increases in both those areas?

Yes. On the bunker side, actually are on time charter basis which means that the charterer is responsible for placing the bunkers and paying for them. So it's not a huge issue for us as long as there is availability of bunkers, we don't really mind the higher price. Of course, the charterer minds it, so it affects his decisions. On the insurance cost, there is increased war risk insurance in several areas. But as our vessels do not trade there, we are not affected.

Our next question is from Tate Sullivan with Maxim Group.

[indiscernible] the voyage days in the first quarter were a bit below I forecasted, and you mentioned some repositioning in the press release given global dynamics, do you think the repositioning between charters will be a quarterly occurrence? Or was that special situation related to the first quarter?

No, I think it was a special situation in the first quarter. It happened that we had a lot of repositioning. But on average, I don't -- I expect it to be narrowed to what we've been advising.

And then the voyage expenses, there was a [ gain ] related to those repositionings and maybe the bulk fuel sale that's certainly a one -- a quarterly event as well. Not -- I think the last time that occurred was 2-odd years ago. Is that correct?

Yes, exactly.

Okay. And then last, your comments on the Panama Canal. Is that an emergent dynamic removing some vessel voyage from the fleet? Or has that been consistent in the first two months of this quarter?

No, it's practically an emerging dynamic because we are seeing more and more tankers cross the Panama Canal who pay higher fees to pass and for whom it's more important to pass through the canal. And that has practically squeezed the dry bulk out of the canal. It's a consequence of the war in Iran and the fact that on the tanker sector, there's been a significant shift on the trading patterns.

We now have a follow-up from Mark Reichman with NOBLE Capital Partners.

I just wanted to follow up on -- when you look at the fixed rate coverage for the remainder of 2026, it's about 23.5%. And if you're expecting rates to kind of remain strong, I can understand why you would want to leave exposure to the market. And we're only in May. But looking to 2027, if you're expecting the market to weaken a little bit or rates to go down, at what point do you try to start preparing for that or 2027 to maybe increase your fixed rate coverage as you head into 2027?

Indeed, you're right. We are looking into this mark, but rates for 2027 are quite lower than where they are today. But we are also looking at the alternative, which is to time charter maybe a couple of vessels for a year's time so that we cover a little bit of the 2027 exposure. We wouldn't do too much, but it is possible that we will fix a couple of ships in longer TCE or covered with FFA.

There are no further questions at this time. I would like to turn the floor back over to Mr. Pittas for closing remarks.

Thank you all for listening in to our results of today. We look forward to discussing again in Q2, which, as we all know, is going to be a pretty good quarter based on what we are seeing today. Thank you all.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

thank you for standing by, ladies and gentlemen, and welcome to EuroDry Limited Conference Call for the Fourth Quarter 2025 financial results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the company. [Operator Instructions]

This conference is being recorded today. Please be reminded that the company is results were press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everybody that in today's presentation and conference call, EuroDry will be making forward-looking statements. These statements are within the meaning of the federal securities laws. Matters discussed in the forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. .

I kindly draw your attention to Slide #2 on the webcast presentation, which has the full forward-looking statement. And the same statement was also included in the press release. Please take a moment to go through the whole statement and read it. I would now like to turn the floor over to Mr. Pittas. Please go ahead, sir. .

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me, Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the 3 and 1 month period ended to December 31, 2025.

Please turn to Slide 3 of the presentation. Our financial highlights are shown here. For the fourth quarter of 2025, we reported total net revenues of $17.4 million and netting attritable to controlling shareholders of $3.2 million or $1.14 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $2.4 million or $0.87 per diluted share. Adjusted EBITDA for the quarter was $7.5 million. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA. Aslidis with go over in the role of financial highlights in more detail later on in the presentation.

Since the initiation of our business plan, of up to $10 million, which was originally announced in August 2022 was subsequently extended in 2023, 2024 and 2025. We have reported 334,000 shares on common stock in the open market for a total of $5.3 million. The timing and pace of repurchases under the program is executed in the titans manner at Monster discussions. Please turn to Slide 4 to review our recent developments, including sales and buses, commercial and iteration highlights.

During the quarter, we sold the motor vessel event Panamax dry bulk vessel built in 2004 for $8.5 million. The vessel, 1 of the owners on the long held the assets in the current fleet was delivered to a new owner and an affiliated third party on October 21, 2025, resulting in a game just high of $1 million. The transaction forms part of our ongoing fleet renewal pattern.

From a chartering standpoint, our fixtures during the fourth quarter were predominantly shorter. We concluded just one year time charter for MotoVersel Krista and Uncommex-dry bulk vessel at a rate of $15,400 per day representing a shift from our prior strategy of maintaining full market exposure by employing our vessels either on indexing charters or on short-term contracts when market rates were lower. Difference continued to increase.

We intend to also increase our longer-term cover by fixing more ships and bonded charters. Currently, Four of our vessels are employed on index-linked rates, and the 115% of the average Baltic Supramax 10 time charter average index through at least November 2026, maintaining full exposure to market moves. The remaining 7 vessels are employed on time charters with duration ranging from approximately 1 to just over 3 months. The specifics of the charters fixed during the period and outlined in the accompanying name.

We continue to use FFAs occasionally as a hedging strategy. In the November 2025, we entered in our forward freight agreement whereby we sold 180 days of the Supramax TCE average for the first quarter of 2026 at a levels of [ $120,12 ] per day, which was equivalent to approximately 2 vessels. Just yesterday, we completed the trade to sell 90 days of the Council Max 5 TCR are index for each of the second and third quarters of 2026 at average of 19,250 as for the second quarter and 17,250 for the third quarter, equivalent to 1 Finally, we had no item or commercial or high periods during the quarter.

Please turn to Slide 5 for our current fleet profile. Reprice current fleet consists of 11 vessels with an over rate of approximately 14 years than the total carrying capacity of about 75,000 deadweight tons. In addition, we have told from vessels under construction is with a capacity of 63,500 bedweight tonnes, which is scheduled for delivery in the second and third quarters of 2027. Upon delivery, our fleet will expand 13 vessels with a total carrying capacity of about 893,000 deadweight tons. Next, please turn to Slide 6 for a further update on our fleet employment.

As of February 2026, our fixed rate coverage for the remainder of the year stands at approximately 22% based on existing time charter agreements. This figure excludes the 4 vessels employed under index-linked charters, which were subject to market fluctuations continue to provide secured employees. On Slide 8, we will go over the market highlights for the fourth quarter ended December 31, 2025, up in recently. Panamax port rates declined sharply from approximately $14,600 per day in the fourth quarter of 2025 to about $9,650 per day by late December before recovering to roughly $13,500 per day.

As of February 13, 1 year time charter rate have increased further about remaining spot levels with Clarksons assessing the standard Panamax 1-year time after day at approximately $16,250 per day. During the third quarter, the Baltic Dry Index during the fourth quarter, the bank radian the bank Panamax Index recorded year-over-year increases of approximately 47% and 52%, respectively, reflecting a significant improvement compared to the same period last year. supported by stronger-than-expected demand for minor banks, active grain trade flows and the tightening in vessel supply driven by longer voyage distances and retinal trade disruptions.

However, despite this rebound rate markets remained volatile, reflecting the ongoing macroeconomic uncertainty and the even regional trade activity. Please now turn to Slide 9. According to the IMF, January 2026 well economic outlook update, the global economy is projected to maintain a resilient expansion with GDP growth now forecast at 3.3% in 2026 and 3.2% in 2027 reflecting a slight upward provision to the outlook relative to last October projections.

Despite a relatively stable medium-term outlook, there are still meaningful downside risks. This includes the possibility to expectations around sectors driven growth pro too optimistic as well as the risk of escalating geopolitical tensions. Ongoing trade frictions and broader geopolitical implementations continue to create uncertainty for the global economy. The recent to mention Venezuela and the threatened military activity in the Middle East, I remind you that external risks remain always present.

That said, some traders are expected to reach in 2026, which could help reduce the drag from tariffs on overall growth. In the United States, growth is projected to remain broadly steady GDP growth expanding by approximately 2.4% in 2026 and 2% in 2027. All those business and consumer sentiment appears subdued and the inflation is expected to ease to our target only gradually.

In January 2026, the Federal Reserve less interest rates and change, highlighting ongoing improvements in economic conditions while signaling a cautious approach towards future policy adjustments. Among the emerging market and developing economies, India is focused to remain one of the fastest-growing major economies with GDP growth projected at approximately 6.4% in both 2026 and 2027, which is underlined by vast domestic demand and investment momentum. Recent trade agreements, including the newly agreed U.S. India trade deals are expected to reduce trade-related uncertainty. And together with using financial conditions, stronger corporate balances could help not a renewed private investment cycle.

The AGM 5 region is also projected to maintain solid growth with expansion of 4.2% in 2026 and 4.4% in 2027, supported by strong domestic investment and technology experts. Meanwhile, China's growth trajectory is expected to moderate, with GDP growth forecast at 4.5% in 2026, down from 5% in 2025. and easing further to 4% in 2027, reflecting the pressures for the weaker external demand, subdued manufacturing investment and ongoing challenges in the property sector.

Turning to the dry bulk sector and how broader economic trends translating to vessel demand, tacos project rate growth of 1.9% in 2026 and 1.4% in 2027. While this reflects a moderation compared to the previous years, it still points continued expansion in dry bulk trade volumes are based at a more measured a moderate pace.

Please turn to Slide 10. Let's review the current state of the order book in the drybulk sector. As of 2026, the order book stands at approximately 12.4% of the existing fleet, although higher than the 7.5% recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008, and approximately 24% in 2014.

The current limited ordering activity reflects shipyard capacity constraints high new building costs and uncertainties surrounding future fuel technologies and environmental regulations.

Turning to Slide 11. Let us now look at the supply fundamentals in a little more detail. As of February 2026, the total dry bulk fleet consists roughly of 14,600 vessels, representing around 1.1 billion deadweight tons. According to Clarkson's latest estimates, new deliveries as a percentage of the existing fleet are projected at 4.2% for 2026, 3.9% for 2027, and 4.3% for 2028 and beyond, with actual fleet growth expected to be slightly lower due to slippage and demolition activities.

Looking at the fleet age profile, roughly 11% of the global fleet is over 20 years old, preventing vessels that could be considered for scrapping if market conditions moderate or the environmental regulations become more stringent. Please turn to Slide 12, where we highlight our dry bulk martini Q4 constant market. In Q4, 2025, the dry bulk carrier market strengthened with average Suromasan Panamax timecharter rates rising roughly 8% from Q-to-date within the highest levels in 2 years.

Seasonal demand for dry bulk cargo supported this momentum, but the usual holiday slowdown didn't hit us harder than expected. New trade routes, most notably the growing bauxite trade from West Africa by taping market dynamics, creating fresh opportunities and changing the traditional supply/demand pattern in the sector. The bauxite trade has seen a significantly growing from approximately 5% to over 15% of Gamesa's care volumes.

Excise vessels remain at the port of this activity, but smaller segments also saw meaningful improvements during Q4, highlighting the broad-based strength across the dry bulk market.

Looking ahead to 2026, our outlook points to a fiction broadly similar to 2025. However, markets remain unpredictable due to ongoing geopolitical structures making forecasting particularly challenging with the risks on both the upside and the downside. While dry bulk demand growth may continue to lag behind fleet expansion, factors such as opiates ores surveys and slower operating speeds should help maintain overall market balance.

Within the dry bulk segment, Capesize vessels are expected to outperform transfer for smaller classes, driven in large part by the expanding bauxite trade. At the same time, Guinea cement to aero project is set to significantly increase viable supply once to bancoramps-up, back in part by Chinese investments and drives with Beijing's broader resale strategy, often associated with the Metallointiative, the project is designed to diversify China's iron ore sourcing.

Over time, this contributed Chinese dependence and inputs from Australia and Brazil and competitively displace lower grade domestic production. Meanwhile, Chinese purchases of U.S. label remains an important factor following the October trade through we have casual flows continuing to influence the manner. Additionally, any normalization of red sea routing patterns could slightly reduce effective vessel demand exception onto traditional routes. But on the other hand, broader geopolitical development may continue to be direct trade flows and thus reduce overall fleet efficiency.

On the supply side, newbuilding activity remained relatively restrained. Future capacity is largely constrained through the next several years and continued uncertainty around future fuel technologies and meet rising ones of methylene and energy fuel vessels. The overall order book-to-fleet ratio remains low by historical standards, which could provide a supportive backlog for cerate regarded the demand it. that said, auto book value by segment for Panamax and Infomax vessels, order books at ending close to a medium level, whereas the cape size order book remains mixed.

Although the industry is clearly shifting towards alternative fuels, the pace of transition is likely to be more gradual than initially anticipated due to technical and economic complexity as well as delays in finalizing the IMO net sale framework. Looking further ahead, 2027, visibility remains limited. Global growth and geopolitical developments in play sizable. While fleet growth is expected to remain moderate currently projected fleet expansion may not be sufficient to materialize the market.

At this stage, we assume a broadly balanced market. The geopolitical and economic uncertainties could load the market in legal direction. Let's now turn to Slide 13. As of February 13, 2026, the 1-year time charter rate for 75,000 deadweight Panamax vessel ended $16,250 barrels per day. slightly higher real per week and comfortably above the historical median of $1,3375 barrels per day. In the asset market, earn Panamax bulk carrier values remain firm despite the correction of approximately 8% from the mid-2024.

Current prices is around $27 million remain well above both the historical medium of $16.7 million and the 10-year average of approximately $18.7 million underscoring the continued resilience in secondhand valuations. This sustained strength also reflects structurally higher newbuilding prices, driven by inflationary pressures, limited serial availability and the cost of compliance with environmental regulations.

At the same time, healthy liquidity and cautious fee-growth expectations continue to underpin investor confidence in the sector. While today's prices represent a moderate pullback from the mid-2024 roughly EUR 29.5 million, they still remain very elevated by historical standards. Concluding my part of the presentation, I would like to highlight our profitable fourth quarter 2 and the continued strengthening of our credit position. Following the sale of the RP, refinancing of the Yankees loan and the funding of the substantial product that can deliver installment of our Motorscapes, which is under construction balance has become much more robust.

Recent liquidity positions us to pursue additional investments should attractive and accretive opportunities arise something we medianly don't see in this high valuation environment. Looking ahead, however, we remain focused on disciplined capital allocation, operational efficiency and delivering profits over the benefit of all our shareholders. And with that, may I pass the floor over to Tasos for his part of the presentation.

Thank very much, Ariel. Good morning from me as well, ladies and gentlemen. As usual, over the next 4 slides, I will give you an overview of our financial highlights for the fourth quarter and full year of 2025 and compare them to the same period 2024. .

So let's turn to Slide 15. For the fourth quarter of 2025, we reported total net revenues of $17.4 million, representing a 19.9% increase over total net revenues of EUR 14.5 million during the fourth quarter of 2024. This was the result of the higher time charter rates our vessels earned in the fourth quarter of last year. compared to the same period of the year before, which was partly offset by the lower average number of vessels operated in the fourth quarter of 2025 as compared to the year before.

Interest and other financing costs for the fourth quarter of 25 decreased to $1.6 million as compared to EUR 1.9 million for the previous year. Interest expense during the first quarter of 2025 were mainly due to the decreased interest rates of our loans, the sort plus the margin on average as well as the decreased are debt that we carried during the period as compared again to the quarter of the year before.

Adjusted EBITDA for the fourth quarter of 2205 was $7.55 million compared to $1.85 million achieved during the previous -- the fourth quarter of the previous year, an increase of more than 300%. We recorded a $27 million gain on the sale of our MVP during the fourth quarter of 2025 against no sales that we recorded during the fourth quarter of 2024. Basic and diluted earnings per share attributable to controlling shareholders for the fourth quarter of 2025 were $1.14 calculated on 2.8 million approximately basically diluted weighted average number of shares outstanding compared to a loss share of $2.28 calculated on $2.7 million, basically diluted weighted average numbers as outstanding for the fourth quarter of 2024.

Excluding the effect from the net income attributable to controlling shareholders for the quarter of the unrealized gain on derivatives and gain on the sale of the vessel, the adjusted earnings per share, again, attributable to controlling shareholders for the fourth quarter of 2025, which have been $0.88 and $0.87, respectively, based diluted compared to an adjusted loss of $1.33 per share for the year before -- for the quarter of the year before.

Let's now look at the numbers for the full year 2025 and compare them to the full year of 2024. For the full year of 2025, the company reported total net revenues of $52.3 million, representing a 14.4% decrease of total net revenues of $61.1 million during the 12 months a result both of the increase -- of the decreased number of vessels we operated and the lower, slightly lower time charter equivalent rates and by our vessels. On average, during the full year of 2025 as compared to the year before.

In debt and other financing costs for the 12 months of 2025 amounted to EUR 6.9 million compared to $8 million for 2024. Again, this decrease is mainly due to the lower interest rates or lane and partly also by the higher other than we can during the full year of 2025, again as compared to previous year. Our debt to EBITDA for the 12 months of 2025 was $12.5 million compared to $9.4 million achieved during 2024, a 33% increase.

For the full year, we recorded a $2.8 million gain on sales of vessels, both to the RP that we sold in Q4, but also cases that we sold earlier in the year. Again, we had no vessel sales to report for 2024. Basic and diluted loss per share attributable to controlling shareholders for the 12 months of 2025 was $1.55 compared to basic diluted loss contributable to controlling shareholders for 2024, which was $4.62.

Excluding the effect on the net income attributable to controlling shareholders for 2025 of the unrealized loss on derivatives and the net gain on sale of vessels, the adjusted loss per share would $2.5 basically diluted compared to an adjusted loss per share of $4.10 for 2024.

Let's now move to Slide 16. We look at more numbers there. User in this slide, we report our utilization rates for the fourth quarter and full year for the 2 years were compared. Let's look first at the fourth -- the quarterly results, the fourth quarter of 2025. For last quarter, our commercial utilization rate was 100%, while our operational utilization rate 99.6%, as compared again to 100% commercial and 99.4% operational for the year before.

On average vessels were owned and operated by us during the fourth quarter of 2025 and another time charter equivalent rate of $16,250 per day core to 13 vessels that we operated during the same period of the previous year, which earned an average $12,201 per day, a significant improvement of variance. Our total operating expenses, including management fees, G&A expenses, but excluding dry docking costs were $7,869 per vessel per day during the fourth quarter converted to [indiscernible] 7 per vessel per day during the same period of 2024.

If we move further down on this table, we can see also at the bottom of the table, we can see the breakeven, the cash flow breakeven rate which takes into account in addition to the operating expenses I mentioned, diverting expenses, interest expenses and loan repayments with our balloons x dollars per day basis. But in total, for the fourth quarter of 2025, our daily cash flow breakeven was $13,231 as compared to $11,259 for the fourth quarter of 2024 partly reflecting the higher diluting expenses we incurred during that period.

Let's move to the right part of the slide and look at the yearly results, we can starting with the utilization rate, which will go very quickly, all of the inflation rates we recorded were around between 100% and the equivalent rates were 142 on average for 2025 versus $13,000 on average of 2024. We see here that while the fourth quarter of 2025 was significantly higher in the fourth quarter of 2024, the full year another ended up producing lower time charter rates because the market at the beginning of the year was lower.

Our total operating expense for the year, including management fees and G&A expenses, again, excluding the dry docking costs, average $7,422 in 2025 compared to $6,967 in 2024. The cash flow breakeven for the full year ended up being $12345 in 2025, compared to $13,221 for 2024. Again, the reduction primarily due to lower deducting expenses on later for the full year.

Let's now move to the next slide, Slide 17 to review our debt profile. As of December 31, 2025, our outstanding debt stood at $103.7 million with an average margin of about 2%, assuming 3-month soft rate of and 0.65% as of February '18. You can see that the cost of our senior debt on average was 5.65%. The chart in the in the upper part of this slide shows our debt amortization schedule with debt repayments of $12.2 million during 2026, $21 million in 20270, $17 million inclusive of volume payments of $1.2 million, $10.2 million and $6.7 million, respectively. Please note, the total we have arranged the debt financing for our Ultamate buildings. Our current debt figure recorded you includes only the portion of 1 of the 2 loans that we used to finance part of the predelivery payments.

Please also note that the 2027 and 2028 repayment figures I gave you include repayments of the 2 said loan facilities that we have started doing to finance our Ultima newbuildings, which are stadia during the second and third quarters of 2027. Turning to the bottom of this slide, we can see our cash flow breakeven estate for the next 12 months, broken down by its major components.

Our EBITDA breakeven level is $7,478 per day and our overall breakeven level. Cash flow given for the next 12 months is expected to be around $11,663 per day. Let's move now to my last slide, Slide 18 to review some highlights from our balance sheet in our user brief title. This slide offers a snapshot of our assets and liabilities and hopefully provide a concise picture of our financial position.

As of December 31, 2025, cash and other assets in our balance sheet stood at approximately $31.8 million, while advances for biddings amounted to about $14.4 million and the remaining part on the asset acorns vessels, which the value the book value stood at about $166 million, resulting in a total book value of our assets of about $212 million. On our liability side, as I mentioned, bank debt is a big part of our liabilities, which stood at the end of last year at $103.7 million.

While we had other short-term liabilities of $5.9 million all in all representing about 66% of our overall liability side. This results in the book value for our shareholders' equity of about $93 million, which translates in a net book value per share of $31.8. However, based on our internal and external valuations of our ships, the market value of our fleet exceeds its respective book value. We estimate is worth about EUR 214 million versus a book value of EUR 166 million, meaning that the about -- the difference of about $48 million should be added to the value of our sales. If we do that, we'll come up with a net asset value per share in excess of $48 per share.

If we compare this to the recent trading gains of our sales, over has increased the last few days about $17. It becomes evident to the significant potential upside for the owners of our scope. And we hope both our shareholders and prospective investors will appreciate that, hoping that many of this discount will provide significant returns to their investment. And with that, I will pass the floor back to Pittas to continue the call.

Thank you, Paco. And let us now open up the floor for any questions we may have. .

[Operator Instructions] Our first question is from Tate Sullivan with Maxim Group.

I was just looking first at your noncontrolling interest income to the joint venture partners, if I recall, you started that arrangement with NRP partners a couple of years ago. Are you happy with how the JV has gone? Is that still a source of financing or transactions that you'd look at going forward in this market there, please?

Yes, I have to say we are very happy with the expectation that we are having with NRT and the investors that they have found who contributed in this project. Everything is going -- moving ahead smoothly, and we are happy that the Norwegian market is starting to hear more and more about Euro and we look forward to perhaps do more such deals, yes.

And if you can't -- that is that mostly Norwegian? Is that a Norwegian-based entity? Or how do you share that?

Yes, it's a notion based entity and divestments within this group, mainly in Norwegian. .

And separately, in your presentation, you had a great data point on bauxite as a percent of Capesize cargoes, I was wondering if you do have sort of a similar cargo present, not bauxite for your fleet, but a cargo breakdown for your fleet with per ship carrying capacity of about 60,000 to 82,000 deadweight tons, each. Is it more soybeans, as you know, it did more demand? Or might you have a rough mix on it. .

Well, I mean, we can off-line present you with the data of the various ships that we have and what they have carried if I understood correctly during the year. we can discuss it.

Okay. And your present -- just can you comment on coal demand has that decreased meaningfully compared to iron ore demand and soybeans, coal mentioned in your presentation.

Yes. Coal is a commodity that for the last 5 or 6 years, we are saying that it is big consumption, and it's never happened that to date. So actually, I think this year was pretty steady. Going forward, it is certain that coal will be a small percentage of the mix of energy. But as an absolute value, I think it will continue growing. .

Our next question is from Hans Baldauf with Noble Capital Markets.

Congrats on the good quarters in the year. For the fixed rate coverage for 2026, that stands at 22% currently. And it was mentioned that you the end of fixing more long-term charters and the cash flow breakeven for the next year at $11,663 and the current rates sitting well above that. How are you thinking about expanding coverage? And do you have an idea in mind of what -- how many -- what percentage of the fleet you would fix to long-term charters this year?

It is difficult to say because it depends on not on how the market evolves, but right now, we're seeing a strengthening market day by day. We did take some cargo yesterday as we fixed an FFA contract. As I said during the presentation, we fixed 90 days for Q2 at $19,250, and another 90 days of Q3 at $17,250 which is a head to the open vessels that we currently have. So we will fix more at these models, but I can't say how much more. .

And we mentioned that we're modeling 2026, it looks a bit similar to 2025 right now, the rates to start 2026 are much stronger than they were to start 2025. Can you talk more about the similarities that you're seeing between 2025 and 2026. And are you expecting rates to return to 2025 levels or why is it similar to 2025?

Indeed, 2026 has started off very strongly and stronger than what we expected. So you might be surprised on the positive side during the year. But there are so many uncertainties about how trade will develop, what will happen in the geopolitical arena, will ship start going back through flows or not will be further embargos, tariffs. So it's really a very difficult market to predict what is easy to see is the supply of ships, and we expect the supply of ships to increase by about 4% takeaway, 1%, 1.5% to for scrapping and delays we see that the fleet will not increase considerably. But really to make a call about how strong demand will end up being is extremely difficult. So the average rate for 2026 could end up being similar to 2025. Of course, we hope that it will be even higher. .

I think the current rate -- current FFA market indicates a higher level. But as telesales many uncertainties that.

And if you took into account the FFA market, it just 2 weeks ago, it indicated exactly the same. So it's -- the market changes in the opinion and the market changes very quickly. .

And lastly, could you add some more color on your fleet renewal and modernization strategy? Are there the Santa Cruz and the Starlight and less at Locker all on the older side. Can we expect those to be offloaded during the year? Or how are you thinking about that?

We haven't taken any decision yet. Indeed, we are down just to two 2004 build ships and one 2005 build ship. So 3 are relatively long. We may be -- if we are selling them, we might be buying more modern 1, this is a strategy that we discussed continuously, but there's no fixed decision yet. .

Our next question is from Poe Fratt with Alliance Global Partners.

Eric Steen. -- tests. The macro has been pretty well covered. I had a micro question. Tassos, maybe I missed it, but can you just highlight whether there was a change to your reported numbers for the fourth quarter 2024, and then can you talk about the claim that you settled, I think, in the fourth quarter of '25. And then can you talk about the cash impact of that insurance claim, and then whether that's totally closed out or whether we might see some adjustments in 2026?

Yes, we have to recognize the data claims in our Q4 numbers after we issued the press release, but it was included in our 20-F information in our bit results. So that's why you might see a difference if you compare it to the press release, but compared to the 20-F, in fact, the recognition of that claim was included. And then that situation was resolved, and we recovered the $1.4 million that we record here as is other operating income. I think that situation is now close. We don't expect anything on either side, either positive or negative.

There are no further questions at this time. I would like to turn the conference back over to Mr. Pittas for closing remarks. .

Thank you all for listening in today's presentation, and we will be back in three months' time with hopefully another quarter of good results .

Thanks, everybody. .

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Limited Conference Call on the Third Quarter 2025 financial results.

We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today.

Please be reminded that the company announced its results with a press release that has been publicly distributed.

Before passing the floor over to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, EuroDry will be making forward-looking statements. These statements are within the meaning of the federal securities laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties and that may result in such expectations not being realized.

I kindly draw your attention to Slide #2 of the webcast presentation, which has the full forward-looking statement, and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it.

And now I would like to turn the floor over to Mr. Pittas. Please go ahead, sir.

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Mr. Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the 3- and 9-month period that ended September 30, 2025.

Please turn to Slide 3 of the presentation. Our financial highlights are shown here. For the third quarter of 2025, we reported total net revenues of $14.4 million, and the net loss attributable to controlling shareholders of $0.7 million or $0.24 loss per basic and diluted share. Adjusted net loss attributable to controlling shareholders for the quarter was $0.6 million or $0.23 loss per basic and diluted share. Adjusted EBITDA for the quarter was $4.1 million.

Please refer to the press release for the reconciliation of adjusted net loss and adjusted EBITDA.

Our CFO, Tasos will go over our financial highlights in more detail later on in the presentation.

As of today, we have purchased about 335,000 shares of our common stock in the open market for a total of $5.3 million under a $10 million share repurchase plan, which we announced in August 2022. Our Board of Directors has approved an extension of the program for an additional year. We intend to continue executing purchases after the originally approved amount of [indiscernible] at a disciplined rate, taking into account the company's liquidity needs and relatively small free flow.

Please turn to Slide 4 to review our recent developments. On October 21, 2025, we delivered [indiscernible] to have a new one, an unaffiliated third party. They really were one of our older ships and the longer-held vessel in our fleet. She was sold for $8.5 million.

On the chartering front, our fixes during the third quarter were remnant softer. Several of our vessels are currently employed under time charters ranging between a month to a little over 3 months, allowing us to position our vessels advantageously as market conditions improve. While the Red Sea disruptions continue to influence route reasons and rate premiums, the impact of dry bulk charter rates has largely stabilized. Towards the end of the quarter, seasonal patterns began to reset in sales, and the market showed signs of recovery would still continue. The specifics of the charters fixed during the period are outlined in the accompanying presentation, most notable amount them due to the length of the charters is the moderator, which secured an extension of its index-linked charters at 115% of the average Baltic support and time charter index until at least November 2026.

During this quarter, motor vessel Santa Cruise completed a special survey and dry dock over a period of 35 days. Slide 5 shows EuroDry's current fleet, which consists of 11 vessels, with an average age of approximately 12.8 years and the total carrying capacity of about 767,000 deadweight tons. In addition, we have 2 Ultramax vessels under construction, each with a capacity of 63,500 deadweight tons scheduled for delivery in the second and third quarters of 2027. Upon delivery, our fleet will expand to 13 vessels with a total carrying capacity of just under 900,000 deadweight tons.

Now please turn to Slide 6 for a visual update on our current fleet employment. As of September 30, 2025, our fixed trade coverage for the remainder of the year stands at approximately 45% based on existing index charter agreements. This figure excludes vessels operating under index-linked after which while subject to market fluctuations to have secured employment. We currently have 4 vessels. The Maria [indiscernible] trading on index-linked charters with durations ranging till March 2026 to at least November 2026.

Turning to Slide 8. We will go over the general market highlights for the third quarter ended September 30, 2025, and up until decently. Panamax export rates rose steadily through the third quarter of 2025, increasing from an average of about $14,500 per day to approximately $14,950 per day by cost rent, reflecting a slight increase. As of November 7, spot rates for Panamax vessels increased further and now stands at around $15,500 a day. Now 1 year time charter rates are a bit lower than the spot rate, and [indiscernible] gives the standard Panamax 1 GTC rate at $15,525 per day.

During the third quarter, the Baltic Dry Index and the Baltic Panamax Index recorded year-over-year increases of approximately 6% and 14%, respectively, reflecting a slight market -- a slightly better market compared to the same period last year. This recent recovery in the super [indiscernible] range was supported by stronger-than-expected demand from minor bulks, robust grain trade flows and the marginal tightening in vessel supply driven by longer mortgage distances and retail trade disruptions.

Please now to Slide 9. According to the IMF's October 2025 projections, global growth is expected to reach slightly from 3.3% in 2024 to 3.2% in 2025, and 3.1% in 2026 with advanced economies growing around 1.5% and emerging markets and developing economies just about 4%. Persistent trade tensions and ongoing policy uncertainty and dampening investment and trade activity and as tariffs work their way to supply chains and on to consumers, the IMF predicts a gradual but not too severe global growth deceleration.

Global inflation is projected to moderate worldwide, lower evenly across regions remaining above target in the United States where risks advented to the upside and were subdued as well. U.S. growth is projected at 2% in 2025 and 2.1% in 2026, a modest upgrade revision from earlier forecast reflecting smaller-than-expected effects from tariffs and more favorable financial conditions.

In late October, the Federal Reserve lowered the target range for the federal funds rate by 25 basis points to 3.75% to 4%. Chair Powell has not ruled out the possibility of an additional rate cut at the center meeting. The overall outlook remains fragile with downside risks stemming from persistence and certainty potential [indiscernible] measures and ongoing labor constraints.

Among emerging markets, India is growing faster and is forecast to expand by 6.6% in 2025 and 6.2% in 2026, supported by robust domestic investments, resilient technicultural output and the vibrant services sector. The [indiscernible] economies are also expected to post solid growth of around 4.2% in 2025 and 4.1% in 2026. The underpinned by the health in regional trade and the continued industrial activity.

China's economic outlook is projected to continue toward decelerating pace. These challenges include the widening gap between industrial supply and weak domestic demand as well as ongoing trade tensions with the U.S. including the new tariffs on Chinese goods extra controls and restrictions on high-tech actors. China's growth is consequently expected to moderate to 4.8% in 2025 and 4.4% in 2026. Despite domestic headwinds, the Chinese economy is being supported by strong export performance to regions like Southeast Asia and the EU and the still the consilience manufacturing sector.

Turning to the dry bulk sector to see how the global growth affects the demand for the dry bulk. Claxton research now projects dry bulk trade demand growth at just 1.4% in 2025, 2.1% in 2026 and 1.8% in 2027, indicating a stronger trajectory than previously estimated growth. The recovery supported by steady industrial output in Asia continued demand for minor bulks and improving actual and coal trade flows.

Please turn to Slide 10 to review the current state of the order book in the dry bulk sector. As of November 2025, the order book stands at approximately 10.9% of the existing fleet. Although higher than the 7% reported in 2021, it remains amongst the lowest levels in history. For context, the order book accounted for 80% of the fleet in 2008, and nearly 30% in 2015. Current ordering activity remains limited due to shipyard capacity constraints, high new building costs and uncertainties surrounding future fuel technologies and environmental regulations.

Turning to Slide 11. Let us now look into the supply fundamentals in a little bit more detail. As of November 2025, the total dry bulk fleet comprises roughly 14,150 vessels. According to Clarksons lastest state with new deliveries as a percentage of the existing fleet are projected at 3.7% for 2025, 4.2% for 2026 and 3.4% from 2027 with actual fleet growth expected to be slightly lower due to slippage and demolition activity. The fleet age profile shows that about 10.6% of the global fleet is over 20 years old, representing a pool of potential scrapping candidate, particularly if market conditions were so and environmental requirements tighten further.

Overall, fleet renewal remains balanced amongst the various vessel sizes. The majority of vessels are concentrated in the 10- to 14-year old range, where still most vessels built around that time were not eco-ships. Therefore, the number of eco vessels available in the market is still a minority amongst the existing fleet.

Please turn to Slide 12, where we summarize our outlook for the dry bulk market. The dry bulk carrier market strengthened notably during the third quarter with average saccharterage for Supramax and Panamax vessels, increasing by roughly 13% quarter-on-quarter reflecting improved demand trends across several key commodities. The red see attacks earlier in the summer disrupted Canal transits further in tightened vessel supply further supporting trade rates. Demand for larger vessel classes remains on smaller segments also recorded strong gains adding to the overall positive event.

Looking ahead to the remainder of 2025, market conditions still remain uncertain, shaped by the recent geopolitical and policy developments. In October 2025, as we all know, the U.S. and China escalated the trade dispute, introducing the cyclical for fees on each other's vessels, which added complexity to shipping operations. However, following the meeting between President Trump and [indiscernible] last month, bodies signaled a temporary escalation and port fees postponed. Meanwhile, the ceasefire between Israel and Hamas has also brought attention to potential ceasing of Red Sea resin disruptions. For now, shipping companies are still adopting the causes wait and see stands and no immediate changes in routing patterns have been experienced.

In 2026, the market still faces challenges around a broad and potential pattern trade adjustments. However, Chinese demand from bauxite and Iran or will remain the key driver, while global infrastructure spending should continue to support industrial materials space. [indiscernible] harvest in the U.S., Brazil and Russia are also expected to sustain robust grain export for the Supramax and Panamax sector. or expected is a rebound in coal trade and steady minor bulk demand. However, the potential normalization of Red Sea traffic could result in lower ton-mile demand as routes resulted again.

On the supply side, ordering activity remains limited due to shipyard capacity constraints and continued uncertainty about fuel technologies. Especially after the recent IMF decision to postpone the adoption of its proposed and by remain friendly new routes, ship owners are confused on what type of ships to order. The order book to fleet ratio currently the historical lows, I said before, provides a solid backdrop for the charter rate recovery should demand trend.

Although there is a clear industry shift towards alternative use, the pace of transition is likely to be slower than anticipated, constrained by technical challenges, economic consideration and ongoing delays in the IMO's net zero framework. As emission-related measures such as the [indiscernible], CII, UTS and new maritime are fully implemented, apparent supply could tighten further through increased scrapping and slower vessel experience. By 2027, the dry bulk market is expected to enter a balancing phase with new deliveries declining and scrapping activity picking up, leading to a more balanced supply-demand environment.

Let's turn to Slide 13. as of November 7, 2025, the 1-year time charter rates for Panamax vessels stood at $15,525 per day, remaining modestly above the 20-year historical median of $13,675 per day. As of the third quarter, the market for 10-year old Panamax bulk areas remains further. In fact, we have seen approximately 10% increase over the lows seen in Q2 which represented the lowest point since mid-'23. Current asset value stands at approximately $26 million, which are well above the historical $15.5 million and the 10-year average of $18 million, underscoring continued resilience in secondhand pricing.

These high secondhand vessel values are attributed to the increase in the cost and prices for new vessels, mainly due to the last few years of inflation, the ample liquidity in the market and of course, the expectation for higher rates going forward. However, today's prices still represents a decline of roughly 12% from the mid-2024 peak of about $29.5 million.

Having strengthened our balance sheet through the arrangement of new financings for existing vessels and our new building orders and also the disposal of one of our releases we are in a position to continue modernizing our fleet and preparing ourselves for the next [indiscernible], which will, as usually offer suddenly and possibly when least expected.

Let me now pass the floor over to our CFO, Tasos Aslidis, to go over our financial highlights in more detail.

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next 4 slides, I will give you an overview of our financial highlights for the third quarter and 9 months of 2025 in comparison to the same period of last year. For that, let's turn to Slide 15. For the third quarter of 2025, we reported net revenue of $14.4 million, representing a 2.2% decrease over total net revenues of $14.7 million during the third quarter of last year, which is primarily the result of the decreased average number of vessels we operated in a relatively lower market compared to the same period of last year.

Interest and other financing costs including interest income for the third quarter of 2025, amounted to $1.6 million compared to $1.9 million for the same period of 2024. Interest expense during the third quarter of this year was lower primarily due to the decreased benchmark rates on our loan sale, partly offset by the increased other amount of debt that we carry. Adjusted EBITDA for the third quarter of 2025 was $4.1 million compared to $0.5 million achieved during the third quarter of 2024.

Basic and diluted loss per share attributable to the controlling shareholders for the third quarter of 2025 was $0.24, calculated on approximately 2.8 million basic and diluted weighted average number of seats outstanding compared to loss per share of $1.53 calculating about the same number of basic and diluted weighted average number of shares of sales for the third quarter of last year. Excluding the effect on the loss attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted loss for the third quarter of this year would have been $0.23 per share basic and diluted compared to an adjusted loss of $1.42 per share basic and diluted for the same third quarter of 2024.

Let's now look at the numbers for the corresponding 9-month period ended September 30, 2025 and compare them to the same period in the 9 months of 2024. For the first 9 months of 2025, we reported total net revenues of $34.9 million, representing a 25% decrease of a total net revenue of $46.6 million that we said during the first 9 months of 2024. And then again, this is mainly due to the decreased number of vessels we operated and the decreased number of rates that [indiscernible] during the most recent 9 months.

Interest and other financing costs for the first 9 months of this year, then including interest income amounted to $5.1 million compared to $6 million for the same period of last year. Again, here the decrease is primarily view the decade underlying intertrade we paid and the decrease -- and offset partly by the increased level of debt we care. Adjusted EBITDA for the first 9 months of 2025 was $5 million compared to $7.6 million during the first month of 2024.

Again, excluding the effect on the net loss attributable to the controlling shareholders for the first 9 months of the year of the unrealized loss on derivatives and the net gain on sale of [indiscernible], the adjusted loss for the 9-month period ended September 30, 2025, which have been $3.39 per share basic and diluted compared to adjusted loss of $2.77 per share basic and diluted for the 9 months ended September 30, 2025.

Let's move now to Slide 16 to review our fleet performance. We'll start our review by looking at our utilization rate for the third quarter and 9 months year to 2025 in comparison to the same period of last year. During the third quarter of 2025, our commercial utilization rate was 100%, while our operational utilization rate was 99.3% compared to 100% commercial and 98.5% operational in the corresponding period of 2024. On average, we won and operated 12 vessels in the first in the first 3 months -- in the third quarter -- sorry, for 2025, adding an average time charter equivalent rate of $13,232 per day compared to 13 vessels in the same period, the third quarter of 2024, adding another $13,105 per vessel per day.

Our total daily operating expense including management fees, general and administrative expenses, but excluding diverson costs, were $7,013 per vessel per day during the third quarter compared to $6,850 per vessel per day for the same period of last year. If we move further down in this table, we can see the cash flow breakeven level, which also take into account in addition to the above expenses of the divestment expenses, interest expenses and loan repayments. But for the third quarter of 2025, our daily cash flow breakeven level was $12,482 per vessel per day compared to $,15,145 per vessel per day for the third quarter of last year.

We are doing now the same figures for the 9-month period and comparing to the same period of last year. We've had commercial utilization rate about 99.6% in operational utilization rate at 99.2% for the first 9 months of this year compared to commercial and 98.7% operational for the same period of last year. On average, we operated 12.3 vessels during the first 9 months. And there another rate of $10,210 compared to operating 13 vessels during the same period of last year, earning another $13,339 per vessel per day.

Similar analysis further down for our operating expenses. Our operating expenses, including management fees and G&A expenses, but excluding dry docking costs, were $7,285 per vessel per day in the first 9 months of this year compared to $6,927 for the same period of last year until we include on this figure, the interest expense, the loan repayments and the very working expense, our total cash flow break level for the first 9 months of 2025 would be $12,071 as compared to $13,789 per vessel per day for the same period of 2024.

Please move to Slide 17 to give you some highlights regarding our debt and our forward cash flow get. As of September 30, 2025, EuroDry debt stood at $97.9 million with an average margin of about 2.05%. Assuming a 3-month soft rate 8% of the cost of our senior debt is approximately 5.9%. The repayment state of our debt, you can see on the top right chart of this slide, we saw total debt repayments of $13.1 million in 2025, $10.3 million of which [indiscernible], $12.2 million repayments in 2026 and [indiscernible] in payments in 2027. Mind you, the last figure includes the beginning of repayments for our 2 -- for the 2 loans, we will assume for our new building Ultramax vessels, which are scheduled for [indiscernible] in the third quarter of 2020.

In the bottom of the slide, you can see our cash flow breakeven estimate for the next 12 months, broken down by major components. Our EBITDA breakeven level is approximately $7,600 per vessel per day. And on the top of that, we include interest expenses and loan repayments, schedule paying. Our total cash flow breakeven level for the next 12 months is estimated at around $11,900 per vessel per day. This is a net figure, if we gross staff for commissions and some of our time, our time charter equivalent breakeven rate is just below $13,000 per vessel per day, and we need to reach that grade to achieve both cash flow and profitability basis over the next 12 months.

Let's now move to the last slide of my remarks to Slide 18 to give you some highlights of our balances. This slide offers a snapshot of our assets and liabilities and gives a concise picture of our financial position. As of September 30, 2025, cash and other assets in our balance sheet stood at approximately $18.8 million, while we had advances for being amounted to about $7.2 million. In addition, on the asset side, we have the book value of our vessels, which was about $176 million, resulting in total book value of our assets of $202 million.

On the liability side, total bank debt, as I mentioned in the previous slide, stood at $97.9 million, which is roughly [indiscernible] of the book value of our assets. We had other liabilities of $5.2 million, representing about 2.6% of our assets. This results in the book value of shareholder equity of almost $9 million, translating into a net book value per share of $31.8.

Based on our own estimates, though, the market value of our fleet is higher than the respective book value. We estimate it to be $214 million as compared to $176 million as I mentioned a year, approximately $38 million above the book value, implying the net asset value of our fleet on a per share basis to be net $44. If we compare this to the recent phasing rate of our sales, which is around $13 per share, it becomes evident one more time with a significant potential upside potential for share appreciation, so market conditions improve or other categories call but discount to narrow.

And with this statement, I would like to pass the floor back to Aristides to continue our call.

Thank you, Tasos. Let us now open up the floor for any questions you may have.

[Operator Instructions] Our first question comes from [ Hans Baldow ] with Noble Capital Markets.

The market fundamentals are looking more promising for 2026, and we've seen the rates push up. And I know you mentioned a breakeven rate of 0 -- can you talk about your threshold for shifting from the short-term index-linked exposure and possibly securing some longer-term coverage? Are there specific rates you're looking for?

Yes. We will switch to longer-term coverage if we see numbers between around 16,000, 15, 16, 17, that's the area where we will be concentrating to get some exposure hedged through time charter or FFAs.

Okay. And is that across the board? Or is that an average between the Kamsarmax, Panamax, Supramax?

It's another, let's say, what I just told you. Obviously, our Ultramax Panamx are less. So we might fix something at a little bit lower rate. the younger Kamsarmax and the Supramax and Ultramaxes, they are probably around the same these days.

Okay. All right. And I see the ex arena is looking for employment. Do you have a time line of when you expect that vessel to start up again?

Eirini was sold.

Not, the Ekaterini.

Ekaterini?

Yes.

The Ekaterini was fixed a couple of days ago, so we didn't make it here in the presentation for trip via South America back to the Far East. So about 90 to 100 days at the level which is about $16,500 a day.

We'll update you when it was very freshly [indiscernible].

Okay. Understood. And then my last question is for the near-term debt. I know with the [indiscernible] sale and the refinancing steps, your liquidity improved recently. But you still have the $12.2 million in current debt. Do you have any plans to improve the near-term liquidity?

Yes. Our liquidity has improved significantly because we did a couple of things. We they are not reflected in the numbers for the 9 months, but because they kept what are about to happen. We're refinancing young speed pipes, which will release about $4.5 million. We have sold [indiscernible] will release about $6.5 million, I think, after we paid a couple of million of debt that was there. And we have also -- it's in the press release, a range to finance the predelivery installment payments for our new buildings. One, it has already been paid by the new -- the debt we are in. So I think we have improved significantly our liquidity. The difference by end of the year is plus $15 million after we stated that we took.

As you pointed out, in the fourth quarter, the market is improving and should be contributing tour with positive cash flow. So there should be an additional balance generated from our operations. .

[Operator Instructions] Our next question comes from the line of Poe Fratt with Alliance Global Partners.

Just one to follow up on the new build financing. Tasos,did you say that you're going to draw down the first -- one of the new build facilities in the fourth quarter?

Yes. So we've already done that. The second -- these new buildings had the second payment that was to be made this year, for one of them that the payment was due. We already made we already took a loan and the payment was made using that loan. The other payment is still coming up. And we have another loan with a different bank. I think it's in the press release, which will bring you toward that payment as well.

So I'm trying to figure out when you're going to show the incremental debt on the balance sheet because the newbuild payments, as I understand it, call it, 60% of the total cost of the new builds and those aren't due until mid-'27.So can you just sort of give me an idea of what incremental debt looks like in '27 -- '26 and '27, Tasos?

I mean, by the end of -- by the delivery of these vessels, we would have drawn approximately $53 million debt to finance the 2 newbuildings, 26% and 26.9%, I think, in the numbers. So that's by the delivery of the vessels. And as we draw that to finance predelivery installments we'll show it, obviously, in our balance sheet.

Yes. Okay. Just to clarify that. And then can -- Aristides, can you talk about the market a little bit I'm trying to reconcile the one, the sudden increase in rates on the Alexandria and Cristos K in sort of the August, September time frame. And can you just highlight the reasons you think that the rates went from -- and went from [ 6,000 to 28 ], and then Christos went from call it, the low teens to 28? And then can you give me an idea of sort of the rate outlook for both of those into the rest of the fourth quarter and into the early 2026 time frame?

Sure. So the market -- the overall market is slightly improving, as we've shown also by the very indices. However, the indices are comprised of various different voyages. The voyages from the Far East to the Atlantic generally are low-paying voyages. -- the voyages from the Atlantic to the Paris are high-paying voyages. So if you secure a trip like the Catarina, which starts from the Far East goes to South America and returns to the Fast then you will get the average rate, which today is around $16,500 that we fixed. But in the 2 cases that you're talking, we're talking about, the first 2 voyages were positioning voyages to places where you can get higher rates to go back out. And that is why you see those big differences in the earnings. Is it clear?

Yes. I guess the next sort of question would be then they'll have to probably reposition for the rest of the fourth quarter. So we should look at a lower rate for the rest of the quarter. Is that fair, Aristides, on those 2 teams?

I think on average, you should be looking at average charter rates. So the way we run our models at least, we take those assumptions into in account, and we run our models for 3, 6 months or a year or whatever.

So we generally use the index to reflect what we think will be happening because it's very difficult to decide exactly how value every ship. But yes, if a vessel is in the Far East is in China, it will have a cost to go to a place where it will be able to command higher freight rate.

It clearly depends on the type of the mix picture. If it's within the Fares will be closer to the other is back and forth of planting, again, what they are go to the Atlantic will be low the lower rate that ties mentioned because then you get a better rate to go to the past. So wherever the cargo falls from the end of the quarter, so taking the average, you probably say that.

Yes. Okay. Fair enough. And then when -- I just want to clarify that the 115% of the BSI. Is that number on Page 8, so that the 4 that you have on the index right now or earning 115% of right now, it looks like $16, 600 in '25. Is that correct?

Yes, you take the BSI index and multiplied it by 1.15 to get what we are paid for these 4 vessels as today.

Okay. And on your chart that shows your employment on page -- I think it's Page 6. You don't have any dry docks on -- through the middle of '26. Will there be any dry docks over the next 9 months? Or could you just highlight what your drydocking schedule might look like in the...

Yes, there is a dry dock of Viena that is going to happen very soon. Other than that, I don't think we have something else within the next 6 months to 9 months. We only have 1 about dry talk within 2026. I can't remember it shifts and it's towards the second half -- for the whole year, there is just one dry dock. We are extending now and 1 in 2026.

Okay. And then typically, I guess, you talked about your fleet renewal business or program, and it was more in the context of lower rates and making that decision of doing a dry dock on a 20-year-old plus asset versus selling it? And can you just highlight when the dry docks might occur on the Starlight and the blessed buck, which you're still 2 of the oldest Panamaxes you have out there. The Santa Cruz was done in the third quarter, so I'm assuming you're going to keep it for a while.

Yes. I say the [indiscernible] in 2027, I think second quarter.

[Operator Instructions] Mr. Pittas, it appears we have no further questions at this time. I'd like to turn the floor back over to you for closing comments.

Thank you. We want to thank everybody for participating in today's call, and we will be back to you in the new year with the results of the full year. Thank you.

Thank you, everybody, for attending.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.