EuroDry reports on turbulent year in dry bulk

Fourth Quarter 2023 Highlights:

• Total net revenues of US$15.9 million.
• Net income attributable to controlling shareholders, of US$0.3 million or US$0.13 earnings per share basic and diluted.
• Adjusted net income1 attributable to controlling shareholders, for the quarter of US$1.9 million, or, US$0.71 and US$0.70 per share basic and diluted, respectively.
• Adjusted EBITDA1 was US$6.6 million.
• An average of 12.2 vessels were owned and operated during 4Q23 earning an average time charter equivalent rate of US$14 570 per day.
• As of 14 February 2023, we had repurchased 273 120 shares of our common stock in the open market for US$4.1 million, under our share repurchase plan of up to US$10 million, announced in August 2022.

Full Year 2023 Highlights:

• Total net revenues of US$47.6 million.
• Net loss attributable to controlling shareholders, of US$2.9 million, or US$1.05 loss per share basic and diluted.
• Adjusted net income1 attributable to controlling shareholders, for the period was US$0.3 million or US$0.12 adjusted earnings per share basic and diluted.
• Adjusted EBITDA1 was US$14.6 million.
• An average of 10.6 vessels were owned and operated during the twelve months of 2023 earning an average time charter equivalent rate of US$12 528 per day.

Aristides Pittas, Chairman and CEO of EuroDry commented: “During the fourth quarter of 2023, average charter earnings for our vessels continued increasing peaking up in the middle of December but then giving up most of their gains by early February. Time charter rates, after softening a bit in the beginning of the quarter, held their levels and have continued increasing modestly since. These rate developments partly reflect seasonal patterns and, partly, reduced throughput of the Panama Canal and Suez Canal, due to climate related reasons in the former case and hostilities in the area in the latter, that have resulted in longer voyages for some shipments.

“While we believe that the near-term outlook will depend on the development of the situation of the two canals and current geopolitical conflicts and wars, a key area to watch remains China and its potential to drive demand growth, given the challenges in the property sector and sensitivity to government coal policy. Furthermore, the pace that inflation gets under control and interest rates ease should affect economic growth and, thus, trade growth. Against this demand picture, the low expected growth of the dry bulk fleet provides a credible argument for strong dry bulk charter rates over the next two to three years. The dry bulk orderbook expressed as a ratio to existing fleet has been at historically low levels for more than three years leading in a significant under-building of the dry bulk fleet. This combined with the effect of the greenhouse gas emission regulations that will very likely result in slower steaming and might even prevent some vessels from continuing to trade, should ensure a very limited fleet growth.

“We continue to monitor the market for accretive investment opportunities while at the same time use our share repurchase program, as our shares trade below our net asset value, as a means of returning funds to our shareholders focusing on maximising our overall returns.”

For the full report please follow the link here.

Read the article online at: https://www.drybulkmagazine.com/shipping/16022024/eurodry-reports-on-turbulent-year-in-dry-bulk/