Greek drybulk owner and operator EuroDry has reported for the third quarter of 2024 total net revenues of $14.7m representing a 47.0% increase over total net revenues of $10m during the third quarter of 2023.
However, the company reported net loss for the third quarter period of $5.2m and a net loss attributable to controlling shareholders of $4.2m, as compared to a net loss and a net loss attributable to controlling shareholders of $0.5m for the same period of 2023.
Adjusted EBITDA for the third quarter of 2024 was $0.5m compared to $3.1m achieved during the third quarter of 2023.
An average of 13 vessels were owned and operated during the third quarter of 2024, earning an average time charter equivalent rate of $13,105 per day.
EuroDry also refinanced two of its loans involving four of its vessels drawing approximately an incremental $16 million thus increasing its cash reserves, extending maturities to 2029 and 2030, respectively, and decreasing interest cost margin.
For the first nine months of 2024, the company reported total net revenues of $46.6m representing a 47.0% increase over total net revenues of $31.7m during the first nine months of 2023.
Adjusted EBITDA for the first nine months of 2024 was $7.6m compared to $8m achieved during the first nine months of 2023.
The shipowner also reported net loss for the period of $7.4m and a net loss attributable to controlling shareholders of $6.4m, as compared to net loss and net loss attributable to controlling shareholders of $3.3m, for the first nine months of 2023.
An average of 13 vessels were owned and operated during the first nine months of 2024, earning an average time charter equivalent rate of $13,339 per day.
The company has a fleet of 13 vessels, including 5 panamax drybulk carriers, 5 ultramax drybulk carriers, 2 kamsarmax drybulk carriers and 1 supramax drybulk carrier.
EuroDry’s 13 drybulk carriers have a total cargo capacity of 918,502 dwt.
Aristides Pittas, chairman and CEO of EuroDry, said: “During the third quarter of 2024, the average earnings for Kamsarmax/Panamax and Ultramax vessels declined, with these declines continuing through October and early November.
“Although fleet growth during 2024 has been modest by recent historical standards, demand for vessels has weakened, especially, during the second half of the year due partly to the reversal of certain short-term factors like Panama Canal throughput constraints but more importantly due to weak demand from China.
“China’s economic growth and the resulting demand for drybulk trade is one of the key factors affecting the drybulk market and one of the main challenges the latter faces. The recent announcement of additional stimulus by China could change the near- and medium-term prospects of the Chinese economy but its final effect remains to be seen. Still, the biggest source of optimism in the market comes from the supply side, which is expected to grow very modestly over the next couple of years.
“In the third quarter of 2024, we exploited the weakness of the market during the summer to early drydock two of our ships to improve their commercial prospects. In addition, two more of our vessels underwent their scheduled drydock. Consequently, our quarterly results were influenced by both the weakness of the market and the cost of the drydockings and related offhire days. With those drydockings completed, our fleet is better positioned to benefit from potential market increases in 2025.
“At the same time, we continue exploring investment opportunities in secondhand or newbuilding projects, especially, as recent market declines resulted in lower vessel values. In this context, we also increased our “firepower” through loan refinancings securing about $16 million in extra liquidity. As always, our focus remains to identify and undertake accretive investment opportunities to generate returns for our shareholders.”
