Euroseas Q1 2025 Earnings Report

Euroseas EPS Results

• Actual EPS: $3.76
• Consensus EPS: $3.35
• Beat/Miss: Beat by +$0.41
• One Year Ago EPS: $2.66

Euroseas Revenue Results

• Actual Revenue: $54.74 million
• Expected Revenue: $53.92 million
• Beat/Miss: Beat by +$818.00 thousand
• YoY Revenue Growth: N/A

Euroseas Announcement Details

• Quarter: Q1 2025
• Date: 6/18/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, June 18, 2025
• Conference Call Time: 9:30AM ET

Euroseas (NASDAQ:ESEA) provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of March 31, 2024, it had a fleet of 20 containerships with a cargo carrying capacity of approximately 777,749 dwt. The company was incorporated in 2005 and is based in Marousi, Greece.

Euroseas Q1 2025 Earnings Call Transcript

Key Takeaways

• For Q1 2025, Eurasys reported $56.3 million in net revenues and $36.9 million net income ($5.29 per diluted share), with $37.1 million in adjusted EBITDA.
• The board declared a $0.65 per share quarterly dividend and repurchased 463,000 shares under its $20 million buyback plan, reinforcing its disciplined capital allocation strategy.
• Eurasys agreed to sell the 6,350 TEU vessel MV Wagcast V for $50 million in October 2025, expecting a gain exceeding $8.5 million (≈$1.2 per share) and a strong cash‐on‐cash return.
• The company secured long‐term charters for multiple vessels at attractive rates—e.g., MV Monitor at $23,500/day until 2027 and MV Emmanuel P at $38,000/day until 2028—covering 97% of 2025 and 67% of 2026 days.
• Despite strong current performance, management warns of potential downward charter‐rate pressure from geopolitical tensions, rerouting of trade routes, and U.S. tariff risks.

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to the Eurasys Conference Call on the First Quarter twenty twenty five Financial Results. We have with us Mr. Aristides Petus, Chairman and Chief Executive Officer and Mr. Tassos Vasilis, Chief Financial Officer of the company. At this time, all participants are in listen only mode.

[Operator]

There will be a presentation followed by a question and answer session. I must advise you that this conference is being recorded today. Please be reminded that the company announced their results for the press release that has been publicly distributed. Before passing the floor, Mr. Peters, I would like to remind everyone that in today's presentation and conference call, ERC will be making forward looking statements.

[Operator]

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 number two of the webcast presentation, which has full forward looking statements, 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'd like to pass the floor to Mr. Pietus. Please go ahead, sir.

[Aristides Pittas, Chairman at Euroseas]

Thank you. Good morning, ladies and gentlemen, and thank you for joining us today for our scheduled conference call. Together with me, starts with Asli, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three months period ended 03/31/2025. Please turn to slide three of the presentation for our quarterly financial highlights.

[Aristides Pittas, Chairman at Euroseas]

For the first quarter of twenty twenty five, we reported total net revenues of $56,300,000 and the net income of $36,900,000 or $5.29 per diluted share. Adjusted net income for the quarter was $26,200,000 or $3.76 per diluted share. Adjusted EBITDA for the period was $37,100,000. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA. Our CFO, Tassos, will go over our financial highlights in more detail later on in the presentation.

[Aristides Pittas, Chairman at Euroseas]

As part of the company's common stock dividend policy, our board of directors declared the quarterly dividend of 65¢ of common shares for the first quarter of twenty twenty five. The dividend will be payable on or about 07/16/2025 to shareholders of record on 07/09/2025. Since initiating our fair repurchase plan of up to $20,000,000 in May 2022, we have repurchased 463,000 shares of our common stock in the open market for a total of approximately 10 and a half million dollars. We remain committed to a disciplined and opportunistic capital allocation strategy and intend to continue leveraging the repurchase program in a manner that enhances long term shareholder value. Please turn to slide four where we discuss our recent developments and operational highlights.

[Aristides Pittas, Chairman at Euroseas]

We recently signed an agreement to sell motor vessel Wagcost v, a 6,350 TEU intermediate container built in 2005 to an unaffiliated third party for total consideration of $50,000,000 with delivery expected in October 2025. The vessel was originally acquired in q four twenty twenty one for $40,000,000 with an attached time charter of $42,000 per day for three years, followed by a fourth optional year of $15,000 per day, which was exercised by the charter. Upon completion of the sale, we expect to recognize a gain exceeding 8 and a half million dollars or $1.2 per share. Our actual cash on cash return on the project is, of course, significantly higher. On the charter in France, we continue to strengthen our forward coverage by securing several high value multiyear charters.

[Aristides Pittas, Chairman at Euroseas]

Notably, Motor Vessel Monitor was fixed for twenty four to twenty six months at 23 and a half thousand dollars per day until at least May 2027. Motor Vessel Renault was charged for thirty five to thirty six months at 35 and a half thousand dollars per day until at least July 2028. And motor vessel Emmanuel P was fixed for a period of thirty six to thirty eight months with a daily rate of $38,000 until at least September 2028. Additionally, motor vessel EM heaters was extended until at least May 2027 at $19,000 per day. These fixtures reflect our continued ability to secure long term employment at highly attractive levels, providing strong cash flow visibility while reducing exposure to market volatility.

[Aristides Pittas, Chairman at Euroseas]

Operationally, most of vessels Yamanzib p and most of vessels here in Israel underwent repairs resulting in no prior periods of approximately twenty three and twenty two days respectively. The Yamazit p is one of the vessels that was upgraded and then contributed to Jivo Holdings and subsequently was sold. The Eidra, which suffered the crane breakdown, has to undergo extensive repairs and face significant downtime. The repair costs are covered by a panel machinery underwriters, and we intend to claim any of hires exceeding fourteen days through our lots of hire insurers. We experienced no commercial of hires during the quarter.

[Aristides Pittas, Chairman at Euroseas]

Please turn to slide five. On March 17, we successfully completed the spin off of Europoading, a new entity comprised of three subsidiaries of Eurocoldings, owning our three oldest vessels, MotoVessel AGN Express, MotoVessel Johanna, and MotoVessel Gamandisi. The spin off was executed via a total data distribution of Eurozone shares to Eurozone shareholders at the ratio of one Eurozone shares to 32 and a half Eurozone shares held, representing approximately 5% of Eurocene's net asset value. Eurocene began trading on the NASDAQ under the symbol EHLB on 03/18/2025 as a separate company. Since the spin off, it has had an average share price of around $5.6, roughly a 44% discount to NAV with another daily trading volume of 70,000 shares.

[Aristides Pittas, Chairman at Euroseas]

The company's NAV as of 03/31/2025 was approximately $10.05 per share. The spin off allows Euro Holdings to operate independently with its own management and board while enabling Eurosys to focus exclusively on its younger, more efficient fleet and growth strategy moving forward. Please turn to slide six. The company has a fleet of 22 vessels, including 15 feeder container ships and seven intermediate container ships with a cargo capacity of approximately 67,000 TEU and an average age of under 13 years. Additionally, we expect the delivery of our two intermediate containers with new buildings in the fourth quarter of twenty twenty seven, each with a capacity of 4,300 TEU, which will further increase the size and reduce the average days of our fleet.

[Aristides Pittas, Chairman at Euroseas]

Please turn to slide seven for a further update on our fleet employment. We continue to benefit from strong forward coverage. For 2025, approximately 97% of our available vessel dates have already been secured at another rate of twenty eight thousand two hundred and sixty dollars per day, providing strong visibility into this year's earnings. Looking ahead into 2026, we have already covered approximately 67% of our available days at an even higher average rate of $31,600 per day. This level of coverage achieved through a disciplined chartering strategy, which is neither too defensive nor too aggressive, significantly enhances our revenue stability and allows us to optimize our revenue stream across the market cycle.

[Aristides Pittas, Chairman at Euroseas]

Moving on to slide nine, we go over the market highlights for the first quarter of twenty twenty five. In the first quarter of twenty twenty five, one year time charter rate remained strong, supported by tight vessel availability and sustained demand across all five segments. A significant portion of the container fleet has been fixed forward. And in early June, charter rates have continued to trend upward, remaining at historically elevated levels. Compared to q four twenty twenty four, average charter rates have increased by 10% for future vessels and by 4% for Panamax and post Panamax vessels.

[Aristides Pittas, Chairman at Euroseas]

Looking at the broader market landscape, 2025 is shaping up to be an interesting year, marked by heightened geopolitical risk and shifting global trade dynamics. Ongoing wars and political tensions continue to disrupt traditional trade routes while rising protectionism has improved introduced further inefficiencies. As a result, forecasting remains challenging as we will discuss later on in this presentation. The average second time price index rose by approximately four and a half percent in q one twenty twenty five compared to q four twenty twenty four, supported by limited vessel availability and competitive fleet expansion efforts among buyers. The new building pricing moved largely sideways in q one twenty twenty five compared to the previous quarter, though still at hugely elevated levels.

[Aristides Pittas, Chairman at Euroseas]

Demand for new vessels remains strong, particularly for fuel efficient and eco design. The guest ordering has decelerated slightly due to limited shipyard capacity, rising material costs and macroeconomic uncertainties. Meanwhile, the idle fleet, excluding vessels under repair, has continued to shrink, standing at that point 19,000,000 TEU as of June 2025, six 0.6% of the global fleet, roughly nonexistent. This reflects tight tonnage availability and robust fleet utilization. Recycling activity also remains subdued year to date with just nine vessels totaling 5,000 TEU cents for demolitions.

[Aristides Pittas, Chairman at Euroseas]

However, with approximately 25% of the sub 8,000 TEU fleets over twenty years old, we anticipate that scrapping volumes could rise should the market conditions soften. Crash prices is slightly to $470 per light per ton in q one twenty twenty five. And lastly, the global containership fleet expanded by 3.3% already year to date, not accounting for vessel for IV vessel reactivations. Please turn to slide 10 for our broader market overview, focusing on the development of six to twelve months time charter rates over the past ten years. As illustrated in the graphs on this slide, containership charter rates continued their strong up of momentum in the first first quarter of twenty twenty five, fueled by limited vessel availability and sustained demand across feed trading.

[Aristides Pittas, Chairman at Euroseas]

As of 06/13/2025, the six to twelve month time charter rate for two and a half thousand TEU containership reached approximately $35,000 per day, more than three times the historical median of $11,000 per day, and significantly above the ten year average of about 20 and a half thousand dollars per day. This trend of elevated rate is consistent across all vessel sizes, underscoring the sector's market resilience. Please turn to slide 11. The IMF April 2025 update presents a more cautious global economic outlook, revising its global GDP growth forecast for 2025 downwards to 2.8% from 3.3% projected just three months ago in January. Global growth in 2026 is expected to add up modestly to 3%, but still lower than the 3.3% expected distribution.

[Aristides Pittas, Chairman at Euroseas]

In the last week, the world has experienced an even larger conflict in The Middle East with more aggressive tensions rising between Iran and Iran. The World Bank kept its forecast growth for 2025 down to 2.3%, noting increased trade tensions and policy uncertainty. The revision from both institutions reflects mount mounting downside risk intensified by The United States announcement of multiple tariffs of major trading partners and sectors and the new border rusting in The Middle East. These global tensions and heightened policy uncertainties have shaped the outlook for the remainder of 2025 and 2026. According to IMF projections, The United States projected growth rates have been reduced by nearly 1% to 1.8% for 2025 and one point seven percent in 2026 from the previously expected 2.82.1%, respectively.

[Aristides Pittas, Chairman at Euroseas]

The other advanced economies have also taken a beating compared to previous expectations. The Europe's growth forecast is just point 8% this year and 1.2% next year. Many European countries continue to face subdued domestic demand, manufacturing weakness, and the lingering effects of the end energy shock. US government policy remains largely focused today with the direct impacts of tariffs and possible counter tariffs. Of course, this has the potential to have even wider implications.

[Aristides Pittas, Chairman at Euroseas]

Global inflation continues to trend downwards, but at the base that is lower than what was expected in January, with headline inflation expected to end at 4.3 in 2025 and three point six percent in 2026, with notable upward revisions for advanced economies and slight down on the revisions for emerging markets and developing markets. However, the near term path to price stability remains uneven. Persistent services and rate inflation in several economies, coupled with rising protectionism and demographic headwinds, may delay full conversion to target inflation levels. As a result, central banks are expected to maintain a more cautious approach to monetary policy than has previously been thought. Emerging markets remain the primary drivers of global growth.

[Aristides Pittas, Chairman at Euroseas]

India is expected to expand by 6.26.3% in '25 and 2026, respectively, fueled by strong investments, robust agriculture, and the dynamic services sector. Similarly, the Asian five countries are also projected to both thirty days. In China, growth has been revised downwards to four percent in both 2025 and 2026. And in addition to the accounting use effect, structural challenges persist, particularly around weak domestic consumption, deflationary pressures, and instability in the property sector. Turning to the demand outlook, Clarkson's latest estimates from May 2025, project global containment rates to grow by 2.2% in 2025, and notable after the revision from a negative 0.2% to the March.

[Aristides Pittas, Chairman at Euroseas]

As they have then predicted a much more aggressive unwinding of the routine within 2025, which is something that now seems as infeasible. This type vessel availability this reflects a more resilient environment than previously anticipated. Rerouting is now expected in 2026 depending on the outcome of the current geopolitical situation. Turning on turning on slide 12 where you can see the total fee based profile and containership order book. The containership fleet is relatively young with most vessels under 15 years old and only 10% of the fleet over 20 years old. As of June 2025, the order book as a percentage stands at the very high 29.4%.

[Aristides Pittas, Chairman at Euroseas]

Turning on to slide 13. We go over the fleet age profile and order book only for ships in the 1,000 to 3,000 TEU range, the sizes we most of we mostly operate in. With a much older fleet, the order book fee stands just under 5% as of June 2025. According to Clarksons, the new building delivery for feeder and intermediate site containerships is expected to remain limited over the next several years. In 2025, deliveries for vessels under 3,000 TEU are projected to amount to just 2% of the existing fleet.

[Aristides Pittas, Chairman at Euroseas]

This already modest growth is expected to slow even further to 1.3% in 2026, followed by 1.9% in 2027, and up to now just 0.5% in 2028 and beyond. In July 14, we discussed a different supply outlook for the two containership segments, with a particular focus on the feeder and immediate size vessels under 8,000 TEU. The global order book remains heavily compensated from the large vessels, servicing main lane rooms with significant capacity growth expected in that segment. However, seasonal and intermediate vessels, which are essential for regional distribution, faced a very different supply output. Their order books are extremely limited, and the existing fleet is relatively old with a large percentage of vessels over 70 years of age.

[Aristides Pittas, Chairman at Euroseas]

These 18 units are prime scrapping candidates, particularly as environmental regulation sites. As a result, it is quite possible that the fleet capacity for feeder and intermediate containership may actually decline even as the as the overall containership fleet continues to grow. This evolving supply backdrop supports the factually tight market in our operating segments with favorable indications for better utilization and charter rates moving forward. Moving on to Slide 15. Turning to the broader outlook.

[Aristides Pittas, Chairman at Euroseas]

The container shipping market in the remainder of 2025 is expected to be saved by three major forces. The possible rerouting of vessels away from the Suez Canal, the pending outcome of US trade tariff decisions, and escalating Iranian Israeli conflict, depending on its spending or its intensity. It seems unlikely that these issues will get resolved soon, so we now expect the market to remain relatively strong and resilient throughout this year. As we need to form a company strategy, we have to make several assumptions as to how things will develop in 2026. We don't assume that the whole thing will probably be affected by 60%.

[Aristides Pittas, Chairman at Euroseas]

Similarly, tensions within The Middle East will hopefully be alleviated within 2026 too. And finally, the impact of US tariffs will not be as severe as originally announced. Based on these main assumptions and the high order book, particularly in the larger sectors, it will be logical to predict that there will be a correction in the market in the next couple of years. With this in mind, we proceeded to secure as long an employment as we could in the extreme high end of the world in terms of market. However, the latest escalation in The Middle East, the political framework, may result in the market to continue being disrupted and strong for much longer.

[Aristides Pittas, Chairman at Euroseas]

We will see. Finally, on the other front of shipping and certain of shipping uncertainty, we continue to worry about the energy condition and how this will affect our markets. The process is progressing, though, at the slow go at a slower pace than initially expected, the technical and economic constraints persist. The recent shift of the US administration stance in climate policy may delay adoption further, but it is unlikely to reverse the broader decarbonization threat already underway in the sector. Currently, eco efficient vessels are increasingly commanding premium charter rates as demand for sustainable transit solutions.

[Aristides Pittas, Chairman at Euroseas]

Now please turn to slide three. The left hand side graph shows the cycle of the one year time charter rate for two and a half thousand GB containers over over the past ten years. As of June 13, the one year time charter rate for two and a half thousand PV containers reached to the $35,000 per day. This, despite being below its peak, is still extremely high and revolving and much higher than historical average in New Zealand. Similarly, though, both new building and secondhand prices have also increased in the past year and also remained significantly above historical average annuity.

[Aristides Pittas, Chairman at Euroseas]

In this environment of high prices and high charter rates, we continue to be trying to identify opportunities that could further enhance shareholders' value. We feel that Europolding is one such example as the current valuation of Eurosys and Europoldings combined has outperformed all the other similar listed companies in our unit since you reporting started saving a loan on March 18. And with that, I will pass the floor to our CFO, Patrice Aziz, to go over our financial highlights in further detail.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. As usual, over the next four slides, I will give you an overview of our financial highlights for the first quarter of twenty twenty five and compare those results to the same period of last year. For that, let's turn to slide 18. For the first quarter of twenty twenty five, we reported total net revenues of 56,300,000.0, representing a 20.6% increase over total net revenues of 46,700,000.0 during the first quarter of last year.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

We reported a net income for the period of 36,900,000.0 as compared to a net income of 20,000,000 for the first quarter of twenty twenty four. Interest and finance cost for the first quarter of this year amounted to 4,000,000, which after deducting capitalized interest income of 100,000.0 produced by the self financing of the predelivery payment for the two vessels we took delivery in January. And also interest income of 500,000.0 resulted in total interest and finance cost net of 3,400,000.0 as compared to interest and other financing cost net of 1,300,000.0 for the same period of 2024. During period during this period, we have deducted from the interest the interest income due to the self finance of new buildings of of the pre delivery from the new buildings of 1,400,000.0 and interest income of half a million again. The increase of our interest expense in this quarter is due to the increased amount of debt and compared to the same period of last year.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Adjusted EBITDA for the first quarter of twenty twenty four '25 was 37,100,000.0 compared to 24,600,000.0 achieved during the first quarter of twenty twenty four, primarily as a result of the increased number of vessels we operated on others during the period, and also on on the lower dry docking expenses we incurred in this quarter compared to the same period of last year. Basic and diluted earnings per share for the first quarter of twenty twenty five were was $5.31 basic and $5.29 diluted, calculated on about 7,000,000 basic and diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of 2.89 and $2.87 respectively for the first quarter of last year. Again, calculated on about seven 6.9 and 7,000,000 weighted average number of shares outstanding. Excluding the effect on the net income for the quarter of the unrealized gain or loss on derivatives, the amortization of below market time charter acquired, depreciation due to the increased value of the of below market time charter acquired, and more importantly, the gain on sale of of the vessel we sold, the adjusted earnings per share for the quarter ended 03/31/2025 would have been $3.76 basic and diluted compared to adjusted earnings of 2.67 basic and 2.66 diluted for the same period of last year.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Let's turn to slide 19 to review our fleet performance. Again, as usual, we will start our review by first examining utilization rates for the for the period of this year compared to last year. And, again, as usual, our utilization rate is broken down to commercial and operational. During the first quarter of twenty twenty five, our commercial utilization rate was a 100%, while our operational utilization rate was 99.2%. See this explained the reasons, compared to 99.8% commercial and 99.9% operational for the same period of the previous year.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

On average, this quarter, we operated 23.68 vessels as compared and another contract equivalent rate of $27,563 per day compared to 19.6 vessels for the first quarter of twenty twenty four, and another $27,806 per vessel per day. Our total operating expenses, including management fees, G and A expenses, but excluding the items in costs, were for the first quarter of twenty twenty five, $7,511 per vessel per day compared to $7,963 per vessel per day for the same period of last year. If we move further down on this table, we can see the cash flow breakeven rate, which takes also into account guidance and expenses, interest expenses, and loan repayments. Thus, for the first quarter of twenty twenty five, our daily cash flow breakeven rate was $13,062 per vessel per day compared to $17,171 per vessel per day for the first quarter of last year. A big part of the difference having to do with lower low entertainment and lower die docking cost.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

At the bottom of the table, we can also see our common dividend expressed on a per vessel per day basis. Our dividend for the first quarter of twenty twenty five equates to about $2,118 per vessel per day compared to $2,328 per vessel per day in the corresponding period of last year. Let's now move to Slide 20 to review our debt profile. As of 03/31/2025, our total outstanding bank debt stood at 244,000,000 with another interest margin of approximately 2.04%. Assuming the three months offer rate of 4.31%, this translates to a cost for our senior debt, our only debt, of 6.35%.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Taking here also into account our interest rate swaps where approximately 8.2% of our debt has been swapped for a fixed rate of a little lower, 3.41%, makes our blended cost of debt effectively down to 6.3%. We have scheduled loan repayment for the rest of the year of approximately 18,400,000.0 plus a 7,000,000 balloon, thus reducing the outstanding debt by the end of this year to about 213,000,000. In 2026, scheduled loan repayments are expected to total 19,500,000.0 with no balloon payment due. In 2027, we anticipate making 16,800,000.0 in loan repayments alongside the 20 millions of balloon payments resulting in total expected scheduled debt repayments in 2027 of about 36,800,000.0. I would like to draw your attention now at the bottom of this slide where we present our cash flow breakeven level for the next twelve months, and also we break it down with components.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Overall, we expect a cash flow breakeven level to be around $12,676 per vessel per day, a level that as you can realize is significantly below the average daily earnings of our fleet. To sum up my presentation, let's move to slide 21 and and review some highlights from our balance sheet. As of 03/31/2025, we did cut another current asset of about 106,400,000.0, while we have made advances for our two new buildings near close to about 18,000,000. In addition, our assets include the book value of our ships, which stood at 524,200,000.0, resulting in total book value of our assets and our balances of about $6,648,800,000.0. On the liability side, as I mentioned earlier, we said we said that of 244,000,000, which represents about 38% of the book value of our assets.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

We also said other liabilities that amount of about 25,000,000 that amounted to about 4% of the book value for us. It's leaving us with a book value of shareholders' equity of about 377,000,000 or $54.8 percent book value. However, it is important to mention here that the market value of our fleet adjusted for the charges that we have is significantly higher than its book value. We estimate that at the March, the charter adjusted value of our fleet to be a $144,000,000 higher than its than its book value, thus resulting in net asset value per share for our company in the range of 74 to $75. And despite there is an increase of our share price during the last two weeks, which is trading between 40 and $45 per share, it is evident that our stock trade is a significant discount to our net asset value, highlighting the substantial upside of our share and the prospective gains for our shareholders and investors.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

With that remark, I'd like to turn the floor back to Aristides to continue our call.

[Aristides Pittas, Chairman at Euroseas]

Thank you very much, Taso. Let us open up the floor for any questions we may have.

[Operator]

Thank you. We'll now be conducting a question and answer session. If you'd to ask a question, please press one from your telephone keypad and a confirmation tone will indicate your line is in the question queue. You may press star two if you'd to withdraw your question from the queue. For participants that are using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

[Operator]

One moment, please, while we poll for questions. Thank you. Thank you. Our first question is from the line of Mark Reichman with Noble Capital Markets. Please proceed with your questions.

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

Thank you for taking my question. The first one is just would you please provide your latest estimate for scheduled hire days for the remainder of the year?

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Can't do so far. You mean dry dock dry docking cost.

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

Well, you've got the dry docking, but then you're also you've got the you said you mentioned you were going to retrofit one of your secondhand vessels with with energy savings equipment. So I'm I'm guessing that that one will experience some off time as well.

[Aristides Pittas, Chairman at Euroseas]

This this is the same But mainly dry dock

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

but mainly dry docking. Yes.

[Aristides Pittas, Chairman at Euroseas]

Mark, this is this is the same vessel. It's the manual and the our estimated stoppage time of twenty five days is the period in which we envisage to complete the special survey and the rest of it. So so and and and that's the only vessel I think that we have for dry dock this year.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

The the rest of the 30 are are being done as part of the dry dock. So we didn't we don't have an incremental. There's no incremental days for the rest of it to the best of our own.

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

Oh, okay. Great. Great. Then the second question is, like, on page 15 of your presentation, I just wanted to kinda focus on the line where you say that we conclude that it's probable that we'll experience downward pressure and charter rates.

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

Now, obviously, you're very well covered in 2025 and even into 2026. But I was wondering which of those three assumptions has the most bearing your conclusion there? Is it the rerouting of the ships to the Suez? Is it the tariffs and economic growth? Or just what if you could maybe just expand on that a little bit would be great.

[Aristides Pittas, Chairman at Euroseas]

Okay. Rerouting of ships is is a significant negative because it reduces ton miles substantially. So if that happens, we reduce the ton miles, the effective supply of ships goes up. So if that can be a significant negative. But, of course, the imposition of tariffs and the drop in global trade is all can also be negative.

[Aristides Pittas, Chairman at Euroseas]

However, the disruption that is caused by changing trade routes and the lines trying to optimize those routes so as to have the little, you know, delays and not higher than waiting times, of course, That that that's a positive if that happens. Generally, disruption is positive. As also the effects of the war, you know, can can be positive except if that leads to very significant drop in in in trade. So these are all very difficult things to analyze and make predictions upon, I have to admit. And that's why we took the much more cautious approach even before the war.

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

Okay. No. That's helpful.

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

And just one last question is that, you know, your total daily vessel operating expenses were down compared to the prior year. And I was just wondering if you expect those to decline further if the other four of the nine new builds are are reflected in operations.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Yeah. I think, statistically, that probably is true. As our comp the composition of our fleet becomes an average, more new builds incorporated for more time over the year Mhmm. The blended average might come down a bit. But, generally, our budget talks about roughly 2% higher OpEx compared to our previous budget.

[Mark Reichman, Senior Research Analyst at Noble Capital Markets]

Okay. Well, great. Well, that's very helpful. Thank you very much. You're welcome, Mark.

[Operator]

Our next question is from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

Hello. Hello, Eric. Hello, Tassos.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Hello.

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

Tassos, could you highlight how much debt you're gonna pay off when you when the Marco five is actually, you know, delivered to the seller or to the buyer?

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

I think that we actually I think it is about $88,000,000 that that's actually been already paid. Last this quarter. So the Marcos is debt free.

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

Okay. So that net proceeds will be 50,000,000 in the fourth quarter?

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Say again, the the what?

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

The net proceeds of the sale will be $50,000,000 in the fourth quarter?

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

That's correct. Yes, that's correct.

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

Okay, great. And then, you you still have some older ones, you know, pre 2010.

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

You know, are you looking to enhance your fleet profile by selling some of the older vessels? Can you just talk about the S and P market, you know, following the sale of the Marcos?

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Think you want to I think we don't plan to sell vessels while they are on charter, but I said when the charter expire with the time.

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

Okay. That would the Genesys POS charter at the end of the year, is that you know, should we be thinking that as thinking of that as a potential sales candidate?

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

I think I would say that we are looking primarily to restart the vessels, and so we're putting our affiliates in their market for that at this moment.

[C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners]

Okay. Great. Thank you.

[Operator]

Thank you. At this time, I will turn the floor back to management for closing remarks.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Excuse me? If there are no other questions, then I'll take the role of our business, and thank everybody for participating in our call. We're looking forward to seeing you all in August when we're gonna issue our first half results. Thank you very much again, and enjoy the rest of your day. This will conclude today's conference.

[Operator]

You may disconnect your lines at this time. Thank you for your participation. Have a wonderful day.

[Anastasios Aslidis, CFO & Treasurer at Euroseas]

Thank

Participants

Executives

• Aristides Pittas, Chairman
• Anastasios Aslidis, CFO & Treasurer

Analysts

• Mark Reichman, Senior Research Analyst at Noble Capital Markets
• C.K. Poe Fratt, MD - Equity Research & Senior Transportation Analyst at Alliance Global Partners