EuroDry, an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced its results for the three and six month periods ended June 30, 2023.

Second Quarter 2023 Highlights:

• Total net revenues for the quarter of $10.3 million.

• Net loss of $1.2 million or $0.43 loss per share basic and diluted.

• Adjusted net loss1 for the quarter of $1.3 million or $0.48 adjusted loss per share basic

and diluted1, respectively.

• Adjusted EBITDA1 for the quarter was $2.5 million.

• An average of 10.0 vessels were owned and operated during the second quarter of

2023 earning an average time charter equivalent rate of $12,179 per day.

• The original share repurchase program of $10 million approved by the Board in August

2022 has been extended for another year. To-date, about $3.25 million have been used

to repurchase 216,551 shares of the Company.

• The Company also announced that it completed its 2022 Sustainability Report which

is available at its website (http://www.eurodry.gr/company/sustainability.html).

First Half 2023 Highlights:

• Total net revenues of $21.7 million.

• Net loss was $2.7 million or $0.98 loss per share basic and diluted.

• Adjusted net loss1 for the period was $0.92 million or $0.33 adjusted loss per share

basic and diluted1.

• Adjusted EBITDA1 of $4.8 million.

1Adjusted EBITDA, Adjusted net income / (loss) and Adjusted earnings / (loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDry’s financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

• An average of 10.0 vessels were owned and operated during the first half of 2023 earning an average time charter equivalent rate of $11,393 per day.

Aristides Pittas, Chairman and CEO of EuroDry commented:

“After recovering early in second quarter, the drybulk markets turned down again reaching by July 2023 the very low levels last seen in January of this year. This decline in the market rates affected our results for the second quarter as the majority of our vessels were exposed to the fluctuations of the markets. Still, certain FFA coverage we had taken early in the year significantly mitigated the effect of the weak markets.

“While geopolitical uncertainties have remained, the macroeconomic picture improved during the quarter with inflation dropping in many countries and various analysts revising positivel their economic outlook forecasts. Drybulk trade volumes increased, especially for iron ore and coal. Given this positive economic and shipping demand backdrop coupled with modest scheduled fleet growth, the different development of vessel prices and market rates has become striking: the former remained at relatively high levels while rates declined significantly.

However, we believe that the continuing historically low fleet orderbook as percentage of the fleet provides a strong foundation for the rates to eventually increase provided the global economy continues to grow per recent analyst forecasts. Thus, we are positioning the company to take advantage of that possibility in the medium term.

“We therefore continue to look for accretive projects and acquisitions to pursue both on our own and jointly with investment partners. 

At the same time, our stock continues to trade at a very steep discount to our net asset value; our Board of Directors continues to believe that buying our own stock represents a very attractive investment for us and has extended our share repurchase program for another year.

“Last but not least, we are pleased to publish our ESG report for 2022 which reports on our progress on a number of fronts all well engrained in our business philosophy and social responsibility. The management and the Board of EuroDry are committed to continue improving and engaging all stakeholders in such efforts.”

Tasos Aslidis, Chief Financial Officer of EuroDry commented:

“The net revenues of the second quarter of 2023 decreased significantly compared to the second quarter of 2022 as a result of the decreased time charter equivalent rates our vessels earned during the second quarter of 2023 compared to the same period of 2022. The time charter equivalent rates for the period were lower by 48% on average compared to the time charter equivalent rates our vessels earned in the second quarter of 2022.

“Daily vessel operating expenses, including management fees, averaged $6,780 per vessel per day during the second quarter of 2023 as compared to $5,867 per vessel per day for the same quarter of last year, and $6,424 per vessel per day for the first half of 2023 as compared to $5,806 per vessel per day for the same period of 2022. The increase is attributable to the higher prices for all the categories of vessel supplies paid for our vessels compared to the same period of 2022. General and administrative expenses averaged $876 per vessel per day during the second quarter of 2023 as compared to $695 per vessel per day for the same quarter of last year, and $882 per vessel per day for the first half of 2023 as compared to $778 per vessel per day for the same period of 2022. The increase is due partly to inflation adjustments and partly to the lower number of vessels we operated especially during the second quarter of 2023 as compared to 2022.

“Adjusted EBITDA during the second quarter of 2023 was $2.5 million versus $13.7 million in the second quarter of last year.

“As of June 30, 2023, our outstanding debt (excluding the unamortized loan fees) was $78.0 million, while unrestricted and restricted cash was $39.5 million. As of the same date, our scheduled debt repayments including balloon payments over the next 12 months amounted to about $11.0 million.”