EuroDry Ltd. Highlights Yearly and Quarterly Performance Growth
EuroDry Ltd. Reports Annual and Quarterly Financial Results
ATHENS, Greece - EuroDry Ltd. (NASDAQ: EDRY), an owner and operator of drybulk vessels, has announced significant financial results for the year ended December 31, 2024. The company specializes in the transportation of drybulk cargoes, and its latest report highlights operational metrics and future prospects.
Fourth Quarter 2024 Overview
Key Highlights:
- Total net revenues for the fourth quarter stood at $14.5 million.
- Net loss attributed to controlling shareholders was $3.3 million, translating to a loss of $1.20 per share.
- Adjusted net loss for the quarter was reported at $0.7 million, or $0.25 per share, excluding an impairment charge of $2.8 million.
- Adjusted EBITDA for the quarter reached $4.8 million, reflecting the company's operational performance despite market challenges.
- An average of 13 vessels operated during the fourth quarter, achieving an average time charter equivalent rate of $12,201 per day.
- Approximately $5.3 million was utilized to repurchase 334,674 shares as part of a broader strategy initiated in August 2022.
Recent Developments
In November, EuroDry Ltd. entered into agreements for the construction of two ultramax bulk carriers, expected to be delivered in mid-2027 at a total cost of around $71.8 million. These vessels will enhance EuroDry's fleet and capabilities.
Additionally, the company signed an agreement to sell its vessel M/V Tasos for demolition, expecting to record a gain of approximately $2.1 million following the completion of its current charter by early March 2025.
Full Year 2024 Performance Review
For the complete fiscal year, EuroDry reported total net revenues of $61.1 million, leading to a net loss of $9.7 million, or $3.54 per share. The adjusted net loss for the year equated to $8.2 million or $3.02 per share.
Average daily earnings for its fleet reached an impressive $13,039 per day. The full-year adjusted EBITDA was reported at $12.4 million, down from $14.6 million the previous year as the market faced downturn pressures.
Market Commentary by the Leadership Team
Aristides Pittas, Chairman and CEO, commented on the challenges faced by the drybulk market, citing a significant drop in trade volumes and low demand from major markets as key factors influencing their performance during the past year. However, he expressed optimism about potential market recovery due to government stimuli in China and seasonal trends typically seen in the industry.
CFO Tasos Aslidis elaborated on operational efficiencies achieved amidst a tough market environment. Despite decreased revenues driven by lower charter rates, EuroDry managed to control operational costs effectively and improve key financial metrics.
Strategic Outlook
While the fourth quarter's challenges impacted financial performance, the leadership team at EuroDry remains focused on positioning the company for recovery. They are actively exploring investment opportunities to expand and modernize their fleet in line with market conditions.
Operating Metrics and Financial Insights
Throughout 2024, EuroDry operated an average of 13 vessels with a total cargo capacity of approximately 918,502 dwt. The company's focus on maintaining a modern fleet is expected to enhance profitability through enhanced operational efficiencies.
The operational cost management is evident with a reduction in vessel operating expenses, which averaged $6,967 per vessel per day compared to $7,131 in 2023, showcasing the company's commitment to efficiency.
Frequently Asked Questions
1. What significant steps did EuroDry take in 2024?
In 2024, EuroDry announced the construction contracts for two new ultramax vessels and executed the sale of the M/V Tasos vessel.
2. How did the pandemic affect EuroDry's financial performance?
The pandemic led to a decrease in global trade volumes, adversely impacting the drybulk shipping rates experienced by EuroDry.
3. What is EuroDry's current fleet size?
EuroDry operates a fleet of 13 vessels, including various types of drybulk carriers, with plans to expand in the coming years.
4. When is EuroDry's next financial announcement?
The company usually schedules financial results announcements quarterly, with the next expected after the first quarter results.
5. What are the future prospects for EuroDry's market?
EuroDry's leadership anticipates a market recovery driven by stimulus packages in key markets, coupled with seasonal demand increases.
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