Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Conference Call on the Second Quarter 2021 Financial Results. We have with us today, Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by question-and-answer session. [Operator Instructions] I must advice you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everyone that in today’s presentation and conference call, EuroDry will be making forward-looking statements. 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 two of the webcast presentation, which has the 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 I would now like to pass the floor over to Mr. Pittas. Thank you, sir. Please go ahead.

Good morning ladies and gentlemen and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our Chief Financial Officer. The purpose of today’s call is to discuss our financial results for the six months period and quarter ended June 30th, 2021. Please turn to slide three, our income statement highlights our story here. For the second quarter of 2021, we reported total net revenues of $14.1 million and a net income of $2.2 million. Adjusted net income attributable to the common shareholders was $6.6 million or $2.76 per share diluted. The main difference between net income and adjusted net income was the paper loss of about $3 million on our FSAs covering one vessel for Q3 and Q4 at $12,550 per day. Having taken this loss in Q2, our net income for Q3 and Q4 will not be affected by the low rate of that FSA. Adjusted EBITDA for the quarter stood at $9.2 million. Our CFO, Tasos Aslidis will go over our financial highlights in more detail later on in the presentation. Please turn slide four for our operational highlights. Motor vessel Pantelis was fixed for a trip of about 90 days to 130 days at $23,000 per day and if the trip extends further, the vessel will earn 95% of the DPI. The Blessed Luck was fixed for 11 to 13 months at $19,500 per day and lastly, the Alexandros P was fixed for a trip of about 65 days at $25,250 per day. During the second quarter, the company settled 90 days of previously sold forward trade agreements, the equivalent of one Panamax vessel, which was originally sold at the rate of $12,500 per day with the loss of $590,000. Simultaneously, we had also sold FFAs for 90…

Thank you very much, Aristides. Good morning from me as well ladies and gentlemen. I will now take you through our financial highlights for the second quarter and first half of 2021 and compare to the same period of last year. For that, let's turn to slide 15. For the second quarter of 2021, the company reported total net revenues of $14.1 million representing a 251% increase over total net revenues of $4 million during the second quarter of 2020. And this was the result of the higher time charter rates our vessels earned during the period and the additional vessel we acquired in the middle of the second quarter of this year. The company also reported net income for the period of $2.2 million and net income attributable to common shareholders of $1.9 million as compared to a net loss and net loss attributable to common shareholders for $3.8 million and $4.2 million respectively, for the same period of 2020. [indiscernible] and other financial costs for the second quarter of 2021 amounted to $0.5 million compared to about $6 million for the same period of last year. Depreciation expenses for the second quarter of 2021 amounted to $1.8 million as compared to $1.6 million for the second quarter of last year. And again, this increase is due to the higher number of vessels we own during the second quarter of 2021. Adjusted EBITDA for the second quarter of 2021 was $9.2 million compared to a negative EBITDA level of minus $1.3 million reported during the same period of last year. Basic and diluted earnings per share attributable to common shareholders for the second quarter of 2021 was $0.83 basic and $0.81 diluted, compared to basic and diluted loss per share of $1.86 for the second quarter of 2020. Excluding…

Thank you, Tasos. Let me now open up the floor for any questions you may have.

Thank you very much, sir. [Operator Instructions] Our first question for today is from Tate Sullivan from Maxim Group. Please go ahead.

Hi. Thank you. First from me reviewing one of your comments on the new build market, Aristides, I think it was on slide 11 that you were. What did you say about 2023? I think you mentioned that an urgent need to start building new vessels by 2023 based on that chart, but then those new vessels want to enter the market for at least a couple years or can you review the timing of that comment?

Yeah. So Tate, I think that because the or the current orderbook for 2022 and 2023 is very low. If demand stays strong, remains quite strong, we will have a shortage of sales. So at some point, we have to start ordering new vessels that will come in in 2024 onwards, because we will have a lack of sales. So I think this we will see more vessels being ordered during the next 18 months.

Okay. But the impact on the near term rates has not appeared yet or at least has that started to appearing and what you're seeing in FFA is available for 2022?

Yeah. That is gradually increasing a lot fast enough. I think it will probably increase faster. But of course, it will depend on other things as well, the pandemic and logistical issues that we may be facing because of that and the global growth rate. So it's very difficult to project the future. What is relatively easy to see is that the order book for 2022 and 2023 deliver is extremely low.

Yes. And then thank you for putting in the EBITDA calculator slide again with about 40 million of EBITDA on 2021. I was just interested in rolling forward to 2022. I mean, is the FSA market liquid enough for you to start locking in rates, the size of shifts you have on fixed contracts going into 2022 or it's still early to talk about the rates that you could start fixing for 2020?

So the FSA is liquid them out for somebody who wants to play the FSA markets for 2022. You can find the coverage there. But there is two things one, we feel that that is still lower than what we will see later on in the year. So we are not inclined to take any protection of those levels today. Plus the FFAs have the significant issue that you have to post a lot of collateral in order to do an FFA trade. And if the -- if it moves against you have to be you have to be increasing that collateral. So it sure -- it takes up a lot of cash, an easier way to roll forward, perhaps is to fix, one year time charter rates, which does not consume this extra liquidity.

Great. Thank you. And what one more for me, Tasos, for the use of cash in three in the current quarter and maybe I missed it. Maybe it was some netting out amounts to the blessed luck was a $12 million acquisition. But then the cost of the acquisition amount in terms of the cash outflows $7 million. Will there be another outflow in the 3Q based on the seller credit timing or how does that usually occur?

The difference exactly the seller spread the date with we said the seller loan essentially which I think we paid in July this year. So the remaining $5 million will be seen in our in our cash flow statements next quarter.

Okay. Perfect. Okay. Thank you very much.

Thank you, Tate.

Thank you, Mr. Sullivan. The next question is from Poe Fratt from Noble Capital Markets. Please go ahead.

Good morning, Aristides. Good morning, Tasos.

Hi, Poe.

Hi, Poe.

Aristides, could you talk about what's happened recently, in the context of Panamax has been a little weaker than Ultramax and to sort of what's going on there? And then also, could you give us a view on sort of the next six months, in the context of whether we're going to see the typical seasonality in the market or sort of what you're anticipating in the fourth and first quarters coming up?

Tough questions, tough questions, Poe. So it's not easy to talk about what has happened than what will happen in the next six months. Panamax is have been very strong during the first parts of the year, due to the extra grain shipments that we had seen up to June. And this was quiet went up a little bit in this last month. And I think that probably explains a little bit of the softening of the Panamax market as compared to the Ultramax market, which we haven't seen any softening yet. So, going forward, of course, Q3 and Q4 are historically as -- as I said, and you have visited seasonally stronger periods than the first half. It remains to be seen exactly what will happen that will happen. We have the huge bottlenecks that are created, because of the pandemic and the logistic issues. And the time it takes for bolts to discharge vessels and all that on one side. We have the proving demand from the western economies. On the other hand, it's very difficult to say exactly, how the next few months will pan out. But I would think that we would expect the strong rates to continue, if they will be much higher or much lower on same it's very difficult, a little bit higher or a little bit lower on the same. It's a little bit difficult to tell.

Great. Thanks. And can you talk about the decision or what happened with Alex P as far as exiting the GMax Pool, how you're viewing that? I mean, potentially are you going to continue to let it work in the spot marketers or view that you potentially would put that on the time charter?

I think we decided to take it out after what was it's been a past years, because we feel that we can employ themselves a little bit better in the spot market at these high levels. So, that protection was not needed there. If at some point, we decide to fix it again, for a year or something like that, that remains to be seen. We haven't decided on such things yet. We are trading in spot. We fixed it for our first cargo into Brazil for the next two months, which is usually an area where you can get high charter rates. We'll see how it goes. But there is no intention right now to fix longer period. We may though if where we see Q3 strengthening get a little bit more cover on maybe fixing one or two more seats of our fleet for the year -- the yearly periods.

Okay, great. And then, Tasos, I know you're in discussions on the new loan, $12 million to take to refinance the balloon and add some extra. It looks like liquidity to $4 million can you talk about that decision? And then also, if the context of the extra liquidity, and then also, would you happen to have the terms yet, as far as the amortization in balloon payment that might be associated with a new $12 million loan?

It's actually, of course, it is -- it is relatively straightforward. I think, with increase in values, we can actually finance the $8 million using only two or rather than vessels as collateral, and drawing a loan of about $9 million. So we will be able to repay, if we wanted the full loan and save your free ship unencumbered, who might end up doing is repaying the portion that is covered by those two ships, and extending the loan for the third one. You are right indicating that we might have a $4 million additional liquidity, which would be very useful as we are looking at possible investment opportunities in other uses of funds. I think they're long we're looking at the -- for four year term loan, with your normal amortization going down to about the cap value.

Okay. Great. And then Aristides, if you could just talk about, comment about potentially, with public security that you potentially would be -- looking for acquisition or opportunities to merge or require, for companies that are looking to exit, that might be private. Now, can you talk about, the strategy? Would it be more oriented towards renewing the fleet? Or would it be, adding, sort of looking at your current fleet, and saying, we were looking for like fleet? I mean, can you just help me understand sort of what you're strategically how the fleet might change over time?

Yeah. It's difficult to say, what I can say, because we don't have any projects that we are looking at right now. So it's difficult to say, and, of course, we are there to look at every opportunity that, could make sense for our stakeholders. But practically, we are focusing on the size of the ships that we currently own from Supramax up to Kamsarmax that is the area we feel comfortable with. So, we're looking at projects there. We are open to look at all the vessels and the newer vessels. We would like the idea, if there is somebody who wants to contribute their vessel into EuroDry in exchange process and some cost to go ahead and add that vessel, as long as it fits this broad criteria that I just told you. And of course, it makes finances sense. So we are open to such deals. We have discussed things in the past. We are not currently in any discussion, though, with anybody about the contribution of one or a group of vessels into the company.

Great. That's very helpful. Thank you so much.

Thank you, Poe.

Thank you.

Thank you. There are no further questions at this time. I will now hand the call back for closing comments.

Okay. Thank you, everybody for this discussion today, and we will be back with you in three months' time to discuss the Q3 results. Thank you and enjoy the summer.

Thanks, everybody. Bye.

Thank you. Ladies and gentlemen, that does conclude the call. Thank you all for your participation. You may now disconnect.