Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas’ Conference Call on the First Quarter 2017 Financial Results. We have with us 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’ll be a presentation followed by a question-and-answer session [Operator Instructions]. I must advise you this conference is being recorded today. Please be reminded that the Company announced their results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I’d like to remind everyone that in today’s presentation and conference call, Euroseas 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 2 of the webcast presentation, which has the full forward-looking statement, 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’d now like to pass the floor to Mr. Pittas. Please sir, go ahead.

Good morning and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our CFO. The purpose of today’s call is to discuss our financial results for the three months period ended March 31, 2017. Let’s turn to Slide 3 of our presentation for our financial results overview. Despite the improving markets, we were not able to return to profitability during Q1 as most vessels was still running off low charters. Consequently, net loss for the period was $2.2 million while adjusted net loss attributable to common shareholders was $3.1 million or $0.29 per share loss that difference is because of the $0.4 million of dividends from the Series B preferred shares and $0.5 million of loss on sale of a vessel. Net revenues were $8.3 million and adjusted EBITDA was $0.2 million. We are hopeful that in Q2, we should be close to a return profitability and our share price which currently corresponds to less than half of our own NAV valuation will again start moving towards that. Please turn to Slide 4 to discuss our operational highlights for the quarter. The start of the year included a couple of sales on purchase transactions. After performing a short term charter the vessel, RT Dagr was sold for scrape for net proceeds of about $2.3 million on January 31. In the fourth quarter of 2016, we had a deal to purchase the 2000 built dry bulk carrier MV Tasos for $4.45 million to replace the eldest dry bulk vessel in the fleet motor vessel Eleni P which had been committed to be scrape. We took the delivery of the Tasos on January 9 and then scrapped Eleni on January 26 thus effectively swapping a 1997 built vessel with a three years younger…

Thank you very much Aristides. Good morning from me as well, ladies and gentlemen. As in every quarter, I will provide you with a brief overview of our financial statements and results for the first quarter ended March 31, 2017. For that let’s turn to Slide 24 and take a look at our results for the three month period again ended at the end of March of this year. The results for the first quarter of 2017 partly reflect the recovering state of the dry bulk and container shipping markets. For the quarter, we reported total net revenues of $8.3 million representing a 26.6% increase over total net revenues of $6.5 million during the first quarter of 2016. We reported a net loss for the period of $2.2 million and a net loss attributable to common shareholders of $2.6 million as compared to a net loss of $2.8 million and net loss attributable to common shareholders of $3.3 million respectively for the first quarter of 2016. The results for the first quarter of 2017 include $0.5 million gain on a sale of a vessel. As Aristides mentioned earlier, in addition to the gain on the vessel, the difference between net loss and net loss attributable to common shareholders of $0.4 million accounts for the dividends we paid to our Series B preferred shares in the first quarter of this year. This preferred dividend can be paid out at our option either in cash on in kind and we have elected to pay in kind for the last 13 quarters. Basic diluted loss per share for the first quarter of 2017 was $0.24 compared to basic and diluted loss per share of $0.40 for the first quarter of last year. Excluding the effect on the loss for the quarter of the…

Thank you, Tasos. So I think we can open the floor up for any questions that we may have.

[Operator Instructions] And our first question comes from Donald Bogden from Wells Fargo. Donald, your line is now open.

Good afternoon, gentlemen. How are you?

Hi, Donald. How are you doing?

So my first question is just on the bulk ordering and given we have seen a recovery in asset values, we have seen some incremental ordering. Can you quantify that and what is the lead time right now if the order or bulk are considering much of the burst in 2018 are open?

The lead time is minimal one year but closer to 18 months I would say.

Closer to 18 month. Thank you for that color and just as a follow-up, so that mean can you talk a bit to the state of the overall ship running industry, I mean obviously the crane yards are more transparent, they are distressed but we haven’t as much news flow out of the Chinese bulker yards, I mean, there is a small level of distress. Are you seeing these yards market new designs now or do you expect a significant amount of closures as on the Chinese shipbuilding market?

The Chinese have some standard designs right that they build generally. So they are not marketing something new. A lot of the yards – of the smaller yards are really suffering. The bigger yards most of them have some work but they need to find more work from 2019 onwards. And so the situation is not much better than what it is in Korea.

Got you, thank you for that color.

There is one significant issue around new buildings which is that Tier 3 engines that will now be required of new ships which will make – which is there is no significant sayings on the structure of the ships but you have to put in a Tier 3 engine in the vessel and that is more expensive, right, about $1 million to $2 million more expensive. So this is a further deterrent I would say for owners to be putting in bids today for new ships.

Right and I mean, based on your commentary in the presentation you said you know 10 plus year assets run off to upwards of 50% from their lows and sort of five years assets were up 30%. If you look at the economics of a new build versus a second hand tonnage, you still think they favor second hand tonnage or is getting close to parity or how are you currently looking at that?

I think we are getting close to parity. So that’s why you’ve seen a couple of new orders being place. But the fact that as I said, you know, you have this Tier 3 engines which cost a little bit more and is obviously deterrent together with the fact that financing is not as plentiful these days for new building vessels.

Got it. And then just one follow-up on the containership market. You had mentioned in your remarks that you saw some fatigue creeping into the market, is that just from that fall that were previously laid up return to service or can you sort of just elaborate on what you meant by that?

Some tariff had been increasing also quite dramatically especially for the mid-size vessels and we saw charter rates for Panamax vessels go very quickly up from $4,000 to $10,000. It’s not continuing to go up even the $10,000 is not a very high number if you look at the in the context of the last 15 years. So we would have hoped that that continues its currently stopped at that level. We need to monitor the market and see how it develops.

Okay, thanks it from me. As always thank you for the color, guys.

Thanks Donald.

[Operator Instructions]

Well apparently, there is no more questions. So I would like to thank everybody who was on the call today and I look forward to talking to you again next year, hopefully with our results indicating still better results.

Thanks everybody.