Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas Conference Call on the Third Quarter 2021 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 will be a presentation followed by a question-and-answer session. [Operator Instructions] I must advise you that this conference is being recorded today. Forward-looking statement. 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 would 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 number two 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 minute to go through the whole statement and read it. And now I would like to pass the floor to Mr. Pittas. Please go ahead, sir.

Good morning ladies and gentlemen and welcome to our scheduled conference call for today. Together with me is Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the third quarter and nine months period ended September 30th, 2021. Let us turn to slides three. Our income statement highlights are shown here. For the third quarter of 2021, we reported total net revenues of $23 million and net income of $8.5 million. Adjusted net income attributable to common shareholders for the period was $8.4 million, or $1.16 cents per share basic and diluted. Adjusted EBITDA for the period stood at $10.6 million. For the nine months period, our total net revenues were $55.6 million and net income was $10.2 million. Adjusted net income attributable to common shareholders was $19.1 million or $2.74 per share basic and diluted. Adjusted EBITDA for the period was $26.6 million. These results are strikingly better than our equivalent three and nine-month period results of last year and Tasos will go over them in more detail later on in the presentation. Please turn to slide four where we discuss our recent operating developments. On October 18th, 2021, we took delivery of motor vessel Jonathan P, a 1,740. TEU container fleet of vessel built in 2006, formally known as M/V [indiscernible]. Pursuant to the previously announced transaction on September 7th, 2021. Upon delivery of the company, the vessel commenced the sea charter as a net rate of $26,662 per day. On November 11th, 2021, the company announced the acquisition of M/V Leo Paramount to be renamed M/V Marcos V, a 6,350 TEU containership built in 2005 for $40 million. The vessel which is expected to be delivered to the company within 2021 will be financed by own funds and…

Thank you very much Aristides. Good morning from me as well ladies and gentlemen. I will now take you through the next five slides of our presentation, give you an overview of our financial results for the third quarter and nine months period ended September 30th, 2021 and compare them to the same period of last year. For that, let's turn to slide 15. For the third quarter of 2021, the company reported total net revenue of $23 million, representing an 87% increase of our total net revenues of $12.3 million during the third quarter of 2020, which was mainly the result of the carrier average charter rate our vessel earned in the third quarter of this year as compared to the previous year. Although partly offset by the lower average number of vessels we operated in the third quarter of this year. The company's reported net income and net income attributable to common shareholders for the period was $8.5 million as compared to a net income of $0.2 million and the net income attributable to common shareholders of $0.03 million respectively, for the third quarter of last year. In average, 14 vessels were owned and operated during the third quarter of 2021, earning another time charter equivalent rate of $19,417 per day compared to [indiscernible] vessels of owned and operated in the same period of last year, adding another time charter equivalent rate of $8,403 per vessel per day. Interest and other financial cost for the third quarter of this year amounted of $0.6 million compared to $0.9 million for the same period of last year. This decrease being due to the decreased level of debt that we carried and decreased average weighted LIBOR rate in the current period compared to the same period of last year. Depreciation expense…

Thank you, ladies and gentlemen. And I now open up the floor now for your questions.

Hi. Thank you. Hello. First, if I may on Leo Paramount acquisition at the 2005 built ship. And you mentioned also earlier amortizing down the cost of that acquisition to near scrap values. How long do you expect to be able to operate that ship? First question and I have a follow-up question as well please

Sure. The ship will be 20 years old at the expiration of the charter. Historically, we've operated ships up till even when they are 30-year old. I would expect that we can operate it technically easily up till the time that it's 25 years old. It will depend, of course, on commercial considerations at the time, and also the background regarding the energy matters. But I think that if the markets are decent, then we will be able to operate it for another five years after the expiration of the charter.

Great. And the comment about operating -- amortizing the value of acquisition down to scrap and on the future potential environmental background in the sector, I mean, do you forecast higher scrapping values for your ships as demand for recycled steel increases? Or is that not a major consideration as you evaluate additional acquisitions?

No, we don't assume higher valuations scrap by using in fact our base case scenarios are based on lower scrap values than current scrap values. Scrap prices at $615 per tonne today are higher than what with based on calculations on today. It might be higher, it's probable that it’d be higher, but we are more conservative on our models when we model things.

Great. Thank you for that additional detail for that. Thank you.

Thanks.

Thanks, Tate.

Thank you. Your next question comes from the line of Poe Fratt from NOBLE Capital Markets. Please go ahead. Your line is open.

Good morning Aristides. Good morning or good afternoon to both of you and Tasos. Just a quick follow-up on the Marcos V, would depreciable life are you going to use on that?

I mean, accounting-wise, its 25 years.

Okay. And then when you look at the option that was given in the fourth year at $15,000. What should we read into that really good rate for the first three years, but then stepping down to $15,000? Can you just give us a little color on, is that where you think the market may be for that type of vessel? Or is that something that you -- it was a trade-off with a charter as far as getting a higher rate for the first three years, and then a lower rate in the fourth?

It's the latter for. It was a trade-off to get the fixed charter for three years at that level. So we had to do that. But because with the three years charter, we bring the vessels down to scrap, we felt quite comfortable. And even with the $15,000 level, when you assume that the operating expenses will be around 780, you're still making money even at $15,000 a day. So it's still contributing, it's not contributing that much. But who knows how the situation will be after four years.

Yes. I appreciate the -- your use of the word complex. So it's not where you think the market will be in after three years. It's more just the negotiated transaction. Okay. And then can you give us an idea of sort of what are you thinking as far as the Oakland and the Corfu as far as what you are willing to -- how are you -- are you going to keep those short or try to get time charters? Or can you give us an appreciation for sort of what to expect on those two, which are the nearest ones. And then both…?

Both are -- these are the nearest ones. I think, we will try and we are already trying to see if we can get one of the two ships on the long-term charter side, at least. So, our efforts are primarily towards getting one of the two vessels on a long-term charter, and maybe playing the other one on the shorter term charter. This is our main source, but nothing is finalized and we will see within the next 10 days or so.

Okay. Would you be willing to -- probably don't want to negotiate in public, but would you be willing to sort of give ranges on both of those as far as what you might expect?

I wouldn't want to -- as you say to commit here in prejudice have negotiating position at all here and not give any misleading data. So I'd rather not say. But obviously, the longer the duration, the lower the rate will be. The shorter the duration the higher rates, that’s obvious.

Do you see any hesitancy at this point in time, given where the order book is on charter is committing to longer charters in the two to three range to get you into that sort of complex timeframe of 20 -- 2023, 2024? Or is the market still tight enough where people are willing to make long-term commitments?

But I think the market is still tight enough, we see quite a lot of interest on the ships, I have to say, and we have seen some hesitancy to continue fixing higher rates than previously done. So there is some small resistance in the charters. But we will see if this is just temporary or because we are approaching the Christmas holidays and people are taking a breath. I think this is highly probable. But yes, the truth is that we are seeing a little bit of resistance to move towards higher levels and this is seen in the market for sure.

And then one thing that surprised me during the quarter was the drydocking expense, it seemed a little high in the kind…?

And you're absolutely right and you are absolutely right. The logistical issues that have been created are not only on the operating of the ships that will get in and out of the boat and loading and discharging the cargo, it has also affected the drydocking of vessels, less people are working in the yard, it's more difficult to get your spares to the shipyard, it takes more time to do things, all these adds to the cost. And as you rightly said, we have gone a little bit above budget on both drydocks. But it's obviously peanuts compared to what we are earning on the ships. But you are right that there has been a slight increase in the drydock cost and time, because the duration also plays an important role.

The duration is important as well.

Yes, I'm sorry, Tasos, I didn't understand that.

The longer duration means less days during the period to our revenues and that’s why we see the -- some deviation from what we were expecting.

Yes, the opportunity costs. Would -- and so if we look at the fourth quarter, you still have the -- I will butcher this name, but Evridiki?

Evridiki, it's the name of my grandmother.

I'm sorry, your grandmother and I apologize for that

It's okay. It's okay.

So that's still -- that is still in process. How should we be -- which we'll be using for an estimate for drydocking expenses in the first -- the fourth quarter? And then even if you could take stab at the Corfu which would be in drydock in January?

Yes, Tasos, please.

Yes, as I think about the million -- this would be on $1.2 million, I would say.

Okay. And then--

One reason, why we took these low paying charter for the Corfu to take it China is to pass the cost of the drydock, because China is the most efficient place to drydock ship, it's faster and cheaper. So it made sense to take a poor paying charter to get down there quickly and save money on the drydock.

And you protect yourself if they try to use it longer than you forecasts or your drydock slide is available, right? So jumps to 35, which more than compensates you for that, right?

Yes, yes, exactly.

What -- and when I look at the OpEx, Tasos. I think you sort of alluded to it, but there was a fairly reasonable jump in the third quarter versus second quarter and even versus this third quarter last year. Is that something we should build into our estimates looking at the fourth quarter and then 2022, or do you think there were a couple of factors in the quarter that might not be present in the ensuing quarters?

I mean, definitely a couple of factors that they unique to the quarter, a couple of COVID incidence in some of our vessels that created more crewing cost of creations and replacement. But as I alluded to saying that most of the increase was due to crewing cost. And overall, dealing was crewing is a little more complicated given the situation now. So a piece of bit we might see in the following quarters, I cannot say that for sure. But we'll see -- we’ll have to wait and see how the next quarter will play, but the piece already was on certain incident that hopefully will not be repeated.

And then am I reading that right that you're going to for the Marcos V you're going to finance 85% of that purchase price or 34 million?

That is correct. That is the intention and that is the preliminary arrangement with a bank that we are talking to. The vessel is financed on the basis of its charter free value, which is the high 60s and 70, I think 70 was the valuation with that. So this is how the purchase was of like 50% of the charter fair value.

Okay. And then I know it's early, you're still sort of a year away, but are you seeing any interest in the newbuilds as far as chartering the newbuilds? Is it too early? Or when should we sort of expect to start to see some interest, if you haven't seen it yet, on chartering the newbuilds?

It is too early for us to look at that. So I think this is -- we still have maybe six months before we look into it.

Okay. And then you -- Aristides, you’ve talked about potentially dividends, share buybacks, I'm little surprised the reaction to your stock price today. But is there anything that you need to do to your existing credit agreements, or the new credit agreements to allow dividends or buybacks? Or would you be once you look at a couple days, you might be able to implement at least stock buyback or something like that?

We have no restrictions whatsoever from our banks in doing either of these events. As long as we comply with all our covenants, we can do that. And we do comply with all our covenants. So we are very safe here.

Great. I appreciate the time. Thank you.

Thank you, Poe Fratt for your questions.

Thank you. With that, I will now hand the floor back to CEO, Aristides Pittas for closing remarks.

Thank you all for being with us today for this call and we'll be again with you in February to go over the end of the year results. Thanks a lot, and have a good day.

Thanks everybody. Thank you for [Indiscernible].

Thank you. That does conclude today's conference call. Thank you for participating you may all disconnect.