Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas Conference Call on the Third Quarter 2022 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the company. [Operator Instructions]. I must advise you that this conference is being recorded today. And 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 #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 them over 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. 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 third quarter and 9 months period ended September 30, 2022. Let's turn to Slide 3. For the first quarter of 2022, we reported total net revenues of $46 million and net income attributable to common shareholders of $25.2 million, or $3.50 per share basic and diluted. Adjusted net income attributable to common shareholders was $20.9 million of $2.90 per share basic and diluted. Adjusted EBITDA for the period stood at $26.2 million. As part of the company's common stock dividend plan, our Board of Directors declared a quarterly dividend of $0.50 per share for the first quarter of 2022 which will be payable on or about December 16 to shareholders of record on December 9, 2022. This represents a 9.4% annualized yield on our stock price of last Friday. As of November 14, 2022, we have also repurchased 139,000 of our common stock in the open market for about $3 million, under our share repurchase plan of up to $20 million announced in May 2022. Tasos will go over the financial highlights in more detail later in the presentation. Please turn to Slide 4, where we discuss our recent chartering and operational developments. We had no [indiscernible] or chartering updates as our vessels were fully contracted during the quarter. There were also no idle or off-hire periods during the quarter. On the drydockings front, water vessel Hydra underwent repair to 46 days, of which about 6 days occurred in the second quarter and 40 days occurred within the third quarter of 2022. Water vessel EM Kea underwent for scheduled drydock…

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. As usual, I will now take you through the next 4 slides of our presentation to give you an overview of our financial highlights for the third quarter and 9 months period ended September 30, 2022, and compare them to the same period of last year. For that, let's turn to Slide 17. In the third quarter of 2022, the company reported total net revenues of $46 million, representing an almost 100% increase of our total net revenues of $23 million during the third quarter of 2021, which was mainly the result of the higher average charter rates our vessels earned in the third quarter of this year, compared to last and the fact that we operated -- or we've operated 4 more vessels. The company reported a net income attributable to common shareholders for the third quarter of $25.2 million as compared a net income and a net income attributable to common shareholders of $8.5 million for the third quarter of last year, an increase of almost 200%. Interest and other financing costs for the first quarter -- for third quarter of 2022 amounted to $1.3 million, compared to $0.6 million for the same period of last year. This increase is due to the increased amount of debt we had, over twice as much over the same period of last year, an increase in the weighted average LIBOR rate in the current period compared to the same period in the third quarter of 2021. It is noteworthy that for the 3 months ended September 30, 2020, the company recognized an unrealized gain of $1.8 million on its interest rate swap contracts. For the 3 months ended September 30, 2021, last year, the company recognized a…

Thank you, Tasos. I want to open up the floor for any questions we may have.

[Operator Instructions]. And our first question comes from the line of Tate Sullivan with Maxim Group.

Can you first touch on the considerations of the repairs on the Akinada Bridge in terms of the remaining useful life of the vessel and how much the repairs may cost? And ultimately, what would make you decide to scrap the ship instead of repairing the ship, please?

Yes. This is something I cannot really answer at this stage because we are still evaluating the situation. Of course, we believe that the cost of repairs will be covered by our insurance. So there isn't going to be a significant repair cost, but we need to see how much time this whole project would take before being able to make a final evaluation.

Okay. And then regarding the newbuild market for containerships and understanding it's bifurcated between the larger ships and the size of your ships, is -- has there been any reports of any newbuild delivery delays at all? I know it's usually quite reliable. But in this current environment, do you expect to take your ships mostly on time from your shipyards?

Yes, I would say. I do believe that we will take our ships mostly on time, building on one -- within the shipping, one of the most reputable shipyards in the world, which is known to be on time and not face delays. So I would not think that we will see delays, definitely not any significant delays.

And last from me is, are there any risks with what we've seen the rates do and with the newbuilds under construction, not your, but across the industry. Have any operators considered selling ships under construction in this market or not at this point yet? Or could that be an opportunity going forward?

We are not aware yet of somebody willing to go ahead and sell the ships at this point in time, especially at prices which are lower than the current newbuilding prices. So there is a lot of resistance on newbuild prices dropping, anyway they were never exhorted to be high as well the value of secondhand ships.

Our next question comes from the line of James Jang with Univest Securities.

So the Akinada Bridge, yes, so the damages and everything, but I guess it would be fairly soon, we shouldn't look at any earnings from the vessel until, what, maybe -- if you don't scrap, that's all, I guess, until the second half of next year. Would that be fair to say?

I think that's fair to say.

Okay. And then going on to the vessels going off charter, you've got Joanna, the Keelung, Hydra, Kea and Antwerp. They're going to be coming off charters through '23. When do you start discussions with rechartering or extending charters? And if you could kind of let us know because it looks soft next year for rates with the new builds coming in and with the revised down forecast for economic growth. I mean would you be -- would you -- would it be fair to say that you would take below market charters at this point in time to protect some downside risk? Or would you be willing to go through '23 and then try to recharter them when the vessels are redelivered.

Yes. I think that the reluctance at this stage to do something with vessels that are not from the charter as those wants to take on ships today that are coming open in 3- or 6-months' time. And similarly, the owners don't want to fix at rates that seem to be so much softer than they were. So the only fixes that you're seeing done are the very few vessels that are opening up that are currently being fixed.

Okay. So what about the Joanna? Have you had any discussions with the current charter to extend even a few months? Or is that still up for discussion?

We have not had any serious discussion yet. But we've agreed that we will be discussing within the next month or so. Because this ship indeed, it does come open. It's the first ship to come open and that we will be discussing, I presume within this next month.

Okay. Excellent. And I guess my final question here is with what's let's say, 23 is really bad for rates. How does that affect the dividend? Would you be able to support the $0.50 as we -- '24 should be a better year. Like would you keep the $0.50 in '23 or [indiscernible] in variable parts?

Yes. I can tell you about the current thinking because, obviously, every quarter, we reevaluate, and we keep that privilege to decide what the dividend will be every quarter. But the way we have thought about it is that the dividend is sustainable and will continue within the next few quarters at least. I remind you that $0.50 that we are currently paying is just 15% of the net income that we are currently making. So we do expect that throughout 2023, we will easily be able to be paying a dividend, but I won't promise it, but I believe that, that will be the case.

Okay. Excellent. Well, actually, just one final question here. I know that the market is soft and everything is doom and gloom right now, but how is the S&P market? Has it just gone quiet? Or is there still some activity?

No, there's very, very little activity on the S&P market. Very little activity. Very few ships are coming open. Only a handful of buyers are in the market. People have secured longer term time charters for their vessels and they're not willing to sell at discounted prices. So we are really at a wait-and-see situation and only what is necessary is being done in today's markets.

And our next question comes from the line of Paul Fratt with Alias Global Partners.

Tasos, you went through the newbuild advances right now are $50 million. You have potentially financing of $200 million to $220 million. What are you assuming on your financing leverage levels? And then can you walk us through your remaining CapEx for the newbuilds in 2023, '24 and '25, just sort of an overall ballpark number for each year on your newbuild costs?

We have -- our newbuilding program will cost about $260 million, of that amount $50 million we have already paid [indiscernible]. We expect to fund it at about 60%. So that's why I said here on Slide 19, about $200 million to $220 million of debt coverage, about 60%. And we are to make -- we have to make about $200 million of equity payments between now and the end of 2024, which is when we expect our newbuilding program to end. And like we said and for the detailed scheduled of payments, but I would guess that we have to make about 40% payments of the remaining payments in 2022 and the remaining 60% in 2024. So more deliveries in 2024. So that would be my [indiscernible] answer to that. I can get you, of course, a more capital [indiscernible] capital expense to be.

Okay. Great. And then you talked about the current market. You talked about some of the rollovers potentially for the charters that are ending. Can you -- you've already got 2 of the 9 newbuilds. Are you in any discussions for locking in additional new builds? Or is it sort of the same thing that's going on in the market right now? Limited interest in making long-term commitments, and we'll have to wait to see the next newbuilds contracted.

We are always monitoring the market, Poe. The truth is that right now with the current uncertainty I would think that we would probably not be moving within this side of the year for something new -- but we are constantly following the market and if there is something to discuss, we will obviously let you know.

And the next delivery is in Q4 of 2023. So is the route.

And we have reached the end of the question-and-answer session. I will now turn the call back over to Aristides Pittas for closing remarks.

Thank you, everybody, for being with us today on our conference call, and we'll be back with you at the beginning of next year to discuss how the year closed. Thank you very much.

Thank you, everybody.

This concludes it. You may disconnect your lines at this time. Thank you for your participation.