Thank you for standing by, ladies and gentlemen, and welcome to Euroseas Conference Call on the Third Quarter 2025 Financial Results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer, sir; and Mr. Anastasios Aslidis, Chief Financial Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today. Please be reminded that the company announced their results, the press release that has been publicly distributed. Before passing the floor over to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, Euroseas Ltd. 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 involve risks and uncertainties and 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. The same statement was also included in the press release. Please take a moment to go through the whole statement and read it. And now I would like to pass the floor over to Mr. Pittas. Please go ahead, sir.

Good morning, ladies and gentlemen, and thank you for joining us today for our scheduled conference call. Together with me is Anastasios Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the 3 and 9 months period ended September 30, 2025. Please turn to Slide 3 of the presentation for our quarterly financial results. For the first quarter of 2025, we reported total net revenues of $56.9 million and the net income of $29.7 million, or $4.25 per diluted share. Adjusted net income for the quarter was $29.6 million, or $4.23 per diluted share. Adjusted EBITDA for the period was $38.8 million. Please refer to the press release for a reconciliation of adjusted net income and adjusted EBITDA. Anastasios Aslidis will go over our financial highlights in more detail later on in the presentation. We are pleased to announce that our Board of Directors has declared another quarterly dividend of $0.70 per share for the first quarter of 2025, payable on or about December 16 to shareholders of record as of December 9. Based on current price levels, the distribution reflects an annualized yield of approximately [indiscernible]. In addition, since launching our 20 million share reverse plan in May 2022, we have repurchased 466,000 shares of our common stock in the open market for a total of approximately $10.5 million. This plan was renewed in May 2025. We remain committed to utilizing this program thoughtfully and strategically deploying it well appropriately to support and enhance long-term shareholder value. Now please turn to Slide 4 where we review our recent developments, including updates on our sales and per activity, chartering progress and operational highlights. During the third quarter, we completed the sale of motor vessel Marcos V for $50 million. The vessel has…

Thank you very much, Aristides retires. Good morning from me as well, ladies and gentlemen. Over the next 5 slides, I will give you my usual overview of our financial highlights for the quarter and the 9-month period of 2025 and compare them to the same periods of last year. For that, let's turn to Slide 18. For the third quarter of 2025, the company reported total net revenues of $56.9 million, representing a 5.1% increase over total net revenues of $54.1 million during the third quarter of last year. On a per vessel per day basis, our vessels earned a 10.7% higher average charter rate in the third quarter of this year compared to last year. We reported a net income for the period of $29.7 million as compared to a net income of $27.6 million for the third quarter of 2024. Total interest and other financing costs for the third quarter of 2025 amounted to $3.7 million compared to $4.2 million for the previous year, a figure of the previous year that does not include imputed interest income of about $0.9 million, which is related to the self-financing of our predelivery payments for our new billing program. The decrease is due to the lower interest rate we paid in the third quarter of this year compared to last for our debt. Adjusted EBITDA for the third quarter of 2025 increased to $38.8 million compared to $36.1 million achieved during the third quarter of 2024, again, primarily due to the increase in revenue. Basic and diluted earnings per share for the third quarter of 2025 were $4.27 and $4.25, respectively, calculated on about $7 million basic diluted weighted average number of shares outstanding compared to $3.97 and $3.95 basically diluted, respectively, for the same period of last year. The…

Thank you, Anastasios. Let me open up the floor for any questions we may have.

[Operator Instructions] Our first question is from Mark Reichman with NOBLE Capital Partners.

There's just really 2 areas I wanted to focus on. The first is -- what are your expectations for the scheduled off-hire days for the fourth quarter and the remainder of 2026. I mean if I look at your slide deck, it seems like that you're anticipating very light dry-docking schedule, at least over the next 12 months. So just a little clarity there would be appreciated.

I think this is correct. We have not many dry dockings over the next 12 months. And the -- our -- likely of high for Q4 as in the previous quarter, almost 0. And for modeling purposes, what I saw on this new slide 20, we use a 2% [indiscernible] in of hire just to model it. But typically, we run our fleet north of 99% utilization rate.

Okay. So if they were 39 days in the third quarter, do you think that the fourth quarter would be lower than that? If you've got 0 in terms of order.

In terms of scheduled dry docks, I think we don't have any scheduled dry docks in the fourth quarter to the best of my top of my head. We have all signing water surveys.

Okay. And so surveys. I mean, I think in the third quarter, the number of days came maybe in a little higher than what we were expecting. But we might have just had a special survey built in. But I mean, do you think it would be greater than 5 or 10 days for the fourth quarter?

It's hard to, I would say -- yes. Not even. But in the third quarter, we had a mine that underwent dry docking. We have no scheduled dry docks in the fourth and the next scheduled dry dock will be in the third quarter of next year to the best of my understanding.

Okay. Tasos. And the second area is so if containership ordering has accelerated even in the smaller sector, which could increase supply, you've mentioned that you think that could pressure rates from 2027 on you're pretty well covered in 2027 with 52% locked in. But I mean if we look at your Slide 9 where you're showing kind of the rates and you can kind of see that the rates are above the average. And then if you take into consideration that the rerouting, if that kind of settles back that you're kind of expecting maybe a the potential for rates to decline into 2027, 2028. But I was just kind of curious, I wanted to focus on that Slide 9, if I could, because I see the averages and the medians, it seems to me median is pretty severe. I mean I would probably look at it by taking the standard deviation of the rates and maybe putting a plus 1, minus 1 standard deviation around the average. But I mean, you're also looking at a couple kind of a time series here. And so if we're looking at different regime ships. If you were to plant a flag and say 2020, what differences do you see in the market, pre-2020 and maybe the last 10 years versus the next 10 years. I mean, I think you're looking at an aging fleet. You're looking at increasing environmental standards. So obviously, the fleet is going to get replenished. Rates could probably go up based on the newer vessels, efficiencies could go down -- or could go up as you've got more fuel-efficient vessels. So you're -- your costs could come down. But I was just kind of just kind of flesh that out a little bit in terms of your expectations? And are there differences in the overall market? I mean, is it too simplistic to kind of look at this slide from 2015 to 2025 and draw conclusion? Or are there some other factors that may have a bearing on rates going forward.

The main reason why years 2015 to 2020, the markets were very low, as you can see, if we're looking at this decade is that there was a huge order book nearly 100% back in 2007 and 2008 that got delivered. So we had a fee oversupply of vessels which was the reason why charter rates for between 2015 and 2020 were extremely low. And then of course, we had the pandemic with the consequent significant increase in tonne miles for vessels, which resulted in this huge boom that we witnessed during the pandemic. And then the market started to correct after the pandemic and rates dropped again to a much more reasonable level. And then we had the war between Palestine and Israel, which closed the Suez Canal and resulted in the increase in the market that we have seen. These are the 3 main factors. Of course, there's so many other things that play around that. But these are the 3 main factors where we are -- where we are I don't think that we can see rates again as low as what we see -- we saw between '15 and '20, but we are shipping. But I don't think you can see that also for one additional reason that there has been quite significant inflation resulting in prices of newbuilding ships increasing substantially over the last 5 to 6 years. So if new building ships cannot become much cheaper because the shipyards will be losing money. They place kind of a floor for secondhand values as well. So it's a very difficult equation and it's extremely difficult to predict. That's why ....

But it's not unreasonable to expect that the rates would -- could be higher than, say, your average this average going forward, never told day in the shipping market. So there's probably going to be some volatility. But looking ahead and your breakeven rate is actually pretty -- you have a pretty good cost structure. So I don't know. I just -- just extending this back to 2015 and anyway, that's very helpful. It gives -- it provides a little perspective on the forward numbers.

It gives us a bit of color on what has happened, but to predict what will happen is so much more difficult. Yes.

Another indication Mark of what the market thinks is the charters we just concluded. Obviously, in these were levels we've seen in the market the market believes that the $35,000 per day roughly that we booked our ships for the 4,400 TEU plus is a level that would be okay to lock yourself in for 4 years, 2 years out from now. So that might be an indication that the 54 might be -- I mean, this is a market opinion. I guess, the counterpart opinion willing buyer, willing seller type of thing that might provide some other insights, I guess.

Our next question is from Tate Sullivan with Maxim Group.

I mean you gave a lot of good descriptions on why you're willing to book your newbuilds well forward. I mean at a longer time line to delivery than most -- almost all your other newbuilds, I think. But can you talk the charters willingness to book the ships that far forward. Have you -- I mean is it to avoid sudden spikes in the market like they had post-COVID? I would love to hear your thoughts on that, please?

As we said, the fleet of the below 6,000 TEU is a very old fleet, right? 25% is older than 20 years is older than 15 years. We are seeing this aging fleet in the smaller sizes. And the charterers are competing amongst them to have those ships because they know that these ships are needed to trade is increasing continuously. The big ships get full. But then field. But then you need the smaller ships to do the regional trade. So I think we are seeing this potential lack of sales and racing to secure tonnage.

Or do you get any market indications if they're willing to book such long-term contracts that they have dormant vessels that are sitting in ports waiting for voyages at all in the current market?

No, because the current market is a market of full employment, okay? There might be some delays and some waiting times, small waiting times, occasionally due to the various reroutings that are happening. But no, the market is full.

Okay. I mean your news and commentary echoes some recent news in the sector to Tassos remaining newbuild commitments for the new ships, 4 new ships. I think you of your -- what you have already funded. So is your remaining commitment about $200 million -- is that fair?

Yes, correct. I think the contracted prices in total are approximately $240 million. And as I mentioned, we have made payments amounting to about $36 million or so. So roughly $200 million are remaining to be paid.

And then maybe one installment payments every -- one installment payment every year or 2 every year.

I think the next payment is when there is the steel cutting which should be about 12 months roughly before the delivery of the ship. So in middle of next year, we'll start making additional 10% payments. So there would be, I think, there will be 3 more 10% payments before the final payment.

Our next question is from Climent Molins with Value Investor's Edge.

Most has already been covered, but I wanted to delve a bit into your fleet positioning. You have a clearly dated fleet between legacy and modern tonnage. -- considering you recently fixed for new Wilson order at solid rates. Is there any appetite towards the additional tonnage alongside long-term contracts? Or are you comfortable with your current positioning?

So there is always a possibility to order something. We are looking at various possibilities. I don't know if something will develop or not. But obviously, having secured these last 4 vessels gives us significant safety and comfort to look at potentially doing something more.

Makes sense. And final question from me. Pro forma for the sale of the Marcus 5 and even when including the CapEx on the new builds, you're sitting in a solid financial position. Is there a medium-term leverage target you plan to meet going forward? Or is it, let's say, a moving target?

[indiscernible]. But generally, our strategy is to have leverage around 50%. And we moved 10%, 15% above or 10% 15% below depending on certain stances and timing in the market. We believe that a decent leverage in a business that is making more than 6%, which is our cost of capital of that, so. it makes sense to have some leverage, if you can earn more than 6%, which is what we believe that historically we do. On the other hand, we never want to be too exposed because we know what happens in a bad market, and we've lived through bad markets through our careers. So we don't want to overleverage. So I think that gives you guidance about our general leverage strategy.

Our final question is from Poe Fratt with Alliance Global Partners.

Just do math on the delivery payments I'm calculating in the second half of 2027, you're going to owe about $65 million on the first 2 newbuilds. And then in the first half of '28, you're going to owe about or have to pay about $65 million in -- for the last 2 newbuilds. Is that correct?

That's probably right. I think you should you should think of something like 55% of the contract price to be paid in the year of the delivery in the half year of the delivery. So something like $65 million for the first pair and $ 65 million for the second pair sounds right.

Yes. That's what I was guessing. And then just a nitpicky one. How did you decide to offer the charter the 1-year option after the fourth year, if you look at the way that the time charters are structured on the 4 new builds, 4 years at 35.5% and then years at 32.5%. It seems like you're giving up a lot on that last year of extra coverage. Can you just talk about that?

I think they were -- we were discussing with charter various options of triclinical ships from 3 years to 5 years, and there were different combinations of rates and durations. And we ended up [indiscernible] that will focus on the 4-year duration of $35, 500, but they ask to have the option to extend or the other -- the 5-year deal. So they have a year to decide about that. That implies a rate of around -- of low 20s for the fifth year if you compare 4 years 35, and 5 years, 22.5%, the implied rate for the fifth year, if you keep the first 4 years and 35.5%, it's around in the low 20s. So we felt that was an appropriate trade-off to make.

Yes. I had calculated $20,500. And then on your Slide 20, it seems like you're implying that the fleet will -- even with the new builds coming into the fleet will decline in '26 and '27 and '28. Can you just talk about your strategy on selling some of the older assets, mainly the feeders that don't have as much contract cover?

So let me take that. We are taking a very conservative approach that the market may decline significantly. And. We will need to -- instead of passing the special survey of our 2 older vessels, we will decide to scrap them This, of course, is the lowest possible value, but we are being very conservative in our projections.

And just to get granular, it looks like the and the Jonathan P would be the 2 scrapping candidates if the market does do what you think it is going to do?

One vessels [indiscernible] in our fleet.

With no further questions, I would like to turn the conference back over to management for closing remarks.

Thank you very much, everybody, for listening in. We will be back to you at the beginning of the year with the full year results. Thank you.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.