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Date

Wednesday, May 20, 2026 at 9 a.m. ET

Call participants

• Chairman and CEO — Aristides J. Pittas
• Chief Financial Officer — Anastasios Aslidis

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Takeaways

• Total net revenues -- $12.8 million, a 38.9% increase over the prior-year period, primarily due to higher time charter equivalent rates.
• Net income attributable to controlling shareholders -- $260 thousand, reversing a net loss of $3.7 million in the same period last year.
• Adjusted net income -- $330 thousand, or $0.12 per diluted share, compared to an adjusted net loss per share of $2.07 a year earlier.
• Adjusted EBITDA -- $4.9 million, up from negative $1.02 million in the prior year.
• Average time charter equivalent rate -- $14.4 thousand per vessel per day, more than double the $7.17 thousand per vessel per day achieved in Q1 2025.
• Commercial utilization rate -- 100%, with an overall utilization rate of 99.7%, reflecting improved operational efficiency versus the prior-year period.
• Share repurchase activity -- 348 thousand shares repurchased under the $10 million plan since inception, totaling $5.6 million, with continued measured execution following a recent stock price increase.
• Fleet expansion and orders -- Two additional Kamsarmax vessels ordered for delivery in 2028 at a combined value of $74 million, conditional on a bank refund guarantee, supplementing two Ultramax vessels already under construction.
• Planned fleet profile -- Upon delivery of all newbuilds, the fleet will total 15 vessels with approximately 1.05 million deadweight tons and a significantly modernized age profile.
• Debt and financing -- Outstanding debt as of March 31, 2026, was $109 million, with plans to finance up to 60% of new Kamsarmax deliveries through bank loans secured at delivery.
• All-in cash flow breakeven rate -- $12.5 thousand per vessel per day, with the current TCE rate exceeding this threshold.
• Fixed rate charter coverage -- 23.5% for the remainder of the year, with 49% covered in Q2, declining to minimal fixed coverage by Q4, providing high exposure to spot market dynamics.
• Hedging activity -- Forward Freight Agreements (FFAs) sold for 90-day periods in Q2, Q3, and Q4 at rates of $19.1 thousand, $17.2 thousand, and $17.1 thousand per day respectively, covering the equivalent of one vessel per period.
• Fleet utilization and downtime -- No idle or commercial off-hire periods during the quarter; one vessel, Motor Vessel Xenia, underwent 28 days of dry-docking.
• NAV estimate and valuation -- Estimated net asset value (NAV) exceeds $52.77 per share, substantially above the prevailing stock price near $21.

Summary

EuroDry (EDRY +5.48%) reported a significant turnaround in financial performance, attributing improved results to elevated time charter rates and operational efficiency. The company announced newbuild orders for two Kamsarmax vessels, in addition to two Ultramax vessels already under construction, signaling a strategic focus on fleet renewal and long-term positioning. Management described a balanced capital allocation approach, maintaining selective share repurchases while prioritizing liquidity and disciplined investment in new assets amid a firm secondhand market. The chartering strategy emphasizes high exposure to spot and forward market rates, with limited fixed contract coverage and active FFA management. Internal NAV estimates indicate a substantial valuation discount in the share price, with management continuing the buyback program but emphasizing measured execution to preserve liquidity.

• Management stated, "we will get upon delivery financing to the order of 60% approximately" for the new Kamsarmax vessels, and described ample credit access with multiple banks reaching out proactively.
• An analyst identified Panamax vessels that "have that average age of looks like around 21 years" as potential sale candidates, though management will defer decisions until at least Q3 due to strong current charter earnings from these ships.
• Pittas stated, "share price is extremely low," and emphasized the ongoing buyback is "executed in a disciplined and measured manner" to preserve liquidity rather than maximize near-term reductions.
• Charterer exposure to rising bunker costs is minimized as management explained, "the charterer is responsible for replenishing the bunkers and paying for them" across all time charters.
• Management described the Panama Canal situation as "an emerging dynamic" where tanker traffic displaces drybulk ships due to higher canal fees and shifting global trading patterns from the Iran conflict.
• Anastasios Aslidis projected that "a change of $1 thousand per day in the average rate and would result in a $2.2 million change in our estimated EBITDA," highlighting earnings leverage to spot rate movements.

Industry glossary

• Kamsarmax: A class of drybulk vessel with approximately 82,000 deadweight tons, optimized for operations at Kamsar port in Guinea and popular for carrying coal, grain, and bauxite.
• Ultramax: Drybulk vessels typically ranging from 60,000 to 65,000 deadweight tons, designed for flexibility across multiple minor bulk trades.
• Time charter equivalent (TCE) rate: Standard industry metric expressing vessel earnings per day, net of voyage expenses, enabling comparison across different charter structures.
• FFAs (Forward Freight Agreements): Financial derivatives used to hedge or speculate on future freight rate movements in shipping markets.
• EDI Phase III: Maritime energy efficiency standard prescribing minimum design requirements for new vessels to limit greenhouse gas emissions.
• DWT (Deadweight tons): The measure of how much weight a ship can safely carry, including cargo, fuel, provisions, and crew.
• NAV (Net asset value): The estimated difference between total assets, marked to market, and total liabilities, often expressed on a per-share basis.

Full Conference Call Transcript

Aristides J. Pittas: Good morning, ladies and gentlemen. Thank you all for joining us today for our scheduled conference call. Together with me is Anastasios Aslidis, who will go over the financial details in more detail. The purpose of today's call is to discuss our financial results for the 3-month period ended March 31. 2026. Please turn to Slide 3. On the presentation where we present our financial highlights. For the 2026, we reported total net revenues of $12.8 million and net income attributable to controlling shareholders of $260 thousand or $0.09 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $330 thousand or $0.12 per diluted share.

Adjusted EBITDA was $4.9 million Please refer to the press release for reconciliation of adjusted net income and adjusted EBITDA. Anastasios Aslidis will go over our financial highlights in more detail. Since launching our share repurchase plan of up to $10 million which was originally announced in August 2022 and successfully extended in 2023, 2020, and 2025, With current authorization to run through August 2026. We have repurchased $348 thousand shares in the open market for a total of $5.6 million The repurchases under the program are executed in a disciplined and measured manner at management's discretion. We have decided to expand our new building program by adding 2 Kamsarmax vessels, which will complement the 2 Ultramax already on order.

We signed contracts with Hengli Shipbuilding for the construction of these 282 thousand bed grade echo Kamsarmax vessels, Built to EDI Phase III standards. with delivery scheduled for 2028. The total contract value is approximately $74 million which will be financed through a combination of debt and equity. The contracts are conditional upon receiving a refund guarantee from a bank acceptable to the company. Once all 4 vessels are delivered our fleet will be composed almost entirely of modern ships, the majority of which have been built for us directly. Turning to Slide 4, we highlight our recent chartering and operational developments. From a chartering perspective, our fixed during the first quarter were predominantly short term.

Currently, 4 of our vessels are employed on index-linked charters at 115% of the average 10-time charter index providing continued exposure to market dynamics while preserving operational flexibility. The remaining 7 vessels are employed on time charters with durations ranging from approximately 1 to just over 3 months whilst only the MV Kalisti is on a longer time charter till December. Further details of the charters fixed during the period are provided in the accompanying slide. There were no idle or commercial off hire periods during the quarter. However, Motor Vessel Xenia underwent dry-docking for approximately 28 days starting from 12/18/2025, to 01/15/2026. We have hedged the very small part of Baruch's exposure through FFAs.

Luckily, these hedges are not in the money. As the market has been stronger than we forecasted earning the majority of our fleet a higher rate. In particular, on February 20 we sold 90 days of the Kamsarmax index which is based on the average of 5-time charter routes. For Q2 2026, it is $19.1 thousand per day and an additional 90 days for Q3 2026 at $17.2 thousand per day. it is equivalent to 1 vessel. In addition, on March 30, we sold a further 90 days of the Kamsarmax index for Q4 2026 at $17.1 thousand per day. Also equivalent to 1 vessel. Please turn to Slide 5.

EuroDry's current fleet consists of 11 vessels with an average age of around 13.8 years. And a total carrying capacity of approximately 707 thousand metric tons. In addition, we have 2 Ultramax vessels under construction with capacity of 63.5 thousand deadweight tons each scheduled for delivery in the 2027 and 2 Kamsarmax vessels on order with capacities of 82 thousand deadweight each scheduled for delivery in the 2028. Upon delivery, our fleet will grow to 15 vessels with the total carrying capacity of approximately 1.05 million DWT. Next, please turn to Slide 6, where we graphically show our fleet employment.

Our current fixed rate coverage for the remainder of the year stands at approximately 23.5% based on existing time charter agreements. This figure, excludes our 4 vessels on index-linked employment. Slide 8 reviews the general market highlights for the first quarter ended 03/31/2026, and recent developments through mid May. Panamax spot rates improved from an average of approximately $13.3 thousand per day during the first quarter to around 14.7 thousand and dollars per day by mid-March, and before climbing further, to approximately $22.3 thousand per day as of last week. Similarly, 1-year rates have also increased with flat assessing the standard Panamax 1-year time charter rate is approximately $18 thousand per day as of May 15.

Notwithstanding this improvement, 1-year charter rates continued to trade slightly below the prevailing spot market levels. Turning to Slide 9. We review the global macroeconomic backdrop and its implications for drybulk shipping demand. According to the IMF April 2026 World Economic Outlook Update, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027 with downside risks dominating the outlook. Key risk factors include the potential broadening of the Middle East conflict, uncertainties surrounding AI driven productivity gains, and the prospect of renewed trade tensions. Any of these could materially weaken growth and destabilize financial markets.

Global headline inflation is projected to edge higher than 2026 before resuming its downward trend in 2027 with a growth slowdown and inflationary pressures expected to be most pronounced in emerging markets and developing economies. In The United States, the 2026 growth projection was revised by the IMF modestly lower to 2.3%, while the 2027 outlook was revised slightly upwards to 2.1%. The U. S. Economy continues to demonstrate resilience albeit with certain macroeconomic imbalances. Markets have priced in a more hawkish interest rate path, reflecting the inflationary impact of commodity related supply shocks. The Federal Reserve remains in a wait and see mode with the rate cuts currently on hold pending further evidence of easing inflation.

As of May 2026, the effective Fed Funds rate stands at approximately 3.64% with the rate cuts potentially resuming from late 2026. Gradual depreciation of the U. S. Dollar is anticipated as monetary easing eventually takes hold. The Asian region is projected to grow at a slightly lower rate than previously anticipated at approximately 4.1% in 2026 and 4.4% in 2027. Due to external headwinds like Middle East energy shocks, geopolitical trade fragmentation, and fading export momentum. Meanwhile, China's growth trajectory projected to remain relatively resilient with a GDP growth of 4.4% in 2026. And 4% in 2027. Supported in part by the country's technological competitiveness.

Structural economic imbalances has however remained a key challenge Policy priorities continue to center on high quality growth with emphasis on energy security, domestic consumption, and technology driven productivity gains. Turning on to the drybulk sector. Clarksons projects drybulk trade growth at approximately 2.5% in 2026 and 1.3% in 2027. Suggesting continued, albeit moderating, demand for drybulk vessels. While the broader global economy still expected by the IMF to hold up, the risks are skewed to the downside by an economic uncertainty. Geopolitical fragmentation and uneven regional trade activity. Which may continue to weigh on trade flows and trade dynamics. Please turn to Slide 10. As we review the current state of the drybulk order book.

As of May 2026, the order book stands at approximately 13.2% of the existing fleet. Although higher than the cyclical low of 7% recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 6% of the fleet in 2008 and around 24% in 2013. The persistent low level of new activity reflects a combination of constraining factors including limited shipyard capacity, elevated new building costs, and continued uncertainty surrounding future fuel technologies and evolving environmental regulations. These supply side constraints could provide support for vessel utilization and freight rates over the medium term. Turning to Slide 11, we examine the supply side fundamentals in greater detail.

As of May 2026, the total drybulk fleet comprises approximately 14.6 thousand vessels, representing around 1.1 billion tons. According to Clarksons' latest estimates,, scheduled newbuilding deliveries as a percentage of the existing fleet are projected at 4.5% in 2026 4 point 1 percent in 2027 and 5 point 6 percent for 2028 and beyond. Actual fleet growth is of course expected to be slightly lower as slippage and demolition activity will net offset a portion of the gross deliveries. Looking at the fleet age profile, approximately 11% of the global fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations tighten further.

Turning to Slide 12, we summarize our outlook for the drybulk markets have had a surprisingly stronger than expected start in 2026. With earnings proving particularly resilient through what is typically a seasonally softer period. Average Supramax and Panamax time charter rates rose by approximately 8% since the end of 2025, reaching their strongest levels in 2 years and broadly in line with March 2024. All drybulk trade trends continue to support vessel demand driven by strong iron ore trade and bauxite exports. Global seaborne minor dry bulk trade has remained firm in 2020, partly supported by continued bauxite trade.

Additionally, total Guinean ore exports are projected to reach 16 million metric tons in 2026, providing a further boost That said, uncertainty remains around Chinese iron ore demand amid administrative pressure on steel output. Across vessel sizes, Capesize vessels continue to impress, with spot rates averaging above the $35 thousand per day level Across global trade routes and FSA pricing points to firm rates over the next 10 to 12 months. Several key factors are expected to shape the outlook for 2027. In the coal trade, higher gas prices are expected to provide some support with imports into Europe, Japan and Korea anticipated to rise.

Although global coal volumes are still forecast by Clarksons to decline by approximately 2% in 2026, Emerging bottlenecks at the Panama Canal represents an additional source of potential supply tightening. Capesize vessels are expected to continue outperforming supported by premium bauxite trade flows. Guinea's Simandou iron ore project is set to boost iron ore production. Part of China's Belt and Road strategy supporting Chinese industrial activity reducing reliance on Australian and Brazilian imports and displacing lower-grade domestic production. Finally, geopolitical developments that disrupt trade routes and reduce operational efficiency remains the single most important unknown.

On the supply side, the new building orders have accelerated in recent months and we gained further momentum in the foreseeable future despite the lack of clarity on future maritime regulations. Looking ahead to 2027, markets are expected to see another year of moderate earnings with fleet growth likely to outpace trade growth Nevertheless, several factors could help keep the market in relative balance, including the evolution of the Middle East conflict dynamics the ramp up of the Simandou project and Chinese demand trends. Coal policy, vessel speeds and fleet renewal and demolition activity will also remain important variables.

Our base case assumes a moderately softer market environment in 2027 although a prolonged conflict scenario, particularly 1 involving Iran, could weigh more heavily on global GDP growth and by extension, on drybulk demand. Let's turn to Slide 13 for a review of our position on the drybulk market cycle. As of 05/15/2026, the 1-year time charter rate for a standard 75 thousand deadweight ton vessel was 18 thousand per day. This is considerably above the historical median of $13.4 thousand per day. This higher rate environment is reflected although disproportionately as we think, in the second hand asset market. Values for 10-year-old Panamax bulk carriers are extremely firm.

At approximately $28.5 million current prices sit well above both the historical median of 19.5 million and the 10-year average of approximately 19 million We are very reluctant to invest at these prices in secondhand assets. Nevertheless, as we believe that modernizing our fleet is important for the future, of our company and the new building values are still at decent levels, we have decided to utilize our liquidity to order 2 Kamsarmax vessels, thus positioning our fleet to benefit from a market improvement which we believe will come at some point in the coming years. And with that, I will now turn over to the floor to Anastasios for a closer look at our first quarter financial performance.

Anastasios Aslidis: Thank you very much, Aristides. Good morning to me as well, ladies and gentlemen. Over the next 5 slides, I will call you I will give you an overview of our financial highlights for Q1 2020 and compare those results to the same period as last year. For that, let's turn to Slide 15. For the 2026, the company reported total net revenues of $12.79 million representing a 38.9% increase over total net revenue of $9.21 million during Q1 2025, which was the result of the increased time charter equivalent rate our vessels earned during the 2026 partially offset by the decreased average number of vessels owned and operated during the 2026 compared to the same period of 2025.

The company reported a net income attributable to controlling shareholders of $260 thousand as compared to a net loss attributable to controlling shareholders of $3.7 million for the same period of 2025. Interest and other financing costs for the 2026 decreased to $1.5 million as compared to $1.8 million for the same period of 2025. Interest expense during the 2026 was lower mainly due to the increased benchmark rate for our loans, and the decreased average debt during the 2026 as compared to the same period of last year. In the 2025, we recorded a gain on the sale of $2.1 million relating to the sale of the motor vessel Ekali There were no vessel sales in the respective 2026.

Adjusted EBITDA for the 2026 was $4.87 million compared to a negative $1.02 million during the 2025. Basic and diluted earnings per share attributable to controlling shareholders for the 2026. was $0.09 calculated on 2.82 million and 2.83 million basic and diluted weighted average number of shares outstanding, compared to basic and diluted loss per share attributable to controlling shareholders of $1.35 for the 2025 calculated on 2.74 million basic and diluted weighted average number of shares outstanding. Excluding the effect on the net income attributable to controlling shares holders for the quarter of the unrealized loss on derivatives, the adjusted income attributable to controlling shareholders for the quarter ended 03/31/2026, would have been $0.12 per share basic and diluted.

Compared to an adjusted loss of $2.07 per share basic and diluted attributable to controlling shareholders respectively, for the quarter ended 03/31/2025. Usually, security analysts do not include the above items in their published estimates of earnings per share. Turning to Slide 16, we review our fleet performance for the 2026 with comparison to the same period of 2025. Beginning with utilization our commercial utilization rate reached 100% in the 2026. While our operational utilization rate was 99.7% resulting in overall utilization of 99.7%. This compares favorably to the first quarter of 2025 when commercial utilization stood at 98.4% operational at 99% and overall at 97.4%, Reflecting a meaningful improvement in clean deployment efficiency year over year.

On average, 11 vessels were owned and operated during the 2026 earning an average time charter equivalent rate of $14.4 thousand per vessel day. This compares to an average of 12.8 vessels in the same period of 2025 earning an average TCE rate of $7.17 thousand per vessel per day. Reflecting a more than doubling of earnings on a per vessel basis year over year. Turning to operating costs, total operating expenses, including management fees and G&A expenses, but excluding dry-docking costs were $7.08 thousand per vessel per day during the 2026. Compared to $7.3 thousand per vessel per day during the same period of 2025. Reflecting a modest increase.

Finally, our free cash flow breakeven rate which takes into account the operating expenses, deleveraging costs, interest expense, and scheduled loan repayments. and excluding balloon payments, stood at $12.5 thousand in the 2026, compared to $11.5 thousand in the 2025. With the TCE rate of about $14.4 thousand was comfortably exceeding the breakeven rate of $12.5 thousand 3, turn to Slide 17. This slide serves as calculation tool which enables our shareholders and investors to assess the earnings potential in the remainder of 2026 in the current environment. The table shown in this slide has 2 components. The top part refers to our fixed rate contracts.

As you can see, our contract coverage in fixed contract rates is about 23% for the rest of the year. is about 49% in the second quarter, but declined to 15% in the third and is very small for the fourth quarter. This chartering strategy reflects our expectation that the market will be quite positive as indeed it is indicated by the forward traded market. The rest of our vessels are employed in contracts with rates linked to the relevant Baltic Dry Index. Our calculator indicatively shows the Supramax and Panamax/Kamsarmax forward rates as of 05/13/2026, and also shows how the index level gets unrelated to rates for our ships.

We actually display the final blended rate for the open days of our fleet. Which you can see right below the Supramax and Panamax forward rate the table and which, as you can see, turns to be very similar to the index level. Based on these assumptions and by further assuming, possibly, $7.5 thousand per day per vessel OpEx and G&A cost and the 5% commission rate 1 can estimate the EBITDA contribution. The final result is additionally adjusted for our preliminary dry-docking expenses expected during the year. This overall exercise is meant to provide a tool to calculate our EBITDA for 2026. Obviously, 1 can enter his own assumptions about the rates to do that.

It is worth observing that at current anticipated rate, 1 could expect an annualized EBITDA of $34 million Of course, 1 can make his or her own assumptions of how the market might turn out. In the rest, of 2026, as you can also easily estimate our EBITDA dependence on the average rates earned by our open days. For example, a change of $1 thousand per day in the average rate and would result in a $2.2 million change in our estimated EBITDA. Turning to Slide 18. We review our debt profile and cash flow breakeven estimate. As of 03/31/2026, our outstanding debt stood at $109 million carrying an average margin of approximately 1.99%.

Assuming a similar drop rate of 3.64% as of that date the all in cost of our senior debt averages 5.63%. The upper chart illustrates our debt amortization schedule. Scheduled debt repayment totaled approximately $12.2 million during 2026, $20.1 million $21 million in 2027, $17 million in 2028 and $28.8 million in 2029. Inclusive of balance payments of approximately $1.2 million, $10.2 million, $6.7 million and $19 million respectively. Please note that although we have arranged the financing of our 2 Ultramax new building, our current debt figure that I quoted includes only the portion of 1 of the 2 loans drawn to date, representing the pre delivery payments made so far.

The 2027 and 2028 repayment figure include scheduled repayments under both newbuilding loan facilities that we have started growing to finance our Ultramax new building. Newbuildings, which are scheduled for delivery during the 2027. Turning to the bottom of this slide, we present our cash flow breakeven estimate for the next 12 months. Broken down by major components. Our EBITDA breakeven level starts at $8.04 thousand per day while our all-in cash flow breakeven incorporating operating expenses, G&A, interest, and scheduled loan repayment is estimated at $12.3 thousand per day. Let's move now to my final slide. Slide 19. To review some highlights from our balance sheet as of 03/31/2026.

This slide offers a snapshot of our assets and liabilities and hopefully provide a concise picture of our financial position. On the asset side, cash and other assets stood at approximately $31.6 million Advances for newbuildings amounted to approximately $14.4 million and the book value of our vessels approximately $163.1 million bringing our total assets to approximately $209.1 million On the liability side, total debt stood at approximately $100.9 million while other short term liabilities amounted to $5 million for combined liabilities of approximately $105.8 million representing roughly 51% of total assets. Shareholders' equity on a book value basis stood at approximately $93.8 million or $32.45 per share.

However, based on our internal estimate, based on external valuations, the market value of our fleet is meaningfully above its book value. We estimate the current market value of our vessels at approximately $226.9 million compared to a book value of approximately $163.1 million implying an excess value of approximately $63.9 million Adjusting for this difference gives an estimated net asset value in excess of $52.77 per share. When compared to the recent trading range of our shares, which has moved up from around $17 recently, becomes evident that there is a substantial discount to our estimated net asset value and by extension, a significant potential upside for both shareholders and potential investors.

We remain committed to executing our strategy creating long term value for our shareholders, and we believe the current share price represents a compelling entry point relative to our estimated net asset value. With that, I will hand the call back to Aristides to continue.

Aristides J. Pittas: Thank you, Anastasios. We may now open up the floor for any questions we may have.

Operator: Thank you. Our first question is from Mark Reichman with NOBLE Capital Partners. Please proceed.

Analyst: Thank you for taking my questions. I really do appreciate Slide 17. that is very helpful. And so I was wondering could you provide some additional detail regarding the financing strategy for the newly ordered Kamsarmax vessels and the expected impact on leverage levels?

Aristides J. Pittas: Sure. We do not intend to have pre-delivery financing, I think. So, we will get upon delivery financing to the order of 60% approximately. As you know, there is ample supply of bank financing these days. Many banks financing. So are courting us, and we are pretty sure that the very modest level of financing that we will require, we will be able to. And then how does management evaluate the trade off between continued share repurchases and funding fleet expansion opportunities in the current market environment? Yes. We are trying to balance everything as you say. We are continuing the repurchase of stock because our price, our share price is extremely low.

On the other hand, we want the liquidity in our stock in the stock that is trading continue improving as it has over the last 6 months. So we are careful not to overdo it and be too aggressive in this process. We have decided that we will do these 4 vessels which will help us in the future, these 4 newbuilding vessels. And the remaining earnings we will see how or what we will do. But for now, we are pretty covered with these 4 vessels that we have on order. And then just lastly, are there additional opportunities for fleet renewal vessel acquisitions or selective sales if secondhand vessel prices remain elevated?

And I am really kind of looking at the panamax vessels in your fleet that have that average age of looks like around 21 years. Correct. These are potential sale candidates at some point in time. For the time being, they are earning significant time charter equivalent of about $20 thousand per day or close to that level. Which obviously is helping us build up our cash reserves But we will decide later towards Q3 if we will dispose 1 of them or not. that is great. Thank you very much. Thanks, Mark.

Operator: Our next question is from Charles Fratt with Alliance Global Partners. Please proceed.

Analyst: Hello. Can you or Tasos, just discuss your hedging strategy? It looks like you have 2 equivalent of 1 dry vessels hedged in the second quarter and then 2 in the third quarter. Can you just talk about what you are seeing now on the curve and maybe looking into the fourth quarter? On whether you would continue to hedge? Yes, Charles, you are right.

Aristides J. Pittas: We felt that the market will not be that strong. So we considered hedging a little bit at the levels that we did. Which was $19 thousand for Q2 and 17 thousand for Q3. The market has been stronger. So today, FFA rates are higher than that. We evaluate the situation in our weekly meetings. And we will decide if we will take more cover even through time chartering our vessels. A few of our vessels or through further FFAs. But this is something which is dynamic and that we look upon every week. Great. And then would you with the addition of the 2 additional newbuilds, can you just highlight your newbuild CapEx for 2026, 2027, and 2028?

So I think we can arrange to send this to you separately. I do not have the numbers on my head. But we will send them to you. Okay? Okay. that is great. And then can you did not buy there is quite a discrepancy between your estimated net asset value and where your stock currently is trading. But you did not buy any stock in the first quarter. Can you just help us maybe help me understand what you can do to try to close that gap, that discount to your NAV? Aristides?

Well, the stock price increased substantially during the quarter, right, from what was it, $12 to $13, Up to $21 So it is it is been increasing. Nevertheless, we are still having the buyback program active, and we have executed a few purchases during the last few days. We will continue executing on that. But only a little bit marginally because we as I said to Mark previously, for us, it is important that we keep up the liquidity in the stock growing. So we will not be extremely aggressive on that. Okay, great. And then from a cost standpoint, the 2 things that I am sort of focused on looking forward are bunker costs and also insurance costs.

Could you just discuss your exposure to increases in both those areas? Yes. On the bunker side, our ships trade all of them actually are on time charter basis. Which means that the charterer is responsible for replenishing the bunkers and paying for them. So it is not a huge issue for us. As long as there is availability of bunkers, we do not really mind the higher price. Of course, the charterer minds it,, so it affects his decisions. On the insurance cost, there is increased war risk insurance in several areas. But as our vessels do not trade there, we are not affected.

Analyst: Great. Very helpful. Thank you, Aristides.

Operator: Our next question is from Tate Sullivan with Maxim Group. Please proceed.

Tate Sullivan: Hi, thank you. Hello. The voyage days in the first quarter were a bit below what I forecasted. And you mentioned some repositioning in the press release. Given global dynamics, do you think the repositioning between charters will be a quarterly occurrence? Or was that special situation related to the first quarter?

Aristides J. Pittas: No, I think it was a special situation in the first quarter. It so happened that we had a lot of repositioning. But on average, I do not I expect it to be narrowed to what we have been advising.

Tate Sullivan: And then the voyage expenses, there was a gain related to those repositionings and maybe the bulk fuel sale that is certainly a 1-time quarterly event as well. I think the last time that occurred was 2-odd years ago.

Aristides J. Pittas: Yes. Exactly. Exactly.

Tate Sullivan: Okay. And then last, your comments on the Panama Canal. Is that an emergent dynamic, removing some vessel voyage from the fleet? Or has that been consistent in the first 2 months of this quarter?

Aristides J. Pittas: No. it is practically an emerging dynamic because we are seeing more and more tankers across the Panama Canal who pay higher fees to pass and for whom it is more important to pass through the canal. And that has practically squeezed the drybulk out of the canal. it is a consequence of the war in Iran. And the fact that on the tanker sector, there is been a significant shift on the trading patterns.

Tate Sullivan: Thank you. Thanks, Tate.

Aristides J. Pittas: Thanks, Tate.

Operator: We now have a follow-up from Mark Reichman with Noble Capital Partners. Please proceed.

Analyst: Thank you. I just wanted to follow-up on when you look at the fixed rate coverage for the remainder of 2026, it is about 23.5%. And if you are expecting rates to kind of remain strong, I can understand why you would want to leave exposure to the market. We are only in May. But looking to 2027, if you are expecting the market to weaken a little bit or rates to go down, at what point do you try to start preparing for that or 2027 to maybe increase your fixed rate coverage as you head into 2027?

Aristides J. Pittas: Indeed, you are right. We are looking into this, Mark. But FFA rates for 2027 are quite lower than where they are today. But we are also looking at the alternative, which is to time charter maybe a couple of vessels. For a year's time, so that we cover a little bit of the 2027 exposure. We would not do too much, but it is that we will probably fix a couple of ships longer time charters or cover with FFAs. Okay, great. that is very helpful. Thank you. Thanks, Mark.

Operator: There are no further questions at time. I would like to turn the floor back over to Mr. Pittas for closing remarks.

Aristides J. Pittas: Thank you all for listening in to our call today. We look forward to discussing again in Q2 which as we all know, is going to be a pretty good quarter. Based on what we are seeing today. Thank you all.

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