EuroDry (EDRY) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues reached $17.4 million, up 68.7% year-over-year, with a net loss attributable to controlling shareholders of $0.41 million ($0.15 per share); adjusted EBITDA doubled to $5.0 million.

• H1 2024 net revenues were $31.9 million, a 47% increase year-over-year, with a net loss attributable to controlling shareholders of $2.2 million.

• Fleet expanded to 13 vessels with high utilization rates (99% operational, 99.6% commercial in Q2 2024) and average age 13.5 years.

• Share repurchase program extended for another year, with $5.0 million spent on 313,318 shares under a $10 million plan.

• 2023 sustainability/ESG report published.

Financial highlights

• Adjusted net loss for Q2 2024 was $0.45 million ($0.17 per share), improved from $1.2 million loss in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $5.0 million, up 103% year-over-year.

• Time charter equivalent rate in Q2 2024 was $14,427 per day, up from $12,177 per day in Q2 2023.

• Operating expenses per vessel per day decreased to $6,396 in Q2 2024 from $6,780 in Q2 2023.

• Net book value of vessels at $197.2 million; estimated market value at $270.8 million.

Outlook and guidance

• Management expects higher dry docking expenses in Q3 2024 due to scheduled maintenance.

• Market sentiment for H2 2024 remains positive, with seasonal strength and low orderbook expected to support rates.

• Fleet remains exposed to market rates, anticipating potential rate increases if demand strengthens.

• Disruptions in the Panama and Suez Canals have increased ton-miles and supported rates; normalization timing is uncertain.

• Environmental regulations and higher drydocking costs expected to impact supply and expenses.