Hans Baldauf

Hans Baldauf asked about EuroDry's strategy for expanding fixed rate coverage for 2026, given the current 22% coverage, cash flow breakeven, and strong market rates. He also sought clarification on the comparison between the 2025 and 2026 market outlooks and the company's fleet renewal strategy for older vessels.

Answer

CEO Aristides Pittas stated that expanding coverage depends on market evolution, noting a strengthening market. He mentioned recent FFA contracts for Q2 and Q3 2026 as a hedging strategy and willingness to fix more at current levels. Regarding the 2026 outlook, Mr. Pittas acknowledged a stronger start than expected but cited geopolitical uncertainties and trade disruptions as reasons for caution, suggesting the average rate for 2026 could be similar to 2025, though hoping for higher. CFO Tasos Aslidis added that the FFA market currently indicates higher levels. For fleet renewal, Mr. Pittas indicated no fixed decision on selling older vessels (Santa Cruz, Starlight, Blessed Luck) but confirmed continuous discussion about potentially buying more modern products if they are sold.

Hans Baldauf inquired about EuroDry's strategy for expanding fixed-rate coverage in 2026, given the current market rates exceeding their cash flow breakeven. He also asked for clarification on why the 2026 market outlook was described as similar to 2025, despite a stronger start to 2026, and sought an update on the fleet renewal strategy, specifically regarding the potential offloading of older vessels like Santa Cruz, Starlight, and Blessed Luck.

Answer

CEO Aristides Pittas stated that the company would fix more long-term charters at current strengthening market levels, referencing recent FFA contracts, but couldn't specify a percentage as it depends on market evolution. He acknowledged the strong start to 2026 but cited geopolitical uncertainties, trade developments, and Red Sea routing as reasons for the cautious 'similar to 2025' outlook, though he hoped for higher average rates. CFO Tasos Aslidis added that the current FFA market indicates a higher level. Mr. Pittas confirmed that while they continuously discuss selling older ships (three vessels built in 2004-2005) and buying more modern ones, no fixed decision has been made yet.