EDRY

Thank you for standing by, ladies and gentlemen, and welcome to EuroDry Limited Conference Call on the first quarter 2026 financial results. With us today, we have Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Ms. Athina Atalioti, Finance and Investment Manager. At this time, all participants are in a listen-only mode. There'll be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed. Before passing the floor over to Mr. Pittas, I would like to remind everybody that in today's presentation, the conference call, EuroDry, will be making forward-looking statements.

These statements are within the meanings of the federal security 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 number two on 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. 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 Athina Atalioti, who will go over the financial details in more detail. The purpose of today's call is to discuss our financial results for the three-month period ended March 31st, 2026. Please turn to slide three on the presentation where we present our financial highlights. For the first quarter of 2026, we reported total net revenues of $12.8 million and net income attributable to controlling shareholders of $0.26 million or $0.09 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $0.33 million 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. Athina Atalioti 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, 2024, and 2025, with current authorization to run through to August 2026. We have repurchased 348,000 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 two Kamsarmax vessels, which will complement the two Ultramaxes already on order. We signed contracts with Hengli Shipbuilding for the construction of these two 82,000 deadweight eco Kamsarmax bulk carriers built to EEDI Phase 3 standards, with delivery scheduled for the first and second quarters of 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 four 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 four, we highlight our recent chartering and operational developments. From a chartering perspective, our fixtures during the first quarter were predominantly short-term. Currently, four of our vessels are employed on index-linked charters at 115% of the average Baltic Supramax time charter index, providing continued exposure to market dynamics while preserving operational flexibility. The remaining seven vessels are employed on trip-time charters with durations ranging from approximately one to just over three months, whilst only the Christos K is on a longer TC 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, the motor vessel Xenia underwent dry docking for approximately 28 days, spanning from December 18, 2025 to January 15, 2026. We had hedged a very small part of our 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 higher rates. In particular, on February 19th, we sold 90 days of the Kamsarmax index, which is based on the average of five time charter routes for the second quarter of 2026 at $19,240 per day, and an additional 90 days for the third quarter of 2026 at $17,250 per day. Each equivalent to one vessel.

On March 30th, we sold a further 90 days of the Kamsarmax average index for the third quarter of 2026 at $17,100 per day, also equivalent to one vessel. Please turn to slide five. EuroDry's current fleet consists of 11 vessels with an average age of around 13.8 years and a total carrying capacity of approximately 707,000 deadweight tons. In addition, we have two Ultramax vessels under construction with capacities of 63,500 deadweight tons each, scheduled for delivery in the second and third quarters of 2027, and two Kamsarmax vessels on order with capacities of 82,000 deadweight each, scheduled for delivery in the first and second quarters of 2028. Upon delivery, our fleet will grow to 15 vessels with a total carrying capacity of approximately 1.05 million deadweight tons. Please turn to slide six 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 four vessels on index-linked employment. Slide eight, we review the general market highlights for the first quarter ended March 31st, 2026, and recent developments through mid-May. Panamax spot rates improved from an average of approximately $13,290 per day during the first quarter to around $14,750 per day by the end of March, and before strengthening further to approximately $22,300 per day as of last week. Similarly, one-year rates have also increased, with Clarksons assessing the standard Panamax one-year time charter rate at approximately $18,000 per day as of May 15th. Notwithstanding this improvement, one-year charter rates continue to trade slightly below prevailing spot market levels. Turning to slide nine, we review the global macroeconomic backdrop and its implications for dry bulk 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, uncertainty 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 in 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 rate cuts currently on hold pending further evidence of easing goods inflation. As of May 2026, the effective federal funds rate stands at approximately 3.64%, with rate cuts potentially resuming from late 2026. A gradual depreciation of the U.S. dollar is anticipated as monetary easing eventually takes hold. The ASEAN-5 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 is 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 and industrial competitiveness.

Structural economic imbalances, however, remain 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 dry bulk sector, Clarksons projects dry bulk trade growth at approximately 2.5% in 2026 and 1.3% in 2027, suggesting continued albeit moderating demand for dry bulk vessels. While the broader global economy is still expected by the IMF to hold up, risks are skewed to the downside by macroeconomic uncertainty, geopolitical fragmentation, and uneven regional trade activity, which may continue to weigh on trade flows and freight market dynamics. Please turn to slide 10 as we review the current state of the dry bulk 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 66% of the fleet in 2009 and around 24% in 2014. The persistent low level of new ordering 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 dry bulk fleet comprises approximately 14,600 vessels, representing around 1.1 billion deadweight tons. According to Clarksons' latest estimates, scheduled new building deliveries as a percentage of the existing fleet are projected at 4.5% in 2026, 4.1% in 2027, and 5.6% for 2028 and beyond.

Actual fleet growth is, of course, expected to be slightly lower as slippage and demolition activity will 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 dry bulk market. Bulker 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 first fourth quarter of 2025, reaching their strongest levels in two years and broadly in line with March 2024. Firm dry bulk trade trends continue to support vessel demand, driven by stronger iron ore, grain, and bauxite export volumes.

Global seaborne minor dry bulk trade has remained firm into early 2026, partly supported by continued bauxite trade. Additionally, total Indian ore exports are projected to reach 60 million metric tons in 2026, providing a further boost. With that said, uncertainty remains around Chinese iron ore demand amidst ongoing pressure on steel output. Across vessel sizes, Capesize vessels continue to outperform smaller vessel classes, although both the Supramax and Panamax segments have also been gaining since the start [inaudible]. We expect moderate gains, potentially resulting in spot rates above the 2025 levels. Geopolitical disruption continues to create market inefficiencies across global trade routes, and S&P pricing points to firm markets 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 represent an additional source of potential supply tightening. Large size vessels are expected to continue outperforming, supported by growing bauxite trade flows. Guinea's Simandou iron ore project is set to boost iron ore production as part of China's Belt and Road strategy, supporting Chinese industrial activity, reducing reliance on Australian and Brazilian imports, and displacing lower-grade domestic productions. Finally, geopolitical developments that disrupt trade routes and reduce operational efficiency remain the single most important unknown. On the supply side, the new building orders have accelerated in recent months and may gain further momentum in the foreseeable future despite the lack of maritime buzz.

Looking ahead to 2027, bulker 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 involving Iran, could weigh more heavily on global GDP growth and by extension, on the dry bulk demand. Turn to slide 13 for a review of our position on the dry bulk market cycle. As of May 15, 2026, the one-year time charter rate for a standard 75,000 deadweight ton Panamax vessel stood at approximately $18,000 per day.

This is considerably above the historical median of $13,375 per day. This higher rate environment is reflected, although disproportionately, as we think, in the secondhand 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 two Kamsarmax vessels, thus positioning our fleet to benefit from a market improvement, which we believe will come at some point in the coming years.

With that, I will now turn over the floor to Athina for a closer look at our first quarter financial performance.

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you an overview of our financial highlights for the first quarter of 2026 and compare those results to the same period as last year. For that, let's turn to slide 15. For the first quarter of 2026, the company reported total net revenues of $12.79 million, representing a 38.9% increase over total net revenues of $9.71 million during the first quarter of 2025, which was a result of the increased time charter rates our vessels earned during the first quarter of 2026, partly offset by the decreased average number of vessels owned and operated during the first quarter of 2026 compared to the same period of 2025.

The company reported a net income attributable to controlling shareholders of $0.26 million 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 first quarter of 2026 decreased to $1.5 million as compared to $1.8 million for the same period of 2025. Interest expense during the first quarter of 2026 was lower, mainly due to the decreased benchmark rate for our loans and a decreased average debt during the first quarter of 2026 as compared to the same period of last year. In the first quarter of 2025, we recorded a gain on the sale of $2.1 million relating to the sale of motor vessel Tasos. There were no vessel sales in the respective quarter of 2026.

Our adjusted EBITDA for the first quarter of 2026 was $4.87 million, compared to a $ -1.02 million during the first quarter of 2025. Basic and diluted earnings per share attributable to controlling shareholders for the first quarter of 2026 was $0.09, calculated on 2,796,647 and 2,828,521 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 first quarter of 2025, calculated on 2,737,297 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted income attributable to controlling shareholders for the quarter ended March 31st, 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 March 31st, 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 first quarter of 2026 with comparison to the same period of 2025. Beginning with utilization, our commercial utilization rate reached 100% in the first quarter of 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 fleet deployment efficiency year-over-year. On average, 11 vessels were owned and operated during the first quarter of 2026, earning an average time charter equivalent rate of $14,416 per day. This compares to an average of 12.8 vessels in the same period of 2025, earning an average TCE rate of $7,167 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 $7,479 per vessel per day during the first quarter of 2026, compared to $7,304 per vessel per day during the same period of 2025, reflecting a modest increase.

Finally, our daily cash flow breakeven rate, which takes into account the operating expenses, dry docking costs, interest expense, and scheduled loan repayments, excluding balloon payments, stood at $12,514 in the first quarter of 2026, compared to $11,528 in the first quarter of 2025, with a TCE rate of about $14,400 comfortably exceeding the breakeven rate of $12,540. Three, 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 two 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.

It is about 50% in the second quarter, but declines to 15% in the third, and it 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 linked to the relevant to their size Baltic Dry Index. Our calculator indicatively shows the Supramax and Panamax/Kamsarmax Baltic forward rates as of May 15, 2026, and also shows how these index levels get translated 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 rates in the table, and which, as you can see, tends to be very similar to the index levels.

Based on this assumption, and by further assuming, for simplicity, $7,500 per day per vessel operating G&A costs and a 5% commission rate, one 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, one can enter his/her own assumptions about the rates to do that. It is worth observing that at current FFA rates, one would expect an annualized EBITDA rate of $34 million. Of course, one can make his/her own assumptions of how the market might turn out. In the rest of 2026, as you can also easily estimate our EBITDA dependent to the average rate earned by our open days.

For example, a change of $1,000 per day in the average rate earned would result in a $2.2 million change in our 2026 EBITDA. Turning to slide 18, we review our debt profile and cash flow breakeven estimates. As of March 31st, 2026, our outstanding debt stood at $109 million, carrying an average margin of approximately 1.99%. Assuming a three-month SOFR 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 repayments total approximately $12.2 million during 2026, $21 million in 2027, $17 million in 2028, and $28.8 million in 2029, inclusive of balloon payments of approximately $1.2 million, $10.2 million, $6.7 million, and $19 million, respectively.

Please note that although we have arranged the debt financing of our two Ultramax newbuildings, our current debt figure that I quoted includes only the portion of one of the two loans drawn to date, representing the pre-delivery payment made thus far. The 2027 and 2028 repayment figures include scheduled repayments under both newbuilding loan facilities that we have started drawing to finance our Ultramax newbuildings, which are scheduled for delivery during the second and third quarters of 2027. Turning to the bottom of this slide, we present our cash flow breakeven estimates for the next 12 months, broken down by major components. Our EBITDA breakeven level starts at $8,035 per day, while our all-in cash flow breakeven, incorporating operating expenses, dry docking costs, interest expense, and loan repayments, is estimated at $12,310 per day.

Let's move now to my final slide 19, to review some highlights from our balance sheet as of March 31st, 2026. This slide offers a snapshot of our assets and liabilities and hopefully provides 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 was 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. Shareholder equity on a book value basis stood at approximately $93.8 million, or $32.45 per share.

Based on our internal estimates and 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 yields an estimated net asset value in excess of $52.77 per share. When compared to the recent trading range of our shares, which had moved up to around $21 recently, it 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 and 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 Pittas to continue.

Thank you, Athina. May we now open up the floor for any questions we may have?

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Mark Reichman with Noble Capital Partners. Please proceed.

Thank you for taking my questions. I really do appreciate slide 17. That's very helpful. 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?

Sure. We don't intend to have pre-delivery financing, I think. 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 are courting us to provide us financing with. We're pretty sure that the very modest level of financing that we will require, we will be able to do it.

How does management evaluate the trade-off between continued share repurchases and funding fleet expansion opportunities, in the current market environment?

Yeah, we're trying to balance everything, as you say. We are continuing the repurchase of stock because our share price is extremely low. On the other hand, we want the liquidity in our stock, in the stock that is trading to continue improving as it has over the last six months. We are careful not to overdo it and be too aggressive in this process. We've decided that we will do these four vessels, which will help us in the future, these four new building vessels. The remaining earnings, we will see what we will do. For now, we are pretty covered with these four vessels that we have on order.

Just lastly, are there additional opportunities for fleet renewal, vessel acquisitions, or selective asset sales if secondhand vessel prices remain elevated? I'm really looking at the Panamax vessels in your fleet that have that average age of, it 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 equivalents of about $20,000 per day or close to that level, which obviously is helping us build up our cash reserves. We will decide later towards Q3 if we will dispose one of them or not.

That's great. Thank you very much.

Thanks, Mark.

As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Poe Fratt with Alliance Global Partners. Please proceed.

Hello. Can you or just discuss your hedging strategy? It looks like you have two, the equivalent of one dry bulk hedged in the second quarter and then two in the third quarter. Can you just talk about what you're seeing now on the curve and maybe looking into the fourth quarter, on whether you'd continue to hedge?

Yes. Poe, you're right. We felt that the market would not be that strong, so we considered hedging a little bit at the levels that we did, which was $19,000 for Q2 and $17,000 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'll decide if we will take more cover, either through time chartering a few of our vessels or through further FFAs. This is something which is dynamic and that we look upon every week.

Great. Then with the addition of the two additional new builds, can you just highlight your new build CapEx for 2026, 2027, and 2028?

I think we can arrange to send this to you separately. I don't have the numbers in my head, we will send them to you. Okay.

Okay, that's great. There's quite a discrepancy between your estimated net asset value and where your stock currently is trading. You didn't buy any stock in the first quarter. Can you just maybe help me understand what you can do to try to close that gap, that discount to your NAV, Aristides?

The stock price increased substantially during the quarter, right? From, what was it? $12, $13 up to $21. It's 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 to executing on that, but only a little bit and marginally because as I said to Mark previously, for us, it's important that we keep up the liquidity in the stock growing. We won't be extremely aggressive on that.

Okay, great. From a cost standpoint, the two things that I'm sort of focused on looking forward are bunker costs and also insurance costs. Can you just discuss your exposure to potential 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. It's not a huge issue for us. As long as there is availability of bunkers, we don't 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. As our vessels do not trade there, we are not affected.

Great. Very helpful. Thank you, Aristides.

Thanks.

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

Hi, Tate.

Hello. The voyage days in the first quarter were a bit below I forecasted. 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 a special situation related to the first quarter?

I think it was a special situation in the first quarter. It happened that we had a lot of repositioning, but on average, I expect it to be narrowed to what we've been advising.

The voyage expenses, there was, again, related to those repositionings and maybe the bulk fuel sale. That's certainly a quarterly event as well. I think the last time that occurred was two odd years ago. Is that correct?

Yes, exactly.

Okay. Last, your comments on the Panama Canal. Is that an emerging dynamic, removing some vessel voyage from the fleet, or has that been consistent in the first two months of this quarter?

No, it's practically an emerging dynamic because we are seeing more and more tankers cross the Panama Canal who pay higher fees to pass and for whom it's more important to pass through the canal. That has practically squeezed the dry bulk out of the canal. It's a consequence of the war in Iran and the fact that on the tanker sector, there's been a significant shift on the trading patterns.

Thank you.

Thanks so much. Thanks, Tate.

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

Thank you. I just wanted to follow up on when you look at the fixed-rate coverage for the remainder of 2026, it's about 23.5%. If you're expecting rates to kind of remain strong, I can understand why you would want to leave exposure to the market. We're only in May, but looking to 2027, if you're 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?

Indeed, you're right. We are looking into this, Mark, but FFA rates for 2027 are quite lower than where they are today. 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 wouldn't do too much, but it is possible that we will fix a couple of ships in longer TC or cover with FFA.

Okay, great. That's very helpful. Thank you.

Thanks, Mark.

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

Thank you all for listening in to our results of 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.

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

Thank you for standing by, ladies and gentlemen, and welcome to EuroDry Limited Conference Call for the Fourth Quarter 2025 Financial Results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer; 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 its results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everybody that in today's presentation and conference call, EuroDry 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 on the webcast presentation, which has the full forward-looking statement, and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it. I would now like to turn the floor over to Mr. Pittas. Please go ahead, sir.

Good morning, ladies and gentlemen, and 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 3- and 12-month period ended December 31, 2025. Please turn to Slide 3 of the presentation. Our financial highlights are shown here. For the fourth quarter of 2025, we reported total net revenues of $17.4 million and net income attributable to controlling shareholders of $3.2 million or $1.14 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $2.4 million or $0.87 per diluted share. Adjusted EBITDA for the quarter was $7.5 million. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA. Tasos Aslidis will go over our financial highlights in more detail later on in the presentation. Since the initiation of our share repurchase plan of up to $10 million, which was originally announced in August 2022 and subsequently extended in 2023, 2024 and 2025, we have repurchased 334,000 shares of our common stock in the open market for a total of $5.3 million. The timing and pace of repurchases under the program is executed in a disciplined manner at management's discretion. Please turn to Slide 4 to view our recent developments, including sale and purchase, commercial and operational highlights. During the quarter, we sold motor vessel Eirini P, Panamax dry bulk vessel built in 2004 for $8.5 million. The vessel, one of the oldest and the longest held assets in our current fleet was delivered to new owners and unaffiliated third party on October 21, 2025, resulting in a gain just shy of $1 million. The transaction forms part of our ongoing fleet renewal strategy. From a chartering standpoint, our fixtures during the fourth quarter were predominantly short term. We concluded just 1-year time charter for motor vessel Christos K and Ultramax dry bulk vessel at a rate of $15,500 per day. representing a shift from our prior strategy of maintaining full market exposure by employing our vessels either on index-linked charters or on short-term contracts when market rates were lower. If rates continue to increase, we intend to also increase our longer-term cover by fixing more ships on longer charters. Currently, 4 of our vessels are employed on index-linked charters at 115% of the average Baltic Supramax 10 time charter average index through at least November 2026, maintaining full exposure to market movements. The remaining 7 vessels are employed on time charters with duration ranging from approximately 1 month to just over 3 months. The specifics of the charters fixed during the period are outlined in the accompanying slide. We continue to use FFAs occasionally as a hedging strategy. And in November 2025, we entered into a forward freight agreement whereby we sold 180 days of the Supramax 10TC-average for the first quarter of 2026 at an average of $12,012 per day, which was equivalent to approximately 2 vessels. Just yesterday, we completed the freight to sell 90 days of the Kamsarmax 5TC-average index for each of the second and third quarters of 2026 at average of $19,250 for the second quarter and $17,250 for the third quarter, equivalent to 1 vessel. Finally, we had no idle or commercial off-hire periods during the quarter. Please turn to Slide 5 for our current fleet profile. EuroDry's current fleet consists of 11 vessels with an average age of approximately 14 years and a total carrying capacity of about 765,000 deadweight tons. In addition, we have 2 Ultramax vessels under construction, each with a capacity of 63,500 deadweight tons, which are scheduled for delivery in the second and third quarters of 2027. Upon delivery, our fleet will expand to 13 vessels with a total carrying capacity of about 893,000 deadweight tons. Next, please turn to Slide 6 for a further update on our fleet employment. As of February 2026, our fixed rate coverage for the remainder of the year stands at approximately 22% based on existing time charter agreements. This figure excludes the 4 vessels employed under index-linked charters, which while subject to market fluctuations continue to provide secure employment. Turning to Slide 8, we will go over the market highlights for the fourth quarter ended on December 31, 2025, up until recently. Panamax spot rates declined sharply from approximately $14,600 per day in the fourth quarter of 2025 to about $9,650 per day by late December before recovering to roughly $13,500 per day. As of February 13, 1-year time charter rates have increased further above prevailing spot levels with Clarksons assessing the standard Panamax 1-year time charter rate at approximately $16,250 per day. During the third quarter, the Baltic Dry Index -- during the fourth quarter, the Baltic Dry Index and the Bulk Panamax Index recorded year-over-year increases of approximately 47% and 52%, respectively, reflecting a significant improvement compared to the same period last year, supported by stronger-than-expected demand for minor bulks, active grain trade flows and the tightening in vessel supply driven by longer voyage distances and regional trade disruptions. However, despite this rebound, freight markets remained volatile, reflecting the ongoing macroeconomic uncertainty and the uneven regional trade activity. Please now turn to Slide 9. According to the IMF's January 2026 World Economic Outlook update, the global economy is projected to maintain resilient expansion with GDP growth now forecast at 3.3% in 2026 and 3.2% in 2027, reflecting a slight upward revision to the outlook relative to last October's projections. Despite a relatively stable medium-term outlook, there are still meaningful downside risks. These include the possibility that expectations around technology-driven growth proved too optimistic as well as the risk of escalating geopolitical tensions. Ongoing trade frictions and broader geopolitical fragmentation continue to create uncertainty for the global economy. The recent events in Venezuela and the threatened military activity in the Middle East are reminders that external risks remain always present. That said, some trade pressures are expected to ease in 2026, which could help reduce the drag from tariffs on overall growth. In the United States, growth is projected to remain broadly steady with GDP growth expanding by approximately 2.4% in 2026 and 2% in 2027, although business and consumer sentiment appears subdued and inflation is expected to ease towards target only gradually. In January 2026, the Federal Reserve left interest rates unchanged, highlighting ongoing improvements in economic conditions while signaling a cautious approach towards future policy adjustments. Among emerging markets and developing economies, India is forecast to remain one of the fastest-growing major economies with GDP growth projected at approximately 6.4% in both 2026 and 2027, which is undermined by robust domestic demand and investment momentum. Recent trade agreements, including the newly agreed U.S.-India trade deal are expected to reduce trade-related uncertainty and together with easing financial conditions and stronger corporate balance sheets could help unlock a renewed private investment cycle. The ASEAN-5 region is also projected to maintain solid growth with expansion of 4.2% in 2026 and 4.4% in 2027, supported by strong domestic investment and technology exports. Meanwhile, China's growth trajectory is expected to moderate with GDP growth forecast at 4.5% in 2026, down from 5% in 2025 and easing further to 4% in 2027, reflecting the pressures from the weaker external demand, subdued manufacturing investment and ongoing challenges in the property sector. Turning to the dry bulk sector and how broader economic trends translate into vessel demand. Clarksons projects trade growth of 1.9% in 2026 and 1.4% in 2027. While this reflects a moderation compared to previous years, it still points to continued expansion in dry bulk trade volumes, albeit at a more measured and moderated pace. Please turn to Slide 10. Let's review the current state of the order book in the dry bulk sector. As of February 2026, the order book stands at approximately 12.4% of the existing fleet. Although higher than the 7.5% recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008 and approximately 24% in 2014. The current limited ordering activity reflects shipyard capacity constraints, high newbuilding costs and uncertainty surrounding future fuel technologies and environmental regulations. Turning to Slide 11. Let us now look at the supply fundamentals in a little more detail. As of February 2026, the total dry bulk fleet consists roughly of 14,600 vessels, representing around 1.1 billion deadweight tons. According to Clarksons latest estimates, new deliveries as a percentage of the existing fleet are projected at 4.2% for 2026, 3.9% for 2027 and 4.3% for 2028 and beyond. with actual fleet growth expected to be slightly lower due to slippage and demolition activity. Looking at the fleet age profile, roughly 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 become more stringent. Please turn to Slide 12, where we highlight our dry bulk market outlook in Q4 -- market outlook. In Q4 2025, dry bulk carrier market strengthened with average Supramax and Panamax time charter rates rising roughly 8% from Q3, reaching the highest levels in two years. Seasonal demand for dry bulk cargo supported this momentum, but the usual holiday slowdown didn't hit as hard as expected. New trade routes, most notably the growing bauxite trade from West Africa are shaping market dynamics, creating fresh opportunities and changing the traditional supply-demand pattern in the sector. The bauxite trade has seen a significant lift, growing from approximately 5% to over 15% of Capesize cargo volumes. Capesize vessels remain at the forefront of this activity, but smaller segments also saw meaningful improvements during Q4, highlighting the broad-based strength across the dry bulk market. Looking ahead to 2026, our outlook points to a picture broadly similar to 2025. However, markets remain unpredictable due to ongoing geopolitical disruptions, making forecasting particularly challenging with risks on both the upside and the downside. While dry bulk demand growth may continue to lag behind fleet expansion, factors such as off-hire period for special survey and slower operating speeds should help maintain overall market balance. Within the dry bulk segment, Capesize vessels are expected to outperform smaller classes, driven in large part by the expanding bauxite trade. At the same time, Guinea's Simandou iron ore project is set to significantly increase global supply once production ramps up. Backed in part by Chinese investment and aligned with Beijing's broader resource strategy often associated with the Belt and Road initiative, the project is designed to diversify China's iron ore sourcing. Over time, this could reduce China's dependence on imports from Australia and Brazil and potentially displace lower-grade domestic production. Meanwhile, Chinese purchases of U.S. soybeans remain an important factor following the October trade truce with agricultural flows continuing to influence supply and demand. Additionally, any normalization of Red Sea routing patterns could slightly reduce effective vessel demand if ships revert to traditional routes. But on the other hand, broader geopolitical developments may continue to redirect trade flows and thus reduce overall fleet efficiency. On the supply side, newbuilding activity remains relatively restrained. Shipyard capacity is largely constrained through the next several years and continued uncertainty around future fuel technologies amid rising orders of methanol and LNG fueled vessels. The overall order book to fleet ratio remains low by historical standards, which could provide a supportive backdrop for charter rate recovery if demand strengthens. That said, order book varies by segment. For Panamax and Ultramax vessels, order books are trending close to historical median levels, whereas the Capesize order book remains near historical lows. Although the industry is clearly shifting towards alternative fuels, the pace of transition is likely to be more gradual than initially anticipated due to technical and economic complexity as well as delays in finalizing the IMO net zero framework. Looking further ahead, 2027, visibility remains limited. Global growth and geopolitical developments will play a decisive role. While fleet growth is expected to remain moderate, currently projected rate expansion may not be sufficient to materially tighten the market. At this stage, we assume a broadly balanced market. Geopolitical and economic uncertainties could sway the market in either direction. Let's now turn to Slide 13. As of February 13, 2026, the 1-year time charter rate for 75,000 deadweight Panamax vessel stands at $16,250 per day, slightly higher week-over-week and comfortably above the historical median of $13,375 per day. In the asset market, 10-year old Panamax bulk carrier values remained firm despite the correction of approximately 8% from the mid-2024 peak. Current prices at around $27 million remain well above both the historical median of $16.7 million and the 10-year average of approximately $18.7 million, underscoring the continued resilience in secondhand valuations. This sustained strength also reflects structurally higher newbuilding prices driven by inflationary pressures, a limited shipyard availability and the cost of complying with environmental regulations. At the same time, healthy liquidity and cautious fleet growth expectations continue to underpin investor confidence in the sector. While today's prices represent a moderate pullback from the mid-2024 peak of roughly $29.5 million, they still remain very elevated by historical standards. Concluding my part of the presentation, I would like to highlight our profitable fourth quarter of 2025 and the continued strengthening of our liquidity position. Following the sale of the Eirini P, the refinancing of the Yannis Pittas loan and the funding of a substantial portion of the delivery installments of our motor vessel series, which is under construction, our balance sheet has become much more robust. This enhanced liquidity positions us to pursue additional investments should attractive and accretive opportunities arise, something we admittedly don't see in this high valuation environment. Looking ahead, however, we remain focused on disciplined capital allocation, operational efficiency and delivering profits for the benefit of all our shareholders. And with that, may I pass the floor over to Tasos for his part of the presentation.

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. As usual, over the next 4 slides, I will give you an overview of our financial highlights for the fourth quarter and full year of 2025 and compare them to the same periods of 2024. For that, let's turn to Slide 15. For the fourth quarter of 2025, we reported total net revenues of $17.4 million, representing a 19.9% increase over total net revenues of $14.5 million during the fourth quarter of 2024. This was the result of the higher time charter rates our vessels earned in the fourth quarter of last year compared to the same period of the year before, which was partly offset by the lower average number of vessels operated in the fourth quarter of 2025 as compared to the year before. Interest and other financing costs for the fourth quarter of 2025 decreased to $1.6 million as compared to $1.9 million for the previous year. Interest expense during the fourth quarter of 2025 was lower mainly due to the decreased interest rates of our loans, the SOF rate plus the margin on average as well as the decreased average debt that we carried during the period as compared against to the quarter of the year before. Adjusted EBITDA for the fourth quarter of 2025 was $7.55 million compared to $1.85 million achieved during the previous -- the fourth quarter of the previous year, an increase of more than 300%. We recorded a $0.7 million gain on the sale of our MV Eirini P during the fourth quarter of 2025 against no sales that we recorded during the fourth quarter of 2024. Basic and diluted earnings per share attributable to controlling shareholders for the fourth quarter of 2025 were $1.14 calculated on 2.8 million approximately basic and diluted weighted average number of shares outstanding compared to a loss per share of $2.28 calculated on 2.7 million basic and diluted weighted average number of shares outstanding for the fourth quarter of 2024. Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized gain on derivatives and the gain on the sale of the vessel, the adjusted earnings per share, again, attributable to controlling shareholders for the fourth quarter of 2025 would have been $0.88 and $0.87, respectively, basic and diluted compared to an adjusted loss of $1.33 per share for the year before -- for the quarter of the year before. Let's now look at the numbers for the full year 2025 and compare them to the full year of 2024. For the full year of 2025, the company reported total net revenues of $52.3 million, representing a 14.4% decrease over total net revenues of $61.1 million during the 12 months of 2024, a result both of the increase -- of the decreased number of vessels we operated and the lower -- slightly lower time charter equivalent rates earned by our vessels on average during the full year of 2025 as compared to the year before. Interest and other financing costs for the 12 months of 2025 amounted to $6.9 million compared to $8 million for 2024. Again, this decrease is mainly due to the lower interest rate allowance paid and partly offset by the higher average debt we get during the whole year of 2025, again, as compared to the previous year. Adjusted EBITDA for the 12 months of 2025 was $12.55 million compared to $9.4 million achieved during 2024, a 33% increase. For the full year, we recorded a $2.8 million gain on sales of vessels, both the Eirini P that we sold in Q4, but also Tasos that we sold earlier in the year. Again, we had no vessel sales to report for 2024. Basic and diluted loss per share attributable to controlling shareholders for the 12 months of 2025 was $1.55 compared to basic and diluted loss attributable to controlling shareholders for 2024, which was $4.62. Excluding the effect on the net income attributable to controlling shareholders for 2025 of the unrealized loss on derivatives and the net gain on sale of vessels, the adjusted loss per share would have been $2.5 basic and diluted compared to an adjusted loss per share of $4.10 for 2024. Let's now move to Slide 16 and look at more numbers there. As usual, in this slide, we report our utilization rates for the fourth quarter and full year for the 2 years we are comparing. Let's look first at the quarterly results, the fourth quarter of 2025. For that quarter, our commercial utilization rate was 100%, while our operational utilization rate 99.6% as compared again to 100% commercial and 99.4% operational for the year before. On average, 11.2 vessels were owned and operated by us during the fourth quarter of 2025, earning an average time charter equivalent rate of $16,260 per day, compared to 13 vessels that we operated during the same period of the previous year, which earned on average $12,201 per day. a significant improvement of the daily earnings. Our total operating expenses, including management fees, G&A expenses, but excluding drydocking costs were $7,869 per vessel per day during the fourth quarter of 2025 compared to $7,087 per vessel per day during the same period of 2024. If we move further down this table, we can see also -- at the bottom of the table, we can see the breakeven -- the cash flow breakeven rate, which takes into account in addition to the operating expenses I mentioned, drydocking expenses, interest expenses and loan repayments without balloons expressed in dollars per day basis. Thus in total, for the fourth quarter of 2025, our daily cash flow breakeven rate was $13,231 as compared to $11,259 for the fourth quarter of 2024, partly reflecting the higher drydocking expenses we incurred during that period. Let's move to the right part of the slide and look at the yearly results, again, starting with the utilization rate, which I'll go very quickly. All of the utilization rates we recorded were around 99% or -- between 100% and the time charter equivalent rates we earned were $11,642 on average for 2025 versus $13,039 on average for 2024. We see here that while the fourth quarter of 2025 was significantly higher than the fourth quarter of 2024, the whole year on average ended up producing lower time charter rates because the market at the beginning of the year was lower. Our total operating expense for the year, including management fees and G&A expenses, again, excluding dry docking costs, averaged $7,422 in 2025 compared to $6,967 in 2024. The cash flow breakeven for the full year ended up being $12,345 for 2025 compared to $13,221 for 2024, again, the reduction primarily due to lower drydocking expenses on average for the full year. Let's now move to the next slide, Slide 17, to review our debt profile. As of December 31, 2025, our outstanding debt stood at $103.7 million with an average margin of about 2%. Assuming a 3-month SOF rate of around 3.65% as of February 18, you can see that the cost of our senior debt on average was 5.65%. The chart in the upper part of this slide shows our debt amortization schedule with debt repayments of $12.2 million during 2026, $21 million in 2027 and $17 million in 2028, inclusive of balloon payments of $1.2 million, $10.2 million and $6.7 million, respectively. Please note that although we have arranged the debt financing for 2 Ultramax newbuildings, our current debt figure that I quoted you includes only the portion of 1 of the 2 loans that we used to finance part of the predelivery payments. Please also note that the 2027 and 2028 repayment figures I gave you include repayments of the 2 set loan facilities that we have started drawing to finance our Ultramax newbuildings, which are scheduled for delivery in the -- during the second and third quarters of 2027. Turning to the bottom of this slide, we can see our cash flow breakeven estimate for the next 12 months, broken down by its major components. Our EBITDA breakeven level is $7,478 per day and our overall breakeven level -- cash flow breakeven level for the next 12 months is expected to be around $11,663 per vessel per day. Let's move now to my last slide, Slide 18, to review some highlights from our balance sheet in our usual brief style. This slide offers a snapshot of our assets and liabilities and hopefully provides a concise picture of our financial position. As of December 31, 2025, cash and other assets in our balance sheet stood at approximately $31.8 million, while advances for newbuildings amounted to about $14.4 million and the remaining part on the asset side of our balance sheet is our vessels, which at their book value stood at about $166 million, resulting in a total book value of our assets of about $212 million. On our liability side, as I mentioned, bank debt is a big part of our liabilities, which stood at the end of last year at $103.7 million, while we had other short-term liabilities of $5.9 million, all in all, representing about 66% of our overall liability side. This results in a book value for our shareholders' equity of about $93 million, which translates in a net book value per share of $31.8. However, based on our internal and external valuations of our ships, the market value of our fleet exceeds its respective book value. We estimate it's worth about $214 million versus a book value of $166 million, meaning that the about -- the difference of about $48 million should be added to the value of our shares. If we do that, we will come up with a net asset value per share in excess of $48 per share. If we compare this to the recent trading range of ourselves, although it has increased in the last few days, of about $17, it becomes evident that there is significant potential upside for the owners of our stock. And we hope both our shareholders and prospective investors will appreciate that, hoping that narrowing of this discount will provide significant returns to their investment. And with that, I will pass the floor back to Aristides to continue the call.

Thank you, Tasos. And let us now open up the floor for any questions we may have.

[Operator Instructions] Our first question is from Tate Sullivan with Maxim Group.

I was just looking first at your noncontrolling interest and income to the joint venture partners. And if I recall, you started that arrangement with NRP partners a couple of years ago. Are you happy with how the JV has gone? Is that still a source of financing or transactions that you look at going forward in this current market there, please?

Yes. I have to say we are very happy with the conversation that we are having with NRP and the investors that they have found who contributed in this project. Everything is going -- moving ahead smoothly. We are happy that the Norwegian market is starting to hear more and more about EuroDry. And we look forward to perhaps doing more such deals, yes.

And if you can, is that mostly Norwegian -- is that a Norwegian-based entity? Or have you shared that?

Yes. It's a Norwegian-based entity and the investors within this group are mainly Norwegian.

And separately, in your presentation, you had a great data point on bauxite as a percent of Capesize cargoes. I was wondering if you do have sort of a similar cargo present, not bauxite for your fleet, but a cargo breakdown for your fleet with per ship carrying capacity of about 60,000 to 82,000 deadweight tons each. Is it more soybeans, as you noted, more demand? Or might you have a rough mix on...

We can offline present you with the data of the various ships that we have and what they have carried, if I understood correctly during the year. We can discuss it.

And your present -- just can you comment on coal demand? Has that decreased meaningfully compared to iron ore demand and soybeans? I didn't see coal mentioned in your presentation.

Yes. Coal is a commodity that for the last 5 or 6 years, we are saying that it reached peak consumption, and it's never happened up to date. So actually, I think this year was pretty steady. Going forward, it is certain that coal will be a smaller percentage of the mix of energy. But as an absolute value, I think it will continue growing.

Our next question is from Hans Baldau with NOBLE Capital Markets.

Congrats on a good quarter to end the year. For the fixed rate coverage for 2026, that stands at 22% currently. And it was mentioned that you'd be open to fixing more long-term charters. And with the cash flow breakeven for the next year at $11,663 and the current rates sitting well above that, how are you thinking about expanding coverage? And do you have an idea in mind of what -- how many -- what percentage of the fleet you would fix to long-term charters this year?

It's difficult to say because it depends a lot on how the market evolves. But right now, we're seeing a strengthening market day by day. We did take some cover yesterday as we fixed an FFA contract, as I said during the presentation, we fixed 90 days for Q2 at $19,250 and another 90 days of Q3 at $17,250, which is a hedge to the open vessels that we currently have. So we will fix more at these levels, but I can't say how much more.

Okay. And you mentioned that we're modeling 2026. It looks very similar to 2025. And right now, the rates to start 2026 are much stronger than they were to start 2025. Can you talk more about the similarities that you're seeing between 2025 and 2026? And are you expecting rates to return to 2025 levels? Or what do you -- why is it similar to 2025?

Indeed, 2026 has started off very strongly and stronger than what we expected. So we might be surprised on the positive side during the year. But there are so many uncertainties about how trade will develop, what will happen in the geopolitical arena, will ships start going back through Suez or not? Will there be further embargoes, tariffs? So it is really a very difficult market to predict. What is easy to see is the supply of ships, and we expect the supply of ships to increase by about 4%, take away 1%, 1.5%, 2% for scrapping and delays. We see that the fleet will not increase considerably. But really to make a call about how strong demand will end up being is extremely difficult. So the average rate for 2026 could end up being similar to 2025. Of course, we hope that it will be even higher.

I think the current rate -- the current FFA market indicates a higher level. But as Aristides said, you know, there are many uncertainties that...

And if you took into account the FFA market just 2 weeks ago, it indicated exactly the same. So it's -- the market changes and the opinion on the market changes very quickly.

Okay. And lastly, could you add some more color on your fleet renewal and modernization strategy? Are there -- the Santa Cruz and the Starlight and Blessed Luck are all on the older side. Can we expect those to be offloaded during the year? Or how are you thinking about that?

We haven't taken any decision yet. Indeed, we are down just to two 2004 built ships and one 2005 built ship. So 3 are relatively old. We may be -- if we are selling them, we might be buying more modern tonnage. This is a strategy that we discuss continuously, but there's no fixed decision yet.

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

Aristides, Tasos, the macro has been pretty well covered. I had a micro question. Tasos, maybe I missed it, but can you just highlight whether there was a change to your reported numbers for the fourth quarter of 2024? And then can you talk about the claim that you settled, I think, in the fourth quarter of '25. And then can you talk about the cash impact of that insurance claim and then whether that's totally closed out or whether we might see some adjustments in 2026?

Yes. We had to recognize that claim in our Q4 numbers after we issued the press release, but it was included in our 20-F information in our audited results. So that's why you might see a difference compared -- if you compare to the press release, but compared to the 20-F, that the recognition of that claim was included. And then that situation was resolved, and we recovered the $1.4 million that we record here as other operating income. I think that situation is now closed. We don't expect anything on either side, either positive or negative.

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

Thank you all for listening today's presentation, and then we will be back in 3 months' time with hopefully another quarter of good results.

Thanks, everybody.

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