ESEA

Thank you for standing by, ladies and gentlemen. Welcome to the Euroseas conference call on the first quarter 2026 financial results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer, Mr. Anastasios Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask question, please press star one on your telephone keypad and wait for your name to be announced. I must advise that this conference is being recorded today. Please be reminded that the company announced their 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, Euroseas 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 of 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 will now like to pass 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 Anastasios Aslidis, our CFO, who will discuss in detail our various financial results later. Please turn to slide three of the presentation for our financial highlights. For the first quarter of 2026, we reported total net revenues of $55.84 million, a net income of $32.52 million Or $0.465 per diluted share. Adjusted net income for the quarter was $32.87 million, or $4.70 per diluted share. Adjusted EBITDA was close to $41 million. Please refer to our press release for the reconciliation of adjusted net income and adjusted EBITDA to net income. Anastasios will walk you through the results, as I said earlier, in more detail.

Consistent with our commitment to enhance shareholder returns, our Board of Directors approved a quarterly dividend of $0.80 per share for the first quarter of 2026, representing a 6.7% increase from the $0.75 per share that we paid for the fourth quarter of 2025. The dividend will be payable on or about June 16th to shareholders of record on June 9th. Based on our current share price, this translates to an annualized dividend yield of close to 5%. On the buyback front, since the launch of our $20 million share repurchase program in May 2022, we have repurchased 480,500 shares in the open market, representing about 6.8% of our outstanding shares for an aggregate consideration of approximately $11.4 million.

The program was renewed for a fourth consecutive year in May 2026, and we intend to continue executing it in a disciplined and opportunistic manner, deploying capital prudently to support long-term shareholder value. Finally, we recently entered into a joint venture with NRP Project Finance and related investors for the ownership of our third intermediate container ship on order with motor vessel Thrillos. The vessel is scheduled to be delivered in Q1 2028 and will be financed with at least 60% debt. Under the terms of the agreement, NRP investors will acquire a 49% stake for approximately $12.2 million, including the transaction cost. Please turn to slide four for an overview of our recent developments, covering key activity across vessel sale acquisitions, chartering, and fleet operations.

On the S&P front, we continue to expand our new building program with two strategically aligned orders that further strengthen our fleet profile and long-term growth trajectory. First, as already announced, we signed an agreement with Pang Hai Shipbuilding Company in China for the construction of two additional methanol-ready 2,800 TEU container ships with scheduled deliveries in November 2028 and February 2029. These are sister ships to the vessels already ordered in March 2026, bringing the series to four units in total. The aggregate consideration is approximately $93 million and will be financed through equity and debt. We have targeted approximately 65% leverage. Second, we entered into agreement with Nantong CIMC Sinopacific Offshore & Engineering in China for the construction of two 1,800 TEU feeder container ships, with expected deliveries in June 2028 and September 2028.

Total consideration for these vessels is approximately $64.5 million and will be financed on a similarly structured basis with equity and debt. On the chartering side, we secured multi-year employment for two of our vessels, further strengthening our revenue stability. Motor vessel EM Kea was fixed for 36 months-38 months at a rate of $30,000 per day, and motor vessel EM Spetses for 22 months-24 months at $21,500 per day. I am pleased to report that we had no idle or commercial off-hire days this period. Please turn to slide five. Our operating fleet currently consists of 21 vessels with a combined carrying capacity of approximately 61,000 TEUs and an average age of about 13 years.

This comprises the six intermediate container ships with a carrying capacity of approximately 25,000 TEUs and an average age of 18 years, alongside 15 feeder container ships with a combined carrying capacity of 35,000 TEUs and an average age just below 10 years. In addition, we have the 10 new building vessels on order, ranging in size from 1,780 TEU-4,480 TEU, with expected deliveries between the third quarter of 2027 and the first quarter of 2029. Upon full delivery of our new building program, our fleet will grow to 31 vessels with a total carrying capacity of approximately 94,000 TEUs. Please turn to slide six, for a further update of our fleet employment and forward coverage, which continues to underpin strong revenue visibility across our operating fleet. For 2026, approximately 96% of available voyage days have been secured at an average daily rate of approximately $30,150.

Looking ahead to 2027, we have already covered 86% of our available voyage days at an average rate of approximately $31,000 per day. For 2028, approximately half of our available voyage days are covered at an average rate of approximately $31,500 per day. This strong forward coverage is the result of our disciplined cycle-aware chartering strategy, which is designed to effectively balance market exposure with earning stability. Importantly, it provides meaningful cash flow visibility and supports our ability to sustain profitability across different market conditions, including periods of market softness or sudden market correction. Moving on to slide eight. Let's walk through the key market developments that shaped the container ship sector over the first quarter of 2028.

One-year time charter rates held firm at elevated levels, supported in the near term by a substantial portion of the fleet being fixed forward, as liner operators continued to lock in tonnage to navigate lingering supply chain disruptions and network imbalances. On the freight side, conditions were more volatile with an overall Shanghai Containerized Freight Index rebounding by approximately 75% off its late September trough, which has represented a near two-year low and has since been closing in on early June peak, though it still remains about 13% below that. Turning to asset values, secondhand asset prices edged higher by about 2% quarter-over-quarter, remaining at elevated levels despite the backdrop of persistent geopolitical uncertainties. The underlying drivers remain intact. A structurally constrained supply of available vessels and intense competition for prompt charter-free tonnage continue to provide a strong flow for asset prices.

On the new building side, the price index was essentially flat relative to the prior quarter, with robust appetite across both feeder and larger vessel classes helping to sustain pricing even as absolute cost levels remain quite elevated by historical standards. Fleet utilization continues to reflect a tight market. Idle fleet capacity excluding vessels under repair stood at just 240,000 TEU or 0.7% of the global fleet as of early May. This figure remains close to historic lows and is a clear indicator of the supply tightness that has characterized this market cycle. Recycling activity has remained notably muted thus far in 2026, with only five vessels totaling approximately 9,000 TEU sent to scrap year-to-date. Scrap prices in Bangladesh have softened to approximately $470 for lightweight ton as of May 15th, 2026. Meanwhile, the global container fleet has expanded by approximately 1.3% year-to-date.

Please turn to slide nine, which depicts the development of six to 12 month time charter rates over the past 10 years. Across the board, from the smaller feeders through to the bigger intermediate container segment. Current charter rates remain notably above both their respective 10-year historical averages and median levels. These smaller vessel classes remain essential in maintaining network flexibility and supporting regional and intra-regional trade flows, a role that has only grown in importance amid the ongoing geopolitical uncertainties and supply chain alignments. With scarce availability tonnage and underlying demand holding firm, the conditions that have sustained elevated time charter rates appear to remain broadly intact for now. Let's go to slide 10. This slide sets the macroeconomic backdrop, drawing on the IMF April 2026 World Economic Outlook update, as well as Clarksons latest trade estimates for containers.

The IMF projects global growth to moderate to 3.1% in 2026 from 3.3% previously, and 3.2% in 2027, with more risks on the downside. Key risks include the broadening of the Middle East conflict, the disruptive effects of shifting trade policy, and lingering inflationary pressures tied to commodity supply stocks. Global headline inflation is projected to rise modestly in 2026 before resuming to gradual decline in 2027, with the impact likely to be most pronounced in emerging market and developing economies. In the United States, the 2026 growth forecast was revised slightly lower to 2.3%, though the 2027 outlook was revised slightly upwards to 2.1%, reflecting continued underlying resilience despite macroeconomic imbalances. Monetary policy remains key as the Federal Reserve is in a holding pattern, while rate cuts have been put on pause, pending further evidence of easing inflation.

The effective Fed funds rate stands at approximately 3.64%, within a target range of 3.5% and 3.75%, and expectations that the Federal Reserve could begin cutting rates again from late 2026. Against this backdrop, a gradual depreciation of the U.S. dollar is anticipated as monetary policy begins to ease. In Asia, the ASEAN-5 region is projected to grow at around 4.1% in 2026 and 4.4% in 2027. Though external headwinds, including energy market volatility, geopolitical trade fragmentation, and fading export momentum, are expected to weigh on near-term performance. Meanwhile, China's growth trajectory is projected to remain relatively resilient, with GDP growth of 4.4% in 2026 and 4% in 2027, supported in part by the country's technological and industrial competitiveness. That said, structural economic imbalances persist and policy remains firmly oriented towards high-quality growth with priorities on energy security, domestic demand consumption, and productivity gains through innovation.

On trade, Clarksons estimates containerized trade growth measured in TEU miles of approximately 1.1% in 2026 before contracting sharply to a -6.6% in 2027. This significant reversal assumes a complete normalization of global trade flows. Therefore, ongoing geopolitical uncertainty, shifting trade policies, and potential unwinding of supply chain complexity are the main factors that will weigh on trade growth over the medium term. Turning on to slide 11, we provide an overview of the total fleet age profile and container ship order book. Starting with the age profile in the upper left, the overall container ship fleet remains relatively young, with a majority of vessels under 15 years of age and only about 14% of the fleet over 20 years old. However, this aggregate view is totally different when examining the feeder and intermediate segments in isolation, which we'll explore in greater detail over the next several slides.

Turning to vessel deliveries, the top right chart illustrates scheduled new deliveries as a percentage of the existing fleet. Deliveries are projected at approximately 5.2% for 2026, 8.9% for 2027, and 20.2% for 2028 onwards. Actual fleet growth is expected to be somewhat lower due to slippage and future demolition activity. The bottom chart puts the current order book in historical context. At approximately 37.7% of the fleet as of May 2026, the order book has climbed to levels not seen in over 15 years, a development that warrants close attention as we think about the midterm supply outlook for the sector. Turning on to slide 12, we zoom in on the 1,000-3,000 TEU range, the feeder segment that forms the core of our fleet. The supply picture here tells us a completely different story from the broader market. The age profile here is striking.

Approximately 28% of the fleet is over 20 years old, with a further 25% in the 15 years-19 years age bracket, meaning that more than half of the feeder fleet is approaching scrap age. As environmental regulations continue to tighten and compliance costs increase, a meaningful portion of this older tonnage is likely to exit the fleet over the coming years. Against this aging fleet, new building activity in the sub 3,000 TEU segment remains decidedly restrained. As of May 2026, the order book stands at 14% of the fleet, a fraction of the 37.7% we saw in the previous slide, and scheduled deliveries are projected at 2.6% for 2026, 5.5% for 2027, and 5.8% for 2028 and beyond. Let's move to slide 13 now to focus on the intermediate segment, the other core segment of our fleet.

As of May 2026, the order book in this segment stands at approximately 21% of the existing fleet. While that figure is higher than what we saw in the feeder segment, it remains comparatively modest relative to the larger mainline vessel classes, where new building activity has been considerably more pronounced. What makes this segment particularly compelling from a supply perspective is the age profile. Approximately 29% of vessels in this size range are over 20 years of age, with a further 38% falling between the 15 year-19 year bracket. This means roughly 2/3 of the fleet is either at or approaching an age where retirement decisions become likely, especially as environmental compliance requirements become increasingly stringent and costly, like we've mentioned numerous times. Scheduled deliveries are projected at 3.7% of the fleet in 2026, rising to approximately 5.6% in 2027 and around 9.7% for 2028 and beyond.

When weighed against the potential for accelerated scrapping among the older segment, net fleet growth in this segment is expected to remain contained over the coming years. The interplay between a maturing fleet and a measured new building pipeline continues to underpin a structurally supportive environment for intermediate container ship operators. Moving on to slide 14, this chart places the dynamics we presented in a broader context across the entire container ship sector. What becomes particularly evident is the pronounced concentration of new building activity in the larger vessel classes. Neopanamax and Post-Panamax segments currently carry order books ranging from approximately 39%-89% of their existing fleets, reflecting the significant capacity additions targeted towards major main lane trades. These are the vessel classes where oversupply concerns are most acute.

By contrast, the feeder and intermediate segments exhibit significantly lower order book activity, ranging from approximately 12%-21% of the existing fleet, depending on vessel size as said before. The modest ordering activity is occurring against a backdrop of fleet that is aging rapidly. This widening gap between the wave of new building activity in larger vessel classes and comparatively limited fleet renewal in the feeder and intermediate segments points to a structurally more favorable supply outlook for the sizes in which Euroseas operates. With a significant portion of the existing fleet approaching replacement age, net fleet growth in this segment is likely to remain constrained. This dynamic underpins our conviction that Euroseas fleet is positioned in segments where the supply outlook remains genuinely supportive with hopefully limited risk of oversupply on the horizon. Now, please turn to slide 15.

This slide brings together the key themes shaping the container sector outlook. Near-term sentiment has been bolstered by escalating Middle East tensions, which have driven time charter rates to new post-COVID highs and pushed freight rates higher as liner companies scrambled to secure tonnage amid ongoing supply chain disruptions. Container shipping sentiment was strong throughout the quarter and even strengthened in April. Overall, for 2026, fleet growth is expected to be among the lowest in recent years, supporting a more balanced supply-demand environment. The slower-than-anticipated normalization of Red Sea rerouting continues to provide additional near-term buffer. The 2027 picture, though, is more challenging. A historically large wave of newbuild deliveries, particularly during the second half of the year, is set to test the market. Capacity management and accelerated scrapping may help offset some of the pressure, but the potential for a more difficult market environment is real.

The geopolitical and macroeconomic variables in play, however, make forecasting particularly difficult. At the same time, concerns around tariffs appear to have moderated, with the impact on container shipping to date proving more limited than initially anticipated. Finally, on energy transition, while there is a clear industry shift towards alternative fuels and lower-emission technologies, the pace of adoption is likely to be slower than anticipated, given the U.S. stance, technical and economic hurdles, and delays in finalizing the IMO's net zero framework. Let's turn now to my last slide 16. The left chart shows the cycle of the one-year time charter rate for 2,500 TEU container ships over the past decade. As of May 15th, the one-year time charter rate stands at $37,000 per day, comfortably above both the 10-year historical average of around $23,500 and the median of close to $15,000 per day.

This firm rate environment is mirrored in asset values as well. The right chart shows newbuilding vessels are now valued at approximately $44 million, meaningfully above the 10-year median and average of $36 million. Second-hand values are even more striking in relative terms. The 10-year-old vessel is currently valued at about $40 million, compared to a 10-year historical average of around $22 million, and a median of $15 million. Given the current elevated secondhand asset values, we believe acquiring vessels, especially without attached employment, offers a less compelling risk-reward profile at this stage of the cycle. Newbuilding, by contrast, presents a more attractive avenue of fleet investment, with pricing that's comparatively less volatile and that allows us to lock in costs with greater predictability. With that conviction, we have expanded our newbuilding program by adding four new shipbuilding contracts, bringing our total order book to 10 vessels, as already mentioned.

This builds directly on the nine-vessel newbuilding program we successfully completed in early 2025 and reflects our continued confidence in the long-term outlook for the feeder and intermediate segments. Upon delivery of all 10 vessels, Euroseas will operate one of the youngest and most modern feeder and intermediate container ship fleets among our peer group, a competitive advantage we expect to translate into stronger commercial positioning, lower operating costs, and enhanced environmental compliance for years to come. In addition, we still maintain a very strong balance sheet, and a high liquidity availability provides us with the means to jump on any other interesting investment opportunity that may appear. With that, I'll turn the call over to Anastasios Aslidis to take you through the financial results for the first quarter of 2026. Anastasios, please go ahead.

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next few slides, I will give you the usual overview of our financial highlights for the first quarter of 2026 and provide also a comparison with the corresponding period of 2025. For that, let's turn to slide 18. For the first quarter of 2026, we reported total net revenues of $55.8 million, representing a 1% decrease over total net revenues of $56.4 million during the first quarter of 2025. As we operated three fewer vessels in this period compared to last year's one. The company reported a net income for the period of $32.5 million as compared to a net income of $36.9 million for the first quarter of 2025.

Interest and other financing costs for the first quarter of 2026 amounted to $3 million, while interest income and interest from financial securities amounted to $1.7 million, resulting in the $1.3 net interest number that you see on the slide. For the same period of 2025, interest and other financing costs amounted to $4 million, against which we collected interest income and credited imputed interest of $0.6 million. The decrease in the interest amount we paid is due to the decreased amount of debt in the current period compared to the same period of 2025. Also, for the first three months of 2026, the company recognized a $0.35 million of unrealized mark-to-market loss on marketable equity securities.

An unrealized loss of $0.8 million on investments in debt securities does not influence our net income and is not included in this slide, but is shown as other comprehensive loss in our press release below our net income line. Adjusted EBITDA for the first quarter of 2026 was $40.9 million compared to $37.1 million that we achieved during the first quarter of 2025. Basic and diluted earnings per share for the first quarter of this year were $4.65 basic and $4.67 of basics and $4.65 diluted, calculated approximately on seven million weighted average number of shares outstanding, compared to basic earnings per share of $5.31 in the first quarter of 2025, and diluted earnings per share of $5.29 for the same period. Again, calculated on about 6.957 million weighted average number of shares outstanding.

The adjusted earnings per share for the first quarter of 2026 were $4.72 basic and $4.17 diluted, having been adjusted for the unrealized loss of investments in equity securities, as compared to adjusted earnings of $3.76 basic and diluted for the first quarter of 2025, which have been adjusted for the gain on the sale of a vessel and the effects for the amortization of below market charters. We believe the adjusted earnings better present an ongoing operational profitability of our company. Let's now turn to slide 19 to review our fleet performance. As usual, we'll start our review by examining first our utilization rates for the first quarter of this year and compare it to the same period of 2025. I will focus only on the total utilization rate, which stood at 100% for the first quarter of 2026 as compared to 99.2% for the first quarter of 2025.

During the same period, the first quarter of 2026, we owned and operated 21 vessels, earning an average time charter equivalent rate of $30,354 per day, compared to 23.7 vessels for the same period of last year, earning on average $27,563 per day. Our total operating expenses, including management fees, general administrative expenses, but excluding any dry docking costs, were $7,789 per vessel per day in the first quarter of this year, compared to $7,511 during the same period of 2025. If we move further down on this table, we can see the daily cash flow breakeven level, which takes into account, in addition to the operating expenses, the dry docking expenses, interest expenses, and loan repayments without balloon repayments, all of those expressed on a dollar per day basis.

For the first quarter of 2026 our daily cash flow operating breakeven rate was $12,347 as compared to $13,062 for the first quarter of 2025. The reduction primarily being due to the significantly lower dry docking expenses and reduced interest costs, which more than offset some small increases in operating expenses. At the bottom of this table, we also present our dividend expressed on a per vessel per day basis. For the first quarter of 2026, this stood at $2,763 per vessel per day compared to $2,118 per vessel per day for the first quarter of last year. Reflects both the increase of the dividend in absolute terms, but also the smaller number of vessels by which this dividend has to be carried on. Let's now turn to slide 20. In this slide, we aim to provide a better perspective of the depth of our contract coverage.

The table presents the development of our fleet ownership days over the next three years with an estimated breakdown of how many days are available for hire and how many days are already contracted. It incorporates necessary assumptions about delivery dates for our vessels under construction. Scrapping for older ships, estimated drydocking costs and also timing and duration of drydocking, utilization assumptions going forward, and estimates for the redelivery dates of our vessels from their current charters. The data presented in this table represents internal estimates and are provided for indicative purposes and to be used for modeling. Future time charter equivalent revenues and actual results may differ. Nevertheless, we believe this provides a useful visibility into our forward revenue and earnings profile. Our contract coverage, which Aristides already mentioned, currently states about 92% for 2026, a bit more than 75% for next year, and about 43% for 2028.

An average contracted rates, I will not repeat here, you can see them on the slide, are over $30,000 for each of the respective years. Let's now turn to slide 21 to review our debt profile. As of the end of March of this year, our total debt stood at about $213.3 million, with an average interest rate margin of about 2%. If we assume a SOFR rate of 3.65%, the total cost of our debt would stand around 5.65%, I'm sorry. Which is well within the prevailing range for our peers. Turning to our debt amortization profile on the top left part of the slide, we can see that in 2026, total debt repayments amount to approximately $19.5 million, consisting of approximately $14.2 million of scheduled loan repayments and the $5.4 million of already repaid loan obligations.

In 2027, total debt service increases to approximately $37 million, again, comprising of $17 million approximately of scheduled loan repayments and a $20 million balloon repayment. Repayments of loans moderate down to $12 million in 2028, with no balloon payments much due in that year. Looking farther ahead, 2029 includes total repayments of approximately $40.6 million, again, consisting of $10.6 million of scheduled repayments and a $30 million balloon payment. 2030, quite far in the future, I have to admit, includes total repayments of $33.8 million, again, split between $7.4 million of scheduled repayments and a $26.4 million of balloon repayment. Historically, we have been able to refinance balloon payments on favorable terms when appropriate and when desired, and we expect to be able to maintain the same capability in the future for the future balloon payments if we choose to refinance them.

These figures do not include debt that we will assume to finance our new building program. This repayment profile refers only to debt that we currently have. At the bottom of this slide, we show our cash flow breakeven estimates for the next 12 months, broken down in the various components. On this basis, our total cash flow breakeven level for the next 12 months stands approximately at $12,760 per vessel per day, a level that is well below, if you remember, the contracted rate that we have for our fleet, but also the prevailing rates in the market. To conclude this presentation, let's turn to slide 22 for a review of our balance sheet and have some highlights of the balance sheet, actually. As usual, we show our balancing in a simplified way in the form of two bars. On the left bar, we show the asset side.

We have current assets, cash and other current assets of approximately $218 million, which translates to $31 per share equivalent. We also have made approximately $45 million of advances against our new building program, while the book value for our existing fleet stands at about $460 million, bringing altogether the book value of our assets to $722.7 million. On the right bar of this slide, on the liability side, as I mentioned, we have debt of $213.3 million and various other liabilities amounting to about $19 million, resulting in book shareholders' equity of just above $490 million. However, the book value for assets is significantly lower than their market value.

Based on our own estimates and estimates from other parties, we estimate that our current fleet is valued at approximately $675 million, which translates to a net asset value for the company of more than $700 million, $706 million, or around $100 per share. We closed yesterday, our share price at just above $71 per share, which indicates that our stock traded yesterday at almost 30% discount to its net asset value. This gap highlights the potential appreciation of our stock price, given the depth and the level of our contracted revenues. With that, let me pass the floor back to Aristides to continue the call.

Thank you, Anastasios. Let us now open up the floor for any questions you 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, and 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 Markets. Please proceed.

Thank you. I'm looking at the fleet profile. I'm looking at the TCE rate for the intermediates that have vintages in 2008 and 2009. I'm looking at the vessels under construction. The TCE rates are pretty much the same. I was just wondering, could you talk a little bit about the economics of the new builds versus the older vessels and just the tenor of the market? Are charters willing to pay a premium for the newer vessels or what's the dynamic there? That would be helpful.

Yes. They are getting, as you correctly say, very similar rates. The reason for this is not that the ships are equivalent, because they are not. The fuel consumption of the newer vessels, I think, is about 20% better than the old vessels, despite the ESDs that we are performing on them. However, these are ships with deliveries two years down the line. That is the reason why we're not getting a better price today. If we were to have these ships available today, I would think they would definitely demand a significantly higher level than the 2008 and 2009 build ships.

I can add, this is also the length of the charter. Our new ships have charters that go out four years, while the existing ones are two to three years when the charters were concluded. That also plays a significant role.

That's very helpful. Thank you.

Thanks.

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

Hey, good morning. I have a couple questions if I may. The first of which is.

Sure.

Anastasios, would you just give us in broad terms the new build CapEx with the new orders that you're looking at for 2026, 2027, and 2028?

Yeah, I'll be happy to provide that perhaps after the call. Obviously, we have 10 ships on order that they range in cost from $40 million-$60-something million. The overall new building program, it's in excess of $500 million, and of which you can assume that 55%-60% is in debt. $200 million+ is the equity portion, of which we have paid $45 million, as I mentioned earlier. With the exact timings, I'll be happy to provide offline.

Okay. Can you just talk about the rationale of doing the JV with NRP Investors as opposed to just doing straight debt financing?

Yes. We viewed this more as a strategic investment rather than we needed the investors or we needed the financing. We believe that Norwegian investors are quite active in the shipping markets, and we wanted to create a better liaison with them. Through this transaction, we got about 10-11 Norwegian investors who invest together with us. They'll get to hear about Euroseas and follow what we do. We think that it's helping us be best well-known in the Norwegian market as well.

Aristides, would this be considered sort of a one-off or is this the first of others that you might do on your new building program?

We haven't decided about doing something else yet. We might do one or two more ships, but we will see as time goes by.

Okay.

Sorry, Poe, I remind you that with the same outfit we have done two vessels in EuroDry, right?

Yep.

We've got to know NRP quite well, and we have a very good working relationship with these guys.

Okay, great. Thank you. Good time charters on the EM Kea and EM Spetses. Can you just talk about the outlook for the rest of the year on the chartering front? Are we at the point where maybe the EVRIDIKI G does get retired at this point in time or do you think that that will continue to work?

Yes. We have always been budgeting that the EVRIDIKI G would retire at the end of this current charter, but I can tell you that we have already taken the decision to pass it through its special survey because we are seeing interest for chartering it at levels that really make sense us keeping the vessel. Nothing to report now, but I can only say that we are going to pass its special survey. The outlook right now still is extremely strong for feeder vessels and intermediate vessels. There is very few opening up globally within the next three to four months, and I expect that within the next few days or couple of months. We will have fixed everything that opens up this year and have 100% coverage.

This is probably not a fair question, Aristides, but closer to the EM Kea or the EM Spetses as far as the rate?

The ships that open up, I think, are just three vessels that are opening up within this year, still, and they are smaller ships the size of the EM Spetses, I would say. Charter rates should be around that level.

Okay, great. Thank you so much.

Thanks.

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 today's presentation. We will be back with you in three months' time. Thank you.

Thanks, everybody.

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