EuroDry Ltd.

Thank you for standing by ladies and gentlemen and welcome to the Eurodry conference call on the second quarter 2020 financial results. We have with us today Mr Pittas, Chairman and Chief Executive Officer and Mr 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 a question you will need to press star and 1 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 to Mr Pittas, I would like to remind everyone 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 realised. I kindly draw your attention to slide 2 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. And I would now like to pass the floor over to Mr. Pittas. Thank you, sir. Please go ahead.

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Stasios Aslidis, RC Financial Officer. The purpose of today's call is to discuss our financial results for the second quarter and six-month period ended June 30, 2020. Please turn to slide 3. Our income statement highlights are shown here. For the second quarter of 2020, we reported total net revenues of $4 million. a net loss of $3.8 million, adjusted EBITDA of minus $1.3 million, and adjusted net income attributable to the common shareholders of minus $3.9 million. Adjusted basic and diuted earnings per share attributable to common shareholders for the second quarter of 2020 were minus $1.73 per share. These were the worst results we have posted since spinning off our dry fleet from Euroses in mid-2018. This was due to the terrible charter market, coupled with the fact that two of our vessels had to complete their special surveys during this quarter. The improving market, coupled with the fact that no more dry dockings are due during the year, should lead to a reversal of fortunes in Q3. Our CFO, Anastasios Aslidis, will go over our financial highlights in more detail later on in the presentation. Please turn to slide 4 for our chartering operations and sale and purchase highlights. Motor vessel Pantelis was fixed for a trip of about 55 to 65 days at around $7,000 per day during Q2. Thereafter, a few days ago, It was fixed for a trip for about 45 to 100 days at $10,850 per day or $11,500 per day depending on the loading area. Similarly, Motovessel Tassos was fixed for a trip for about 80 to 100 days at $6,875 per day, which net of the ballasting leg translates to $5,785 per day at the beginning of Q2. Thereafter, it was fixed in early July for a period of 90 to 100 days at $9,000 a day. During the second quarter, we sold 180 days in third and fourth quarter FFA contracts, at an average of $10,000 per day, practically fixing one of our 2004 built vessels, which are on index-based charters, at $10,000 a day. In early July, we fixed another 180 days at $12,000 a day, thus practically fixing our second mid-2000 built vessel, which is also on an index-based charter at that level. Therefore, we have on average fully covered these two vessels at $11,000 per day for Q3 and Q4. Regarding the dry dockings and the repairs of the second quarter, two of our motor vessels, MV Pandelis and MV Tasos, the two eldest vessels in our fleet, completed their fourth special survey and dry dock. Motor Vessel Pantelis also installed a water ballast treatment plant as well. The total cost of these dry docks booked in Q2 was about $1.5 million excluding the cost of the water ballast. No more dry dockings are scheduled for 2020. Looking on to our financial highlights, first we agreed to defer Q3 and Q4 installments of our three Panamaxes facility and include them to the respective balloon payments. Second, we agreed with our preferred shareholders to introduce the option from April 1, 2020 to January 29, 2021 for the company to pay the preferred dividend in kind by issuing new preferred shares. If paid in kind, The dividend cost would increase by 1% and that is what our board elected to do for Q2. Please turn to slide 5 to see a current snapshot of Eurodry's fleet. It is comprised of 7 dry bulk vessels with a fleet average age of 11.8 years and a cargo carrying capacity of 530,000 deadweight approximately.

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