EuroDry Ltd.

Thank you for standing by, ladies and gentlemen, and welcome to the Eurodry conference call on the third quarter 2021 financial results. We have with us today Mr. Aristides Pitas, Chairman and Chief Executive Officer, and Mr. Tasos Haslidis, Chief Financial Officer of the company. At this time, all participants are in 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. Pitas, 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 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 would now like to pass the floor over to Mr. Pitas. 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 him, he started as a financial officer. The purpose of today's call is to discuss our financial results for the third quarter, the nine-month period ended September 30th of 2021. Please turn to slide three. Our income statement highlights are shown here. For the third quarter of 2021, we reported total net revenues of $19.5 million, the net income of $11.8 million. Adjusted net income attributable to common shareholders was $10.1 million, or $3.77 per share diluted. Adjusted EBITDA for the quarter exceeded $30 million. For the nine-month period, our net revenues were $42.1 million, and our adjusted net income, $18 million, or $7.29 per share diluted. These results are in stark contrast to our poor results of last year, when the initial impact of the pandemic was first felt in our business. Our CFO, Dr. Seth Levy, will go over our financial highlights in more detail later on in the presentation. Please turn to slide four for our operational highlights. As previously announced on December 22, 2021, The company acquired Motivation Good Heart, a $63,214 built Ultramax vessel, for $34.5 million. The vessel was financed partly by own funds and partly by a bank loan of $22 million, collateralized by this new acquisition and our Motivation Starlight. There were no dry dockings or major repairs during the third quarter of 2021. To assist us in acquiring the GitHub, the company raised $9.2 million of net proceeds by issuing about 316,000 shares through our APM up to September 30, 2021. In the chartering grant, Our motivational election was fixed for a trip of about 80 to 90 days at $25,250 per day for the first 65 days and $31,000 per day thereafter. Following the delivery of motivational good hearts, it was fixed for the first period of approximately 40 to 50 days at $32,750 per day for the first 47 days and $42,000 per day thereafter. After the conclusion of this employment, she was fixed for a small 16 to 18-day trip at $33,000 a day. The MD Pangellis is fixed for a trip of a time charter of about five to seven months at $30,250 per day. And the end-week cash flow is fixed for a trip of about $80 to $90 a day at $28,500 per day. And lastly, Motivated Starlight was extended at 98.5% of the BPI index for a minimum period until October 2022. During the third quarter of 2021, the company settled the 90 days of pre-weekly sold forward freight agreements, the equivalent of one panel of expenses, which was originally sold at a rate of $3,550 per day with a loss of $1.7 billion. In October, we sold the 90 days in Q1 2022 of FFA's, the equivalent of one panel of expenses, at $31,500 per day. And a few days later, it closed that position at $23,200 per day, realizing a gain of about $700,000. As of September 30th, the remaining 90 days previously sold at $12,550 per day for Q4 2021 had a negative valuation of about $2.7 million. Last year for me was a very profitable quarter, although we decided during the 3rd of November meeting to redeem EVQ for all its outstanding C and B preferred shares, using approximately $13.6 million from its free pass. Thus, going forward, the company's balance sheet will be very simple, consisting only of trade equity and chief bank debt, which currently runs at a spread of about 2.3% above LIBOR. On nearly half of these, we have applied LIBOR hedge at about 1%. Please turn to slide 5 for the summary of Github's current view. With the acquisition of motorbikes in Goodfath, River Drive's fleet has increased to nine units, further complementing our cluster of home-built new building vessels. Along with our medium-age Japanese-built Tarmac cluster, our current fleet has an average age of 4.4 years, and the current carrying capacity is about 670,000 WT. Slide 6. shows the current weekly employment schedule. As you can see, the effective coverage for the fourth quarter of 2021 stands at about 56% in terms of minimum increased rate contracts, and about 10% only in 2022. This figure, of course, excludes ships on index charters that have secured employment, but are open to market movements. One can easily conclude that our performance will depend a lot on the market developments during the ensuing months. We feel happy with our current positioning of forward coverage, as we remain optimistic about the market fundamentals, as I will discuss a bit further down the presentation. Now let's turn to slide seven, where we go over the market highlights for the quarter ended in September 30th, 2021. During the third quarter, dry bank rates continued to climb throughout September, but reversed quite strongly in October. As seen here, the average spot market rate for Panamax ships was $31,700 a day in the third quarter, and by September 30th, the price had increased to around $34,100 per day. Meanwhile, The average one-year time-charter rate for Paramaxis was $57,230 per day in Q3, reaching $39,250 by the last day of the quarter. By last week, though, one-year time-charter rates had dropped to around $21,500 per day. According to Klaxons, during Q3,

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