- EuroDry Ltd. reports results for the year and quarter ended December 31, 2020.
- The operator of drybulk vessels announced today its results for the three- and twelve-month periods.
- In January 2021, the Company refinanced the outstanding loans of two of its vessels, M/V Alexandros and M/V Xenia, with a new loan of $26.7 million.
A recent press release by Eurodry reveals the results for the three- and twelve-month periods ended December 31, 2020.
Full Year 2020 Highlights
- Total net revenues of $22.3 million.
- Net loss of $5.9 million; net loss attributable to common shareholders (after a $1.6 million dividend on Series B Preferred Shares) of $7.5 million or $3.28 loss basic and diluted.
- Adjusted net loss attributable to common shareholders1 for the period was $6.9 million or $3.04 adjusted loss per share basic and diluted.
- Adjusted EBITDA was $3.7 million.
- An average of 7.0 vessels were owned and operated during the twelve months of 2020
earning an average time charter equivalent rate of $9,387 per day.
Fourth Quarter 2020 Highlights
- Total net revenues of $6.4 million.
- Net loss of $0.3 million; net loss attributable to common shareholders (after a $0.4 million dividend on Series B Preferred Shares) of $0.7 million or $0.31 loss per share basic and diluted.
- Adjusted net loss attributable to common shareholders1 for the period was $0.8 million or $0.34 adjusted loss per share basic and diluted.
- Adjusted EBITDA1 was $1.8 million.
- An average of 7.0 vessels were owned and operated during the fourth quarter of 2020
earning an average time charter equivalent rate of $10,761 per day. - The Company declared a dividend of $0.4 million on its Series B Preferred Shares. The
dividend will be paid in-kind by issuing additional Series B Preferred Shares.
Recent developments
In January 2021, the Company refinanced the outstanding loans of two of its vessels, M/V
Alexandros and M/V Xenia, with a new loan of $26.7 million which, after repaying the
outstanding loans of the vessels, resulted in approximately $3.9 million of additional funds
available to the Company. The loan is to be repaid in 24 quarterly installments of $0.5 million along with a balloon payment of $14.7 million to be paid together with the last installment.
In January and February 2021, the Company redeemed a net amount of $3 million of its
Series B Preferred Shares (“Preferred Shares”) and, contemporaneously, agreed with its
preferred shareholders to reduce the dividend rate of its Preferred Shares to 8% per annum
for two years from the 14% per annum level it was set to increase on January 29, 2021.
Over the next two years, the Company has also the option to pay the preferred dividends in kind at a rate of 9%. The dividend will reset to 14% per annum in January 2023. The partial redemption and the reduction of the dividend rate for two years would result in about $0.50 per share higher earnings per year over the next two years and $0.18 higher earnings per share thereafter.
The Company has agreed to refinance the outstanding loan of M/V Eirini P with a loan of $5
million which, after repaying the outstanding loan of the vessel, will result in approximately
$1.6 million of additional funds available to the Company. The loan will be repaid in 20
quarterly instalments of $0.21 million along with a balloon payment of $0.8 million to be paid together with the last installment. The loan is subject to customary documentation and is expected to be finalized in February 2021.
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Source : Eurodry
