EuroDry Ltd. Announces New Charter for Its M/V “Molyvos Luck”

Rhea-AI Summary

EuroDry Ltd. (NASDAQ: EDRY) announced a new charter for its drybulk vessel M/V “Molyvos Luck” effective May 2022. The vessel will operate under a time charter of 11 to 13 months at a daily rate of $25,750, nearly double its current rate, securing at least $8.5 million in gross revenue and contributing over $5.5 million to EBITDA. This move enhances profitability and cash flow visibility for EuroDry, with its charter coverage at approximately 29% for 2022.

Positive

• New charter contract for M/V 'Molyvos Luck' at $25,750/day, nearly double current rate.
• Secured minimum gross revenues of $8.5 million.
• Expected EBITDA contribution exceeding $5.5 million.
• Increased cash flow visibility and profitability.

Negative

• None.

ATHENS, Greece, March 03, 2022 (GLOBE NEWSWIRE) -- EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today a new charter for its drybulk vessel M/V “Molyvos Luck”.

Specifically:

• M/V “Molyvos Luck”, a 57,924 dwt vessel built in 2014, entered into a new time charter contract for a period of between a minimum of eleven and a maximum of thirteen months at the option of the charterer, at a daily rate of $25,750. The new rate will commence upon completion of the existing charter, estimated in early May 2022.
  

Aristides Pittas, Chairman and CEO of EuroDry commented:
“We are very pleased to announce a new charter for our vessel M/V “Molyvos Luck” for a period between eleven and thirteen months, at a rate that is almost twice the level of its current employment. The new charter secures us with a minimum of $8.5 million of contracted gross revenues and is expected to make a total EBITDA contribution in excess of $5.5 million. This new charter will improve our profitability and cash flow visibility, with our charter coverage standing at about 29% for 2022.”

Fleet Profile:

The EuroDry Ltd. fleet profile is as follows:

Name	Type	Dwt	Year Built	Employment(*)	TCE Rate ($/day)
Dry Bulk Vessels
EKATERINI	Kamsarmax	82,000	2018	TC until Mar-22	Hire 106% of the Average Baltic Kamsarmax P5TC (***) index
XENIA	Kamsarmax	82,000	2016	TC until Aug-22	Hire 105% of the Average Baltic Kamsarmax P5TC (***) index
ALEXANDROS P.	Ultramax	63,500	2017	TC until Mar-22 + Gross Ballast Bonus TC until Apr-22	$26,000 (****) + $600,000 $29,000
GOOD HEART*	Ultramax	62,996	2014	TC until Oct-22	$25,000
MOLYVOS LUCK	Supramax	57,924	2014	TC until May-22 TC until Apr-23	$13,250 $25,750
EIRINI P	Panamax	76,466	2004	TC until Apr-22	Hire 99% of Average BPI (**) 4TC
STARLIGHT	Panamax	75,845	2004	TC until Oct-22	Hire 98.5% of Average BPI (**) 4TC
TASOS*	Panamax	75,100	2000	TC until Apr-22	$18,750 or $19,750 depending on redelivery range
PANTELIS*	Panamax	74,020	2000	TC until Mar-22 TC until Apr-22	$30,250 $18,250
BLESSED LUCK*	Panamax	76,704	2004	TC until April-22	$19,500
Total Dry Bulk Vessels	10	726,555

^{Note:  
(*)  Represents the earliest redelivery date
(**) BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four-time charter routes. 
(***) The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.
(****) Final rate depends on actual duration due to ballast bonus payment.}

About EuroDry Ltd.
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY.

EuroDry operates in the dry cargo, drybulk shipping market. EuroDry's operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

The Company has a fleet of 10 vessels, including 5 Panamax drybulk carriers, 1 Supramax drybulk carier, 2 Ultramax drybulk carrier and 2 Kamsarmax drybulk carriers, with a total cargo capacity of 726,555 dwt.

Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. 

Visit our website www.eurodry.gr

Company Contact	Investor Relations / Financial Media
Tasos Aslidis Chief Financial Officer EuroDry Ltd. 11 Canterbury Lane, Watchung, NJ07069 Tel. (908) 301-9091 E-mail: aha@eurodry.gr	Nicolas Bornozis Markella Kara Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY10169 Tel. (212) 661-7566 E-mail: eurodry@capitallink.com

FAQ

What is the new charter rate for EuroDry's M/V 'Molyvos Luck'?

The new charter rate is $25,750 per day.

How long is the charter for M/V 'Molyvos Luck'?

The charter is for a duration of 11 to 13 months.

What are the expected revenues from the new charter for EuroDry?

The new charter is expected to secure at least $8.5 million in gross revenues.

What is the projected EBITDA contribution from the new charter for EuroDry?

The projected EBITDA contribution from the new charter exceeds $5.5 million.

What percentage of charter coverage does EuroDry have for 2022?

EuroDry has approximately 29% charter coverage for 2022.