EuroDry reports Q2 adjusted EPS (48c), consensus 54c

Reports Q2 revenue $10.3M, consensus $13.87M. Aristides Pittas, Chairman and CEO of EuroDry commented: “After recovering early in second quarter, the drybulk markets turned down again reaching by July 2023 the very low levels last seen in January of this year. This decline in the market rates affected our results for the second quarter as the majority of our vessels were exposed to the fluctuations of the markets. Still, certain FFA coverage we had taken early in the year significantly mitigated the effect of the weak markets. While geopolitical uncertainties have remained, the macroeconomic picture improved during the quarter with inflation dropping in many countries and various analysts revising positively their economic outlook forecasts. Drybulk trade volumes increased, especially for iron ore and coal. Given this positive economic and shipping demand backdrop coupled with modest scheduled fleet growth, the different development of vessel prices and market rates has become striking: the former remained at relatively high levels while rates declined significantly. However, we believe that the continuing historically low fleet orderbook as percentage of the fleet provides a strong foundation for the rates to eventually increase provided the global economy continues to grow per recent analyst forecasts. Thus, we are positioning the company to take advantage of that possibility in the medium term.”