EuroDry Q2 2025 Earnings Call Transcript

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Provided by Quartr
August 11, 2025

Key Takeaways

  • Positive Sentiment: Board extended the $10 million share repurchase program and has bought back 3.3 million shares for $5.3 million, reflecting confidence in the company’s valuation.
  • Negative Sentiment: The company reported a Q2 net loss of $3.1 million ($1.12 per share), despite generating adjusted EBITDA of $1.9 million for the quarter.
  • Positive Sentiment: Management is prioritizing operational flexibility by deferring long-term time charters until market rates exceed its $15 000/day target, aiming for more cash-flow-accretive contracts.
  • Negative Sentiment: Drybulk market remains soft, with year-over-year declines in the Baltic Dry and Panamax indices of over 21 % and 28 %, respectively, amid geopolitical headwinds and trade tariffs.
  • Positive Sentiment: Fleet expansion plans call for delivery of two new eco-friendly vessels in 2027, boosting capacity to nearly 1 million DWT and supporting long-term growth.
AI Generated. May Contain Errors.
Earnings Conference Call
EuroDry Q2 2025
00:00 / 00:00

There are 4 speakers on the call.

Operator

Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Limited Conference Call for the Second Quarter twenty twenty five Financial Results. We have today here with us Mr. Estides Pides, Chairman and Chief Executive Officer and Mr. Tasos Eslides, Chief Executive Officer. At this time, all participants are in a listen only mode.

Operator

There will be a presentation followed by a question and answer session. 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 over to mister Piedes, I would like to remind everybody that in today's presentation and conference call, EuroDry will be making forward looking statements. These statements are within the meanings of the federal security laws.

Operator

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 realized. I kindly draw your attention to slide number two on the webcast presentation, which has the full forward looking statement. The same statement was also included in

Speaker 1

the press release. Please take

Operator

a moment to go through the whole statement and read it. I would now like to turn the floor over to mister Piedis. Please go ahead, sir.

Speaker 2

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is mister Tatasos Olivit, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the same six month period ended 06/30/2025. Please turn to slide three of the presentation. Our financial highlights are shown here.

Speaker 2

For the 2025, we reported total net revenues of $11,300,000 and the net loss attributable to controlling shareholders of $3,100,000 or 1.12¢ loss per basic and diluted share. Adjusted net loss attributable to controlling shareholders for the quarter was $3,000,000 or $1.1 loss per basic and diluted share. Adjusted EBITDA for the quarter was $1,900,000. Please refer to the press release for the reconciliation of adjusted net loss and adjusted EBITDA. Also, our CFO, Kasrav Khalid, will go over our financial highlights in more detail later on in the presentation.

Speaker 2

As of today, we have repurchased $3,334,000 shares of our common stock in the open market for a total of $5,300,000 under our $10,000,000 share repurchase plan announced in August 2022. Our board of directors has approved an extension of the program for an additional year. We intend to continue executing the purchases up to the originally approved amount of $10,000,000 at a disciplined rate, taking into account the company's liquidity needs and relatively small free flows. We are also pleased to announce that tomorrow, our 2024 environmental, social, and government report will become available on our website. This is the fifth year we are providing such report.

Speaker 2

The report outlines our ongoing initiatives and progress across all key ESG pillars, reflecting our continued commitment to sustainable and responsible operations. Please turn to slide four to view our recent developments. On the chartering front, all our recent fixes have been either short term or on index linked charters. While the Houthi attacks on dry bulk carriers in the Red Sea in July offers enough beef in charter rates due to the routing of vessels, early August has proven that the the seasonality remains. We are hoping for a better fall.

Speaker 2

In the current rate environment, we have chosen not to commit our vessels on longer term contracts until market conditions improve, prioritizing operational flexibility. Should rates return to profitable and cash flow accretive levels, we will endeavor to fix a portion of our fleet on longer term. The specifics of the charter fixed during the period are outlined in the accompanying presentation. Moving on to our operational highlights, Santa Cruz underwent scheduled dry docking and repairs over a period of approximately thirty five days, the biggest part of those spanning in q three, though. There was no idle time or commercial off hire for our fleet during the period.

Speaker 2

Please turn to slide five. Eurodrive's southern fleet consists of 12 vessels with another replace of approximately 13.6 and a total carrying capacity of about 843,000 deadweight tons. In addition, we have two Uzumash vessels under construction, each with a capacity of 63 and a half thousand deadweight tons scheduled for delivery in the 2027. Upon delivery, our fleet will grow 14 vessels with a total carrying capacity of nearly 1,000,000 deadweight tons. I'd like to remind you that Eurodry owns 61% of the other entities that own motor vessels, Christos k and Maria, and the remaining 39 is owned by owners represented by NRP Project Finance, otherwise referred to as the NRP investors.

Speaker 2

Please turn to slide six for a further update of our fleet employment. As of 06/30/2025, our fixed rate covers for the remainder of the year stands at approximately 25% based on existing time charter agreements. This figure excludes vessels operating under index linked charters, which, while subject subject to market fluctuations, have secured employment. We currently have four vessels on index linked charters with duration ranging from October 25 to May 2026. These charters can be practically changed to fixed rate with the use of vessel phase if rates improve to the levels we aspire.

Speaker 2

Turning to slide eight, we will go over the market highlights for the second quarter ended 06/30/2025 up until recently. Panamax spot rates rose steadily through the 2025, increasing from an average of about $10,300 per day to $11,900 per day by booked events, a 15% gain. As of August 1, spot rates stand at 13,750 a day, surpassing the respective time charter average levels of $12,600 per day as a result of the Houthi attacks and the subsequent route rerouting effects on the area. However, if one goes back only a couple of weeks prior to that, both spot and average time charter rates were even higher than that at $16,000 per day and $13,250 per day respectively, suggesting that the usual summer lag is here. We hope to see seasonality displaying itself and resulting in a firmer market towards the end of the first quarter, Though, admittedly, the stability remains limited amidst the system's macro and the political headwinds.

Speaker 2

In the 2025, the Baltic Dry Index and the Baltic Panamax Index declined by approximately 2128%, respectively, year over year, underscoring the sustained softness across the trade market. These downward shifts reflect the ongoing imbalance between vessel supply and muted cargo demand, exacerbated by subdued global trade volumes and persistent macroeconomic headwinds. Please now turn to slide nine. The IMF July 2025 update presents a more resilient global economic outlook than previously thought with global trade developments continuing to shape the focus. The global economy continues to exhibit stable yet underwhelming growth.

Speaker 2

Global GDP growth is now protected at 3% for 2025 and three point one percent for 2026, with the 2525 and 2026 projections revised upwards by point 2.1 percentage points, respectively, compared to the April 2025 forecast. At these levels, the forecast are below the 2024 outcome of 3.3% and the pre pandemic historical average of 3.7%. Global policy remains highly uncertain. Downstream tariffs took effect on Thursday, August 7, with higher rates for most US trading partners. Taking all together, these tariffs have pushed the average US tariff rate to above 15% according to Bloomberg Economic Captionage, well above the 2.3 last year, and this is the highest level since World War two.

Speaker 2

The United States economy is projected to grow by 1.9% in 2025 and accelerate slightly to 2% in 2026 according to the IMF. US growth forecast will revise upwards due to easing trade tensions, improved financial conditions, the weaker dollar, and the recent tax incentives aimed at stimulating business investment and consumer spending. The highest projections, including the global figures overall, reflect a large front loading of international trade ahead of expected higher prices induced by tariffs. In Europe, GDP accelerated driven by investment in net exports. Growth in the area is now projected at 1% for 2025, up point 2% points from April's projections.

Speaker 2

Global inflation is expected to continue declining with headline inflation projected at 4.2% in twenty twenty five and three point six percent in 2026. In the Euro Area, inflation has gone down quite substantially, while in The US, the unemployment rate remains low and inflation is still elevated. Emerging markets remain the primary drivers of global growth. India is focused to expand by 6.4% in both 2025 and 2026, fueled by strong investments, robust agriculture, and a dynamic services sector. The z n the z n five countries are also projected to post healthy gains.

Speaker 2

In China, growth has been revised upwards, driven by stronger than expected economic performance in the first half of the year and lower than anticipated tariffs between The US and China, and the positive impact of fiscal stimulus and reforms aimed at clearing local government arrears, which also boosted domestic demand. Turning to the drybulk sector, Clarksons Research now projects a slightly positive trade growth of point 2% in 2025, and now for the revision from the previously forecasted point 4% decline. This is followed by point 6% growth in 2026, up from point 4% projected in April. While expectations remain modest, these adjustments reflect a gradual improvement in market sentiment and a more constructive outlook for trade flows. Please turn to slide 10 to review the current state of the order book in the dry bulk sector.

Speaker 2

As you can see, as of August 1, the order book is at 11% of the fleet, Though higher than the 7% low seen in 2021, the order book still remains among the lowest levels in history. While the order book is slightly rising, increased flow streaming, higher scrapping rates, and intensity of environmental regulations could further constrain the available bunker fleet. Turning into slide 11, let us now look into the supply fundamentals in a little bit more detail. As of August 2025, the total drybulk operating fleet was 14,151 vessels. According to platform's latest report, new deliveries as a percentage of total fleet are expected to be 3.8% in 2025, 3.9% in 2026, and 4.9% to in 2027 onwards.

Speaker 2

The actual fleet growth is, of course, expected to be lower than the aforementioned figures due to scrapping and some slippage. On the fleet profile, it's noticeable that about 10% of the fleet is older than twenty years old, indicating these vessels will likely be scrapped if the drybulk sector continues operating in this suppressed environment. Please turn to slide 12 where we summarize our outlook for the drybulk market. The bulk carrier market has been relatively weak so far in 2025, with time charter rates bottoming out in the first quarter before recovering to slightly profitable levels across all vessel sizes. However, the momentum gained early in the year faded in the second quarter following the US administration's announcement announcement of new tariff proposals.

Speaker 2

This has has added to an already uncertain demand environment with slowing activity in key markets and ongoing geopolitical instability continuing to put pressure on the sector. After the recent uptick, coverage, free transfer rates for good numbers and countermeasures are currently down only about 3% year on year. However, on the average of the whole of h one of 2025, we are down about 30% relative to twenty twenty four first half. For the remainder of 2025, bulk carrier demand and supply projections point to a softer market compared to 2024. In China, dry bulk imports are not expected to replicate the robust growth seen in 2023 and 2024, especially as far as COVID is concerned.

Speaker 2

While

Speaker 1

the

Speaker 2

recent government stimulus measures have improved, they are unlikely to drive significant structural demand growth, particularly given the high stockpile levels. In The United States, trade policy is now a central focus for drybulk markets until the new under the new

Speaker 1

Trump

Speaker 2

administration. Tariffs from China, Mexico, Canada, and other key trade partners threatened to disrupt grain and mine above trades. Meanwhile, shipping through the Red Sea is not expected to resume immediately. However, any reduction in disruptions could dampen demand growth and contribute to further easing in Bulgaria markets. So on the supply side, ordering of new vessels has remained relatively limited, constrained by the lack of available shipyard slots and continued uncertainty over the optimal fuel of the future despite significant orders for methanol and LNG fuel ships.

Speaker 2

While the overall the book to fleet ratio remains low by historical standards at 11%, the order book for Panamax vessels have has been trending higher, reaching reaching approximately 14%. For handymax vessels, this ratio is about 11 and a half percent. As we head into 2026, the bulk carrier market may face another year of soft earnings as new new vessel supply is expected to update outpace demand growth, which cut as discussed previously, platinums platinums currently estimated about 0.6%. Continued market softness, though, could prompt further supply side adjustments, including slower vessel operating speed and increased demolition activity, which could have both helped the market balance. Let's turn to slide 13.

Speaker 2

As of August 1, the one year time charter rate for Panamax vessels with a capacity of 75,000 generate tons stands at approximately $12,700 per day, which remains slightly below the historical median of $13,500 per day. As of the 2025, the numb the market for ten year old Panamax bulk carriers, despite the 10 to 15% correction, remains relatively firm with current asset values estimated at close to $25,000,000. This is significantly above both historical median of 15 and the ten year average of 17 and a half million dollars, reflecting residual strength in second hand values. However, current pricing marks a clear decline from the mid twenty twenty four peak of around 29 and a half million dollars, which is also the maximum pricing in the last ten years. Despite the pullback, asset prices would remain well supported by the historically low order book levels, the increased cost of contraction of ships, and the fleet age dynamics.

Speaker 2

We are closely monitoring all the new developments, which will save the near and longer term future. At current price levels, we are more likely to be selling a couple of our older vessels whilst looking for the right opportunity to renew our fleet with more modern and eco friendly vessels. Let me now pass the floor over to our CFO, Kassos of Lidis, to go over our financial highlights in more detail. Thank you very much, Eric.

Speaker 1

It is good morning to me as well, ladies and gentlemen. As usual, over the next four slides, I will give you an overview of our of our financial highlights for the second quarter and 2025 and compare those results to the same periods of last year. Before that, let's go to slide 15. For the 2025, we reported total net revenues of 11,300,000.0, representing a 35.3% decrease over total net revenues of 17,400,000.0 that we achieved during the second quarter of last year. This decrease was the result of the lower time charter rates our vessels earned as well as the decreased average number of vessels operated during the second quarter of this year compared to last.

Speaker 1

We reported a net loss for the period of 3,110,000.00 and a net loss attributable to controlling shareholders of 3,070,000.00 as compared to a net loss of 0.3 and net and a net loss attributable to controlling shareholders of 400,000.0 for the same period of 2024. The net loss of 400,000.0 in this quarter, attributable to the noncontrolling interest, represents the loss attributable to the first 9% ownership of the entities of the vessels Frisco, Skell and Maria, which are partly owned by the NRP investors, as Aristides mentioned earlier. Interest and other financing costs for the 2025 amounted to 1,700,000.0 compared to 2,000,000 over the same period of 2024. Both figures included a small amount amount of interest income. Interest expense for the 2025 was lower, mainly due to the decreased software rate and margins on average with our loan state, partly offset by the increased other debt that we carry during the second quarter twenty twenty five as compared to the same period of last year.

Speaker 1

Adjusted EBITDA for the second quarter of this year was 1,900,000.0 compared to 5,000,000 achieved during the 2024. Basic and diluted loss per share attributable to the company to the controlling shareholders for the 2025 was $1.12, calculated on about 2.8 2,700,000.0 based on the diluted weighted average amount of shares outstanding compared to a loss per share of 17 of 15¢ calculated from 2,700,000.0 based on the diluted weighted average number of shares outstanding for the second quarter of last year. Excluding the effect on the loss attributable to the controlling shareholders for the quarter of the unrealized gain on derivatives, the adjusted loss for the quarter ended 06/30/2025, which has been one dollar ten cents per share, basically diluted, compared to an adjusted loss of 17¢ per share, diluted for the previous for the quarter of the previous year. Let's now look at the numbers on the same slide and look at the numbers for the corresponding six month period ended 06/30/2025 and compare to the same period of 2024. So for the first half of this year, we reported total net revenues of 20,500,000.0, representing a 35.7% decrease over total net revenues of 31,900,000.0 during the first half of of twenty twenty four, which is again the result of the lower time charter rate our vessel churn and some extended decreased average number of vessels operated during the first half of this year compared to last.

Speaker 1

Net loss for the period was 7.1 7,110,000.00, and net loss attributable to the controlling shareholders was 6,770,000.00 as compared to a net loss of 2.24 and a net loss attributable to Contuan's shareholders of 2,190,000.00 for the same period of 2024. Again, a portion of the net loss for the second quarter of this year, $0,340,000.00 represents a loss that corresponds to the 35% ownership of the entities all owning Kratos, Kelly, and Maria, which are owned by the NRT investors. Interest and other financing costs for the 2025 amounted to $33,500,000.0 compared to 4,000,000 for the same period of 2024. Again, this decrease is due to the lower benchmark rates of rates with our loans paid, partly offset by the higher levels of debt that we carried on average during the period. Adjusted EBITDA for the 2025 was 49,000,000 compared to 7,100,000.0 during the 2024.

Speaker 1

Basic and diluted loss per share attributable to the controlling shareholders for the 2025 was $2.47, calculated from 2,700,000.0 approximately, basic and diluted weighted average number of shares outstanding compared to a loss of $0.81 for the same period of last year. Again, here, excluding the effect on the net loss attributable to controlling shareholders for the first half of the year of the unrealized gain or loss on derivatives and the gain on the sale of the vessel, the adjusted loss for the six month period ended 06/30/2025, which has been $3.17 per share based to diluted compared to a deficit loss of $1.35 per share based to diluted for the six months for the first six months of twenty of twenty twenty four. Let's now move to slide 16 to review our fleet performance. We will start our review by looking at our fleet utilization rate for the 2025 and 2024. As usual, our fleet utilization is broken down into commercial and operational components.

Speaker 1

During the 2025, our commercial utilization fleet was a 100%, while our operational utilization rate was 99.3% compared to 99.6% commercial and 99.4% operational for the 2024. On average, 12 vessels were owned and operated during the 2025, earning another time charter equivalent rate of $10,420 per vessel per day compared to 13 vessels that we operated for the during the same period of last year, carrying an average of $14,427 per day. Our total daily operating expenses, including management fees, g and a expenses, but excluding the other costs, were $7,539 per vessel per day during the second quarter of this year compared to $7,062 per vessel per day for the 2024. If we move further down on the table, we can see the cash flow breakeven levels, which takes into account in addition to the above expenses, the drivers in expenses, interest expenses, and also includes loan repayments. Thus, for the 2025, our daily cash flow breakeven level was $12,222 per vessel per day compared to $13,240 per vessel per day for the second quarter of last year.

Speaker 1

Let's now quickly move to the right part of this table and go over the same figures for the six month period of this year compared to the last. So first on this utilization rate, for the 2025, both our commercial utilization rates were at 99.2 compared to 99.8% commercial and 98.7% operational for the same period of last year. On average, we operated 12.4 vessels, earning another time charter equivalent rate of $8,716 per day compared to 13 vessels in the same period of 2024, earning another another $13,452 per per day. Looking also here at our operating expenses, those including management fees and G and A expenses. But, again, excluding dry docking costs, average $7,419 per vessel per day in the first half of this year compared to $6,964 per vessel per day for the same period of last year.

Speaker 1

It's worth noting here that a part of the increase was due to the increase in the dollar euro same day. And, of course, our G and A expenses are divided by twelve six up and six thirteen six that we that we get during 2024. Looking further down on this table at the last slide, we can see the cash flow breakeven level for the six months of 2024, which was $11,868 per vessel per day compared to

Speaker 2

the

Speaker 1

$13,101 per vessel per day for the same period of 2024. Now let's move to Slide 17 to turn our attention to our debt profile. As of June 30, Eurodrive's outstanding debt stood at about 102,000,000. Total loan repayments during 2025 are expected to amount approximately 12,000,000, including 6,000,000 paid during the second quarter of this year. In 2026, we expect total loan repayments of approximately 13,300,000.0, which include the 2,000,000 balloon repayments, while in 2027, total repayments are projected to be around 20,000,000, also including the 10,200,000.0 of the balloon.

Speaker 1

An important point to highlight on this slide is the average margin of our debt, which as of 06/30/2025, stood approximately two point o 7% over software. Assuming the software a three month software rate as a software sales of about 4.32%, the estimated cost of our senior debt would be about 6.4%. At the end, our final debt cost is slightly lower. This is the swap proportion of the soft exposure of our debt into a lower fixed rate, basing the effective cost of our senior debt to just below 6.3%. At the bottom of the slide, you can see our projected cash flow breakeven level for the next twelve months broken down with various components.

Speaker 1

For example, our EBITDA breakeven level is projected to be around $7,700 per vessel per day. While our overall cash flow breakeven level, including interest expenses and loan repayments to be around $11,850 per vessel per day. This is a figure of course on a net net basis. Taking into account commission and post block price days, we we need to achieve a gross time charter equivalent rate of about 13,000 to reach cash flow and earnings breakeven over the next twelve months. The final slide, let's move to slide 18 where we can see some highlights from our balance sheet in a simplified way.

Speaker 1

This slide has always shows a snapshot of our assets and liabilities. As of June 30, we had cash and other current assets of about 20,300,000.0, alongside advances for new buildings that we did of about 7,200,000.0 and along and with the book value of our vessels for approximately a 179,000,000 resulted in a total book value for our assets of about 206,600,000.0. On our liability side, we get outstanding debt as of June 30, as mentioned previously, of 102,100,000.0, representing almost half 49.4% of the book value of our assets, while other other liabilities amounted to about 5,000,000, roughly two and a half percent of our total book assets, which in turn resulted in book shareholder's equity of about 90,500,000.0, translating to a net book value of $32 per share. According to our estimates, our vessels are worth 109,000,000, about 10,000,000 more than the expected book value, resulting in a net asset value per share of about $36. If we compare our current trading range of our shares of between 10 and $11, we can see and highlight the potential for appreciation of stock shares should market conditions or other catalysts result in a reduction of this discount.

Speaker 1

And with this statement, I would like to pass the floor back to Arceus to continue our call.

Speaker 2

Thank you, Tassos. Let me now open up the floor for any questions we may have.

Operator

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your questions from the queue. Our first question is from Mark Rickman with Noble Capital Markets.

Operator

Please proceed.

Speaker 3

Thank you for taking my question. You know, I'm looking at the BDI, BPI chart on page eight. So while there was some strength in June, the Baltic Dry Index ended June at fourteen fifty eight. It ended July at twenty one zero eight, dipped in early August, but is around twenty fifty one on August 7. So could you just please talk about the improvement in June and July and your expectations for the remainder of the year?

Speaker 2

The the first part is easy, which is what has happened. The prediction for the for the remainder of the year, obviously, is extremely difficult because, as we said, there are various differing, you know, directions from various there are the angles. We did I mean, when we saw that tariffs were supposed to come, we saw that people started stockpiling more. And, also, when we had the Houthi attack in the Red Sea or on the bulk vessels, we saw less people going to there. So these two items led to the spike that we saw up till very recently.

Speaker 2

The slight correction we are seeing now is probably a reversal of this. It has to do with the sum of all, etcetera. So this is the easy part, the explanation of what happened and why we saw this spike. Now what to say about the future part? Part two of that quest

Speaker 3

okay. Well, so part two of that question relates to pages eight, which is you show the one year time charter rates as of August 1. And then also on page 17, your breakeven of your presentation. So are you willing to lock in the rates as of August 1, or do you expect your needs to rate need rates to go higher? Because it looks like your breakeven is kinda cut is coming down for the full year versus the first half.

Speaker 3

So at what point do you start locking in the rates?

Speaker 2

We are close to the levels that we would lock in rates. We have said internally that around $15,000, if we can if we can do that, provides a significant profit on the ships. We haven't been able to see that yet. We are getting closer to that. And if that happens or not, it will really depend on on how the market develops within mostly September.

Speaker 2

Usually, September seasonally is a is a good month. We hope we this will be repeated this year as well. September, October, they they are very good months. There. Yep.

Speaker 3

Yeah. You can kinda look at that chart. And then just this is a question for Tassos. If you could just talk a little bit about your drive liquidity and plans for debt repayment.

Speaker 1

Yeah. I think it's clear that our liquidity is a bit tight. We said about 6,000,000 of unrestricted cash in our balances and about almost the same amount as restricted. We we but we do have a certain ways of raising liquidity. One of them is by refinancing some of our vessels.

Speaker 1

We have some cap some room into into our leverage and our and our debt, and we have some discussions. Also, we are we'll definitely try to address certain liquidity requirements later in this year because we are a new building program by looking into financing our pre delivery installments. So we feel that we're on the top of our liquidity needs as far as our operations at the current market level is concerned, as Aratif mentioned. And as you mentioned, if the market turns a bit higher, then that would definitely release more liquidity from our operations.

Speaker 3

Okay. And if I could just get one more in, and that's just what accounted for the decline in voyage expenses from q one to q two?

Speaker 1

To some extent, that is a bit I don't want to say a random, but it depends on the way we do certain factors. If we do voyage charters where we get paid a balance bonus, then mortgage expense are reflected on our on our financials. While we would do a time charter equivalent basis charter, then mortgage things are not reflected. So that is that that is one factor contributing to some variability of voyage expenses. Typically, voyage expenses are small for us because we over we're able to do time charter equivalent basis for our contracts.

Speaker 2

So so what that is you're saying that when we calculate time what yeah. Yeah. What that is saying is that when we calculate the time charter equivalent, we usually take into account the voyage expenses to come up with that. So

Speaker 1

Yeah. I guess what I'm saying is that if you look we've got concluded two two two charters for two power shifts. If if you look at the our website, it would be more clear where we have agreed the balance bonus into the in in into the in the contract. So there will be a daily rate in a in a period of balance. During that balance balancing period, we got it is in birth for our voice expenses, but our voice expenses will appear next quarter, I guess, on on on our financials.

Speaker 1

So you will see elevated board's expenses because of the nature of the contract we closed.

Speaker 3

I see. Okay. Great. Well, that's very helpful, and thank you very much.

Speaker 1

You're welcome, Mark.

Operator

As a reminder, just star one on your telephone keypad if you would like to ask a question. Our next question is from Poe Fratt with Alliance Global Partners. Please proceed. Yes. Hello.

Operator

You covered a lot of ground. I'd just like to ask a couple questions about the new bill program. Tatas, can you remind us of the progress payments due in '26 and '27?

Speaker 1

I think there is we made already one payment last year, I think. And we have to do one payment each in the fourth quarter of this year. That makes it two of the five, and we just make, I think, one more in 2026 and the remaining in 2027.

Operator

Okay. Great. So the

Speaker 1

first and then yeah. Sorry. I cut you off. No. No.

Speaker 1

Go ahead. I mean, I was just wondering if could highlight the profile of all payments are about 10%. I think the the first one was 15%. All payments are 10%.

Operator

Okay. And then you talked about potentially financing the project payments during the new bill delivery payments. Would you have to have a time charter in place before you were able to to finance those? Or can you just help me understand what would be required to finance the new bill program?

Speaker 1

Bank banks are willing to finance pre delivery payments as well. So instead of I mean, in the past, when we get more abundant liquidity, we were paying directly upfront. The the first four or five payments from equity, and then we're financing the whole contract that's, say, 60%. So that was taken care of the the last payment. But banks have no problem financing at, say, 60% every payment that we have to make.

Speaker 1

So until the market catches a bit more, we will do that for our dry bulk program.

Operator

Great. Thank you so much.

Speaker 1

You're welcome, Paul.

Operator

There are no further questions at this time. I would like to return the call back over to mister Pides for closing comments.

Speaker 2

Thank you all for participating in this call today. We will be back to you in three months' time with the results of q three. Thank you.

Speaker 1

Thank you. Enjoy the rest of the summer, everybody.

Operator

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

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