Euroseas Ltd. Price & Performance (ESEA)

And now, I would like to pass the floor to Mr. Petas, Please go ahead, sir.

Hello, everybody, and good morning. Thank you for joining us today for our scheduled conference call Together with me is Tassos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three and twelve month period 12/31/2024. Let's turn to Slide three of the presentation to go over our income statement [indiscernible] On the first quarter of twenty four, we reported total net revenues of $53,300,000 and the net income of $24,400,000 or $3.49 diluted. Adjusted net income for the quarter was $23,300,000 dollars or $3.33 per diluted share. Adjusted EBITDA for the period was $32,800,000 Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA. Our CFO, Tasos, will go over our financial highlights in more detail later on in the presentation. As part of the company's common stock dividend policy, our Board of Directors declared a quarterly dividend of $0.65 per common share for the fourth quarter of twenty twenty four. Increasing by $0.05 the quarterly dividend given throughout last year. The dividend will be payable on or above March 18 to shareholders of record on March 11. The annualized dividend yield of our stock given the current share price is approximately 7.8% Additionally, [indiscernible] 200 shareholders the shares of Euro Holdings Ltd a subsidiary owning our three eldest vessels, which represents about 5% of our NAV.

The shares will be distributed on March 17 to all shareholders of record on March 7. As of 02/27/2025, and since the initiation of our repurchase program in May 2022, which has been extended since July to May 2025, we have repurchased $425,000 of our common stock in the open market for a total consideration of about $9,250,000 We will continue to make measures views of the plan at management's depending on the level of our stock price aiming to enhance long term shareholder value. Please turn to Slide four with the including an update on our sales and purchase chart of new and operational highlights. On January 7 and January 8, 2025, we took delivery of motor vehicle DF panels [indiscernible] These are two ECHO EDI Phase 2,800 TEU feeder containership new buildings that were built in Hyundai Meepo Dockyard in South Korea. The vessels were financed a combination of bank debt and known funds as usually. Following their delivery, both vessels commenced service for the duration of thirty four thirty six months at a daily rate of 32,000 barrels per day. Continuing on our chartering developments, motor vessel agenic stress has been fixed for a minimum of ten months and thus to twelve months at a rate of $16,700 per day with the earliest of delivery being in November 2020 Additionally, Motivus Synergy Killeen and motor vessel Synergy Agua been fixed thirty six to thirty nine months and $35,500 Finally, Motor Vessel in Israel secured and charter for twenty four to twenty six months at $19,000 per day.

With the earliest delivery expected in May 20 Throughout this period, the fleet experienced low idle periods of commercial off hire [indiscernible] which underwent necessary maintenance works for twenty three days from 12/16/2024 to 01/08/2025, ensuring that the vessel can continue trading efficiently till the next dry docking date. Please turn to Slide five On 01/30/2025, we contributed our three auto vessels motor vessel Regene Express, motor vessel the Amanti and motor vessel Joanna into a separate Euron Holdings Ltd. In exchange for 100% of the sales of your holdings. Subsequently, Euro Holdings sold motor vessel Yamandis for net proceeds of about $13,000,000 Therefore, Euro Holdings as of the January had cash of about $13,000,000 plus all motor vessel Aegean Express [indiscernible] at $16,700 So they till minimum November 25. And Motivational Joanna which is on charter till minimum October 2026, at $16,500 per day. [indiscernible] the EURO Holdings shares to its shareholders providing every shareholder on record on March 7 with one Yuba Holding sale [indiscernible] [indiscernible] Distribution will occur upon effective and is expected to occur on March 17. Simultaneously, the sales will start trading on the NASDAQ. Further details of the distribution will be provided in such [indiscernible] would ultimately occur as if a material event occurs before the final implementation date either the SEC or the NASDAQ may not finally sign off.

Please turn to Slide six for an update on Altaru fleet profile. Our current fleet is comprised of 24 vessels in the water, including 17 feeder containerships and 17 intermediate container carriers, with a total carrying capacity of just 171,000 and an average age of about thirteen point five years. Following the contribution of the two vessels, and Vijoana, AAV, VAG and Express to Euro Holdings, our fleet will be reduced to 22 vessels in the quarter with a carrying capacity of approximately six seven thousand five hundred TEU, and an average age of 12.8 years. Turning to Slide seven, you can also see the two vessels that are currently under construction which are expected to be delivered in the fourth quarter of twenty These are two four thousand three hundred TEU vessels. Let's now turn to Slide eight to see our full vessel employment side. As you can see, the recent charges helped improve the visibility of our expected cash flows and we have now secured strong charter coverage over the next two years with approximately 85% of our fleet fixed for 2025 and about 49% fixed 2026. Let's move to Slide 10. For our broader market overview. Focusing on the development of six twelve month time charter rates over the past ten years.

In the fourth quarter of twenty twenty four, containership charter rates experienced a slight decline except for the larger segments where they held their levels. As you see from the graph on the slide, as of February 21, 2025, the six to twelve month charter rate for the 2.5 TEU containership reached approximately $32,500 per day which is more than three times the 9.4 hundred dollars per day median rate Notably, this picture is also significantly higher than the ten year average rate which is approximately $16,500 per day. [indiscernible] is observed across all vessel sizes. With the current rates significantly outpacing historical averages highlighting the market's robust recovery and resilience. Moving on to Slide 11, we go over some further market highlights. As already shown, during the last quarter of twenty twenty four, feeder vessel rates decreased by 9% while the rates for Panamax And Post Panamax Vessels Rose. The Red Sea region continues to be a key factor in shaping the 2025 container shipyard flow. While the gas of this fight has eased some tensions the ongoing critique remains and shipping lines may begin rebuilding via The U. S. Canal.

However, they will require clear evidence of a permanently reduced risk before making the shift. In the first quarter of twenty twenty four, average secondhand prices increased by approximately 7% compared to Q3 twenty twenty four. While prices have risen significantly since the past COVID period, There's still about 50% below the peak levels they had reached during the pandemic. Also, the new building price index increased by just 1% quarter on quarter. But still an increase, which is due to limited availability and increased competition between gas [indiscernible] As of 02/10/2025, the idle fleet stood at 200,000 TEU, or just 0.6% of the fleet Recycling activity picked up just slightly with 58 vessels accounting for 83,000 TEU sent to scrap [indiscernible] during 2024. Dividend is about 25% of the sub-eight thousand TEU fleet is over 20 years old, We expect the cycling volumes to increase conditions soften, Scratching prices eased slightly in Q4 to approximately $490 per lightweight tonne will still remain around 20% above 2019 levels. Overall, the fleet grew in 2024 by a staggering 10.8% Please turn to Slide 12. The IMF's latest update from January 2025 project stable yet somewhat underwhelming global economic growth with unchanged focus on that in October 24, operating around levels similar levels for both 2025 and 2026.

And after three, the new U. S. Administration's rapid policy changes and reversals particularly concerning trade policies and collectively pose risks to medium term growth prospects. Within this background, The U. S. Has seen an upward revision by the IMS with growth focus trending to grow at 2.7%. This stands in stark contrast to other advanced economies particularly in Europe which have seen either downgrades or stagnant growth outlooks at around one led by India, the Asian five countries and of course China. China's growth appears to be slightly revised upwards but in an lopsided fashion. With projections of 4.6% this year, and 4.5% next Yes. As the country continues to face steady domestic demand, [indiscernible] and equity markets. India is projected to maintain steady economic growth of 6.5% in both 2025 and 2026 driven by strong investment activity, robust tech financial performance and continued expansion in the services sector, which remains a key engine of economic growth.

Southeast Asian countries are also positioned for solid growth. Benefiting from regional demand and investment momentum. Global inflation is expected to decline However, the near term trajectory may still face challenges with persistent services and wage inflation in several parts of the world leading to the synchronized monetary policies. The risks to the global inflation outlook will be tilted to the upside given the prospect of increased protectionism geopolitical tensions, derisking and demographic [indiscernible] According to Clarksons, the container demand outlook for 2025 remains murky. With many variables at play, in its latest market report, Classus projects trade growth to decline by 1% This is attributed to 5% of The U. S. Values ongoing geopolitical risks in the Red Sea, And despite the Gaza ceasefire, the persisting Houthi threat making a return to normal shipping operations more challenging. [indiscernible] the containerized space demand is focused to decline even further by 3.9% we further potential for the demand supply imbalance, due to continued fleet growth and the possible easing of the Red Sea disruption. In light of this, we remain mindful that both the IMF and Classo's projections could change. That depending on macroeconomic risks U. S. Trade policy and evolving geopolitical tensions which could impact medium term growth prospects.

Please turn to Slide 13 where you can see the total fleet age profile and container ship orders. The containership fleet is relatively young with more with most vessels under 15 years old, and only 11% of the fleet over 20 years old. As of February 2025, the order book as a percentage stands at 27% Turning on to Slide 14, we go over the fleet age profile and order book only for six in the 1,000 to 3,000 TEU range. The scientists remotely operating And there, we see a very different picture. The order book here stands at just 3.2% as of February 2025. According to Clarksons, in 2025, new deliveries are projected to amount to just 2.1% This pace will slow down even further in twenty and twenty twenty seven with even fewer ships expected We delivered You can also notice that about 15% of the fleet in this size range is over fifteen years old. Let's move to Slide 16. As shown in the previous two slides, the automotive is predominantly focused on large containers, which The increase in main lane volumes negatively the highest graded demand for regional distribution by fleet vessels as well. Thus, we believe that there will continue to be quite high demand for feeder and intermediate sized vessels [indiscernible] pushes towards the use of larger ships when this is possible due to post capacity improvements and increased volume requirements.

This category of chips is however aging and currently the percentage of vessels exceeding twenty years is on average about 27 All these ships a prime candidate for scrapping in case there is a market decline also due to the new environmental regulations. [indiscernible] it is highly likely that the fleet capacity in these segments will decline in contrast to the anticipated growth in the larger vessel categories in the overall Moving on to Slide 16. As already discussed, container shipping market saw substantial gains in 2020 will go straight and charter rates reaching levels not seen since the COVID However, in recent weeks, TradeRev particularly on the East Cuba Group, have dropped sharply due to expectations of the route in previous U. S. Canal following the gazebo This is has yet to be reflected the time charter market. Looking ahead, 2025 and beyond, the container shipping markets development is very uncertain. Primarily driven by two factors. Geopolitical risks [indiscernible] While the guidance this past has prompted discussions it remains uncertain when shipping lines will resume reopening through the Suez Canal On the sales growth front, the anticipation of U. S. Of high U. S. Customs duties under the new Trump administration have led to a surge early August. [indiscernible] This is now the first The 10% tariff on Chinese goods and the 25% tariff on goods from Mexico and Canada said to take effect in March 2020 if that happens, [indiscernible] tithes on Europe's yet to beat its [indiscernible] And the recently announced Fees on Chinese built and owned vessels entering U. S. Ports, All these we remain to see how these controversial actions could lead to slower global growth?

Anyway, the full [indiscernible] remains to be seen as they may also trigger additional inefficiencies may create opportunities as often happens in shipping. In the supply side, vessels are ordered by shipping companies in the post COVID years are now entering the market in large numbers. This trend as discussed is expected to continue in 2025 up to 2028. And based on cargo volume forecast, many of these vessels struggle to fill their capacity. If the factors currently supporting the container ship market begin to fade, the market downturn could be quite swift. However, potential inductions in vessel speeds driven by efforts to reduce emissions and support green initiatives may help ease supply pressures and contribute to market stability. The energy transition has continued to gain traction in the container Although there is a clear shift towards adopting new fuels, the pace of this transition is likely to be slower than anticipated due to technical and economic Meanwhile, the premium for charter rates of eco friendly vessels is expected to grow as both charters and the industry as a whole become increasingly focused on sustainable transport solutions. Please turn to Slide 16. The left hand side slide graph depicts the fixtures strengthening in the container ship market throughout the year.

As of 02/21/2025, Mondiale time charter rates for 2,500 TEU containerships stood at $2,500 Newbuilding prices also picked up a little bit during the fourth quarter and into the beginning of twenty twenty five. Reflecting consistent demand driven by the limited shipyard capacity to rising construction costs Over the long term, elevated costs [indiscernible] are expected to keep new building prices are expected to help keep new building prices high. Seasonally secondhand vessel prices have increased from a low of $15,000,000 in late twenty twenty three to $31,000,000 by December 2024. Supported by the improving market sentiment and the robust shelter demand. In this environment, and we were very strong cash position We continue to look at opportunities that will help us grow the company and enhance shareholder returns. And with that, I will pass the floor over to our CFO, Tasos' leave this to go over our financial highlights in further detail.

Thank you very much, Aristides.

Good morning as well, ladies and gentlemen. Over the next four slides, I will give you an overview of our financial highlights for the fourth quarter and full year of 2024 and we'll make the related comparisons to the same periods of last year. For us, let's start by pointing to Slide 19. For the fourth quarter of twenty twenty four, Euroshares reported total net revenues of $53,300,000 representing an 8.7% our total net revenues of 49,100,000.0 during the fourth quarter of last year. And that increase was mainly the result of the increased average number of vessels we operated in the fourth quarter of this year compared to the last We reported net income for the Series of 24,400,000.0 As compared to net income of $24,700,000 for the fourth quarter of twenty twenty three. [indiscernible] Another financing cost for the fourth quarter of twenty twenty four amounted to $3,700,000 for which RMB406 million relates to interest income in imputed interest starts and capitalized in relation to our new building program compared to €2,500,000 for the same of which $260,000 in H2 included interest starts to capitalize in relation to our newbuilding program for that period. This increase is due to the increased amount of debt Partial interest income during the fourth quarter of this year was $28,000,000 compared to $500,000 for the fourth quarter of twenty twenty.

Adjusted EBITDA for the fourth quarter of this year to $32,800,000 compared to $32,400,000 for the corresponding period of the fourth quarter of twenty twenty three. Basic and diluted earnings per share for the fourth quarter of twenty twenty four, [indiscernible] point $51 and $3.49 per share calculated on about 7,000,000 basic and diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of $3.58 and three point [indiscernible] unfortunately, his line did just drop, yes. Let me call him back. Please stand by.

Okay. I'm continuing from the point of Of the base of the earnings per share. So I might repeat the last part here. Basically, they used earnings per share for the fourth quarter of twenty twenty twenty four were $3.61 So it's basic and $3.49 diluted estimated on about 7,000,000 weighted average number of shares outstanding respectively, compared to base the value of earnings per share of 3.58 The first $156 per share [indiscernible] for the fourth quarter of twenty twenty three which was calculated on the basis of about €6,900,000 Sales, weighted average numbers of sales outstanding. The adjusted earnings per share for the fourth quarter of ending December thirty one, twenty twenty four. $3.7 per share basic and $3.33 per share diluted compared to adjusted earnings of $3.62 and $3.61 per share [indiscernible] for the same period of last year. I will refer you to the press release we issued earlier today for a reconciliation between earnings and adjusted earnings. Let us now look at the numbers for the E commerce of year 2024 versus 2023. For the full year of 2024, we reported total net revenues $212,900,000 representing a 12.4% increase over net revenues 189,400,000.0 during 2023 again, mainly the result of the increased number of vessels we own and operate partly offset by the lower average time charter rates we are 2024.

We reported net income for the year of $112,800,000 as compared to 114,500,000.0 for the twelve months of '20 and other financing costs for 2024 amounted to 10,600,000.0 which 4,200,000.0 relates to [indiscernible] charged and capitalized in relation to our newbuilding program compared to $6,400,000 for 2023, of which €3,200,000 is interest income. So the total interest expense was €9,800,000 And that included in the [indiscernible] [indiscernible] in relation to our newbuilding program. Again, this increase is due to the higher amount of debt we carried in 2024 versus 2023. Interest income in 2024 was about $2,400,000 versus $1,400,000 in 2023, as a result of the higher cash balances we maintained during the year. Adjusted EBITDA for 2024 increased to 135,800,000.0 compared to €123,600,000 during 2023 That's a result of higher revenues. And almost 10% increase. In terms of earnings per share, in 2024, basic earnings were 16.25 and diluted $16.18 calculated both on approximately $7,000,000 $6,900,000 and $7,000,000 respectively basic diluted to weighted average number of shares outstanding. Compared to 16.53 and $6.5 per share basically diluted for the twelve months of 2022. The adjusted earnings for the year of 2024 were $14.92 basic and 14.85 Since Fresher diluted, compared to 14.99 and 14.98 for 2023.

Again, our release our press release earlier today shows the exact reconciliation between earnings and adjusted earnings. [indiscernible] To review some figures from our fleet, and our fleet performance. Starting first with our utilization rate, [indiscernible] and first for the fourth quarter. During the fourth quarter of twenty twenty four, our overall percent compared to 99.9% of overall utilization rates for the fourth quarter of twenty twenty three. Last year in the fourth quarter, we operated 23 vessels, turning an average time charter equivalent rate of $26,479 per per day compared to 19 vessels in the same period fourth quarter of twenty twenty three earning on average $29,266 per vessel per day. Our operating expenses including management fees and G and A expenses, but excluding dry docking costs, were a bit lower in the fourth quarter of twenty twenty four compared to the previous year and stood at $7,728 per vessel per day in the fourth quarter of twenty seventeen compared to $7,932 per vessel per day for the same period in 2023. At the bottom of this table, in this section of this table, we can see the customer breakeven rate which also takes into account dry docking expenses, interest expenses and loan repayments.

Thus, for the fourth quarter of twenty twenty four, our daily cash flow breakeven rate was $14,935 per vessel per day, compared to EBITDA below 15,000 for the same period of 2023. Let's quickly look now at the same numbers for the full year. During the full year of 2024, overall utilization rate was 91.7% compared to 98.6% for 2023, For the whole year, we operate at an average 21.7 vessels earning [indiscernible] On average. Compared to 18.3 vessels for the year of 2023, point one average about $29,700 per vessel per day.

On the cost side, on the operating cost side, for the for the full year, again, including running expenses, management fees and G and A, but [indiscernible] We averaged $7,524.26 dollars per vessel per day in 2024 compared to $7,875 per vessel per day in 2023. Showing an improvement just below 5% improvement on the cost side. The cash flow breakeven rate for 2024 including again the interest expenses, cash interest expenses, dry docking expenses and loan repayments. Was about $14,800 for 2024 Compared to $14,150 in 2023 the increase partly due or mainly due to higher dry docking expenses and then a little bit higher interest expenses. At the bottom of this table, we can look at the It's another line which shows our common dividend expressed in dollars per day. Per Russian. And in both on a quarterly for the last quarter and for the full year, So in all cases, our interest translates to around $2,000 per vessel per day for the fourth quarter of twenty three-twenty four, with about $2,100 per vessel per day for the respective group pool years. Let's now move to Slide 21. To review our debt and our debt profile December 31, 2024, our total debt is 2% to approximately $2.00 $8,000,000 and we That figure does not include about $52,000,000 of additional debt that we assumed January, early January twenty twenty five, to finance the delivery of our last two two thousand eight hundred and eighty Union Buildings.

Can you please latest €52,000,000 in our loan book. In 2025, we expect loan repayments [indiscernible] $24,400,000 and additionally, volume repayments of about $16,250,000 Through 2026, we have scheduled repayments of about 19,550,000.00 with no balloon payments due during that year. In 2027, we have to pay we have to make payments loan payments of $16,850,000 along with scheduled balloon payments of $20,000,000 As of last year, our senior debt carried an average margin of 2.1% Adding that to a base off rate of about 4.3%. This results in total cost of debt of around 6.4%. Because we have swapped part of our debt part of our software exposure for a lower software level our adjusted overall debt costs amount to about 6.34% under these assumptions of software And if we actually include in the averages the last two loans that I mentioned earlier that were that they serve a smaller margin over software The overall cost of our debt including both loans drops below 6.3%. I would like to draw your attention finally on this slide at the bottom of the slide, where we present our projected cash flow breakeven for the next twelve months and we break it down mid components But overall, we expect our cash flow breakeven for 2025 essentially To be around $12,600 per vessel per day 11 significantly below the average daily earnings of our fleet.

To conclude, my brief remarks, let's move to Slide 20. To review some highlights from our balance sheet as we do every time. Our balance sheet is very simply it includes cash and some other carrying assets. Advantage we paid for our new buildings and of course the book value of our assets in the water [indiscernible] As of December 31, we had cash and other current assets of about $90,300,000 while we made advances for our newbuilding program near €57,000,000 And also here the book value for our assets which is close which about 443,400,000.0 in total book value for our shareholders, of $590,600,000.0 On the liability side, we said that was 2%, as I mentioned in the previous slide, $27,300,000.0 as of the end of last year. And that represents about a third, 35% of the book value of our assets, We also had various other liabilities that amounted altogether about €18,000,000 of about for about 3% of the book value of our assets. Which leaves as book value of our Circle the equity about €365,000,000 give or take Or around $52 per share. However, it is important here to note that the charter adjusted market value of our fleet is significantly higher than its book value.

We estimate as of the end of last year the So the adjusted market value for our fleet to be about $130,000,000 higher in its book value. Drop adds about $20 per share to our net asset value meaning our net asset value per share to close $72 On a pro form a basis for the Euro Holdings spin off, that Aristides mentioned earlier, If as we as of December 31, we exclude the value of the assets that is has been contributed to your holdings after the spin off of those of that company. [indiscernible] to adjust our NAV by about 5% So the NAV on the after the spin off we expect to be around 68 point dollars per share. Neither case, [indiscernible] Given that our stock is currently trading around $34 per share, You can see a significant substantial discount You can see that it takes a significant discount to our net asset value highlighting the substantial upside potential that our shares have and the gains that would be expected for our shareholders and investors. And with that, I would like to turn the floor back to Aristides to continue the call. Thank you, Tasos. Let me now open up the floor for any questions we may have.

Our first question comes from the line of Mark Reichman with Noble Capital Markets. Please proceed with your questions. Yes.

While we haven't removed the two vessels from our estimate yet, I mean it seems pretty safe to do so. And the question is regardless of whether the distribution occurs on March 17 or even July 17.

Urosy's income statements for the will be based on the drop down as of January 8. Is that correct?

Yes. Okay. Thank you. And second, the expected scheduled off hire days including the laid up what are your expectations for 2025? [indiscernible] I think I think we have very little dry docking because that is really what what the off hire is. Only when we have a dry dock because commercial of higher we're not having these days with the high charter rates. And technical breakdowns, you can calculate one day per quarter to be pretty safe So it always depends on drydockings and we have extremely few drydockings this year.

You are budgeting about seventy seven days for dry dorkings in 2025.

Seventy to seventy five for the full year.

That's reflected in your projections here on your breakeven. I mean, you have very little spend in there for dry docking. And then just a last question. The rate for the MB Oakland, it looked like it increased to 42,000 from 35,005 And you've got the Emmanuel in the arena which are both similar intermediate vessels, which come up for re charter in I believe, April. Would you kind of expect a similar rate as to the Oakland for those vessels I don't think the outlook has increased. I mean, the 42,000 on the Oakland She's been getting it for quite a long time.

Current market is at 35.5%, which is what we did on the synergy answer and the synergy [indiscernible] two or three weeks ago.

So this is the current market for those ships. These ships they don't open up yet. So charters are waiting a little bit to see. How the market develops And we have to see how we will label we will be able to fix them. But current market is 35.5%, which was with this or not. Near sister vessels. [indiscernible] Yes, that's for three years. If we do shorter duration, it would be probably higher rate. But we would like to fix for a longer duration.

Okay. And so And this is the final question. If the distribution happens on the would that mean Euro Holdings' first day of trading would be the eighteenth?

I think we have to get back on that but I believe the seventeenth would be the first day of trading. [indiscernible] trading possibilities even before that But we will follow we will issue a release clarifying to these technicalities. Okay.

Thank you very much. Thank you. Thank you, Mark.

Our next question is come from the line of Poe Fratt with Alliance Global Partners. Please proceed with your questions. [indiscernible] Eric's need is I'd like to compliment you because you always not only do a thorough overview of the container ship market, but also it's a very measured one, which I really appreciate you highlight a lot of things that potentially could go wrong, but I really appreciate that. Could you talk about fourth quarter OpEx G and A per day? It looks like it was over $1,000 your forecast [indiscernible] And was that because of the spin off or can you just highlight any maybe unusual G and A expenses that happened in the fourth quarter?

Yes. Typically, our fourth quarter, it's just a little bump from the G and A. [indiscernible] Not so much on the expense for Espino, but there is a year end [indiscernible] that is reflected in the fourth quarter numbers.

Okay. Great. And then as you mentioned, you're going to report the first quarter with Ex the spin out Correct. Just from a modeling standpoint, what you're going to get I mean is that we would expect to include I mean, Euroshares will include the the Euro Holdings vessel up to the date of the actual distribution. So I think it will include earnings from Euro Holdings up until March 17, consuming that [indiscernible] So you will serve those extra vessels but we will provide an adjusted earnings to reflect The continuing feed because what we are distributing is a very small percentage we will not have to report historically we want to adjust historically the of Euroseeds. To reflect the continuing I mean, it was very different in the Euro dry case seven years ago.

In this case, it would be like we are selling the vessels. So providing dividends. So The formal accounting numbers will include The two of the three vessels up until March 17 they will include the capital gain from Yamandis also on Euroseas but we will provide some adjustments and some explanatory So it's going to the first quarter is going to be a little noisy. If it's just a little bit of a nitpicky thing, but in your In your time charter chart, the fleet profile, it shows the Antwerp is not having any follow on work after March I just want to make sure and confirm that that also was awarded a three year time charter at 35,500 just like the Keeluk.

Yes. I mean, the way I mean, I have in front of me the slide from my computer, though, not from the version that we insert on the web, and you does see [indiscernible] having 35,500 until May 28.

Okay. Yes, in your press release, It's just a, overpay. But can you just highlight how much you're going spend on the new builds in 2025 and 2026 and 2027, if you have those numbers handy? [indiscernible] Think I don't think we have any payments to do on 2025 Correct. So it's nothing on 2025? And I think the next time we pay is 2026.

And I will tell you momentarily So we make we have to make an installment the progress installment payment in the full in the third quarter of twenty twenty six. And then the remaining in 2027. For one of our vessels and the same for the other one, I believe, yes. [indiscernible] There will be $6,000,000 a vessel in 2026. So $12,000,000 nothing in 2025, 12,000,000 for both vessels in 2026 and the remaining in 2027.

Great.

Thank you so much.

Thank you. Our next question comes from the line of Mark Reichman with Noble Capital Markets. Please proceed with your question. Yes, I just wanted to clarify. So the first quarter twenty twenty five when you report so those two vessels will be in your earnings until March 17. It won't be based on the drop down date. It won't be based on the January 8. And then so that would also you mentioned some adjustments. What were some of those adjustments [indiscernible] I think we will provide the figure without those vessels as well.

With and without the vessels. Okay, great. All right. That's very helpful. Thank you very much.

Our next question is from the line of Beau Fratt with Alliance Global Partners. Please proceed with your questions.

Sorry, just two quick ones, if I may. Well, first of all, congratulations on increasing the dividend. And then secondly, can you just talk about stock buybacks [indiscernible] it looks like you the last time you reported in third quarter versus the fourth quarter, you brought back about 11,000 shares at just under I think $40 Can you just talk about stock buybacks and how how they what priority they are in your capital allocation process? [indiscernible] procedures and the practicalities of getting Euro Holdings over the bar and we're happy that we have reached that point. We will have to wait and see see how we trade after the spin off. But it is always something that that we have in mind and we might use. We have also been looking at various investment opportunities Euroseas indeed we have quite a lot of cash So unless we proceed with with an investment opportunity with buying an asset supported by time charter or whatever. If we feel that our share price doesn't respond as we are hoping it will. We might be using it again, yes. I mean, in any event, our sales probably represent the best investment opportunity. And we always say that in the back of our mind when we decide about capital budgeting.

Great. Thank you so much.

Thank you. I'm not showing any further questions at this time. I'd now like to hand call back over to Mr. Aristides Petas for any closing remarks.

Thank you all for being part of this discussion today, We will be back to you in three months' time to go over the Q1 results. Thank you very much. Bye bye.

Thank you. This does conclude today's teleconference. We appreciate your participation. May disconnect your lines at this time. Enjoy the rest of your day.