EuroDry Ltd. (NASDAQ:EDRY) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET
Company Participants
Aristides Pittas – Chairman and CEO
Tasos Aslidis – CFO
Symeon Pariaros – Chief Administrative Officer,
Athina Atalioti – Finance Manager
Conference Call Participants
Mark Reichman – Noble Capital Markets.
Lars Eide – Arctic Securities
Poe Fratt – AGP
Operator
Thank you for standing by. Ladies and gentlemen, and welcome to the EuroDry Limited Conference call on the Second Quarter of 2024 Financial Results. We have with us today Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are on a listen-only mode. [Operator Instructions]. 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 to Mr. Aslidis, I would like to remind everyone that in today’s presentation and conference call, EuroDry will be making forward-looking statements. These statements are within the meaning of the Federal security law. Matters discussed may be forwarding 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 of the webcast presentation which has a full forward-looking statement, and the same statement is also included to the press release. Please take a moment to go through the whole statement and read it.
And now, I would like to pass the floor to Mr. Aslidis. Please go ahead, sir.
Tasos Aslidis
Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. I am Tasos Aslidis, the CFO of EuroDry. Together with me is Mr. Symeon Pariaros, our Chief Administrative Officer, and Ms. Athina Atalioti, our Finance Manager. Our Chairman and CEO, Aristides Pittas, who usually host this call, will not be able to join this presentation today due to overlapping engagements. The purpose of today’s call is to discuss our financial results for the six-month period and quarter ended June 30, 2024.
Please turn to slide three of the presentation to see our financial highlights for the period. For the second quarter of 2024, we reported total net revenues of $17.4 million and a net loss attributable to controlling shareholders of $0.41 million or $0.15 loss per share, basic and diluted. Adjusted net loss attributable to controlling shareholders for the quarter was $0.45 million or $0.17 loss per share, basic and diluted.
Adjusted EBITDA for the quarter was $0.5 million. Please refer to the press release that was released earlier today for reconciliation of adjusted net loss attributed to controlling shareholders to adjusted EBITDA.
We will go over our financial highlights in a bit more detail later in the presentation. As of August 8, 2024, we had repurchased a total of 313,318 shares of our common stock on the open market for a total of about $5 million under our repurchase plan of up to $10 million announced in August 2028. The program, which was renewed in August 2023 for another year, has been further extended for an additional year.
We will continue to use our share repurchase program at management discussion depending on the level of our stock price to enhance our ability to increase long-term shareholder value. We are also very happy to announce our 2023 Sustainability Report, which was uploaded to our website today.
Please now turn to slide four for another view of our chartering, operational, and drydocking highlights. On the chartering side, you can see that most of our charters fixed during last quarter are for short periods that range from 20 to 25 days on the one end to 80 to 100 days on the other end.
Even the motor vessels, the Ekaterini and Xenia, which are in longer-term charters until March and May 2025 respectively, have the rate of their charters linked to indices to the Baltic index earning 105.5% and 108% respectively above the average Baltic Kamsarmax index, an index based on the five Kamsarmax time charter routes.
This strategy is consistent with our view to be exposed to the market as we believe the fundamental supply and demand trends present a strong possibility for the market to strengthen in the near and medium term.
It is expected that supply growth will be quite limited over the next couple of years due to the low average ordering for new vessels in the recent past, and thus it is likely that any demand growth to be translated increases to charter rates.
We plan to continue trading under short-term charters for the time being until employment rates start firming up and we see the potential positive effect of demand increases. You can see the specifics of the various charters we fixed in the relevant slide, slide four.
During this period, the second quarter of 2024, our motor vessels, Starlight, Maria and Eirini P underwent their scheduled drydocking and repairs for approximately 23, 26 and 31 days respectively. Vessels Maria, Eirini and drydocks started in June in the second quarter and were completed in July and the related cost would mostly influence our third quarter results.
Also, motor vessels Yannis Pittas and Christos K are currently undergoing their scheduled drydockings. In fact, we have decided to perform earlier the drydockings mostly for commercial reasons related to them being fully available for employment in case the market meaningfully recover in the near future. Finally, motor vessel Good Heart encountered a commercial off-hire last quarter, a waiting time of four and a half days between two charters.
Subsequently, the vessel also experienced a technical off-hire for about 10 days due to a required main engine to co-judge a repair. Please turn to slide five. EuroDry fleet consists of 13 vessels including five Panamaxes carriers, five Ultramax, two Kamsarmaxes and 12 Supramax. We think of our fleet as having two clusters, a modern Eco-1 of eight vessels all built after 2014.
And our vintage five Panamaxes all built in Japan at the highest standards of their time having been the all courses of the sector. Of our 13 dry bulk carriers have a total cargo capacity of about 920,000 dead weight tons and another stage of about 13.5 years.
At this point, I would like to remind you that as previously discussed, EuroDry owns 61% of the entities of the ship-owning companies that own motor vessels Christos K and Maria. The remaining 39% is owned by owners represented by NRP Project Finance, to which we refer as your representation as NRP Investors.
Next, please turn to slide six to see a graphical representation of our fleet employment. As you can see and consistent with my earlier remarks, fixed rate coverage for the remainder of 2024 stands at around 22% through charters. However, this feature excludes ships on index charters, which are open to market fluctuations, but nevertheless have secure deployment.
At this point, let me pass the floor to our Chief Administrative Officer, Mr. Symeon Pariaros, to go over the recent market developments.
Symeon Pariaros
Thank you, Tasos. Good morning, ladies and gentlemen. Together, we will walk through some market highlights today. Turning now to slide eight, now, we will just go over the market highlights for the second quarter of 2024, up until recently.
In the second quarter, the average spot market rate for Panamaxes was around $14,500 per day. By August, spot rates had slightly risen to just below $15,000. In the meanwhile, one year-time spot rates stood for Panamaxes at approximately $16,000 per day during the quarter and have suffered a slight softening in the past weeks.
However, rates still represent a significant improvement from around $10,500 that was during the same period last year, which marks a notable increase of nearly 50%. This uplift in employment rates was primarily driven by the ongoing Panama and Red Sea disruptions. Excuse me again. Please now turn to slide nine to see some data from a recent IMF update.
The Fund sees a global economy to experience modest growth over the next two years with cooling activity in the U.S., stabilization in Europe, and stronger consumption and exports from China. As a result, the IMF has maintained its 2024 growth of 3.2%, consistent with its April projection, while slightly increasing next year’s forecast by 0.1 percentage point to 3.3%, with China and India bringing the most notable upward revisions.
On the other end, Japan’s growth has been revised the most downward for this year to 0.7% down from 0.9%, together with Russia in 2025, which is projected to go down from 1.5%, to 1.5% from 1.8% in the previous forecast.
As the weight of China in drydock shipping is the driver of this market, we continue to monitor China’s economy closely. Its property and infrastructure sectors, which have played a vital role in shaping this market over the past two decades, are not growing at levels seen in the past anymore, and despite the fact that the real estate sector has been saturated for more than three years now, we see different trades and commodities developing, like bauxite imports from Africa, along with others, which have given significant support to the drydock market and are expected to continue to do so.
So the question is, what will drive this market to more profitable levels if its main workforce is getting more and more tired? On this note, let’s say a few things about India, which seem to be the next target that will help the world economy to continue growing at healthy levels and have material effects on the dry bulk trade as well.
In that respect, India’s growth is projected to remain robust at about 7% this year. This upward revision is attributed to improve private consumption predominantly. However, for next year, the IMF has cautioned that growth is expected to slow down a bit to 6.5%. Meanwhile, the remaining economies in Asia, like the Asian Five Group, still remain the main engine for the global economy, with the forecast remaining broadly unchanged from April.
Now, according to Clarksons 10-mile demand for dry bulk trade, it’s presently expected to grow by about 4.4% in 2024. This includes about 1.6% uplift for the entire year due to the Red Sea and Panama Canal disruptions. A longer duration of these disruptions in these regions could potentially drive demand even higher.
Lower speeds and further congestion are other factors that could further boost demand this year. Demand in 2025 is projected to grow by about half percentage point assuming conditions in the Panama Canal and the Red Sea normalize and the conflicts are resolved in the Red Sea. If the situation in these areas remain unchanged we could be surprised on the upside, but at the moment, any prediction looks very uncertain.
Now, please turn to slide 10. Unprecedented about the future of the fuels and high new building prices have led to the low orderbook continuing. As of August 2024, the orderbook, as a percentage of the total fleet, is only 9.7%, which is near the lowest historical levels. This suggests a low fleet growth over the next couple of two to three years. Complementing this low fleet growth, we also have the effect of increased flow steaming and expected scrapping due to the introduction of the new environmental regulations. This could reduce the effective available bulk supply even further.
Now turning on to slide 11, let us now look into the supply fundamentals in a bit more detail. According to Clarksons latest report, new deliveries as a percentage of the total fleet are expected to be about 3.6% this year, 3.3% next year, and 4.7% in 2026 and onwards. The actual fleet growth is of course expected to be lower than the aforementioned figures due to scrapping and slippage. Also note that about 9% of the fleet is older than 20 years old and therefore a good candidate for scrapping, especially if the market remains at current or lower levels.
Please now turn to slide 12, where we summarize our outlook on dry bulk market. The bulk carrier market has been positive so far in 2024, with average freight rates rising by 35% year-over-year. Despite the slight softening during the last few weeks of July, rates remain healthy and above last year’s levels.
Robust demand growth, especially in the Atlantic region, have positively impacted the market, with the global seaborne dry bulk trade indicator showing an increase. Additionally, disruptions in the Red Sea and Panama Canal have also contributed positively. Panama freight rates reached almost $16,000 per day in the second quarter of 2024, reflecting a 35% increase compared to the second quarter last year.
The outlook for the second half of 2024 is optimistic as seasonality kicks in. The rerouting of vessels away from the Red Sea remains a key focus, with Suez canal bulker transit staying relatively stable in recent months, leading to an estimated 1.2% increase in bulker demand. Restrictions on the Panama Canal have continued to impact the market, with bulker transit recently being less than a third of normal levels. However, additional daily slots through the rest of the year could increase bulker transits and bring trends back to normal, potentially slightly reducing the demand for ships.
Now, looking ahead to the next year, again, we have to take under consideration the timing of the return to normality of the two major facilities of Suez Panama, something that is really hard to predict considering the geopolitical circumstances in the Middle East. In any case, the relatively small and manageable orderbook, the introduction of further environmental regulations, the rising operational drydocking cost, which makes the operations of other ships less competitive, creates favorable dynamics which could trigger a very strong market if the world economy grows at a healthy pace and dry bulk trade demand creates the necessary spark.
Electricity demand world-wide is growing at a fast pace, greatly supported by the introduction of Artificial Intelligence and the electrification of the vehicle fleet, something that provides great support in the dry bulk market. However, as renewables further penetrate the electricity mix, coal trade dynamics and prospects remain to be further evaluated in the immediate future.
Let’s now turn to slide 13. The left side of the slide shows the evolution of one-year time charter rates of Panama’s vessel since 2005. As of August, the one-year time charter rate for Panama ships with capacity of about 75,000 tons was just below $16,000 per day, which is approximately 16% above the historical median rate, which is in the region of $13,500 per day. Vessel prices, as you can clearly see, are well above average prices seen in previous years.
And with that, I will now pass the floor to our CFO, Tasos Aslidis to continue with some financial data.
Tasos Aslidis
Thank you very much, Symeon. As mentioned in the beginning of the presentation, together with Athina, we will give you an overview of our financial highlights for the second quarter and first half of 2024 and compare them to the same periods of last year.
I will now pass the floor to Athina first to start her view. Athina, please go ahead.
Athina Atalioti
Thank you very much, Tasos. Good morning for me as well, ladies and gentlemen. Let’s turn to slide 15. For the second quarter of 2024, the company reported total net revenues of $17.4 million, representing a 68.7% increase over total net revenues of $10.3 million during the second quarter of 2023, which was the result of the higher time charter rate our vessels earned and the increased average number of vessels operated during the second quarter of 2024, compared to the same period of 2023.
The company reported net loss attributable to controlling shareholders for the period of $0.41 million, as compared to net loss attributable to controlling shareholders of $1.2 million for the same period of 2023. The net gain attributable to the non-controlling interest of about $80,000 in the second quarter of 2024 represents the gain attributable to the 39% ownership by the NRP investors.
Interest and other financing costs, including interest income for the second quarter of 2024, amounted to $2 million, compared to $1,250,000 for the same period of 2023. Interest expense during the second quarter of 2024 was higher mainly due to the increased amount of debt and the increased benchmark rate of our loan, while interest income was lower due to lower cash balances during the period as compared to the same period of last year.
Adjusted EBITDA for the second quarter of 2024 was $5 million, compared to $2.5 million achieved during the second quarter of 2023. Basic and diluted loss per share attributable to the company for the second quarter of 2024 was $0.15, calculated on about $2.7 million basic and diluted weighted average number of shares outstanding, compared to loss per share of $0.43, calculated on about $2.8 million basic and diluted weighted number of shares outstanding for the second quarter of 2023.
Excluding the effect on the loss attributable to controlling shareholders for the quarter of the unrealized gain on derivatives, the adjusted loss for the quarter ended June 30, 2024, would have been $0.17 per share basic and diluted, compared to adjusted loss of $0.48 per share basic and diluted, respectively, for the quarter and June 30, 2023. Usually, security analysts do not include the above items in their public estimates of earnings per share.
Let’s now look at the numbers for the corresponding six-month period ended June 30, 2024 and compare it to last year. For the first half of this year, the company reported total net revenues of $31.9 million, representing a 47% increase over total net revenues of $21.7 million during the first half of 2023, which was the result of the increase in time charter rates of our vessels earn and the increased average number of vessels operating during the first half of 2024, compared to the same period of 2023.
The company reported a net loss attributable to controlling shareholders of $2.2 million as compared to a net loss attributable to controlling shareholders of $2.7 million for the first half of 2023. The net loss attributable to the non-controlling interest of about $50,000 in the first half of 2024 represents the loss attributable to the 39% ownership of the NRP investors. Interest and other financing costs, including interest income for the first half of 2024 amounted to $4.1 million compared to $2.9 million for the same period of 2023.
This increase is mainly due to the increased amount of debt in the current period, as well as the increase in the benchmark rate of our loans, while interest income was lower due to lower cash balances compared to the same period of 2023. Adjusted EBITDA for the first half of 2024 was $7.1 million compared to $4.8 million achieved during the first half of 2023.
Basic and diluted loss per share attributable to the company for the first half of 2024 was $0.81, calculated on about $2.2 million basic and diluted weighted average number of shares outstanding, compared to a loss per share of $0.98, calculated on about $2.9 million basic and diluted weighted average number of shares outstanding.
Excluding the effects on the net loss attributable to controlling shareholders for the first half of the year of the unrealized gain on derivatives, the adjusted loss for the six-month period ended June 30, 2024 would have been $1.35 per share basic and diluted, compared to adjusted loss of $0.33 per share basic and diluted respectively for the six-month period ended June 30, 2023, excluding the unrealized loss on derivatives. As previously mentioned, usually security analysts do not include the above items in their public estimates of earnings per share.
Let’s now turn to slide 16 to review our fleet performance. We will start our review by looking at our fleet utilization rate for the second quarters of 2024 and 2023. As usual, our fleet utilization rate is broken down into commercial and operational components. During the second quarter of 2024, our commercial utilization rate was 99.6%, while our operational utilization rate was 99.4%, compared to 98.3% commercial and 95% operational for the second quarter of last year.
On average, testing vessels were owned and operated during the second quarter of 2024, earning an average time charter equivalent rate of $14,427 per day, compared to 10 vessels in the same period of 2023, earning an average $12,179 per day. Our total daily operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs were $7,062 per vessel per day during the second quarter of 2024, compared to $7,656 per vessel per day for the second quarter of 2023.
If we move forward down on this table, we can see that — we can see the cash flow breakeven levels, which takes into account, in addition to the above, the drydocking expenses, interest expenses, and low expense. For the second quarter of 2024, our daily cash flow breakeven levels were $16,214 per vessel per day, compared to $14,128 per vessel per day for the same period of 2023.
Let us now go over the same figures for the six-month period of 2024 and compare them to the same period of last year. During the first half of 2024, our commercial and operational rate was 99.8% and 98.7% respectively, compared to 99% commercial and 97.4% operational for the same period of last year.
On average, 13 vessels were owned and operated during the first half of 2024, adding an average time charter equivalent rate of $13,452 per day, compared to 10 vessels in the same period of 2023, adding on average $11,393 per day. Our vessel operating expenses again, including management fees and general and administrative expenses were $6,964 per vessel per day in the first half of this year, compared to $7,306 per vessel per day for the same period of last year.
Again, if we look further down in the table, we can see the cash flow breakeven rate for the third six months of 2024, which is $13,101 per vessel per day, compared to $13,661 per vessel per day for the first half of 2023.
Let’s turn our attention to slide 17 to review our debt profile. As of June 30, 2024, our outstanding past debt stood at $98.1 million and expected to decline to about $67.5 million by the end of 2026. In the remainder of 2024, our debt repayment amounted to about $8.5 million. Then, in both 2025 and 2026, loan repayments are usually decreased to about $10.5 million and $11.6 million respectively, significantly reducing our cash flow breakeven level.
It is worth mentioning on this table that the total cost of our senior debt with an average margin of about 2.39% and assuming a three-month swap rate of 5.25% is 7.64%. Including the swap portion of debt, the cost of our senior debt stands at about 7.43%.
At the bottom of this slide, we can see our projected cash flow breakeven level for the next 12 months broken down into its various components. Overall, we expect our overall cash flow breakeven level to be around $12,639 per vessel per day, and dollar EBITDA break even level to be around $8,745 per vessel per day.
And with that, I will pass the floor back to our CFO, Anastasios.
Tasos Aslidis
Thank you very much, Athina. Let’s now conclude our presentation by moving to slide 18 where we can see some highlights from our balance sheet. This slide offers a snapshot of our assets and liabilities. As of June 30, 2024, cash and other current assets stood at about $22.8 million in our balance sheet.
The other major component, the book value of our vessels was approximately $197.2 million, resulting in total book value of our assets of about $220 million. On the liability side, our debt as of the end of June, as Athina previously mentioned, stood at about $98 million, representing around 44.6% of the book value of our assets, while other liabilities amounted to about $5.2 million or about 2.4% of our total assets.
The remaining book value of $116.7 million, inclusive of the book value of our minority shareholder interest, the NRP investors, of about $9.7 million, if we subtract the minority shareholder’s book value, $107 million of book value attributed to our controlling shareholders and resulting in a book value per share of about $38.
However, based on market transactions and other market reports, we can value our fleet as of June 30 way above the order book value and we estimate that to be $270 million worth, more than $70 million or approximately 37% higher than the respective book values, thus suggesting an NAV per share in excess of $63.
Our share price, trading around or between $20 and $24 recently, trades at a substantial discount compared to our net asset value, and thus represent a significant opportunity for appreciation potential for our shareholders and investors.
At this point, our presentation is completed and I would like to open the floor for questions, if there are any.
Question-and-Answer Session
Operator
Thank you. At this time, we will be conducting a question and answer session. [Operator Instructions]. Our first question comes from the line of Mark Reichman with Noble Capital Markets. Please proceed with your question.
Mark Reichman
Good morning. It seems like the net revenue — our estimates were pretty much in line with the actuals this quarter. Where we were off were the voyage expenses and the dry docking expenses, and so I was kind of wondering if you could just kind of provide a little more color on those two line items for the quarter and expectations for the remainder of the year?
Tasos Aslidis
Yes, I think the drydock expenses first depend on when drydock is happened. We have 13 vessels. They drydock twice every five years, so about one vessel or another should be drydocked every quarter. Last quarter, we had more than one drydock. We had one drydock completed during the quarter. We had a couple of drydocks starting in the quarter, which got some cost attribution to them. So that resulted in the higher drydocking cost. On the same note, as I mentioned already, we have two drydocks scheduled for next quarter and two drydocks are being performed at the time of the quarter. So we should expect a little higher drydock expenses next quarter as well.
On the revenue side, the voyage expenses have to do with the time of contract the vessels enter when they are booked. If we have to travel to get to the area that we load the cargo, we get paid the balance bonus, but at the same time, we pay for the voyage expenses. And depending whether we have only time charter contracts or voyage contracts included by the select, we might have more or less voyage expenses.
Mark Reichman
That’s helpful. Then the second part of my question is, we’ve been in kind of a favorable charter rate environment and that looks to kind of continue or at least is stabilized maybe for the remainder of the year with a little more uncertainty in 2025. I guess my question is even though we produce positive EBITDA, I mean, we’ve had two consecutive quarters of negative EPS. And so what — I guess, what will be the variable to move EPS into the positive category? Or would you kind of expect positive EBITDA and negative EPS in the third quarter? I guess I’m just kind of looking for, I mean, we’re in kind of a favorable environment, yet, we’ve had two consecutive quarters of loss on a per share basis. And so what dynamic changes that looking ahead?
Tasos Aslidis
I think it’s a combination, of course, of the market, but also on how many vessels, in our case, have to go through drydock. As you can see slide 16, we give you there the breakeven level per day. So to cover our expenses, we said in the past, in the first six months of this year, we had a breakeven cost of $13,000 per day. That is, if you convert this to a gross time charter equivalent rate, probably our vessels needed to earn around $14,500 to $15,000 a day to breakeven in the first six months, the year — as you can see on slide 16, 13,450. So that is the metric that you should follow. If you look again on slide 17, going, and this is for the next 12 months, so it’s not broken down by quarter, we expect to have a breakeven level of $12,000 on a cash flow basis, of course, $6,000. So we should be able to earn in excess of $14,000 to have a cash flow positive balance, but also earnings because loan repayments roughly are equivalent to our depreciation.
Mark Reichman
Okay. And so that’s kind of sensitive to what the time charter rates will look like. But I mean, as long as over the next 12 months, if the time charter equivalent rates hold, you should be — maybe you have a little wider spread, or you’ll need to kind of get your expenses down, which would maybe mean fewer drydocking expenses. But there’s still a fairly, I guess it’s not a real wide margin between breakeven and the time charter equivalent rate, so, okay. Well, no, that’s very helpful. I appreciate that. Is there any additional color on that?
Tasos Aslidis
I think the only additional color I would say is that we, as seen us all alike, supply in the drydock market is very tight in the sense of the order book. The orders that have been placed over the last — of the previous three years were low. That creates very low supply growth over the next couple of years. So really, we are waiting to see whether demand will return to average — historical average of higher levels. And that would be translated directly to rate increases. That’s why we’re keeping most of our fleet exposed to the market, because we anticipate and we hope that there will be a situation where the market will perform better.
Mark Reichman
That’s very helpful. Thank you very much.
Tasos Aslidis
You are welcome.
Operator
Thank you. Our next question comes from the line of Lars Eide with Arctic Securities. Please proceed with your question.
Lars Eide
Hello. How are you?
Tasos Aslidis
Good, good.
Lars Eide
Great. Good to hear. Just a quick one from me. I think you mentioned, Good Heart for this quarter, but just in general, how should we think about off-hire days for a vessel with multiple chargers within the same quarter? Is there like a general form or will it vary from case to case?
Tasos Aslidis
The commercial off-hire that we reported was, I would rather say, an exception to have to wait before you book your next charter. Of course, any technical off-hires are a matter of incidences given on operations. The rates we typically report include any ballast leg that is part of the charter. So if there is a ballast leg in the charter, we include the ballast bonus minus the voyage expenses to provide the time charter equivalent for the whole period. So I would say for our own modeling purposes, we use an average of one to one and a half days of off-hire per quarter, our capital average outside drydocking.
Mark Reichman
Okay, that’s great. Thank you very much. That’s all from me.
Tasos Aslidis
You are welcome.
Operator
Thank you. Our next question comes from the line of Poe Fratt with AGP. Please proceed with your question.
Poe Fratt
Good afternoon, Tasos.
Tasos Aslidis
Hi, Paul.
Poe Fratt
I was just wondering, if you do sort of the math, we’ll pull in on the last question. If you sort of do the math on what’s in drydock and what you’ve highlighted, I’m sort of coming up with an idle day number in the third quarter of about 150 days. Is that -?
Tasos Aslidis
In the third quarter, we would have two full drydocks, so that’s roughly 50 days, plus two continuing drydocks, another, let’s say, 35 days. So I would say around 85 days, give or take, would be the off-hire days due to drydock in the third quarter. That is the order of magnitude now. Now they can play up or down a bit, but I assume 25 days for the two full drydocks, and because two are at the 10th of the quarter, I assume something like 35 days.
Poe Fratt
Yes, I guess I was looking at the Maria and Eirini that were still on dry dock in July. That added to that, it looks like about 50 days, and then you have the two other ones. So maybe she might be over 100.
Tasos Aslidis
Yes, it could be, yeah, but I didn’t have in front of me the days in Q3 of Maria and Eirini, but if it’s 50, then total would be a little more than 100, yes
Poe Fratt
Okay.
Tasos Aslidis
I think here is 43 days that we have that were in Q3, plus roughly 50 give or take for the other two, yes, 100 days I would say.
Poe Fratt
And then do you have any drydocks currently scheduled for the fourth quarter and should it be a pretty quiet quarter from a drydocking perspective?
Tasos Aslidis
I think to the best of my recollection, I think it’s a pretty quiet quarter, a pretty dry quarter, drydocking wise.
Poe Fratt
When you look at the drydock program, it seemed to slow down a little bit in the second quarter. Is that a function of the stock price and correspondingly how sensitive is the stock buyback program to the stock price?
Tasos Aslidis
The stock buyback program has to comply with certain limits that are imposed by the SEC. We cannot buy back more than a certain percentage of the daily volume, and we cannot trade during the whole day. So we’re utilizing it in full, to the full extent that we can, but because of the lower volume and the other limits, we have to buy back fewer stocks.
Symeon Pariaros
Exactly, and further to what Tasos mentioned, it’s not only a matter of volume. When you buy back shares on behalf of your company, you cannot buy from the offer. So it has to be a match on our bid. So otherwise, we cannot go aggressive. As you know, buyback rules are extremely restrictive and they are there to protect the participants of the market. So we have to follow them and respect them. So it is not up to us to increase the liquidity and try to buy more stock. We’re doing the best we can, and we will possibly continue to do so, but we have to follow the rules.
Tasos Aslidis
We’re doing the best we can because we think it’s a great opportunity to buy back our stock. It’s a great opportunity. We want to be the first to exploit it to the maximum extent.
Poe Fratt
That’s really helpful. We have lessened the intention to slow down. It was just a technical question. That’s great. Thank you so much, Tasos and Symeon.
Tasos Aslidis
You’re welcome, Paul.
Symeon Pariaros
You’re welcome, Paul.
Operator
Thank you. So we have reached the end of the question and answer session. I’ll turn the call back over to Mr. Tasos, the CFO for closing remarks.
Tasos Aslidis
Thank you very much for attending. I would like to wish everybody a good remaining of the summer, and we look forward to seeing all of you again in our Q3 earnings call sometime in November. Bye-bye everybody.
Operator
Thank you for your participation.
