Greek dry bulk owner EuroDry is in talks with its lenders to defer a number of loan repayments as the company’s earnings take a hit from lower charter rates.
According to the company, it has agreed or is in the process of discussing with lenders to defer a number of loan repayments due in 2020 to later periods or to the end of the respective facilities as part of its efforts to ensure sufficient liquidity.
“The net revenues of the second quarter of 2020 decreased compared to the second quarter of 2019 as a result of the time charter equivalent rates our vessels earned during the quarter which were lower by 32.0% compared to the average time charter equivalent rates our vessels earned in the second quarter of 2019. The significantly lower rates compared to the same period of last year are a result of the dramatic effects on the global economy and seaborne trade of the COVID-19 pandemic,” said Tasos Aslidis, chief financial officer of EuroDry.
The company reported a net loss of $3.8m for the second quarter of this year, compared to a net loss of $1.8m for the same period last year.
“During the second quarter of 2020, the drybulk market experienced the effects of the COVID-19 pandemic and lockdown of the main economies resulting in decreased cargo volumes transported and significant declines in charter rates. These developments put pressure on our cash flow, which combined with the offhire time of one of our vessels to undergo its fourth special survey led to us posting our worst quarterly results since the Company’s spin-off. During the second half of June, the market started recovering – in line with the reopening of the major economies- with rates returning to the levels seen at the beginning of the year; therefore, we expect a reversal of fortunes in the third quarter if such trends continue,” said Aristides Pittas, chairman and CEO of EuroDry.