Better third quarter depends on geopolitics, says EuroDry
- If market improves further, Nasdaq-listed owner would consider taking first vessels off spot market and locking some in on one-year charters
- Attacks in Red Sea add to uncertainty but generally help fuel demand
- EuroDry is looking at opportunities to renew fleet, phasing out older vessels
Greek bulker owner has been encouraged by signs of a recovery in rates for bulkers but uncertainty swirls around
EURODRY, the Nasdaq-listed dry bulk owner, is looking ahead to a better third quarter of the year after a string of losses going back to the start of 2024, but has said that the near-term outlook is contingent on geopolitical and macroeconomic developments.
US-imposed tariffs and the countermeasures taken by other countries were “at the forefront of the uncertainty on the demand side”, said EuroDry chief executive Aristides Pittas.
In addition, the recent attacks on two bulk carriers in the Red Sea “only increase the uncertainty”, he said, although such incidents “generally, help higher demand for vessels as even fewer owners and operators would be crossing the area following the attacks”.
The Greece-based owner of 12 bulkers and two new ultramaxes on order for 2027 posted a second-quarter net loss of $3.1m compared with a loss of $300,000 in the corresponding period last year.
However, the deficit of $3.5m for the first six months came in slightly lower than at the same stage of 2024.
“During the second quarter of 2025 the dry bulk market recovered a bit but the rebound was not sufficient to return the company to profitability,” said Pittas.
In July, the stronger market was “approaching the breakeven rate level of our fleet” before “giving up some of the gains in early August”.
He noted, however, that August was traditionally a weak month and he said that if the present level was maintained or potentially improved, as usually happened during September, the company expected to have better financial results in the third quarter.
The owner has been keeping all its vessels on short-term charters or linked to market index levels in anticipation of a recovery.
If the market improves further, it would consider locking in some cash flow with year-long charters for a portion of the fleet, Pittas said.
“At the same time, we are looking at renewal opportunities of our older vessels and financing options that could allow us to expand our fleet in accretive ways,” he added.
Revenues for the second quarter decreased by 35.3% to $11.3m, due to the sale of one of its bulkers for demolition earlier this year as well as a sharp fall in average charter rates being earned by its vessels.
