EuroDry Ltd. Boosts Financial Position with Sale of M/V Tasos

EuroDry Ltd. (NASDAQ: EDRY), a leading owner and operator of drybulk vessels, has announced an agreement to sell M/V Tasos, a 75,100 dwt Panamax bulk carrier built in 2000, for demolition. The sale, expected to be completed between mid-February and mid-March 2025, will generate approximately $5 million for the company. This strategic move is set to strengthen EuroDry's financial position and create opportunities for future investments.

The sale of M/V Tasos comes at a time when the global drybulk market is experiencing significant growth, driven by increased demand for raw materials, technological advancements, and evolving trade patterns. The global bulk carrier fleet has witnessed substantial growth in terms of deadweight tonnage (DWT) capacity over the past decade, with the fleet reaching over 980 million DWT by the end of 2023. This growth is projected to continue, with the fleet expected to reach 1 billion DWT by 2024.

The sale of M/V Tasos is expected to result in a gain of approximately $2.1 million, or about $0.75 per share, for EuroDry. This gain will be achieved by avoiding the substantial capital expenditure required for the vessel's fifth special survey, which typically costs between $1.5-2.5 million for vessels of this age. By eliminating this expenditure, EuroDry can reinvest the funds into more profitable deployment opportunities, potentially in newer, more efficient vessels that could command premium charter rates.

The sale of M/V Tasos also reduces the average age of EuroDry's fleet, enhancing its operational efficiency and marketability to charterers. This strategic move aligns with industry-wide efforts to modernize fleets and improve environmental performance. The timing of the sale suggests management's confidence in identifying more profitable deployment opportunities for the capital, which could further strengthen the company's financial position and liquidity.

In conclusion, the sale of M/V Tasos for demolition is a strategic move by EuroDry, enabling the company to optimize its fleet composition and age profile, strengthen its financial position, and create flexibility for future strategic investments. This move positions EuroDry favorably for future growth and competitiveness in the drybulk shipping market.