Thank you for standing by ladies and gentlemen, and welcome to the Euroseas Conference Call on the Fourth Quarter 2018 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer; and Mr. Tasos Aslidis, Chief Financial Officer of the Company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions] I must advise you that the conference is being recorded today. We have a forward looking statement. Please be reminded that the Company announced their results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, Euroseas will be making forward-looking statements. These statements are within the meaning of the Federal Securities Laws. Matters discussed may be forward-looking statements which are based on current management expectations that involve risks and uncertainties that may results in such expectations not being realized. I kindly draw your attention to slide number two on the webcast presentation which has the full forward-looking statement, and the same statement was also included in 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. Pittas. Please go ahead, sir.

Good morning ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three and 12-month period ended December 31, 2018. On May 30, 2018, the company spun off its drybulk fleet, excluding Motor Vessel Monica P, a handymax drybulk carrier which has been agreed to be sold into EuroDry Ltd., a separate publicly listed company also listed on the Nasdaq Capital Market. Shareholders of the Company received one EuroDry Ltd. share for every five shares of the Company they held. As a result of the spin-off and the subsequent sale of Motor Vessel Monica P, the Company has become a pure containership company and the only publicly listed company concentrating on the feeder containership sector. The results below refer to Euroseas Ltd. continuing operations excluding the contribution from Euroseas Ltd. of vessels spun-off into EuroDry Ltd. in May 2018, the discontinued operations. Historical comparative periods have been adjusted accordingly. Let's now turn to Slide 3 to see our income statement highlights. For the fourth quarter, we total net revenues were $8 million, net loss was $0.5 million, net loss attributable to common shareholders after a $0.2 million dividend on Series B Preferred Shares was $0.8 million or $0.07 loss per share of basic and diluted. Adjusted net loss attributable to common shareholders for the period was $0.8 million, or $0.07 per share of basic and diluted. Adjusted EBITDA was $1.2 million. For the 12 months, total net revenues were $34.4 million. Net loss was $0.7 million. Net loss attributable to common shareholders after $1.3 million dividend and Series B Preferred Shares was $2 million or $0.18 loss per share basic and…

Thank you very much, Aristides. Good morning from me as well ladies and gentlemen. I will take the next three or four slides to give you an overview of our financial results for the three and 12-month period ended December 31, 2018. The figures that we will review refer to the continuing operations of Euroseas as Aristides mentioned earlier that is after we strip the contributions of the vessels which spun off in May 2018 into EuroDry. Let's start by looking at Slide 13. For the fourth quarter of 2018, we reported total net revenues of $8 million, representing a 3% increase over total net revenue of $7.8 million during the fourth quarter of last year. We reported net loss for the period of $0.5 million and a net loss attributable to common shareholders of $0.8 million as compared to a net income of $0.7 million, and a net income attributable to common shareholders of $0.2 million, respectively, for the fourth quarter of 2017. Adjusted EBITDA for the fourth quarter of 2018 was $1.2 million compared to $1.5 million achieved during the fourth quarter of last year. Basic and diluted loss per share attributable to common shareholders for the fourth quarter of 2018 was $0.07 share calculated to 11.8 shares approximately basic and diluted, compared to basic and diluted earnings per share of $0.02 for the fourth quarter of 2017 calculated about 11.1 million shares basic and diluted. Excluding the effect on the loss attributable to common shareholders for the quarter of the loss on derivatives is same and gain on sale of vessels if any, loss per share attributable to common shareholders for the quarter ended December 31, 2018 remain the same $0.07 basic and diluted compared to adjusted net loss of $0.01 per share basic and diluted for…

Thank you, Tasos. Let's open up the floor for any questions that we might have.

[Operator Instructions]. We will now take our first question, please go ahead, your line is now open.

Hi, this is Poe Fratt from Noble Capital Markets. I just wanted to know, sort of your – you gave us $9,000 number for the first quarter for contract cover. You said second quarter it's going to be down slightly. Could you – I'm not sure, I heard a number, but do you have that number handy?

It will depend a little bit on the two ships that come open during that quarter and will need to be re-chartered. So, depending on how they are re-chartered, it should be a number I would think the other should be again a number of between $8,500 and $9,000.

And then as we look at into IMO 2020 hitting, are you contemplating the change in your contracting for empty in all or potentially assuming you are not going to install any scrubbers, but whether that impacts your thinking or contracting?

Not really. Of course, as we have already six charters apparent into 2020. We have the relevant clauses in the charter party saying that we will clean the tanks and be ready to take the fuel that the charterers will want to put on the ships at that time. So, there has been a preparation to use blended fuels or gasoil, but clean fuel, and specific provisions are there on the charter party. As you know, when you fix time charters, the charterers that essentially pay for the cost of the fuel and all that stuff. So, they will have to provide us with the right kind of fuel. We are not installing scrubbers and we think it's a big risk especially for the smaller ships, with so many unknowns still on how they are going to work if they are going to be allowed. We just heard today that there is thought that on the Artic, the heavy fuel will be totally disallowed. I don't know what will happen. But we are not taking that risk on our ships.

And as far as the outlook for M&A, if you just give us an idea and then also your customer base, liners are continuing to consolidate and any impact from that you see on that going forward?

On the customer base matters, I think there hasn't been any substantial consolidation during this last six months or a year. They are the same. We know most of the charterers very well, have direct discussion with most of them, so nothing really has changed there. And as you can see, we've been able to employ all our ships lately in direct continuation of existing charters. So, things are improving just a little bit and we hope that now after the Chinese New Year, we will see a further improvement. And what as your first question, I forgot.

The M&A.

On the M&A front, there are a couple of parties that we have had some initial discussions that we will not proceed with any such deal unless it is – it makes sense for ourselves or unless the parties that would like to merge with us and become part of a listed platform, are there to accept an NAV to NAV transaction. That means if we were trading significantly below NAV today, and this is something that some of the parties – or most of the parties that we've discussed do not want to face at this point in time. So, if we find something attractive, and which provides additional synergies, we will do it. If we don't, we will continue growing organically, raising equity when the time is right, maybe, you know getting a couple of additional ships in the fleet and also gradually replacing the older vessels with younger ones. Okay.

Sir, does that answer your question?

Let's move to the next one.

Thank you. We will now take the question. Please go ahead, you line is now open.

Hi guys, this is James, calling from Maxim. So, fourth quarter was also in fact strong, but moving onto 2019, so looking at the vessels that will re-charter, it looks like rates have come down. Is the sentiment kind of poor for the first half of the year because of the ongoing trade or what's going on here?

I think this is the main reason sentiment because of the trade wars is poor. This has led to slower growth worldwide and less trade. And this has affected charter rates, this has resulted in ships being idled. This idling seems to gradually be improving. We think that this month we'll show an even bigger improvement in having less idle ships. So, we think that, especially if there is a solution found and the trade wars end, we think that we will see a recovery in the market.

Okay. So, then why – I just have to ask, why would you charter some of the vessels up until the fourth quarter at much lower rates? Do you think this poor sentiment is going to drag out through the rest of the year?

To be honest, we did not have a lot of bargaining power during this last two or three months, because there has been quite a lot of idle vessels and charterers have been taking the opportunity to press for longer periods where they can in order to take advantage of the low rate. I think charterers also believe that the second half of the year is going to be stronger and taking this opportunity to you know fix for us much as they could at low numbers.

Okay. And for the re-delivery range, is that the option of the charterer or is this something that you guys can have the vessels be delivered as soon as possible?

No, this is only charterers' option. This is how the market works, its charterers' option.

Okay, great. And then just piggybacking off of that M&A stuff, so is there any option to possibly bring in some of the old Euromar vessels into Euroseas?

At this stage, I don't think that this is under consideration. This could be done probably in consumption with a bigger deal if that happens.

But these vessels are owned by partly by other investor, so it's – they have to consent as well.

Got you. Okay. Because it seems the smaller I guess 2,000 – around 2,500, those vessels are still in high demand and I guess, the intermediate feeders, right?

Yes, it's – the biggest, the largest amount of still idle vessels is between 1,000 and 2,000 teu, up from 2,000 to 3,000 teu, there is much, much less idle vessels.

And is that just due to trade dynamics and port infrastructure or just those smaller vessels that fall out of favor?

I think it's – no, I don't think it's that the vessels are falling out of favor. In fact we've seen a lot of the operators in 2018 go out and order vessels of this size. So, the need is usually there. I think it's more of a temporary issue, but other than anything more structural.

Alright, well, thanks for the color guys. I'll jump off now.

Thank you. Thank you James.

Thank you. There are no further questions at this time. I would now like to hand the floor back over to Mr. Pittas for any closing remarks. Please go ahead, sir.

Thank you all for listening in to our end of 2018 results. We will be with you again to discuss our Q1 2019 results in three month time.

Thanks everybody for attending.

Thank you ladies and gentlemen. That does conclude our conference for today. Thank you all for participating. You may now disconnect.

Thank you. Bye-bye.