Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Conference Call on the Q4 2021 financial results. We have with us today 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 listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, please press star one on your telephone keypad and wait for the automated message advising your line is open. I must advise this conference is being recorded today. Please be reminded that the company announced results today 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, EuroDry will be making forward-looking statements. Those 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 result in such expectations not being realized. I kindly draw your attention to slide two on the webcast presentation, which has a 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. I would now like to pass the floor over to Mr. Pittas. Thank you, sir. Please go ahead.
Good morning, ladies and gentlemen, 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 full- year and quarter ended December 31, 2021. Please turn to slide 3. Our income statement highlights are shown here. This is by far the best quarter since the separation of EuroDry from Euroseas back in 2018. For the Q4 2021, we reported total net revenues of $22.3 million and a net income of $16 million. After adjusting for an approximate $2.9 million fair value gain in derivatives and $0.8 million of preferred and preferred limited deemed dividends.
Adjusted net income attributable to common shareholders was $12.3 million or $4.29 per share diluted. Adjusted EBITDA for the quarter stood at $16 million. For the full- year 2021, our net revenue was $64.4 million, and net income was $31.2 million. Our adjusted net income was $30.3 million or $11.88 per share diluted after adjusting for an approximately $0.8 million change in fair value of derivatives, a $1.65 million loss on debt extinguishment, and $1.75 million of preferred and preferred deemed dividends. Adjusted EBITDA for the twelve months of 2021 stood at $42.3 million.
Both the quarterly and the yearly changes of net revenues and adjusted EBITDA were higher than the previous years by multiple measures of magnitude, as can be seen in the slide. Our CFO, Tasos Aslidis, will go over our financial highlights in more detail later on in the presentation. Please turn to slide 4 for our operational highlights. As previously announced on January 19, 2022, the company agreed to acquire motor vessel Molyvos Luck, a 2014-built Supramax vessel for $22.2 million. The vessel was financed by own funds, but is expected to be further financed post-delivery with a bank loan estimated between $10 million-$11 million. The vessel's existing charter will be assumed at $13,250 per day until April 2022. The vessel is expected to be delivered within next week.
For the charter in France, our motor vessel Alexandros P is fixed for a trip of about 50-55 days at $35,000 per day, followed by $26,000 per day for the next 35 days, plus a $600,000 gross ballast bonus. Motor vessel Good Heart was fixed for approximately 12-18 days at $33,000 per day, followed by $30,250 per day for 20-25 days, and thereafter fixed on a time charter at $35,000 per day for the period between October to mid-December 2022. Finally, motor vessel Tasos was fixed for a trip of about 80-90 days at $15,750 per day.
During the Q4 2021, the company settled 90 days of previously sold forward freight agreements. The equivalent of one Panamax vessel, which was originally sold at the rate of $12,550 per day at a loss of $2 million. In addition, during the quarter, we sold 90 days in Q1 2022, two FFAs, the equivalent again of one Panamax vessel, at $31,500 per day, subsequently closing that position at $23,200 per day a few days later, realizing a gain of about $750,000 dollars. The total net realized loss on FFA contracts was about $1.26 million for the quarter. There were no dry dockings during the Q4 2021.
Furthermore, through our at-the-market offerings in 2021, we raised approximately $10 million of net proceeds by issuing 341,000 shares approximately at an average share price close to $30 per share. Also, during 2021, we redeemed all our outstanding Series B preferred shares at par, $16.6 million in total. Out of this amount, the last $13.6 million was redeemed in December 2021. Please turn to slide 5 for the summary of EuroDry's current fleet. With the acquisition of Molyvos Luck, EuroDry's fleet has increased to 10 units, further complementing our cluster of modern vessels with highly efficient eco-designs and attractive commercial characteristics in terms of human efficiency and operating requirements.
Our current fleet has an average age of 12.9 years, with a current carrying capacity of around 726,000 deadweight tons, about 50% higher than what it was at the beginning of the year. Slide six shows the current vessel employment schedule. As you can see, fixed rate coverage in the remaining of 2022 stands at about 19%. This figure, of course, excludes ships on index charters who have secured employment but are open to market fluctuations. Now let's turn to slide seven, where we go over the market highlights for the quarter ended in December 31, 2021, and up to now.
The dry bulk spot earnings, after peaking in October 2021, when they registered the highest- level since early 2010, subsequently retreated by about 35% in November and December, while in January 2022, they retreated by approximately another 30%. At the same time, after initially retreating, the one-year time charter rates recovered a bit during December 2021 and January 2022, suggesting that there are expectations among the market participants that the spot earnings retreat, a cyclically common effect during the first couple of months of every year, is only temporary.
During the last week, we are already seeing quite a strong positive reversal in the spot market, and we expect Clarksons data to be released on Friday to show an increase of at least $32-$3,000 on the spot rates and $1,000 on the one-year TC relative to the February 4 data, which is included in our presentation. Even at the present levels, though, spot earnings are at high- levels relative to the last decade generally, and very high- levels especially relative to the time of the year. According to Clarksons secondhand bulk carrier price index slightly decreased by approximately 0.2% during Q4 2021, while new building prices have increased to more than $38 million for Kamsarmax vessels and $35 million for Ultramax vessels respectively.
The fleet grew by 3.6% during 2021. Please now turn to, excuse me, slide nine. The IMF's revised outlook is largely led by growth markdowns in the two largest economies, the US. and China. According to the January IMF report, global growth is expected to decrease from 5.9% in 2021 to 4.4% in 2022, half a percentage point lower since the previous projections in October. However, the 0.5% growth the IMF expects will be delayed in 2022. The IMF now forecasts it will gain it in 2023 and has increased its projection for 2023 by 0.5% to a level of 3.8%.
Prospects for emerging markets and developing economies are also generally for lower growth than 2021 and 2022, except for India, which is expected to be steady at around what was a nice 9% level. From the developed economies, Japan and the ASEAN-5 should do better than 2021, while the US., citing tighter Fed policy and an anticipated halt to any further stimulus spending by Congress, reduced its growth forecast for 2022 since October 1, by 1.2 percentage points to just 4%. China's economic growth is projected to be only 4.8% in 2022 before picking up again in 2023 as the central bank steadily ramps up policy easing to ward off a sharp downturn.
The lower growth rate underlines multiple headwinds facing the world's second-largest economy due to a property downturn, a crackdown on debt, tougher pollution measures, and strict COVID-19 curbs which have shut businesses and reduced consumption. Looking at the dry bulk trade, and according to Clarksons Research, demand is expected to grow by 2.2% in 2022 compared to 4.8% for the previous year. For 2023, we expect dry bulk trade to grow at a moderate pace of 2.3%. Unfortunately, demand for ships is affected not only by demand for the commodities but by changes in logistical and trading patterns, vessel speed, and all the other parameters that have become so difficult to evaluate and critical during the last few years due to the combined effects of the pandemic and the environmental considerations. Please turn to slide 10.
The order book as a percentage of total fleet up until February 2022 stands at 6.8%, which is still around the lowest levels we've seen in the last 25+ years. Please turn to slide 11 for our dry bulk fleet overview. While Clarksons expects new deliveries of about 3.1% of the current fleet to be delivered in 2022 and 2.6% in 2023, they expect a net fleet growth of around 2% during 2022 and below 1% in 2023, after also taking into account scrapping, slippage, and other possible removals. Consequently, the sector is well-positioned for a strong year and structurally for the next several years, thanks to a very limited supply growth. Please turn to slide 12, where we summarize our outlook in the dry bulk market.
As previously mentioned, global recovery continues, yet new COVID-19 variants, rising energy prices, and elevated inflation still weigh in and may slow economic growth. The market has been on a strong trajectory on the back of highly supportive conditions in the commodity markets, having reached 11-year highs in Q3 2021. In the last quarter, we have seen a significant fall reflecting mostly reduced demand for iron ore from China, which has affected primarily the Capesize market but has trickled down to the smaller segments as well. We expect earnings to remain volatile at high- levels as the short- and medium-term outlook are generally positive and supported by one of the lowest order book ever. Seasonal weaknesses can also be expected.
Furthermore, ordering of new ships for 2023 deliveries is expected to be extremely low to nearly non-existent due to lack of available slots in shipyards. In addition, as mentioned in previous quarters, the lack of clarity for the fuel of the future remains unknown, something that makes placing a new order a very risky option. Overall, we expect the market to remain at relatively high- levels with more stability in the smaller sizes and more volatility in the Capesize sector. Congestion ease, timing, and the implementation of the new IMO environmental regulations in January 2023 will be key elements in the direction of the market. Let's turn to slides 12-13. The left side of the slide shows the evolution of 1-year time charter rates of Panamax dry bulk vessels since 2002.
As of the end of last week, the one-year time charter rate for Panamax ships with capacity of 75,000 deadweight tons stood at $22,625, and as we said, is now rising. On the right-hand side of the slide, you can see the historical price range for a 10-year-old Panamax vessel, which has a current price of around $25 million. Over the past year, dry bulk prices have gradually been increasing, exceeding the historical median and average levels, but still are significantly lower than prices seen in the beginning of 2011. We believe that it is highly probable that this period will be a period with higher prices and higher earnings than the last decade, where both earnings and prices and also inflation were extremely low.
As such, we are prepared to adapt to this changing environment and continue growing EuroDry steadily but cautiously for the benefit of our shareholders. Let me now pass the floor over to our CFO, Tasos Aslidis, to go over our various financial highlights in more detail. Tasos, the floor is yours.
Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next 5 slides, I will give you an overview of our financial highlights for the Q4 and full- year of 2021, and compare them with our financial results in the equivalent periods of 2020. For that, let's turn to slide 15. For the Q4 2021, the company reported total net revenues of $22.3 million, representing a 248% increase over total net revenues of $6.4 million during the Q4 2020. This increase was the result of the increased average time charter equivalent rate earned by our vessels and the higher number of vessels we operated in the Q4 of last year compared to the same period of 2020.
The company reported a net income for the period of $16 million and a net income attributable to common shareholders of $15.2 million, as compared to a net loss of $0.3 million and a net loss attributable to common shareholders of $0.7 million for the same period of 2020. Interest and other financing costs for the Q4 2021 were $0.7 million, as compared to $0.5 million for the same period of 2020. The increase mainly due to the higher average debt outstanding for the period. Adjusted EBITDA for the Q4 2021 was $16 million compared to $1.8 million achieved during the Q4 2020, an increase of 773%.
Basic earnings per share attributable to common shareholders for the Q4 2021 were $5.38, calculated on about 2.8 million weighted average number of shares outstanding, while fully diluted earnings per share were $5.32, calculated on about 2.9 million shares weighted average number of shares outstanding, compared to basic and diluted loss per share of $0.31 for the Q4 2020.
Excluding the effect on the income attributable to common shareholders for the quarter of the change in fair value of our FFA derivatives and the unrealized gain on interest rate swaps, the adjusted earnings attributable to common shareholders for the quarter ended December 31, 2021, would have been $4.34 basic and $4.29 diluted compared to adjusted loss per share of $0.34 for the same quarter of 2020. Usually, security analysts do not include the above items in their published estimate of earnings per share.
I would also like to highlight here that the adjusted net income attributable to common shareholders for the Q4 2021 includes a $0.5 million charge as classified as preferred dividend, which is the result of the redemption of all our remaining preferred shares during the quarter. Without which the adjusted diluted earnings per share for the quarter would have been $4.48. Let's now move to the right half of the slide to discuss the same figures for the full- year of 2021. For the full- year of 2021, the company reported total net revenues of $64.4 million, representing a 189% increase over total net revenues of $22.3 million during the full- year of 2020.
Again, as a result of the increased time charter equivalent rate our vessels earned and the higher average number of vessels we operate, the company reported a net income for the period of $31.2 million and a net income attributable to common shareholders of $29.4 million, as compared to a net loss for the period for the year of $5.9 million, and a net loss attributable to common shareholders of seven and a half million for 2020. Interest and other financing costs for 2021 remained unchanged at about $2.3 million compared to the same period of 2020.
The number you see on this slide includes a $1.7 million charge attributed to a loss on debt extinguishment due to the conversion of part of our debt in the Q2 2021 to common equity. For 2021, the company recognized a $0.3 million gain on four interest rate swaps and a $4.1 million realized loss on FFA contracts. As compared to a loss on derivatives of $0.8 million for 2020, which was comprised of a $0.3 million loss on FFA contracts and a $0.5 million loss on three interest rate swaps for last year. Adjusted EBITDA for 2021 was $42.3 million compared to $3.7 million achieved during 2020, an increase of 1,050%.
Basic earnings per share attributable to common shareholders for 2021 were $11.63, calculated on about 2.5 million weighted average number of shares outstanding. While fully diluted earnings per share were $11.53, calculated again on about 2.5 million weighted average number of shares outstanding compared to basic and diluted loss of $3.20 per share for 2020. Excluding the effect on the earnings attributable to common shareholders for the year of the change in the fair value of derivatives and the loss on debt extinguishment, the adjusted earnings attributable to common shareholders for the year 2021 would have been $11.98 basic and $11.88 diluted. Compared to an adjusted loss of $3.04 basic diluted for 2020.
Again, as previously mentioned, equity analysts do not include the above adjustments in their estimates of earnings per share. I will mention again that as I did for my presentation for the quarterly results, the adjusted net income attributable to common shareholders includes a deemed preferred dividend charge of $0.7 million for the year as a result of our full redemption of our preferred shares. After that redemption, our capital structure has been simplified and includes only bank debt and common equity. Let's now turn to slide 16 to review our fleet performance. We will start our review by looking first at our fleet utilization rates for the Q4 2020 and 2021. As usual, our fleet utilization rate is broken down to commercial and operational.
During the Q4 2021, our commercial utilization rate was 99.8%, while our operational utilization rate was 99.5% compared to 100% commercial and 99.9% operational for the Q4 of last year. On average, 9 vessels were owned and operated during the Q4 2021, earning an average time charter equivalent rate of $39,157 per day, compared to 7 vessels that we operated in the same period of 2020, earning an average time charter equivalent rate of $10,761 per vessel per day, almost a threefold increase in charter rates between the two years.
Our total daily operating expenses, including management fees, General and Administrative expenses, but excluding dry docking costs, averaged about $6,324 per vessel per day during the Q4 2021, compared to $6,258 per vessel per day for the Q4 2020. If we move further down on this table, we can see the cash flow break-even rate that we had during the Q4 of this year, which takes into account also dry docking expenses, cash interest expenses, loan repayments, and any preferred dividend payments if paid in cash.
Thus, for the Q4 2021, our daily cash flow break-even rate was about $11,625 per vessel per day, compared to $9,574 per vessel per day for the Q4 2020. Let's now look on the right part of the slide to review the same figures for the full- year. During 2021, our commercial utilization rate was 99.9%, while our operational was 99.6% compared to 100% commercial and 99.7% operational for 2020.
On average, 7.9 vessels were owned and operated during 2021, earning an average time charter equivalent rate of $24,222, compared to 7 vessels owned and operated during 2020, earning on average $9,387 per vessel per day. Our total operating expenses, again including management fees, G&A expenses, but excluding dry docking costs for 2021, amounted to $6,456 per vessel per day, compared to $6,211 per vessel per day for 2020.
Let's look again at the bottom of this table to see our cash flow break-even rate for the year, which amounted to $10,728 per vessel per day in 2021, compared to $10,800 for 2020. Let's move now to slide 17. We have used this slide for the last year and to serve as a calculation tool to enable our shareholders and investors to assess the earnings potential of our fleet in the coming year and under the current environment. The table shown in this slide has two components I will briefly explain. The top part refers to our fixed rate contracts.
As you can see, our contracted covers in fixed rate contracts is about 19% for the year, is about 50% for the Q1 , but declines to 14% and 10% in the Q2 and Q3 , and is very small in the Q4 . This chartering strategy reflects our expectation that the market will remain rather strong at levels indicated by the forward freight markets. The rest of our vessels that are employed in contracts are linked to the relevant to their size dry bulk Baltic Dry Index. Our calculator indicatively shows farther below that Supramax and Panamax Baltic forward rates as of February 8, 2022, in this instance, and also shows how this index levels get translated to rates for our ships.
We actually show here the final blended rate for the open days of our fleet, which you can see right below the Supramax and Panamax forward rates in the table. Based on these assumptions, and by further assuming for simplicity $6,700 per vessel per day operating and G&A costs and a 5% commission rate, one can estimate the contribution to the EBITDA of our open days. The final result is additionally adjusted for our preliminary drydock expenses expected during 2022. This overall exercise is meant to provide a simple tool to calculate our EBITDA for this year. Obviously, one can enter his and her own assumptions about the rates to do that.
It is worth observing that at current FFA rates, one would expect an annualized EBITDA rate that is above that we recorded in 2021. Furthermore, one can use this calculator to estimate the dependence of our 2022 EBITDA to the average rate earned by our open days. For example, a change of $1,000 per day in the average rate earned by our open days would result in about $2.8 million change in our 2022 EBITDA. Let's now move to slide 18 to review our debt profile. On the top part of this slide, we can see our loan repayment, the loan repayments of our bank debt. As of September 31, 2021, we had an outstanding bank debt of about $7.9 million.
By looking at the chart, we can see that we have debt repayments between $10.5 million and $14.1 million each year over the next three years, before our loan repayments drop to between $4 million and $5 million in 2024 and 2025. Our next balloon payment is towards the end of 2023 for about $11.3 million, and that refers to one of our Kamsarmax vessels. We expect to be able to refinance that balloon payment as we have done in numerous previous occasions. A quick note here on the cost of our funding or the cost of our debt.
The annualized margin of our debt is about 2.8%, assuming a LIBOR rate of about 0.3% on the top of it, we can estimate the cost of our bank debt to be around 3.1%. At the bottom of this slide, we can also see a projection of our cash flow for our cash flow breakeven level for the next 12 months, which are expected to be around $2,500 per vessel per day. You can see the components that make up that breakeven level. Let's now conclude by moving to slide 19, where we can see some highlights from our balances in a simplified way. This slide shows you a snapshot of our assets and liabilities.
On our asset side, you can see that we have cash and other assets of about $32.6 million, and also the book value for our vessels of $128.5 million, making our total book value for our assets at $161.3 million. On the liability side, our debt as of December 31, 2021, stood at approximately $79.4 million, which approximately represents 49.3% of the book value of our assets. At that, accounting for other liabilities as of December 31, 2021, of $3.8 million, we can get a net book value of $78 million which translates to $26.8 per share.
However, we estimate that as of the end of December 2021, the market value of our, of our nine vessels was about $182 million. That is 42% higher than the respective book values, suggesting that our NAV per share should be around $45.3 per share. Although our share price has recently increased and traded around $24-$25, it is still significantly below the level of what we estimate our NAV to be, thus potentially representing a significant appreciation opportunity to our shareholders. With that comment, I would like to turn the floor back to Aristides to continue the call.
Thank you, Tasos. Let me open up the floor for any questions we may have.
Thank you. Ladies and gentlemen, may I remind you please, if you'd like to ask a question, please press star and one on your telephone. Your first request is from the line of Tate Sullivan from Maxim Group. Please go ahead.
Good day, Tasos, Aristides.
Hi. Hi.
Hi. Starting as I have in the past, since you've introduced the EBITDA calculator and Tasos to me, just go over a couple of changes. I apologize if I missed it on the indicative dry docking costs. I do not think you included those in the January presentation, and also a slight increase in the OpEx from G&A vessel per day cost from $6,500 to $6,700. Can you just walk through why you decided to make those changes, please?
Regarding the dry docking costs, we always included them. Simply in 2021, we had very almost no dry docking expenses. That's why we have included them. Actually sorry. We had, we did have dry docking expenses in 2020, but almost no dry docking expense 2021. It made a very small difference. Perhaps we didn't list them explicitly on the EBITDA calculator for 2022. It's something that we should take into account. Probably different from other presentations. Our EBITDA is net of dry docking expenses. We increased the estimate for our OpEx and G&A costs partly to be conservative, as we have seen some increase in the cost due to growing another development.
Okay, great. For the Q1 EBITDA, does it, on the same slide, does it include the gross ballast bonus for the Alexandros ship or how will you account for that?
It should include the ballast bonus.
Okay, great. The acquisition of the Molyvos Luck, you announced it a little after January 2022. Is all of that cash coming out of your cash flow statement in this current quarter? Or was there maybe you finalized a bit of it?
We intend to finance about half of the acquisition costs with bank debt, but we'll do it after the acquisition. We'll pay for the vessel with cash that we currently have in our balance sheet.
Thank you. Aristides, I would love to hear just more. You gave some comments before, I mean, in your career in shipping and the rapid increase in the cash on your balance sheet. Have you seen that before? Would you say you just continue to evaluate balancing that between acquisitions if you can still forecast positive IRR going forward versus repurchases? Can you give an update on putting this in context in your shipping career, please?
Sure. I mean, last time we saw these significant increases was really back in 2006, 2007, and 2008. That was the last three years when we saw a very significant growth in our cash position. That was the time where we managed to grow the company from 7 vessels at the time to about 20 vessels by the end of that cycle. Again, we are seeing it now. We think that it will give us an opportunity to continue growing the company, which is the primary task, but we have to always do it cautiously and conservatively, because we know how shipping is and how things can change when nobody expects them to change. We don't expect a change.
We cannot foresee what could cause a correction. You always have to be careful. We have to maintain a strong balance sheet, therefore keep enough liquidity on hand and also keep leverage low, but at the same time be able to grow the company. We did consider also instituting a share buyback program in our last board meeting. We didn't. We decided against it at the end because the share price started to gradually correct. It still is, we think, very low, but it's come off extreme lows that would warrant such a scheme to be implemented. It's still very low, our share price, but we decided against it. Growth of the company we think is more important.
I thank you. Just to follow- up on that, I'm going, I mean, through this current cycle with leverage, I mean, net debt to EBITDA a little below 2x to end of year, and I forecast it going well below 1x with no acquisitions. I mean, what debt ratios are you looking at and what would you like to have through cycles if you could put that in context, how you're looking at that?
In a good market, we would want to see that going down to below 30% leverage. Because with the correction in the market and the prices dropping, it can easily go to about 50% as prices drop based on real vessel prices. We should be always, you know, below 30% based on real prices.
Okay. All right. Thank you both for your follow-up questions.
Thank you.
Thank you. Your next question is from the line of Poe Fratt of Noble Capital Markets. Please go ahead. Your line is now open.
Good morning, Aristides. Good morning, Tasos. This is Poe Fratt from Noble Capital Markets.
Morning, Poe.
You've done a good job of expanding the fleet and enhancing the fleet of just over the last couple of quarters. Can you talk about how the S&P market looks right now and sort of what we should expect in activities? As the fleet grows, does the potential to sell some of the, you know, the oldest assets, you know, come into view? Can you just talk about sort of fleet composition in the context of, you know, what the current S&P market looks like?
Yes. It's difficult to say because it's a very dynamic market, Poe, and it's something that we evaluate both during the quarter and of course at our quarterly board meetings. It's difficult to say. What has happened and what we have seen is we saw the market correct as you said, as we've witnessed during the last quarter. It was a drop that we expected because seasonally we do expect a correction in the market. Maybe it's been stronger the correction than what we all expected. We think that we will see a change going forward and a stronger market as we go into Q2, as historically, seasonally happens.
Prices did correct a little bit, and we think we took advantage of that in buying this vessel that we did. We have to see how it develops within Q2, because things go in parallel obviously. As the market strengthens, we will be making more money, and then we will be having more money available to grow, but prices will be higher. Always it's a difficult balancing act. If this happens, we are also conscious, as you rightly say, that a couple of our vessels are over 20 years of age, and we will need to replace them. It's in our mind that we might need to swap maybe one or two of our older vessels with a couple younger vessels, thus also greening the fleet a little bit.
It's a possible action, but we don't have any particular decisions made yet. I don't want to say more other than what I told you, that we are considering all these options.
Great. Maybe you could just highlight the activity on the FFA front. What drove you to close out the FFA that you had in place for the Q1 2022 and the Q4 ? Then does this mean you don't have any FFAs in place right now?
Correct. We have nothing in place right now. We use the FFAs only as a hedge. I mean, we never take any FFA position on speculation. We take it only as a hedge, so only to fix against open days that we have on our ships. That's what we did when we thought that, you know, at $30,000 we could fix Q1 for one of our ships. It seemed a good idea. It was a good idea. We did it. When after two weeks of time when the market had dropped that much, we said, "Well, let's get this nice profit of $750,000," and we closed that position and returned the vessel into the market.
In retrospect, it would have been better to have kept that position because we would have caught the recovery in shipping, and it would have made more money, but we were happy at the time with that profit.
Then Aristides with the larger fleet, does your view on hedging change at all? Meaning, you know, with more open days, do you think that you'll do more hedging in the future? Or do you
Yes, the hedging can be done also by fixing on a time charter basis, right? We will not only be doing it through FFAs. We are also doing it and can do it on fixing time charter. It's exactly the same result. You see the Good Heart. We fixed that vessel for a year charter of $25,000 a day during the last quarter. That is also hedging our position to an extent. We are not very much hedged. We are only, as you saw, 19% covered for 2022, which is not a lot. We still think we want to be quite open, but you can expect that you will see us within Q2, which is traditionally quite a strong month, to increase that coverage, either through FFAs or through time charters.
Understood. Tasos, it looks like you're aiming to, you know, finance about 50% of the, you know, the latest acquisition. You typically, when you line up an acquisition, it seems like you have the terms, you know, pretty well, you know, if not fixed, at least preliminary terms. Would you be able to share any preliminary terms on the new debt that you might be looking at?
I mean, we don't have fixed terms this time around because we have enough cash to buy the vessel outright right and finance it after the acquisition, as I mentioned. We expect to see a LIBOR margin to be around between 2% and 2.5%. We're looking to finance about 50% of the vessel.
Do you think you can get a five-year term or sort of what should we be thinking about sort of the-
I'm sure we'll get 4- to 5-year term for the loan and the profile up to the age of 16-17.
Great. Thanks for your time.
Thank you, guys.
Thank you, Poe.
Thank you. There are no further questions at this time, so may I hand the meeting back to Mr. Aristides Pittas for any closing remarks.
Thank you all for being with us for our quarterly call, and we'll be with you during our next quarter to discuss 2021 results. Thank you.
Thanks, everybody.
That concludes the presentation. Thank you for participating. You may disconnect.