Thank you for standing by, ladies and gentlemen, welcome to the EuroDry conference call on the second quarter 2019 financial results. We have with us today Mr. Pittas, Chairman and Chief Executive Officer, and Mr. Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There'll be a presentation followed by a question and answer session, at which time if you wish to ask a question, you will need to press Star and one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today, Friday the 9th of August 2019. Please be reminded that the company announced its results with the 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. 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 result in such expectations not being realized. I kindly draw your attention to slide two of 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. I would now like to pass the floor over to Mr. Pittas. Thank you, sir. Please go ahead.
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 six-month period and second quarter ended June 30th, 2019. As a reminder, I would like to mention that in May 2018, Euroseas contributed to EuroDry, its dry bulk fleet of six vessels, one Ultramax and two Kamsarmax vessels built between 2016 and 2018, and three Japanese-built Panamax vessels built between 2000 and 2004. EuroDry was spun off from Euroseas on May 30th, 2018. Since the spin-off, EuroDry bought an additional Panamax bulker. Comparisons in the following presentation to periods of last year refer to the dry bulk fleet existing at the time for the periods presented. Please turn to slide three. Our income statement highlights are shown here.
For the second quarter of 2019, we reported total net revenues of $6.2 million, adjusted EBITDA of $1.8 million, and net income of negative -$1.8 million. The company declared its second preferred shares dividend of $0.6 million on Series B preferred shares and a $0.2 million preferred deemed dividend, and therefore, net income attributable to common shareholders was negative $2.6 million. Basic and diluted earnings per share attributable to common shareholders for the second quarter of 2019 was -$1.14 per share. An average of seven vessels were owned and operated during the second quarter of 2019, earning an average time charter equivalent rate of $10,724 per day. Turning to slide four for the market highlights for the second quarter of 2019. During the second quarter, the dry bulk market started recovering with the spot market reaching multi-year highs by the month of July.
Along with the reversal of certain short-term factors like the opening of iron ore mines in Brazil, the improvement has also been the result of limited supply growth due to the low order book, coupled with reduced vessel availability as a percentage of the fleet prepares to comply with the low sulfur emission requirements. We are optimistic about the near and medium-term prospects of the market as fleet growth is expected to remain constrained. The main uncertainty is related to the continuation and extent of the trade tensions, mainly between the U.S. and China. Please turn to slide five for our chartering and operational highlights. The Pantelis was fixed for a trip of about 50 to 60 days at $9,500 per day, and thereafter, just recently rechartered for about 100 days at $11,500 per day.
The Starlight was extended for a period until September 2020, January 2021 at 100% of the four-time charter BPI average index. Finally, the Tasos was fixed for a trip of about 60 days at $14,400 per day plus $440,000 bonus, which translates to roughly $10,500 per day time charter equivalent rate. In the first quarter of 2019, we had FFA short exposure of 40 days per month at $11,950 per day, which resulted in a profit of about $600,000. In the second quarter of 2019, our FFA short exposure was for 90 days per month at $11,261 per day, which resulted in a profit of about $460,000. At the beginning of Q3, we saw the market rising and decided to close our hedges for Q3 and Q4, resulting in a loss of about $500,000. Overall, therefore, our FFA coverage produced a net profit of about $550,000.
In reference to dry dockings, Starlight's was completed in the second quarter of 2019 in about 35 days, at a cost of approximately $1.4 million, including the ballast water treatment plant. In addition, the Eirini entered the dry dock in July and is expected to return to service around mid-August. Please turn to Slide six for the synopsis of the EuroDry fleet as of today. EuroDry comprises of seven dry bulk vessels with a cargo carrying capacity of 529,000 deadweight and a fleet average age of around 10 and a half years. Slide seven shows the employment schedule. As you can see, coverage for the remainder of 2019, as of September 1st, including index charters and pool employments, stands at about 62%, or at 34% without taking into account the index-linked charters and the pool employment.
Having secured the two Kamsarmaxes until Q1 2020 on profitable rates, we are pursuing the strategy of employing the remaining five of our vessels on short-term contracts or index-linked contracts, or even pools, in anticipation of a still-improving market. In the following slides, we synopsize our outlook into the dry bulk market. Let's turn to slide nine. The IMF projected world GDP growth in 2019 is revised downwards from 3.3% in the previous quarter to 3.2% now. Among the developed economies, China's second quarter suggests a weakening activity of 6.2% compared to 6.3% in the previous quarter. For the advanced economies, the revision to U.S. growth in 2019 reflects stronger than anticipated performance of 2.6% compared to 2.3% in the previous quarter.
Although the IMF boosted its growth forecast for the United States, it scaled back predictions for Eurozone, expected to stay the same as before at 1.3%, while India is down from 7.3% to 7%, and Brazil is expected to slow the most from 2.1% to 0.8%. For 2020, the IMF predicts stronger growth of 3.5%, while for the U.S., it's expected to be lower than 2019 at 1.9%. Growth in the Euro area is expected to be 0.1 percentage higher than the previous quarter and 0.3% higher than their 2019 forecast. Whereas the forecast for 2020 reflects a strengthening India, Brazil, and Russia relative to 2019, whilst China could slow a bit to just 6% from 6.2% forecasted for 2019 and 6.1% projected for 2020 in IMF's previous quarter forecast.
Looking onto the dry bulk trade, according to Clarksons, the trade in 2019 was projected to grow by 1.3%, down from the 2.4% expected in the previous quarter estimates. After the most recent reintroduction of 30 million tons Vale iron ore into the market, this figure is expected to increase again to around 2%-2.5%. In 2020, according to Clarksons forecasts, again, the trade rate is set to grow at a 3.1% rate. Please turn to slide 10 to review the dry bulk delivery schedule. Currently, the order book stands at 5.7% for 2019, 5.4% for 2020, and just 1.8% for 2021. This is comparatively very low, near the lowest levels of the last 20 years.
Note that due to slippage, cancellations, and scrapping, the overall fleet growth during the next two years, but also 2021, unless a significant number of new orders is placed, should be very small. Please turn to page 11 where we summarize our look on the dry bulk market. Since the beginning of 2019, we see that rates for the Capesize vessels dropped below OpEx levels. A strong improvement followed, which peaked in July at around $32,000 per day and has since then corrected to about $24,000 per day. The Panamax and Supramax were less affected by the Vale disaster and dropped much less before peaking to about $17,000 per day and $11,000 per day, respectively, in mid-July. These sizes have also corrected to a lesser extent, though, and current rates hover close to $15,000 for the Panamax and around $11,000 for the Supramax.
The accident in Vale's iron ore mine in Brazil was estimated to reduce Brazilian iron ore exports by 90 million tons annually until mines came back in operation. It seems that a big part of the capacity will come back pretty soon. The Brazilian government already announced a return of about 30 million tons of iron ore exports back in the market and hinted that more is to come very soon. The lost quantities can only be partially replaced by increasing production across other mines in the world. Our analysis for 2019, 2020 and 2021 shows marginal balance, which would suggest a strong second half 2019, considering the weak environment in Q1, and a flat 2020. For 2021, the current fundamentals look very promising as the order book stands only at 1.8% of the projected fleet.
Coal imports, despite the longer-term concerns due to the overall desire to reduce coal use, are expected to further grow in 2019 as electricity demand growth remains robust. Grain trade is expected to rebound if we manage to have an agreement between China and the U.S., this is something we have to monitor closely. The environmental regulations coming into effect as of 2020 are the wild card whose exact effect on the demand improvement is difficult to quantify, but could be very substantial. Please turn to slide 12. The left side of the slide shows the evolution of one-year time charter for Panamax dry bulk vessels since 2001.
Even though dry bulk vessel rates bounced back from the all-time lows in 2016, we are still below historical levels, even subtracting the super cycles. The right-hand side of the slide shows the vessel values in relation to 10-year historical prices. Of course, dry bulk prices have moved above all-time low values that were established at the beginning of 2016, but the medium price of 10-year-old Panamax is about $17 million, and we are still significantly lower than that at around $13 million. With a stabilizing and even improving freight rate environment, we would expect asset values to improve as well. We are therefore carefully evaluating various opportunities and options to deploy the funds and investment capacity we have available in terms of acquiring new vessels, renewing our fleet, and exploring merger possibilities with other fleets in accretive transactions.
I will now pass the floor over to our CFO, Tasos Aslidis, to go over our financial highlights.
Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. I would take you over now our financial result highlights for the second quarter, first half of 2019. For that, please turn to page 14. For the second quarter of this year, we reported total net revenues of $6.2 million, representing a 1% increase over total net revenues of $6.1 million during the second quarter of 2018. This was mainly the result of the increased average number of vessels that we operated, partly offset by the increase in the average time charter equivalent rate our vessels had in the second quarter. We reported net loss for the period of $1.8 million and net loss attributable to common shareholders of $2.6 million as compared to net income of $0.5 million, and net income attributable to common shareholders of $0.4 million for the same periods of 2018 respectively.
The net loss attributable to common shareholders includes a $0.6 million cash and dividend payable to the preferred shareholders and a deemed dividend of $0.2 million due to the partial redemption of our preferred shares, and that relates to the origination cost of the securities. The results for the second quarter of 2019 also include a $0.2 million of unrealized losses on an interest rate swap contract and a $0.9 million of unrealized loss on forward freight agreement contracts. Adjusted EBITDA for the second quarter of 2019 was $1.8 million compared to $2.4 million achieved during the second quarter of 2018. Basic and diluted loss per share attributable to common shareholders for the second quarter of 2019 was $1.14 per share, calculated on $2.2 million basic and diluted weighted average number of shares outstanding, compared to earnings of $0.17 per share for the second quarter of 2018.
Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized gain or loss on derivatives and the deemed preferred dividend, the adjusted loss attributable to common shareholders for the quarter ended June 30, 2019, would have been $0.65 per share basic and diluted compared to adjusted earnings of $0.16 per share basic and diluted for the quarter ended June 30, 2018. For the first half of this year, we reported total net revenues of $12 million, representing a 12% increase over total net revenues of $10.7 million during the first half of 2018. We reported net loss for the period of $49 million and net loss attributable to common shareholders of $2.4 million as compared to net income and net loss attributable to common shareholders of $1.3 and $2.4 million for the same period of 2018.
The net loss attributable to common shareholders includes a $1 million cash and in-kind dividend payable to the preferred shareholders and a deemed dividend of $0.2 million due to the partial redemption of our preferred shares that I explained earlier. The results for the first half of 2019 also include a $0.2 million of unrealized loss on derivatives. Adjusted EBITDA for the first half of 2019 was $4.3 million compared to $2.1 million achieved during the first half of last year. Basic and diluted loss per share attributable to common shareholders for the first half of 2019 was $0.96, calculated again on 2.2 million basic and diluted weighted average number of shares outstanding compared to $0.64 per share loss for the first half of 2018, calculated again on 2.2 million shares.
Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized loss or gain on derivatives and the deemed preferred dividend, the adjusted loss attributable to the common shareholders for the six-month period ended June 30th, 2019, would have been $0.87 per share, basic and diluted, compared to adjusted loss of $0.69 per share basic and diluted for the same period of last year. Let's now turn to slide 15. In this slide, we review our fleet performance for the second quarter of 2019 and compare it to the same period of the previous year. Our utilization rate is as usual, broken down into the commercial and operational components. In the second three months of 2019, we had a 99.9% commercial utilization rate and a 98.3% operational utilization rate compared to 100% for both for the corresponding periods in 2019.
I want to remind you here that our utilization rate calculation does not include vessels that were in scheduled dry docks or repairs if any such event occurred during the reporting periods. In the second quarter of this year, we operated 7 vessels with an average time charter equivalent rate of $10,724 per vessel per day, compared to 5.6 vessels the same period of 2018, which earned on average $12,069 per vessel per day. Total daily operating expenses, including management fees, G&A expenses, but excluding dry docking cost, averaged $5,948 per vessel per day during the second quarter of this year, as compared to $6,726 per vessel per day for the same quarter of 2018. Let's now look at the bottom of this table to our daily cash flow breakeven level presented here on a per vessel per day basis.
For the second quarter of 2019, we reported an operating cash flow breakeven level, including loan repayments and the cash portion of our preferred dividend of $11,780 per vessel per day as compared to $12,334 per vessel per day that we had during the second quarter of 2018. Let's now turn to slide 16. This slide shows on the right-hand side an estimate of our cash flow breakeven level for the next 12 months, and on the left side, we show our scheduled debt repayments, including scheduled balloon repayments over the next five years. The chart shows our debt profile actually before and after the recent refinancing of the balloon payment of Eirini P. As we see in the chart, after the refinancing of the aforementioned balloon payment, we have no balloon payments coming up in 2019 and 2020, with the first one being in 2021.
We believe that we have a competitive debt cost for the size of our company with the average senior debt margin standing at around 3%, which assuming a LIBOR at around 2.5% would translate to an all-in cost for our senior debt of about 5.5%. If we include the cost of our preferred equity, the overall cost of our structured financing would be close to 6.3%. I would like to note that we have recently redeemed about $4.3 million of our Series B preferred shares in exchange of a decrease in the quarterly dividend rate to 9.25% from 12% until January 2021, when our rate was and still is to increase to 14%.
The remaining amount of Series B preferred shares is about $15 million, and that represents about 20% of our debt and preferred equity funding. Expressed in dollars per day, our loan principal payments over the next 12 months amount to about $2,850 per vessel per day contribution to our cash flow breakeven level. Our preferred dividend payments contribute another $550 per vessel per day. If we make similar assumptions for the rest of the components of our cash flow breakeven, that is the operating expenses, the general and administrative expenses, interest, dry docking, et cetera, always expressed in a per vessel per day basis, we can project that we have approximately a cash flow breakeven level over the next 12 months of about $11,700 per vessel per day. You can see that on the table on the right part of the slide.
With this, I would like to pass the floor back to our Chairman and CEO, 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. As a reminder, if you wish to ask a question, please press star and one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star and two. Once again, please press star and one if you wish to ask a question. Your first question, sir, comes from the line of Tate Sullivan from Maxim Group. Please go ahead. Your line is open.
Hi, thank you. First reviewing the downtime in the quarter for the Starlight. Did it end up being a bit longer than you forecasted, or was it within budget? Were there any unexpected costs related to that, please?
We budgeted five days less, to be honest, on that dry dock, but the weather was not helping, so things got a little bit delayed. The ballast water installation ended up being a little bit more costly than expected. Other than that, the end result was about $1.4 million and 35 days.
Okay, thank you. Looking at is the other ship scheduled to go in dry dock this current quarter undergoing a similar process to what the Starlight did, and do you expect similar costs?
It is. We expect the cost to be lower at $1 million-$1.1 million.
$1.1 million.
$1.1 million and the duration to be less than 30 days.
Is that due to being a smaller ship or different shipyard or what other factors?
It had an easier ballast water treatment plant installation because the way the machinery was laid out, it was much easier to do. Other than that, the ships are quite similar ships. This one required a little bit less work than the other.
Okay. Thank you for that detail.
Sure. Anything else?
Thank you, sir. There are no further questions. I'll hand back to you for closing remarks.
Thank you very much for listening in to us. We'll be back in November with our Q3 results. Thank you.
Thanks, everybody.
Thank you. That does conclude our conference for today. Thank you for participating. You may all disconnect.