Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2017 Earnings Presentation
27 slides from Euroseas's earnings presentation, Aug 9, 2017
Slide 1: Earnings Presentation Quarter Ended June 30, 2017
Earnings Presentation Quarter Ended June 30, 2017 August 09, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may re
Slide 3: 2017 Second Quarter & First Half Overview
2017 Second Quarter & First Half Overview • Financial Highlights - 2017: Second Quarter First Half Net Revenues $10.0 m $18.3 m Net Loss ($1.0) m ($3.2) m Preferred Dividends ($0.4) m ($0.9) m Adj. Net Loss Available to ($1.4) m ($0.13)/ share(2) ($4.6) m ($0.42)/ share(2) Common Shareholders(1) Adj
Slide 4: Operational Highlights
Operational Highlights ➢ Vessel S&P ➢ The conclusion of the purchase of EM Astoria, a Euromar vessel, that was agreed to be acquired via CA CIB bank with a 100% financing and 35% profit split was completed. Vessel changed ownership as of 20/06/2017 ➢ Kamsarmax2 Newbuilding ➢ The construction of this
Slide 5: Chartering Highlights
Chartering Highlights Since our Q1 Conference call: ➢ Bulkers ➢ Monica P: fixed for about 2-4 months at $10,000/day ➢ Tasos: fixed for a voyage of about 90 days at about $9,100/day ➢ Pantelis: fixed for a trip of about 20-25 days at $8,000/day followed by a further similar trip at $7,250/day ➢ Conta
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Name Type DWT TEU Built Newbuilding Program Hull No YZJ 117 Kamsarmax 82,000 2018 Sub Total - NBs 1 vessel 82,000 Vessels in the water Xenia P Kamsarmax 82,000 2016 Alexandros P Ultramax 63,500 - 2017 Eirini P Panamax 76,466 - 2004 Tasos Panama
Slide 7: Euromar Joint Venture
Euromar Joint Venture Euroseas is a partner in the venture owning 14.3% of Euromar and all of the preferred units Size Year Name Type DWT TEU Built AKINADA BRIDGE Post Panamax 71,366 5,600 2001 CAP EGMONT Intermediate 41,850 3,091 2007 ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 EM CORFU Interm
Slide 8: Market Overview
Market Overview
Slide 9: Market Highlights
Market Highlights Bulkers: ➢ The BDI was at 1297 points on Mar-31 and averaged 1006 points during Q2 2017 after bottoming at 818 points on Jun-6 and ending up at 901 points on Jun-30. Currently, it stands at 1,038 points (Aug-8, 2017) ➢ Daily Cape spot rates averaged $12,043/day in Q2, Panamax spot
Slide 10: Market Highlights
Market Highlights Containerships: ➢ Time charter rates in Q2 for feeder and intermediate size vessels ranging from 1000-5000 teus have all averaged higher with rises varying from around 5% for the smaller sizes to 40% for the old panamaxes. ➢ The 1,700 teus geared vessel rose from an average of $6,4
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook 7% of the fleet is m160 dw t For delivery in 17/18/19+ m dwt over 20 yrs old 400 as of Jun-17): 380 140 360 Cape 44/53/22 340 36% Panamax 68/42/25 320 120 H/S/Umax 146/46/15 300 38% 280 11.1% Handies 112/57/24
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU m TEU 7.2 2,2 6.8 32% 6.4 33 % 2,0 6.0 1,8 8.5% For delivery in 5.6 17/18/19+(as of Jun- 5.2 1,6 6.6% 17) 4.8 1.62 20% 1,4 7500+ 71/78/16 4.4 Overage fleet 3-7,499 20/17/2 4.0 1.13 is very lit
Slide 13: World Economic Growth
World Economic Growth ➢ Despite continuing anti-globalization pressures a synchronized and strong showing of the U.S., European, Japanese and Chinese economies provides support for trade growth ➢ Positives: ➢ Stronger than expected consumer confidence in the US ➢ Investment pick-up, infrastructure p
Slide 14: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 2018 2019 USA 2.8(1.8) 1.9 (1.2) 2.4 (2.8) 2.6(3.6) 1.6(2.6) 2.3(2.3) 2.5(2.5) 2.1(1.9) Eurozone -0.7 (-0.5) .-0.5 (-0.4) 0.9 (1.0) 2.0(1.2) 1.7(1.7) 1.7(1.6) 1.6(1.6) 1.6(1.6) Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7
Slide 15: Outlook Summary – Bulkers
Outlook Summary – Bulkers ➢ Market fundamentals for 2017, so far, indicate robust demand and a depleting orderbook ➢ We expect 2017 to average significantly higher than 2016 however the early “overheating” of the market makes it difficult to repeat the YTD highs! For 2018, we expect small further im
Slide 16: Outlook Summary – Containerships
Outlook Summary – Containerships ➢ We expect demand growth in 2017 to be better than 2016. YTD data suggest even more promising growth than initially estimated ➢ We expect a supply/demand balance in favor of demand in 2017 and 2018. Despite the huge orederbook of big vessels massive and continuous c
Slide 17: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 18: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 57% in 2017 (includes ships on index charters) 2017 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 EIRINI P 104% BPI4TC 104% of BPI4TC MONICA P $7,500 $6,000 $4,500 $8,000 $10,000 PANTELIS $5,850 $8,850 $8,000 $7,250 TASOS $6,950 $6,665 $9,1
Slide 19: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: Abt 68% in 2017 2017 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 EVRIDIKI G $11,000 $11,000 AGGELIKI P $7,000 $6,000 JOANNA $6,450 MANOLIS P $6,800 $6,000 NINOS $7,000 $7,500 KUO HSIUNG $7,000 $7,500 AEGEAN EXPRESS $6,300 $6,500 EM
Slide 20: ESEA Fleet Management & Operational Performance
ESEA Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 ➢ Fleet utilization rate in excess of 99.4% over last 5 9,000 years 8,000 ➢ Outstanding safety and environmental record 7,000 6,000 $ / day ➢ For 2017Q2, operational fleet utilization 99.8% and 5,000 commercial 100.0%
Slide 21: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-Year Historical Price Range $/day $m 90,000 90 80,000 Panamax 75,000 dwt 80 Max Price, 2000-2016 Containership 1700 teu 70,000 Avg Panamax Rate 70 Average Price, 2000-2016 Avg 1700teu 60,000 60 Min Price, 2000-2016 50,000 50 Curr
Slide 22: Financial Overview
Financial Overview
Slide 23: Financial Highlights: 2nd Quarter and 1st Half of 2016 and 2017
Financial Highlights: 2nd Quarter and 1st Half of 2016 and 2017 Second Quarter First Half (in million USD except per share change change amounts) 2016 2017 % 2016 2017 % Net Revenues $7.3 $10.0 36% $13.9 $18.3 32% Net Loss ($19.2) ($1.0) ($22.0) ($3.2) Preferred Dividends ($0.4) ($0.4) ($0.8) ($0.9)
Slide 24: Fleet Data for 2nd Quarter and 1st Half of 2016 and 2017
Fleet Data for 2nd Quarter and 1st Half of 2016 and 2017 Fleet Statistics Second Quarter First Half 2016 2017 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 11.44 13.12 11.49 13.25 Utilization Rate (%) Overall(1 ) 98.5% 99.8% 98.8% 97.0% Commercial(1 ) 99.3% 100.0% 99.2%
Slide 25: Vessel Debt Repayment Profile
Vessel Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $20 $17.0m » Cash Flow Breakeven - budget $15 estimate for next 12 months: $8.1m $/vessel/day million $10 OPEX $ 5,100 $8.8m G&A $ 650 $5 Interest $ 700 $1.1m $3.2m Drydock $ 650 Loan Rpmt(*) $ 1,250 $0 2017 2018 2019 2020 202
Slide 26: Cash Flow & NAV Sensitivity to Market Changes
Cash Flow & NAV Sensitivity to Market Changes ➢ Euroseas is positioned to take advantage of a potential market recovery ➢ About 50% of its total available days for the remaining of 2017 and about 10% of the total available days in 2018 are contracted with fixed charter rates leaving significant capa
Slide 27: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. c/o Eurobulk Ltd 4, Messogiou & Evropis Street 151 24 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-211-1804005 Fax.+30-211-1804097 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Cante