Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q4 2022 Earnings Presentation
21 slides from Euroseas's earnings presentation, Feb 15, 2023
Slide 1: Earnings Presentation Quarter Ended December 31, 2022
Earnings Presentation Quarter Ended December 31, 2022 February 15, 2023 1
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: 2022 Third Quarter Financial Highlights
2022 Third Quarter Financial Highlights Financial Results in million USD except per share figures Q4 2022 Net Revenues 42.9 Net Income Attributable to Common Shareholders 20.3 2.86/ share(2) Adj. Net Income (2) 17.7 2.50/ share Attributable to Common Shareholders (1) Adj. EBITDA(1) 22.9 1) See press
Slide 4: Recent S&P, Chartering & Operational Highlights
Recent S&P, Chartering & Operational Highlights S&P: • Sold M/V Akinada Bridge for $14.2 million. The vessel was delivered to the cash buyers, on January 09, 2023. Chartering: • Joanna: fixed for 5-7 months @ $14,500 • Aegean Express: Around the completion of the vessel’s drydock, the charterers
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 17 vessels with an average age of 17.5(1) years and a carrying capacity of 53.3k TEU 10x Feeder 7x Intermediate Avg. Age:20.2 years(1) Avg. Age: 15.7years(1) Carrying Capacity: 21.4k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Buil
Slide 6: Vessels Under Construction
Vessels Under Construction Nine vessels with capacity of 22,200 teu to be delivered during 2023 & 2024 6x Feeders 3x Feeders Carrying Capacity: 2,800 teu each Carrying Capacity: 1,800 teu each Size To be Name Type DWT TEU Delivered Vessels under construction Gregos (H4201) Feeder 37,237 2,800 Q1 202
Slide 7: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2023 2024 2025 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec INDEX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 8: Market Overview
Market Overview 8
Slide 9: Last year 6-12m TC rate ($/day)
Last 10 year 6-12m TC rate ($/day) 1,700 TEU grd 2,500 TEU grd 70,000 Feb 10th 2023 80,000 Feb 10th 2023 $13,750/day $17,150/day 60,000 70,000 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 $17,969 $13,112 20,000 10,000 10,000 $7,938 $9,213 0 0 Aug-2015 Aug-2016 Aug-2017 Aug-2018 Aug-2019 A
Slide 10: Containership Market Highlights – Q4 2022
Containership Market Highlights – Q4 2022 One-Year time charter rates across all segments have generally seen a pronounced drop over the past 3 months but are still well above the 12-year historical median. • Average rates ($/day) during Q4 were down by about 70% compared to Q3 and fell by another
Slide 11: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2015 2016 2017 2018 2019 2020 2021 2022e 2023p 2024p USA 2.6 1.5 2. 2.9 2.3 -3.5 5.9 2.0(1.6) 1.4(1.0) 1.0 Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.3 3.5(3.1) 0.7(0.5) 1.6 Japan 0.5 1.0 1.8 1.0 0.7 -4.8 2.1 1.4(1.7) 1.8(1.6) 0.9 China 6.9 6.7 6.8
Slide 12: Age Profile and Orderbook, Total Fleet
Age Profile and Orderbook, Total Fleet Age Profile Containership Orderbook 21% 26% 25% 18% 10% For delivery in 23/24/25+ 3.5 (as of Jan-23) 7.0 8000+: 100/ 121 / 110 9.9% 3.0 3-7,999: 81/ 121/ 41 6.0 1.5 100-2,999: 207/ 119/ 12 9.7% 2.80 2.5 2.50 5.0 3.3 6.4% 0.1 1.9 1.99 4.0 1.3 2.0 mTEU mTEU 4.0%
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 22% 11% 19% 24% 23% 0.45 9.4% 1.2 0.40 0.380 1.0 0.35 0.8 0.30 4.7% 5.8% 0.5 0.6 0.4 0.25 mTEU mTEU 0.3 0.208 0.6 0.20 0.4 0.15 0.2 0.10 0.4% 0.2 0.4 0.4 0.4 0.5 0.3 0.05 0.019 0.0 0.00 0-4 5-9 10-14 15-19 20+ 2018 20
Slide 14: Outlook Summary
Outlook Summary Political and economic insecurity affected container shipping with freight rates dropping dramatically in November and December 2022 with TC rates returning towards more “normal” levels from the exceptional highs seen in 2021-2022H1. • The container freight index continued to weake
Slide 15: Market Evolution
Market Evolution Cont 2,500 TEU One-Year Time Charter Rate Cont 2,500 TEU – NB & 10 Year Old Historical Price Range 90,000 60 80,000 50 70,000 60,000 40 50,000 mm USD $/ day 30 40,000 20 30,000 As of Feb 10, 2023, 1YR TC rate for 2,500 TEU vessel stands at $17,150/day 20,000 10 10,000 0 0 Feb-2011 F
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: Fourth Quarter and FY of 2021 and 2022
Financial Highlights: Fourth Quarter and FY of 2021 and 2022 Fourth Quarter Change Twelve Months Change (in million USD except per share amounts) 2021 2022 % 2021 2022 % Net Revenues 38.25 42.89 12.1% 93.89 182.69 94.6% Net Income 22.76 20.34 42.96 106.24 Preferred & Preferred Deemed Dividends 0.00
Slide 18: Fleet Data for the Fourth Quarter and FY of 2021 and 2022
Fleet Data for the Fourth Quarter and FY of 2021 and 2022 Fourth Quarter Twelve Months (in million USD except per share amounts) 2021 2022 2021 2022 Number of vessels 15.01 18.00 14.25 17.12 (1) Utililization Rate Operational 98.5% 95.1% 98.5% 98.4% Commercial 100.0% 100.0% 100.0% 99.9% Overall 98.5
Slide 19: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile of Existing Debt $7.1m (2 vessels) $6.2m (3 vessels) $17.4m (4 vessels) Cost of funding: 60.0 Outstanding bank debt of $108m with average margin of about 2.85%; assuming 3M LIBOR (1) of 4.81%, our 50.0 $1.9m (1 vessel) cost of senior debt is 7.66% $1.8m
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (12/31/22) Notes 350 Assets Cash & Other Cash & Other assets: $44.0m 300 Assets Advances for NB vessels: $59.1m Vessels book value: $225.5m (incl. “held for sale”) Advances for 250 NB vessels Shareholders' Total assets (at book value): $328
Slide 21: 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 Tasos Aslidis Nicolas Bornozis / Markella Kara Chief Financial Officer \Investor Relations Euroseas Ltd. Capital Link,