Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2022 Earnings Presentation
22 slides from Euroseas's earnings presentation, May 24, 2022
Slide 1: Earnings Presentation Quarter Ended March 31, 2022
Earnings Presentation Quarter Ended March 31, 2022 May 24, 2022 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 First Quarter Financial Highlights
2022 First Quarter Financial Highlights Financial Results in million USD except per share figures Q1 2022 Net Revenues $45.37 Net Income Attributable to Common Shareholders $29.94 $4.13/share(2) Adj. Net Income $26.83 $3.70/share(2) Attributable to Common Shareholders(1) Adj. EBITDA(1) $31.11 1) See
Slide 4: Recent Chartering & Operational Highlights
Recent Chartering & Operational Highlights Chartering: • M/V Aegean Express: extended for 36-39 months at $41,000/day beginning March 31, 2022 • M/V Synergy Oakland: fixed for a single voyage at $160,000/day, followed by a 30-day charter at $180,000/day as from April 2022 and, subsequently, fixed fo
Slide 5: Fleet Growth Strategy with Two Components
Fleet Growth Strategy with Two Components Newbuilding Program: Nine vessels, 6 x 2,800 teu & 3 x 1,800 teu • In May 2022, placed orders for two additional 2,800 teu eco design fuel efficient newbuilding vessels … • …following a similar pair of sister vessels placed in February 2022 and another pair
Slide 6: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 18 vessels with an average age of 17(1) years and a carrying capacity of 58.9k TEU 10x Feeder 8x Intermediate Avg. Age: 19.2 years(1) Avg. Age: 15.7years(1) Carrying Capacity: 21.4k TEU Carrying Capacity: 37.5k TEU Size Year Name Type DWT TEU Built
Slide 7: Vessels Under Construction
Vessels Under Construction Nine vessels with capacity of 22,200 teu to be delivered during 2023 & 2024 6x Feeders 3x Feeders Carrying Capacity: 2,800 teu each Carrying Capacity: 1,800 teu each Size To be Name Type DWT TEU Delivered Vessels under construction Gregos (H4201) Feeder 37,237 2,800 Q1 202
Slide 8: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2022 2023 2024 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 # AK
Slide 9: Market Overview
Market Overview 9
Slide 10: Time Charter Rates by Vessel Size
Last 10 year 6-12m TC rate ($/day) 1,700 TEU grd 2,500 TEU grd 70,000 May 20th 2022 80,000 May 20th 2022 $61,500/day 70,000 $76,000/day 60,000 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 $11,886 $14,094 10,000 10,000 $7,650 $8,750 0 0 Apr-2010 Apr-2012 Apr-2013 Apr-2015 Apr-2016 A
Slide 11: Containership Market Highlights – Q1 2022
Containership Market Highlights – Q1 2022 ➢ Time charter rates across all segments sky-rocketed over the past 12 months reaching new all-time highs, although recently have retreated a bit ➢ Average secondhand price index increased on average by about 17.3% in 22Q1 over 21Q4 and remained high during
Slide 12: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2015 2016 2017 2018 2019 2020 2021 2022e 2023e USA 2.6 1.5 2.3 2.9 2.3 -3.5 5.7 3.7(4.0) 2.3(2.6) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.3 2.8(3.9) 2.3(2.5) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 1.6 2.4(3.3) 2.3(1.8) China 6.9 6.7 6.8 6.6 6.1 2.3 8.1
Slide 13: Age Profile and Orderbook
Age Profile and Orderbook Age Profile Containership Orderbook 22% 27% 26% 16% 8% 9.0% 7.4% For delivery in 22/23/24+ 7.0 2.5 (as of Apr-22) 2.33 0.1 8000+: 42/ 101 / 158 1.2 3-7,999: 6 / 72 / 125 2.09 6.0 2.0 100-2,999: 121/ 162 /74 5.0 2.8 2.1 4.4% 1.5 4.0 0.1 mTEU mTEU 4.5% 4.1 0.7 1.1 1.09 3.0 1.
Slide 14: Outlook Summary
Outlook Summary ➢ The war in Ukraine, new variants of COVID-19, energy prices significant increases and new Chinese lockdowns are all causing a significant negative backdrop in the world economy ➢ Supply/Demand analysis still suggests a firm market continuing in 2022 • The short-term outlook for the
Slide 15: Market Snapshot
Market Snapshot Cont 2,500 TEU One-Year Time Charter Rate Cont 2,500 TEU – 10 Year Old Historical Price Range(1) 90,000 60.0 80,000 Current price levels highest observed over the past 10 years 70,000 50.0 60,000 40.0 50,000 $m $/ day 30.0 40,000 30,000 20.0 20,000 10.0 10,000 0.0 0 0 0.5 1 1.5 2 Apr
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: First Quarter 2021 and 2022
Financial Highlights: First Quarter 2020 and 2021 First Quarter Change (in million USD except per share amounts) 2021 2022 % Net Revenues 14.31 45.37 217% Net Income 3.79 29.94 Preferred & Preferred Deemed Dividends (0.22) - Net Income attributable to Common 3.57 29.94 Shareholders Interest & Financ
Slide 18: Fleet Data for the First Quarter of 2021 and 2022
Fleet Data for the First Quarter of 2021 and 2022 First Quarter (in million USD except per share amounts) 2021 2022 Number of vessels 14.0 16.0 Utililization Rate(1) Operational 96.7% 99.5% Commercial 100.0% 99.6% Overall 96.7% 99.2% (usd/day/vessel) Time Charter Equivalent (TCE)(2) $12,134 $33,986
Slide 19: 2022 EBITDA Calculator
2022 EBITDA Calculator This slide provides a calculation tool for our shareholders and investors to assess the earnings potential in 2022 onwards, based on our existing coverage as well as the potential incremental contribution from our open days EBITDA Calculator: 2022 - 2024 2022Q1 actual 2022 Q2-
Slide 20: 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: 60.00 Outstanding bank debt of $112.12m with average margin of about 3.0%; assuming LIBOR of 1.25%, our 50.00 $1.9m (1 vessel) cost of senior debt is 4.25% and inclu
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (3/31/22) Notes 250.0 Assets ➢ Cash & Other assets: $68.6m Cash & ➢ Vessels book value: $173.2m Other 200.0 Assets Shareholders' ➢ Total assets (at book value): $241.8m Equity (Net Book Value) Liabilities ➢ Bank & other debt: $112.1m, i.e.~46.4% of
Slide 22: 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,