Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2023 Earnings Presentation
21 slides from Euroseas's earnings presentation, Aug 9, 2023
Slide 1: Earnings Presentation Quarter Ended June 30, 2023
Earnings Presentation Quarter Ended June 30, 2023 August 09, 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: 2023 Second Quarter Financial Highlights
2023 Second Quarter Financial Highlights Financial Results in million USD except per share figures Q2 2023 Net Revenues 47.7 Net Income 28.9 4.15/ share(2) Adj. Net Income(1) 29.0 4.17/ share(2) (1) Adj. EBITDA 30.6 1) See press release of Aug 09, 2023 for reconciliation of Adj. Net Income and Adjus
Slide 4: Recent S&P, Chartering & Operational Highlights
Recent S&P, Chartering & Operational Highlights ➢ Newbuilding/ New acquisitions/ Scrapping • M/V Terataki was delivered on July 6, 2023. Following her delivery, she commenced a thirty-six to forty months charter with Asyad Lines @ $48,000/day. ➢ Chartering • Joanna: extended for 6-8 months @ $13,900
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 19 vessels with an average age of 15.9(1) years and a carrying capacity of 58.9k TEU 12x Feeder 7x Intermediate Avg. Age: 16.0 years(1) Avg. Age: 15.7years(1) Carrying Capacity: 27k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Built
Slide 6: Vessels Under Construction
Vessels Under Construction Updated Seven vessels with capacity of 16,600 teu to be delivered during 2024 4x Feeders 3x Feeders Carrying Capacity: 2,800 teu each Carrying Capacity: 1,800 teu each Size To be Name Type DWT TEU Delivered Vessels under construction Tender Soul (H4236) Feeder 37,237 2,800
Slide 7: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2023 2024 2025 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec INDEX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 8: Market Overview
Market Overview 8
Slide 9: Last year 6-12m TC rate ($/day)
Last 10 year 6-12m TC rate ($/day) 1,700 TEU grd 2,500 TEU grd 70,000 Aug 04th 2023 80,000 Aug 4th 2023 60,000 $12,500/day $14,750/day 70,000 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 $17,946 $13,180 20,000 10,000 10,000 $8,155 $9,255 0 0 Current Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan
Slide 10: Containership Market Highlights – Q2 2023
Containership Market Highlights – Q2 2023 ➢ One-Year time charter rates across all segments improved slightly during Q2, but have decreased since by about 15-20%. • Average rates ($/day) during 2023Q2 were up by 19% compared to 2023Q1 as shown in the table below Size (teu) / 23Q1 average 23Q2 averag
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 2.1(2.1) 1.8(1.6) 1.0(1.1) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.3 3.5(3.5) 0.9(0.8) 1.5(1.4) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 2.2 1.0(1.1) 1.4(1.3) 1.0(1.0) Ch
Slide 12: Age Profile and Orderbook, Total Fleet
Age Profile and Orderbook, Total Fleet Age Profile Containership Orderbook 20% 25% 25% 20% 10% For delivery in 23/24/25+ (as of July-23) 10.6% 8.0 3.5 8000+: 53/ 134/ 180 9.5% 3-7,999: 52/ 121/ 38 7.0 3.0 100-2,999: 129/ 140/ 42 9.4% 6.0 1.8 2.5 5.0 0.1 1.9 3.5 2.0 1.5 mTEU mTEU 4.0 1.5 4.5% 0.6 3.0
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 23% 12% 16% 27% 23% 0.45 1.2 9.4% 0.40 1.0 0.35 0.30 0.8 0.6 5.6% 0.5 0.25 0.5 mTEU mTEU 0.6 4.9% 0.20 0.3 0.4 0.15 0.2 0.5 0.10 1.2% 0.5 0.5 0.2 0.4 0.3 0.05 0.0 0.00 0-4 5-9 10-14 15-19 20+ 2018 2019 2020 2021 2022
Slide 14: Outlook Summary
Outlook Summary ➢ Clear signs have emerged indicating that the previously shielded containership charter market is now being affected by the decreasing demand for ocean freight. Daily hire rates for all size vessels have declined; there has been a noticeable accumulation of available tonnage in smal
Slide 15: Market Evolution
Market Evolution Cont 2,500 TEU One-Year Time Charter Rate Cont 2,500 TEU – NB & 10 Year Old Price 90,000 60 80,000 50 70,000 60,000 40 50,000 $/ day mm USD 30 40,000 As of Aug 04, 2023, 1YR TC rate 30,000 for 2,500 TEU vessel stands at 20 $14,750/day 20,000 10 10,000 0 0 Jul-2011 Jul-2012 Jul-2014
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: Q2 and H1 of 2022 and 2023
Financial Highlights: Q2 and H1 of 2022 and 2023 Second Quarter Change Six Months Change (in million USD except per share amounts) 2022 2023 % 2022 2023 % Net Revenues 48.48 47.70 -1.6% 93.85 89.63 -4.5% Net Income 30.75 28.88 -6.1% 60.69 57.63 -5.0% Earnings per share, diluted 4.24 4.15 -2.1% 8.36
Slide 18: Fleet Data for Q2 and H1 of 2022 and 2023
Fleet Data for Q2 and H1 of 2022 and 2023 Second Quarter Six Months (in million USD except per share amounts) 2022 2023 2022 2023 Number of vessels 16.46 17.95 16.23 17.52 Utililization Rate(1) Operational 99.7% 99.8% 99.6% 98.7% Commercial 100.0% 100.0% 99.8% 99.1% Overall 99.7% 99.8% 99.4% 97.8% (
Slide 19: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile of Existing Debt $27.0m (4 vessels) 80.00 Cost of funding: 70.00 Outstanding bank debt of $132.8 with average margin of about 2.54%; assuming 3M SOFR(1) of 5.36%, our cost 60.00 $9.3m (2 vessels) of senior debt is 7.90% 27.02 $2.0m (2 vessels) 50.00 $1.8
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (06/30/23) Notes 400 Assets ➢ Cash & Other assets: $51.2m Cash & Other 350 Assets ➢ Advances for NB vessels: $93.8m ➢ Vessels book value: $249.1m Advances for ➢ Total assets (at book value): $394.13m 300 NB vessels Shareholders' Equity (Net Book Li
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,