Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2023 Earnings Presentation
21 slides from Euroseas's earnings presentation, Nov 9, 2023
Slide 1: Earnings Presentation Quarter Ended September 30, 2023
Earnings Presentation Quarter Ended September 30, 2023 November 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 Third Quarter Financial Highlights
2023 Third Quarter Financial Highlights Financial Results in million USD except per share figures Q3 2023 Net Revenues 50.7 Net Income 32.2 4.65/ share(2) Adj. Net Income(1) 28.2 4.07/ share(2) (1) Adj. EBITDA 34.5 1) See press release of Nov 09, 2023 for reconciliation of Adj. Net Income and Adjust
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 • Aegean Express: Fixed @ $9,000/day for mi
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 19 vessels with an average age of 15.9(1) years and a carrying capacity of 58.9k TEU 12x Feeder 7x Intermediate Avg. Age: 16.0 years(1) Avg. Age: 15.7years(1) Carrying Capacity: 27k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Built
Slide 6: Vessels Under Construction
Vessels Under Construction Seven vessels with capacity of 16,600 teu to be delivered during 2024 4x Feeders 3x Feeders Carrying Capacity: 2,800 teu each Carrying Capacity: 1,800 teu each Size To be Name Type DWT TEU Delivered Vessels under construction Tender Soul (H4236) Feeder 37,237 2,800 Q1 2024
Slide 7: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2023 2024 2025 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec INDEX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 8: Market Overview
Market Overview 8
Slide 9: Last 10 year 6-12m TC rate ($/day)
$/ day $/ day 20,000 40,000 60,000 80,000 100,000 120,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0 Jul-2010 Jul-2010 Jan-2011 Jan-2011 Jul-2011 Jul-2011 Jan-2012 Jan-2012 Jul-2012 Jul-2012 Jan-2013 Jan-2013 Jul-2013 Jul-2013 Jan-2014 Jan-2014 Jul-2014 Jul-2014 3,500 TEU gls 6-12 Month 1,
Slide 10: Containership Market Highlights – Q3 2023
Containership Market Highlights – Q3 2023 In 2023Q3, one-year time charter rates across all segments saw a decline, particularly in smaller sizes, which experienced a significant drop compared to the beginning of 2023. Furthermore, there was an additional decrease of approximately 20% in November.
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) 1.5(1.0) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.3 3.3 0.7(0.9) 1.2(1.5) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 2.2 1.0 2.0(1.4) 1.0(1.0) China 6.9 6.7 6.8
Slide 12: Age Profile and Orderbook
Age Profile and Orderbook Age Profile Containership Orderbook 21% 24% 24% 20% 10% For delivery in 23/24/25+ 7.0 (as of Sept-23) 12.0% 0.2 4.0 8000+: 38/ 127 / 225 6.0 3.73 3-7,999: 43 / 122/ 39 1.8 3.5 10.4% 0.1 100-2,999: 111/ 155 / 55 5.0 9.5% 2.92 2.0 3.0 3.6 1.6 4.0 2.43 2.5 mTEU mTEU 0.7 2.0 5.
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 22% 11% 14% 28% 25% 1.3 0.45 9.42% 0.40 1.1 0.63 0.35 0.51 0.9 0.30 6.15% 0.48 0.25 mTEU 0.7 4.91% mTEU 0.20 0.22 0.5 0.51 0.45 0.26 0.15 1.84% 0.3 0.54 0.36 0.10 0.25 0.05 0.1 0.23 0.25 0.04 0.05 0.09 0.00 -0.1 0-4 5
Slide 14: Outlook Summary
Outlook Summary Charter rates continue to face renewed pressure due to weak demand, leading to a ~20% decrease in hire rates since the third quarter of 2023. The substantial accumulation of available tonnage in smaller feeder sizes is notably contributing to the downward trend in charter rates for
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 mm USD $/ day 30 40,000 20 30,000 As of Nov 03, 2023, 1YR TC rate for 2,500 TEU vessel stands at $12,500/day 20,000 10 10,000 0 Nov-2011 Nov-2012 Nov-2013 No
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: Q3 and First Nine Months of 2022 and 2023
Financial Highlights: Q3 and First Nine Months of 2022 and 2023 Third Quarter Change Nine Months Change (in million USD except per share amounts) 2022 2023 % 2022 2023 % Net Revenues 45.96 50.67 10.3% 139.81 140.30 0.4% Net Income 25.22 32.20 27.7% 85.91 89.83 4.6% Earnings per share, diluted 3.50 4
Slide 18: Fleet Data for Q3 and First Nine Months of 2022 and 2023
Fleet Data for Q3 and First Nine Months of 2022 and 2023 Third Quarter Nine Months (in million USD except per share amounts) 2022 2023 2022 2023 Number of vessels 18.0 19.0 16.8 18.0 Utililization Rate(1) Operational 99.5% 99.2% 99.6% 98.9% Commercial 100.0% 100.0% 99.9% 99.4% Overall 99.5% 99.2% 99
Slide 19: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile of Existing Debt 70.00 Cost of funding: 7.35 Outstanding bank debt of $138.4 with average margin 60.00 of about 2.32%; assuming 3M SOFR(1) of 5.41%, our cost $9.3m (2 vessels) 50.00 $2.0m (2 vessels) of senior debt is 7.73% $1.8m (1 vessel) $7.0m (1 vess
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (09/30/23) Notes Assets 400 Cash & Other assets: $69.0m Cash & Other Advances for NB vessels: $67.3m Assets 350 Vessels book value: $272.6m Total assets (at book value): $408.9m Advances for 300 NB vessels Shareholders' Liabilities Equity (
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,