Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Capital Link Webinar January 2024
22 slides from Euroseas's conference presentation, Jan 18, 2024
Slide 1: Euroseas Ltd. Company Presentation
Euroseas Ltd. Company Presentation [NASDAQ: ESEA] Capital Link Webinar January 2024 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: Introduction
Introduction 3
Slide 4: Euroseas - Introduction
Euroseas - Introduction ➢ Euroseas is a provider of worldwide ocean-going transportation services through the ownership and operation of container vessels ▪ Established in 2005 by the Pittas family which has owned/operated vessels since 1870; currently, the 4th generation at the helm of the Company
Slide 5: Container Sector Overview: Supply/Demand Fundamentals
Container Sector Overview: Supply/Demand Fundamentals 5
Slide 6: Current Point in the Market
Current Point in the Market 6 – 12m TC rate ($/day) 10 year old Second Hand Prices ($m) TC rates have eased further, but broadly remain above 2019 levels Secondhand prices have dropped to the lowest levels since May-21 120,000 100.00 90.00 100,000 80.00 70.00 80,000 60.00 $/ day $m 60,000 50.00 40.0
Slide 7: Opportunities & Challenges
Opportunities & Challenges ➢ The record high rates during 2021 and 2022 have… • Allowed vessel owners to enter into longer term contracts o Two- to three-year long at high rates … o …ensuring great cash flows and profits well into 2025 • Resulted in a spade of vessel ordering despite future fuel unc
Slide 8: Age Profile and Orderbook, Total Fleet
Age Profile and Orderbook, Total Fleet Age Profile Containership Orderbook 22% 24% 23% 20% 10% For delivery in 24/25/26+ 7.0 (as of Jan-24) 0.2 4.0 8000+: 138/ 119/ 112 6.0 3-7,999: 131/ 35/ 16 1.9 0.1 3.5 100-2,999: 211/ 51 / 24 11.4% 5.0 2.0 1.6 3.0 3.6 4.0 2.5 6.1% mTEU 8.0% mTEU 0.7 5.5% 3.0 2.0
Slide 9: 1,000-3,000 teu Fleet Age Profile & Orderbook Delivery Schedule
1,000-3,000 teu Fleet Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook 0.45 23% 12% 13% 29% 24% 0.40 24% of the 1-3,000 teu fleet 0.35 ~7.8% is over aged 1.3 0.30 1.1 0.63 0.25 ~5.8% mTEU 0.51 0.9 ~3.0% ~4.9% 0.51 0.20 ~4.4% 0.7 ~1.2% mTEU 0.15 0.5 0.20 0.53 0.
Slide 10: 3,000-5,999 teu Fleet Age Profile & Orderbook
3,000-5,999 teu Fleet Age Profile & Orderbook Age Profile 5.6% 7.8% 30.4% 36.7% 19.5% 2.0 1.8 1.6 0.36 0.15 0.02 1.4 1.2 0.39 mTEU 1.0 1.15 0.8 0.41 Synergy vessels 0.6 & Rena P & 0.82 Emmanuel P 0.04 0.4 0.11 0.33 0.03 0.2 0.24 0.25 0.28 0.14 0.18 0.0 0.02 0-4 5-9 10-14 15-19 20+ 3-3,999 Narrow Bea
Slide 11: Containerized Trade Demand Growth
Containerized Trade Demand Growth ➢ Demand growth for container vessels is primarily a function of containerized trade growth which is mainly linked to world GDP growth Containerized Trade Growth Vs World GDP Growth 8.0 6.0 4.0 2.0 % p.a. 0.0 -2.0 -4.0 -6.0 2015 2016 2017 2018 2019 2020 2021 2022e 2
Slide 12: Outlook Summary
Outlook Summary Container shipping is under pressure from large amounts of new capacity coming into the fleet. However, in the last few weeks mainly due to the events in the Red Sea shipping rates have doubled and charter rates drop has been reversed. The Contex index has increased by 10% since Dece
Slide 13: Euroseas Operations, Chartering & Strategy
Euroseas Operations, Chartering & Strategy 13
Slide 14: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 19 vessels with an average age of 16.9(1) years and a carrying capacity of 58.9k TEU 12x Feeder 7x Intermediate Avg. Age: 17 years(1) Avg. Age: 16.7years(1) Carrying Capacity: 27.0k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Built
Slide 15: Vessels Under Construction
Vessels Under Construction Seven vessels with capacity of 22,200 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 16: Vessel Employment - Significant Visibility Beyond 2024
Vessel Employment - Significant Visibility Beyond 2024 Solid chartering strategy ensuring substantial cash flow generation throughout 2024 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
Slide 17: Financial Highlights
Financial Highlights Nine-month 2023 Highlights and a glimpse of 2024 First nine-months of 2023 were quite profitable ➢ Total net revenues of $140.3 million. ➢ Net income attributable to common shareholders of $89.8 million or $12.95 and $12.90 earnings per share basic and diluted, respectively incl
Slide 18: Projected Cash Flow Break Even
Projected Cash Flow Break Even Cash Flow Break Even Estimate for the Next 12 months ($/day) 4,159 14,646 1,855 10,487 1,210 558 7,422 6,864 OPEX G&A Expenses Operating CBE Drydocking expenses Interest expense Operating and Loan Repayments Total Financing CBE 18
Slide 19: Key Balance Sheet Highlights: Low Leverage
Key Balance Sheet Highlights: Low Leverage Current outstanding debt as of Dec 31, 2023 compared to the fleet valuation Loan to Value of the existing fleet (1): 49% 37% 96% $351.3m $267.2m $131.0m $137.1m Current Debt Outstanding (1) Debt Vessels Value Charter Free Vessels Value Charter Adjusted Scra
Slide 20: Why Euroseas: Organic Growth & Shareholder Value
Why Euroseas: Organic Growth & Shareholder Value ➢ We have insulated ourselves to a great degree from the current market by having secured long-term charters for the majority of our current fleet • 2024 should be comparably profitable to 2022 & 2023. • Conservative finance minimizes risks and increa
Slide 21: Thank you!
Thank you! 21
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 Dr. Tasos Aslidis or, Nicolas Bornozis / Markella Kara Chief Financial Officer Investor Relations Euroseas Ltd. Capital