Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q1 2023 Earnings Presentation
21 slides from Euroseas's earnings presentation, May 16, 2023
Slide 1: Earnings Presentation Quarter Ended March 31, 2023
Earnings Presentation Quarter Ended March 31, 2023 May 16, 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 First Quarter Financial Highlights
2023 First Quarter Financial Highlights Financial Results in million USD except per share figures Q1 2023 Net Revenues 41.9 Net Income 28.8 4.10/ share(2) Adj. Net Income(1) 21.7 3.09/ share(2) (1) Adj. EBITDA 26.0 1) See press release of May 16, 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/ Scraping • M/V Gregos was delivered on April 6, 2023. Following her delivery, she commenced a thirty-six to forty months charter with Asyad Lines @ $48,000/day. Chartering • Synergy Keelung: fixed @ $23,000 for 24-26
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 18 vessels with an average age of 16.7(1) years and a carrying capacity of 56.1k TEU 11x Feeder 7x Intermediate Avg. Age: 17.9 years(1) Avg. Age: 15.7years(1) Carrying Capacity: 24.2k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Bui
Slide 6: Vessels Under Construction
Vessels Under Construction Eight vessels with capacity of 19,400 teu to be delivered during the remaining 2023 & 2024 5x Feeders 3x Feeders Carrying Capacity: 2,800 teu each Carrying Capacity: 1,800 teu each Size To be Name Type DWT TEU Delivered Vessels under construction Terataki (H4202) Feeder 37
Slide 7: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2023 2024 2025 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec INDEX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 8: Market Overview
Market Overview 8
Slide 9: Time Charter Rates by Vessel Size
Last 10 year 6-12m TC rate ($/day) 1,700 TEU grd 2,500 TEU grd 70,000 May 12th 2023 80,000 May 12th 2023 60,000 $16,800/day 70,000 $18,750/day 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 $17,974 $13,169 20,000 10,000 10,000 $8,050 $9,231 0 0 Current May-2014 May-2016 May-2017 May-2019 Ma
Slide 10: Containership Market Highlights – Q1 2023
Containership Market Highlights – Q1 2023 One-Year time charter rates across all segments have continued to ease during Q1, but have increased since by about 10-15%. • Average rates ($/day) during 2023Q1 were down by 18% compared to 2022Q4 as shown in the table below Size (teu) / 22Q4 average 23Q1
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(2.0) 1.6(1.4) 1.1(1.0) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.3 3.5(3.5) 0.8(0.7) 1.4(1.6) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 2.1 1.1(1.4) 1.3(1.8) 1.0(0.9) Ch
Slide 12: Age Profile and Orderbook, Total Fleet
Age Profile and Orderbook, Total Fleet Age Profile Containership Orderbook 20% 26% 25% 19% 10% For delivery in 23/24/25+ 3.5 (as of May-23) 8.0 8000+: 80/ 131 / 159 10.3% 3-7,999: 66/ 118/ 41 7.0 3.0 100-2,999: 152/ 136/ 19 8.4% 9.7% 6.0 1.7 2.5 5.0 0.1 3.3 2.0 mTEU 1.8 mTEU 4.0 1.4 4.0% 1.5 3.0 3.8
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 23% 12% 18% 25% 23% 1.2 0.45 9.4% 0.40 1.0 0.35 0.8 0.30 5.6% 0.6 0.5 0.5 0.25 mTEU 0.6 4.9% 0.3 0.20 0.4 0.15 0.2 0.10 0.8% 0.2 0.5 0.4 0.4 0.5 0.3 0.05 0.0 0.00 0-4 5-9 10-14 15-19 20+ 2018 2019 2020 2021 2022e 2023
Slide 14: Outlook Summary
Outlook Summary Despite the fall in volumes, easing of congestion and relevant bottlenecks and huge orderbook expectations the container time charter market has shown admirable resilience and TC rates are still way above pre-pandemic levels • The 6-12 month TC rates have firmed and are currently 1
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 May 12, 2023, 1YR TC rate for 2,500 TEU vessel stands at 30,000 $18,750/day 20 20,000 10 10,000 0 0 May-2011 May-2012 May-2013
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: First Quarter of 2022 and 2023
Financial Highlights: First Quarter of 2022 and 2023 First Quarter Change (in million USD except per share amounts) 2022 2023 % Net Revenues 45.37 41.94 -7.6% Net Income 29.94 28.75 -4% Earnings per share, diluted 4.13 4.10 -1% (1) Interest & Finance Costs, net 1.01 0.66 Depreciation 3.72 5.27 (Gain
Slide 18: Fleet Data for the First Quarter of 2022 and 2023
Fleet Data for the First Quarter of 2022 and 2023 First Quarter (in million USD except per share amounts) 2022 2023 Number of vessels 16.00 17.10 (1) Utililization Rate Operational 99.5% 97.6% Commercial 99.6% 98.1% Overall 99.2% 95.7% (usd/day/vessel) (2) Time Charter Equivalent (TCE) $33,986 $29,2
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) 70.00 Cost of funding: 60.00 $9.3m (2 vessels) Outstanding bank debt of $121m with average margin $2.0m (2 vessels) of about 2.71%; assuming 3M LIBOR (1) of 5.34%, our $3.8m (4 vesse
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (03/31/23) Notes 350 Assets Cash & Other Cash & Other assets: $51.3m Assets Advances for NB vessels: $98.0m 300 Vessels book value: $211.8m Advances for Shareholders' Total assets (at book value): $361.05m 250 NB vessels 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,