Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q4 2017 Earnings Presentation
25 slides from Euroseas's earnings presentation, Mar 5, 2018
Slide 1: Earnings Presentation Quarter Ended December 31, 2017
Earnings Presentation Quarter Ended December 31, 2017 March 5, 2018
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: 2017 Fourth Quarter & Twelve Months Overview
2017 Fourth Quarter & Twelve Months Overview • Financial Highlights - 2017: Fourth Quarter Twelve Months Net Revenues $13.5 m $42.9 m Net (Loss)/Income $2.0 m ($6.1) m Preferred Dividends ($0.5) m ($1.8) m Adj. Net (Loss)/Income $1.1 m $0.10/ share(2) ($4.2) m ($0.38)/ share(2) Available to Common S
Slide 4: Operational Highlights
Operational Highlights ➢ Vessel S&P ➢ Monica P: Vessel held for sale, currently being inspected by prospective buyers ➢ Aggeliki P: Sold for scrap for $4.6m gross leaving a profit of about $0.3m over book value (the vessel was written down in Q3) ➢ Akinada Bridge: Delivered on 22/12/17 (the last of
Slide 5: Current Fleet
Current Fleet DRYBULK CARRIERS CONTAINERSHIPS Year Size Year Name Type DWT Built Name Type DWT TEU Built Vessels in the Vessels in the water water Xenia Kamsarmax 82,000 2016 Akinada Bridge Intermediate 71,366 5,610 2001 Alexandros P Ultramax 63,500 2017 EM Astoria Feeder 35,600 2,788 2004 Eirini P
Slide 6: Chartering Highlights
Chartering Highlights Since our Q3 earnings call: ➢ Bulkers ➢ Monica P: fixed for about 20 days at $8,400/day and then fixed for about 25 days at $6,500/day ➢ Tasos: fixed for about 2 months at a rate of about $9,750/day (voyage) and then fixed for about 20 days at $8,500/day ➢ Pantelis: fixed for a
Slide 7: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 8: Employment Chart – Bulkers
Employment Chart – Bulkers Coverage (as of February 28, 2018): about 22% in 2018 basis min durations (includes ships on index charters and the KMAX 2 as of June 1st 2018) 2017 2018 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
Slide 9: Employment Chart – Containerships
Employment Chart – Containerships Coverage (as of February 28, 2018):about 50% in 2018 basis max durations (since market is above current charters) 2017 2018 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 EM ASTORIA $5,700 $8
Slide 10: ESEA Fleet Management & Operational Performance
ESEA Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 ➢ Fleet utilization rate in excess of 99.4% over last 5 9,000 years 8,000 ➢ Outstanding safety and environmental record 7,000 6,000 ➢ For 2017Q4, operational fleet utilization 99.2% and $ / day 5,000 commercial 97.2% 4
Slide 11: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-Year Historical Price Range $/day $m 90,000 90 80,000 Panamax 75,000 dwt 80 Max Price, 2000-2017 Containership 1700 teu 70,000 Avg Panamax Rate 70 Average Price, 2000-2017 Avg 1700teu 60,000 60 Min Price, 2000-2017 50,000 50 Curr
Slide 12: Market Overview
Market Overview
Slide 13: Market Highlights
Market Highlights Bulkers: ➢ The BDI was at 1356 points on Sep-29 and ended up at 1366 on December 22; averaged 1509 points during Q4 2017 with a peak of 1743 on Dec-12 and a bottom of 1308 points on Oct-3. Currently it stands at 1,196 points (Mar-01, 2018) ➢ Daily Cape spot rates averaged $23,708/d
Slide 14: Market Highlights
Market Highlights Containerships: ➢ Time charter rates in Q4 for feeder and intermediate size vessels ranging from 1000-5000 teus have all averaged about the same as in Q3 ➢ The 1,700 teus geared vessel rose from an average of $7,317 in Q3 to $8,300 in Q4 ➢ The 2,500 teus geared vessel moved sideway
Slide 15: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile m160 Dry Bulk Orderbook m dwt 400 7% of the fleet is over For delivery in 18/19/20+ 43% 380 20 yrs old 140 as of Jan-18): 360 340 Cape 63/16/7 320 120 Panamax 66/61/18 300 280 30% 14.2% 11.1% H/S/Umax 93/41/11 155.3 100 260 Handi
Slide 16: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU m TEU 7.2 2.2 32 % 31% 4% of the 6.8 For delivery in 18/19/20+ 2.0 6.4 fleet is over (as of Jan-18) 6.0 8.5% 5.6 20 years old 1.8 3.7% 8% 8000+ 87/24/27 1.6 3-7,999 26/0/2 5.2 23% 4.8 100-2,29
Slide 17: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Synchronized world economic recovery for the first time since 2010 with US growth continuing strong (3%) in Q3 despite hurricanes. Strengthening growth in the Eurozone, strong growth in China and solid growth in most parts of the world are to result in healthy grow
Slide 18: Outlook Summary – Bulkers
Outlook Summary – Bulkers ➢ Market in 2017 was characterized by robust demand and a depleting orderbook ➢ 1-Yr TC Earnings averaged 70% higher than 2016 still well below historical average levels ➢ For 2018 and 2019, we expect further improvements in the demand/supply balance and barring any signifi
Slide 19: Outlook Summary – Containerships
Outlook Summary – Containerships ➢ Demand growth in 2017 came at about 5%.This has lead to a rapid depletion of the idle fleet and a robust market recovery ➢ At year end, 6-12 month TC Earnings were up 35% compared to the end of 2016 still well below historical average levels… ➢ …while the idle flee
Slide 20: Financial Overview
Financial Overview
Slide 21: Financial Highlights: 4th Quarter and Twelve Months of 2016 and 2017
Financial Highlights: 4th Quarter and Twelve Months of 2016 and 2017 Fourth Quarter Twelve Months change change (in million USD except per share amounts) 2016 2017 % 2016 2017 % Net Revenues $7.3 $13.5 85% $28.4 $42.9 51% Net (Loss)/Income ($17.6) $2.0 ($44.2) ($6.1) Preferred Dividends ($0.4) ($0.5
Slide 22: Fleet Data for 4th Quarter and Full Year of 2016 and 2017
Fleet Data for 4th Quarter and Full Year of 2016 and 2017 Fourth Quarter Twelve Months Fleet Statistics 2016 2017 2016 2017 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 12.1 16.2 11.5 14.2 Utilization Rate (%) Overall(1) 96.0% 96.4% 96.4% 97.6% Commercial(1) 96.2% 97.2% 96.7% 98
Slide 23: Vessel Debt Repayment Profile
Vessel Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $20 » Cash Flow Breakeven - budget estimate for next 12 months: $15 $15.9m $3.4m $8.8m $/vessel/day million $10 $9.4m OPEX $ 5,370 G&A $ 520 Interest $ 770 $5 Drydock $ 450 Loan Rpmt(*) $ 1,610 $0 TOTAL $ 8,720 2018 2019 2020
Slide 24: Cash Flow & NAV Sensitivity to Market Changes
Cash Flow & NAV Sensitivity to Market Changes ➢ Euroseas is positioned to take advantage of a potential market recovery ➢ About 40% of the total available days in 2018 are contracted with fixed charter rates leaving significant capacity (days) available to benefit from a market upturn… ➢ …while a lo
Slide 25: 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 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Cante