Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2016 Earnings Presentation
26 slides from Euroseas's earnings presentation, Aug 11, 2016
Slide 1: Earnings Presentation: Quarter and Six-month Period ended June 30, 2016
Earnings Presentation Quarter and Six-month Period ended June 30, 2016 August 11, 2016
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: 2016 Second Quarter & First Half Overview
2016 Second Quarter & First Half Overview • Financial Highlights - 2016: Second Quarter First Half Net Revenues $7.3 m $13.9 m Net Loss ($19.2) m ($22.0) m Loss on Termination of ($1.4) m ($1.4) m Newbuilding Contract Impairment of Investment ($14.0) m ($14.0) m in Joint Venture Adj. Net Loss Availa
Slide 4: Operational Highlights
Operational Highlights Containerships Ninos: Extended till min 7th October and max 20th November @$7,000 Bulkers Monica P: Fixed for a 25 days trip @$,4,350, thereafter fixed for a 50 days trip @$4,000. Upon termination the vessel will proceed for its scheduled drydock. Eleni P: Fixed for
Slide 5: Newbuilding Program Developments
Newbuilding Program Developments New Buildings: Ultramaxes: The Yard failed to deliver the first Ultramax vessel (Hull DY 160) within the cancelling date of June 27, 2016. We promptly cancelled the contract requesting refund of our deposits plus interest and certain other expenses. Both parties
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Name Type DWT TEU Built Newbuilding Program Hull No YZJ 117 Kamsarmax 82,000 2018 Hull No DY161 Ultramax 63,500 2016 Sub Total - NBs 2 vessels 145,500 Vessels in the water Xenia P Kamsarmax 82,000 2016 Eirini P Panamax 76,000 - 2004 Pantelis Pa
Slide 7: Euromar Joint Venture
Euromar Joint Venture Size Year Name Type DWT TEU Built Euroseas owns 14.3% of the AKINADA BRIDGE Post Panamax 71,366 5,600 2001 company’s common equity and $4.1m CAP EGMONT Intermediate 41,850 3,091 2007 of preferred equity ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 $4.0m further commitme
Slide 8: Market Overview
Market Overview
Slide 9: Market Highlights – First Half and July 2016
Market Highlights – First Half and July 2016 Bulkers: BDI moved from 429 points (March 31, 2016 ), to 660 points (June 30) and currently stands at 638 points (August 10) Daily Cape spot rates averaged $2,645 in Q1 and $6,728 in Q2, Panamax spot rates averaged $3,000 in Q1 and $4,857 in Q2 and Su
Slide 10: Market Highlights – First Half and July 2016
Market Highlights – First Half and July 2016 Containerships: Time charter rates in Q1, Q2 and July for vessels below 5,500 teu have been hovering in the region of $5-$7,000/day, with the 1,700 teu vessels earning the most Secondhand prices dropped even further with 15 yrs old vessels valued at t
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile m Dry Bulk Orderbook 120 For delivery in 8% of the fleet is 16/17/18 + as of m dwt 400 over 20 yrs old Jun 16): 46% 11.1% 380 100 14.2% Cape 11.9% 360 122/44/55 340 2.4% 320 16.0% Panamax 300 80 165/94/33 143.9 41.8 280 44.6 H/S/
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook For delivery in 16/17/18+(as of Jun- m TEU 16) 7.6 m teu Ppmx 44/90/67 7.2 35.3 % 33.9% 2.2 3-8000 3/11/10 6.8 m dw t 6.4 2.0 8.5% 2-3000 20/32/33 6.0 1.8 1-2000 19/48/38 5.6 5.2 1.84 1.6 6.3% 4.8 9
Slide 13: World Economic Growth
World Economic Growth “Brexit” has caught financial markets by surprise and increased uncertainty in Europe with growth revised down despite strong start in Q1. US remains the bright spot, relatively speaking, still expected to do better in the remaining of 2016. Positives: Advanced economies
Slide 14: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 2018 USA 2.8(1.8) 1.9 (1.2) 2.4 (2.8) 2.4(3.6) 2.2(2.4) 2.5(2.5) 2.4 Eurozone -0.7 (-0.5) .-0.5 (-0.4) 0.9 (1.0) 1.7(1.2) 1.6 (1.5) 1.4(1.6) 1.6 Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7) 0.5(0.6) 0.3(0.5) 0.1(-0.1) 0.
Slide 15: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Market fundamentals for 2016, after the worst first quarter in drybulk shipping ever, appear to be improving amidst record scrapping and better than expected demand especially for Iron Ore, Coal and Grains If demand picks up in 2017 and half of the slipped
Slide 16: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends We expect demand prospects to improve during the remaining of 2016, however with the lowest overall growth rate for the year ever recorded similar to 2015. Container Industry has entered maturing stage and growth rates of a growing industry of
Slide 17: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 18: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 52 % in 2016 basis min durations (includes ships on index charters) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec JanFeb Mar Apr May Jun 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16 Q4 17 Q1 17 Q2 MONICA P$3,700` $9,500 $5,500 $6,400 $4,500
Slide 19: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: Abt 66 % in 2016 (based on min duration unless t/c rate is below market rate ) Jul Aug Sep Oct Nov Dec JanFebMar AprMay JunJul Aug Sep Oct Nov Dec JanFebMarAprMayJun 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16Q4 17 Q1 17 Q2 JOANNA $10,450 Idle $7,850 Idle $7,
Slide 20: ESEA Fleet Management & Operational Performance
ESEA Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 Operational fleet utilization rate in excess of 99.4% 9,000 over last 5 years. 8,000 Outstanding safety and environmental record. 7,000 6,000 $ / day For 2016Q2, operational fleet utilization 99.3% and 5,000 comm
Slide 21: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-Year Historical Price Range $/day $m 90,000 90 Panamax 75,000 dwt 80 M ax Pr ice, 2 0 0 0 - 2 0 15 80,000 Containership 1700 teu Avg Panamax Rate A ver ag e Pr ice, 2 0 0 0 - 70,000 70 Avg 1700teu 2 0 15 M in Pr ice, 2 0 0 0 - 2
Slide 22: Financial Overview
Financial Overview
Slide 23: Financial Highlights: 2nd Quarter and 1st Half of 2015 and 2016
Financial Highlights: 2nd Quarter and 1st Half of 2015 and 2016 Second Quarter First Half (in million USD except per share change change amounts) 2015 2016 % 2015 2016 % Net Revenues $9.4 $7.3 -22.3% $17.6 $13.9 -21.0% Net Loss ($3.3) ($19.2) ($8.7) ($22.0) Preferred Dividends ($0.4) ($0.4) ($0.8) (
Slide 24: Fleet Data for 2nd Quarter and 1st Half of 2015 and 2016
Fleet Data for 2nd Quarter and 1st Half of 2015 and 2016 Fleet Statistics Second Quarter First Half 2015 2016 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 15.00 11.44 15.00 11.49 Utilization Rate (%) Overall(1 ) 98.3% 96.4% 96.4% 95.0% Commercial(1 ) 98.4% 97.2% 96.6%
Slide 25: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $9.0m –EBANK » Cash Flow Breakeven - budget $23 CALYON (Evridiki) HSBC $8.0m – HSBC (Eleni & Eirini) estimate for next 12 months: HSBC (Pantelis) $18 (Joanna) $17.0m $/vessel/day $13 OPEX $ 5,250 million $3.2m $8 $6.4m G&A $ 800 $1.1
Slide 26: 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