Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2016 Earnings Presentation
26 slides from Euroseas's earnings presentation, Nov 10, 2016
Slide 1: Earnings Presentation
Earnings Presentation Third quarter and nine-month period ended September 30, 2016 November 10, 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 Third Quarter & Nine Months Overview
2016 Third Quarter & Nine Months Overview • Financial Highlights - 2016: Third Quarter Nine Months Net Revenues $7.2 m $21.1 m Net Loss ($4.6) m ($26.6) m Loss on Termination of ($1.8) m ($3.2) m Newbuilding Contract Equity Loss ($0.7) m ($1.4) m Impairment of Investment in JV $0.0 m ($14.0)m Adj. N
Slide 4: Operational Highlights
Operational Highlights Vessel S&P c/v Aegean express 1400 teu/1997 bought for $3m and delivered on 29/9 Repairs/DD Monica P: the vessel performed its drydocking during 12 Aug-7 Sept Containerships Joanna: Was idle in the Med since Sep. 13, vessel was put on cold laid-up on November 3, as
Slide 5: Newbuilding Program Developments
Newbuilding Program Developments Newbuildings: Ultramaxes 1 & 2: The yard failed to deliver the vessels within the cancelling dates. Thus, we cancelled the contracts requesting refund of our deposits plus interest and certain other expenses. Arbitration procedures have commenced; claim is for ab
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 Sub Total - NBs 1 vessel 82,000 Vessels in the water Xenia P Kamsarmax 82,000 2016 Eirini P Panamax 76,000 - 2004 Pantelis Panamax 74,020 - 2000 Eleni P Panamax 7
Slide 7: Euromar Joint Venture
Euromar Joint Venture Size Year Name Type DWT TEU Built AKINADA BRIDGE Post Panamax 71,366 5,600 2001 Euroseas owns 14.3% of the CAP EGMONT Intermediate 41,850 3,091 2007 company’s common equity and ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 $4.4m of preferred equity EM ASTORIA Intermediate
Slide 8: Market Overview
Market Overview
Slide 9: Market Highlights – M9 2016
Market Highlights – M9 2016 Bulkers: After hitting a low of 290 points in February the BDI increased to 612 points at the start of Q3 and ended up at 875 points by September 30. Currently it stands at 954 points (November 09) BALTIC Cape (172Kdwt) spot rates averaged $1,424/day in Q1, $5,682/day
Slide 10: Market Highlights – M9 2016
Market Highlights – M9 2016 Containerships: Time charter rates in M9 for vessels below 5,500 teu have dropped and are in the region of $4,500-$6,500, with the 1,700 teu vessels still earning the most Secondhand prices dropped even further with 15 yrs old vessels below 3,000 teu valued at their s
Slide 11: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook For delivery in m dwt 7% of the fleet is m160 dw t 16/17/18 + as of 400 Sep-16): 380 over 20 yrs old Cape 360 43% 140 90/53/55 340 320 Panamax 300 120 122/102/37 280 H/S/Umax 260 132.2 35% 14.2% 11.1% 252/176/4
Slide 12: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU m TEU For delivery in 7.2 2.2 16/17/18+(as of Sep-16) 6.8 33 % 7500+ 46/70/73 6.4 2.0 33% 3-7,499 3/11/10 6.0 1.8 8.5% 5.6 100-2,299 54/103/87 5.2 1.6 7.4% 1.78 4.8 4.4 1.4 4.0 19% 5.1% 3.6 0.
Slide 13: World Economic Growth
World Economic Growth World GDP growth continues to be slow, uncertainties globally remain Trump’s election needs to be digested Positives: Brazil -under President Emer- seems to be on a reformist track Better prospects for Russia China seems to be avoiding a hard landing due to robust s
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) 2.6(3.6) 1.6(2.2) 2.2(2.5) 2.4 Eurozone -0.7 (-0.5) .-0.5 (-0.4) 0.9 (1.0) 2.0(1.2) 1.7(1.6) 1.5(1.4) 1.6 Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7) 0.5(0.6) 0.5(0.3) 0.6(0.1) 0.4
Slide 15: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Market fundamentals for 2016, after the worst quarter in drybulk shipping ever, have improved amidst very high scrapping and better than expected demand especially for Iron Ore and Coal Scrapping is needed to continue in a similar pace in 2017 in order to
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: 83% 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 ELENI P 97 % BPI 4-TC $5,250 $6,000$5,100$5,5
Slide 19: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage : Abt 77 % in 2016 (based on min duration unless t/c rate is below market rate ) Jul Aug Sep Oct Nov Dec JanFebMar AprMay Jun Jul 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 $
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 2016Q3, operational fleet utilization 100% and 5,000 comme
Slide 21: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 1-Year Time Charter Rate 10-Year Historical Price Range $/day 90,000 9 0 $m Panamax 75,000 dwt 80,000 80 M ax Pr ice, 2 0 0 0 - 2 0 15 Containership 1700 teu Avg Panamax Rate A ver ag e Pr ice, 2 0 0 0 - 70,000 70 Avg 1700teu 2 0 15 60,000 60 M in Pr ice, 2
Slide 22: Financial Overview
Financial Overview
Slide 23: Financial Highlights: 3rd Quarter and 9 Months of 2015 and 2016
Financial Highlights: 3rd Quarter and 9 Months of 2015 and 2016 Third Quarter Nine Months (in million USD except per share change change amounts) 2015 2016 % 2015 2016 % Net Revenues $11.3 $7.2 -36.1% $28.9 $21.1 -26.9% Net Loss ($1.4) ($4.6) ($10.1) ($26.6) Preferred Dividends ($0.4) ($0.4) ($1.2)
Slide 24: Fleet Data for 3rd Quarter and 9 months of 2015 and 2016
Fleet Data for 3rd Quarter and 9 months of 2015 and 2016 Fleet Statistics Third Quarter Nine Months 2015 2016 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 15.00 11.02 15.00 11.33 Utilization Rate (%) Overall(1 ) 97.1% 96.7% 96.7% 95.6% Commercial(1 ) 98.0% 96.7% 97.1%
Slide 25: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $23 $9.0m –EBANK $8.0m – HSBC » Cash Flow Breakeven - budget CALYON $18 (Evridiki) HSBC (Pantelis) (Eleni & Eirini) estimate for next 12 months: HSBC (Joanna) $13 $17.0m $/vessel/day million OPEX $ 5,250 $8 $6.4m $3.2m 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