Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2024 Earnings Presentation
22 slides from Euroseas's earnings presentation, Nov 21, 2024
Slide 1: Earnings Presentation Quarter Ended September 30, 2024
Earnings Presentation Quarter Ended September 30, 2024 November 21, 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: 2024 Third Quarter Financial Highlights
2024 Third Quarter Financial Highlights Financial Results in million USD except per share figures Q3 2024 Net Revenues 54.1 Net Income 27.6 3.95/ share(2) Adj. Net Income(1) 27.4 3.92/ share(2) Adj. EBITDA(1) 36.1 1) See press release of Nov 20, 2024 for reconciliation of Adj. Net Income and Adjuste
Slide 4: Recent Developments, S&P, Chartering & Operational Highlights
Recent Developments, S&P, Chartering & Operational Highlights ➢ Ordered 2x4300 teu Newbuildings • In October, the Company signed a contract for the construction of two LNG-ready eco design fuel efficient containerships with capacity of about 4,300 TEU each to be built at Jiangsu New Yangzi Shipbuild
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 23 vessels with an average age of 14.0(1) years and a carrying capacity of 67.1k TEU 16x Feeder 7x Intermediate Avg. Age: 11.48 years(1) Avg. Age: 16.7years(1) Carrying Capacity: 35.2k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Bu
Slide 6: Vessels Under Construction
Vessels Under Construction Two vessels, each with a capacity of 2,800 TEU, are scheduled for delivery in January 2025, while two larger vessels, each with a capacity of 4,300 TEU, are expected to be delivered in the fourth quarter of 2027 2x Feeders 2x Intermediates Carrying Capacity: 2,800 teu Carr
Slide 7: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2024 2025 2026 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June INDEX Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 AEGEAN EXPRESS $8,000 DIAMANTIS P $27,000 EM HYDRA $13,000
Slide 8: Market Overview
Market Overview 8
Slide 9: Last 10 year 6-12m TC rate
$/ day $/ day 20,000 40,000 60,000 80,000 100,000 120,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0 Jan-2014 Jan-2014 Jul-2014 Jul-2014 Jan-2015 Jan-2015 Jul-2015 Jul-2015 Jan-2016 Jan-2016 Jul-2016 Jul-2016 Jan-2017 Jan-2017 3,500 TEU gls 6-12 Month 1,700 TEU grd 6-12 Month Jul-2017 Jul-
Slide 10: Containership Market Highlights – Q3 2024
Containership Market Highlights – Q3 2024 ➢ In 2024Q3, one-year time charter rates rose across all segments. After a slight softening at the start of the third quarter, tight supply in larger sizes and declining availability in the feeder sectors have led to significant rate increases. However, in O
Slide 11: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024p 2025p USA 2.6 1.5 2. 2.9 2.3 -3.5 5.9 1.9 2.9 2.8(2.6) 2.2(1.9) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.3 3.4 0.4 0.8(0.0) 1.2(1.5) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 2.2 1.0 1.7 0.3(0.7) 1.1(1.0) C
Slide 12: Age Profile and Orderbook
Age Profile and Orderbook Age Profile Containership Orderbook 26% 21% 22% 20% 11% 14.6% For delivery in 24/25/26+ 5.0 (as of Oct-24) 4.79 9.0 8000+: 33/ 119 / 308 4.5 8.0 3-7,999: 31/ 35 / 39 4.0 100-2,999: 39/ 71 / 41 7.0 11.2% 2.0 0.4 3.5 6.0 0.1 0.71 3.0 2.1 1.9 mTEU 5.0 mTEU 2.5 8.1% 6.2% 4.0 5.
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 26% 13% 10% 28% 24% 1.6 0.45 1.4 0.40 ~8.0% 1.2 0.35 0.64 0.60 0.30 1.0 0.55 ~6.3% mTEU 0.25 mTEU 0.8 0.20 0.6 0.31 0.59 0.15 0.15 0.43 ~1.7% 0.4 0.70 0.10 ~1.2% 0.2 0.31 0.29 0.27 0.05 0.25 0.0 0.05 0.07 0.09 0.00 0-
Slide 14: Different Supply Outlook for Feeders & Intermediate Containerships
Different Supply Outlook for Feeders & Intermediate Containerships ➢ Orderbook primarily concentrated on large containerships • Capacity growth will be significant in vessel sizes employed in the main lane routes • Regional distribution is done by “feeders”: the more main lane volume, the more feede
Slide 15: Outlook Summary
Outlook Summary ➢ The container shipping markets have demonstrated solid gains in 2024, primarily driven by disruptions in the Red Sea and strong underlying demand on key trade routes, particularly to developing economies. Both charter and freight rates are expected to remain elevated for the remain
Slide 16: Market Evolution
$/ day 20,000 50,000 80,000 10,000 30,000 40,000 60,000 70,000 90,000 0 Jan-2013 Jun-2013 Nov-2013 Apr-2014 Sep-2014 Feb-2015 Jul-2015 Dec-2015 May-2016 Oct-2016 Mar-2017 Aug-2017 Jan-2018 Market Evolution Jun-2018 Nov-2018 $30,750/day Source: Clarksons Research Apr-2019 Sep-2019 Feb-2020 for 2,500
Slide 17: Financial Overview
Financial Overview 17
Slide 18: Financial Highlights: Q3 and 9 months of 2023 and 2024
Financial Highlights: Q3 and 9 months of 2023 and 2024 Third Quarter Change Nine Months Change (in million USD except per share amounts) 2023 2024 % 2023 2024 % Net Revenues 50.67 54.15 6.9% 140.30 159.59 13.7% Net Income 32.20 27.63 -14.2% 89.83 88.38 -1.6% Earnings per share, diluted 4.65 3.95 -15
Slide 19: Fleet Data for Q3 and 9 months of 2023 and 2024
Fleet Data for Q3 and 9 months of 2023 and 2024 Third Quarter Nine Months (in million USD except per share amounts) 2023 2024 2023 2024 Number of vessels 19.0 23.0 18.0 21.3 Utililization Rate(1) Operational 99.2% 99.8% 98.9% 99.8% Commercial 100.0% 100.0% 99.4% 99.9% Overall 99.2% 99.8% 98.3% 99.7%
Slide 20: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile of Existing Debt 50.00 Cost of funding: $1.8m (1 vessel) $9.3m (2 vessels) As of September 30, 2024, outstanding bank debt is 45.00 $7.0m (1 vessel) $220.03m with average margin of about 2.13%; assuming 40.00 $20.0m (4 vessels) 3M SOFR(1) of 4.49%, our c
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (09/30/24) Notes 600 Assets ➢ Cash & Other assets: $94.3m Cash & Other Assets ➢ Advances for NB vessels: $36.6m 500 Advances for ➢ Vessels book value: $449.9m NB vessels Shareholders' ➢ Total assets (at book value): $580.9m Equity (Net Book 400 Lia
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 Tasos Aslidis Nicolas Bornozis / Markella Kara Chief Financial Officer \Investor Relations Euroseas Ltd. Capital Link,