Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2022 Earnings Presentation
21 slides from Euroseas's earnings presentation, Nov 14, 2022
Slide 1: Earnings Presentation Quarter Ended September 30, 2022
Earnings Presentation Quarter Ended September 30, 2022 November 14, 2022 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: 2022 Third Quarter Financial Highlights
2022 Third Quarter Financial Highlights Financial Results in million USD except per share figures Q3 2022 Net Revenues 46.0 Net Income Attributable to Common Shareholders 25.2 3.50/ share(2) Adj. Net Income 20.9 2.90/ share(2) Attributable to Common Shareholders(1) Adj. EBITDA(1) 26.2 1) See press r
Slide 4: Recent S&P, Chartering & Operational Highlights
Recent S&P, Chartering & Operational Highlights ➢S&P • None this quarter ➢Chartering • None this quarter ➢Idle period/commercial off-hire • None this quarter ➢Drydockings / Repairs / Other incidents • Hydra: 45.59 days of which 5.59 days in 2022Q2 and 40 days in 2022Q3 • Kea: 50.91 days of which 40.
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 18 vessels with an average age of 17(1) years and a carrying capacity of 58.9k TEU 10x Feeder 8x Intermediate Avg. Age: 19.2 years(1) Avg. Age: 15.7years(1) Carrying Capacity: 21.4k TEU Carrying Capacity: 37.5k TEU Size Year Name Type DWT TEU Built
Slide 6: Vessels Under Construction
Vessels Under Construction Nine vessels with capacity of 22,200 teu to be delivered during 2023 & 2024 6x 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 Gregos (H4201) Feeder 37,237 2,800 Q1 202
Slide 7: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2022 2023 2024 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 Nov 11th 2022 80,000 Nov 11th 2022 60,000 $14,000/day 70,000 $19,200/day 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 $17,975 $13,098 20,000 10,000 10,000 $7,750 $9,195 0 0 Oct-2013 Oct-2014 Oct-2015 Oct-2016 Oct-2017 O
Slide 10: Containership Market Highlights – Q3 2022
Containership Market Highlights – Q3 2022 ➢ One-Year time charter rates across all segments have generally seen the most pronounced drop over the past 3 months but are still higher than at the end of 2020 and well above (~2x) the 12-year historical median. • Average rates ($/day) during Q3 were down
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 2023e USA 2.6 1.5 2. 2.9 2.3 -3.5 5.7(5.7) 1.6(2.3) 1.0(1.0) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.2(5.4) 3.1(2.6) 0.5(1.2) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 1.7(1.7) 1.7(1.7) 1.6(1.7) China 6.9 6.7 6.8 6.
Slide 12: Age Profile and Orderbook, Total Fleet
Age Profile and Orderbook, Total Fleet Age Profile Containership Orderbook 20% 26% 26% 18% 10% For delivery in 22/23/24 (as of Oct-22) 9.8% 7.0 3.0 8000+: 16/ 102 / 127 0.0 9.5% 3-7,999: 10/ 76/ 129 6.0 1.5 2.5 100-2,999: 45/ 185/ 124 2.33 5.0 2.09 3.2 0.1 2.0 1.9 4.0 1.2 4.5% mTEU mTEU 1.5 3.9% 3.0
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 22% 11% 21% 24% 22% 8.5% 0.4 1.0 0.9 0.3 6.3% 0.8 0.237 0.243 0.3 4.9% 0.7 0.3 0.6 0.4 0.4 0.6 0.2 4.5% mTEU mTEU 0.5 0.2 0.4 0.2 0.3 0.1 0.083 0.5 0.5 0.2 0.4 0.4 0.3 0.1 0.1 0.0 0.0 0-4 5-9 10-14 15-19 20+ 2018 2019
Slide 14: Outlook Summary
Outlook Summary ➢ Political and economic insecurity are affecting the fortunes of container shipping, with freight rates plunging over the past quarter. Declines in spot freight rates have started to be mirrored in time-charter rates with benchmark rates falling by about 70% last month. • While char
Slide 15: Market Evolution
Market Evolution Cont 2,500 TEU One-Year Time Charter Rate Cont 2,500 TEU – NB & 10 Year Old Historical Price Range 90,000 60 80,000 50 70,000 60,000 40 50,000 $/ day mm USD 30 40,000 30,000 20 As of Nov 11, 2022, 1YR TC rate 20,000 for 2,500 TEU vessel stands at $19,200/day 10 10,000 0 0 Oct-2010 O
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: Third Quarter and 9 Months 2021 and 2022
Financial Highlights: Third Quarter and 9 months 2021 and 2022 Third Quarter Change Nine Months Change (in million USD except per share amounts) 2021 2022 % 2021 2022 % Net Revenues 23.04 45.96 99.5% 55.64 139.81 151.3% Net Income 8.46 25.22 20.20 85.91 Preferred & Preferred Deemed Dividends 0.00 0.
Slide 18: Fleet Data for the Third Quarter and 9 Months 2021 and 2022
Fleet Data for the Third Quarter and 9 months 2021 and 2022 Third Quarter Nine Months (in million USD except per share amounts) 2021 2022 2021 2022 Number of vessels 14.0 18.0 14.0 16.8 (1) Utililization Rate Operational 98.8% 99.5% 98.5% 99.6% Commercial 100.0% 100.0% 100.0% 99.9% Overall 98.8% 99.
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) Cost of funding: 60.0 Outstanding bank debt of $115.7m with average margin of about 2.85%; assuming 3M LIBOR (1) of 4.56%, our 50.0 $1.9m (1 vessel) cost of senior debt is 7.4% and i
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (9/30/22) Notes 350 Assets ➢ Cash & Other assets: $41.1m Cash & Other 300 Assets ➢ Advances for NB vessels: $50.5m ➢ Vessels book value: $230.1m Advances for 250 NB vessels Shareholders' ➢ Total assets (at book value): $321.7m Equity (Net Book Valu
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,