Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q4 2016 Earnings Presentation
27 slides from Euroseas's earnings presentation, Feb 16, 2017
Slide 1: Earnings Presentation: Fourth quarter and twelve-month period ended December 31, 2016
Earnings Presentation Fourth quarter and twelve-month period ended December 31, 2016 February 16, 2017
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 Fourth Quarter & Full Year Overview
2016 Fourth Quarter & Full Year Overview Financial Highlights - 2016: Fourth Full Year Quarter Net Revenues $7.3 m $28.4 m Net Loss ($17.6) m ($44.2) m Net Loss Available to Common Shareholders ($18.1) m ($45.9) m Loss on Termination of Newbuilding Contract ($3.8) m ($7.1) m Loss on write-down of ve
Slide 4: Operational Highlights
Operational Highlights Vessel S&P We purchased m/v RT Dagr from Tennenbaum for 900,000 shares; took delivery of the vessel on 23rd December 2016. Performed one short term charter and then scrapped the vessel for net proceeds of about $2.3 million on January 31st We purchased m/v Tasos for $4.4
Slide 5: Chartering Highlights
Chartering Highlights Bulkers Eleni P: Fixed for abt 20-25 days trip @ $7,500/day and thereafter fixed for abt 30 days trip @ $6,500/day; subsequently, vessel sold for scrap Pantelis: Fixed for abt 70-80 days trip @ $6,800/day and thereafter fixed for abt 40-45 days trip @ $5,850/day Monica
Slide 6: Newbuilding Program Developments
Newbuilding Program Developments Newbuildings: We reached an agreement with the yard and took delivery of m/v Alexandros P (Ultra-1 DY- 160) on 16th January 2017. The already paid instalments for our two Ultramaxes plus about $0.6 million were used to pay for the vessel. In exchange we cancelled
Slide 7: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Name Type DWT TEU Built Vessels in the water Xenia P Kamsarmax 82,000 2016 Eirini P Panamax 76,466 - 2004 Tasos Panamax 75,100 - 2000 Pantelis Panamax 74,020 - 2000 Alexandros P Ultramax 63,500 - 2017 Monica P Handymax 46,667 - 1998 Sub Total-D
Slide 8: 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. ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 In Q4-2016 Euroseas took a total EM ASTORIA Interme
Slide 9: Market Overview
Market Overview
Slide 10: Market Highlights - Full Year
Market Highlights - Full Year Bulkers: After hitting a low of 290 points in February the BDI increased to 875 points by September 30 and ended at 961 at the end of December. Currently it stands at 688 points BALTIC Cape (172Kdwt) spot rates averaged $1,424/day in Q1, $5,682/day in Q2, $6,882/day
Slide 11: Market Highlights
Market Highlights Containerships: Time charter rates in Q4 for vessels below 5,500 teu have softened even more and remain in the region of $4,500-$6,500, with the 1,700 teu vessels still earning the most; however, increased chartering activity has been witnessed in December 2016. January/February
Slide 12: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook m dwt m160 dwt For delivery in 17/18/19 as of 400 7% of the fleet is Dec-16): 380 over 20 yrs old 140 Cape 102/43/15 360 340 41% Panamax 146/31/3 320 120 H/S/Umax 254/34/8 300 Handies 185/47/20 280 33% 260 125.
Slide 13: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU m 7.2 34 % 2.2 6.8 33% 2.0 For delivery in 6.4 17/18/19(as of Dec-16) 6.0 8.5% 5.6 Overage fleet is very 1.8 8.3% 7500+ 96/61/17 5.2 little in Containerships 1.6 3-7,499 23/9/2 4.8 1.7 100-2,2
Slide 14: World Economic Growth
World Economic Growth “Anti-globalization” pressures globally could harm world trade. A strengthening US economy, however, provides support. Positives: The Fed proceeded with a rate hike in December. Fiscal policy stimulus possible in the US. The Chinese government should continue stimulating th
Slide 15: 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(2.6) 2.3(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(1.7) 1.6(1.5) 1.6(1.6) Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7) 0.5(0.6) 0.9(1.0) 0.8
Slide 16: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends Market fundamentals for 2017, after one of the worst first half in drybulk shipping ever, have improved amidst high scrapping and better than expected demand especially for Iron Ore and Coal We expect 2017 and 2018 to register slight improvements in the de
Slide 17: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends We expect demand growth in 2017 to be slightly better than 2016 and remain around the lowest levels ever recorded We expect a supply/demand balance in favor of demand in 2017 and 2018. The oversupply will be in the larger vessels but there is
Slide 18: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 19: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 51% in 2017 basis min durations (includes ships on index charters) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Q1 16 Q2 16 Q3 16 Q4 17 Q1 17 Q2 17Q3 17 Q4 ALEXANDROS P* n/a 114% of BSI till $12K/d, 11
Slide 20: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: Abt 44% in 2017 (based on min duration) JanFebMar AprMay Jun Jul Aug Sep Oct Nov Dec JanFebMarAprMayJun Jul Aug Sep Oct Nov Dec 16 Q1 16 Q2 16 Q3 16Q4 17 Q1 17 Q2 17 Q3 17 Q4 JOANNAIdle $7,250 Laid up AEGEAN EXPRESS n/a $6,300 KUO HSIUNG $8,750 $6,
Slide 21: 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 For 2016Q4, operational fleet utilization 99.8% and 6,000 $ / day commercial
Slide 22: 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 16 80,000 Containership 1700 teu Avg Panamax Rate 70 A ver ag e Pr ice, 2 0 0 0 - 70,000 Avg 1700teu 2 0 16 60 M in Pr ice, 2 0 0 0 -
Slide 23: Financial Overview
Financial Overview
Slide 24: Financial Highlights: 4th Quarter and Full Year of 2015 and 2016
Financial Highlights: 4th Quarter and Full Year of 2015 and 2016 (in million USD except per share change change amounts) 2015 2016 % 2015 2016 % Net Revenues $8.8 $7.3 -17.0% $37.7 $28.4 -24.6% Net Loss ($3.9) ($17.6) ($14.0) ($44.2) Preferred Dividends ($0.4) ($0.4) ($1.6) ($1.7) Net Loss available
Slide 25: Fleet Data for 4th Quarter and Full Year of 2015 and 2016
Fleet Data for 4th Quarter and Full Year of 2015 and 2016 Fleet Statistics Fourth Quarter Full Year 2015 2016 2015 2016 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 13.97 12.10 14.74 11.52 Utilization Rate (%) Overall(1 ) 82.6% 95.3% 93.3% 95.5% Commercial(1 ) 83.9% 95.5% 93.9%
Slide 26: Debt Repayment Profile and Cash Flow Breakeven
Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $20 » Cash Flow Breakeven - budget $15 estimate for next 12 months: $10.1m $/vessel/day million $10 $17.0m OPEX $ 5,150 G&A $ 700 $1.1m Interest $ 750 $7.7m $5 Drydock $ 350 Loan Rpmt(*) $ 900 TOTAL $ 7,850 $0 2017 2018 2019 2020 202
Slide 27: 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