Slide 1: Earnings Presentation Quarter Ended March 31, 2017
Earnings Presentation Quarter Ended March 31, 2017 May 12, 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: 2017 First Quarter Overview
2017 First Quarter Overview Financial Highlights - 2017: First Quarter Net Revenues $8.3 m Net Loss ($2.2) m Unrealized loss / (gain) on derivatives & realized loss on ($0.0) m derivatives Gain on sale of vessel ($0.5) m Preferred dividends ($0.4) m Adj. Net Loss Available to Common Shareholders(1)
Slide 4: Operational Highlights
Operational Highlights ➢ Vessel S&P ➢ m/v RT Dagr scrapped for net proceeds of about $2.3 million on January 31st 2017 ➢ We purchased m/v Tasos for $4.45m to replace m/v Eleni P which had been committed to be scrapped; took delivery of m/v Tasos on 9th January 2017and then scrapped Eleni P on the 26
Slide 5: Chartering Highlights
Chartering Highlights ➢ Bulkers ➢ Alexandros P: fixed for min 6 months @ 114% BSI ➢ Monica P: fixed for a 30 day voyage at about a net rate of $6,050/day, thereafter fixed for a 40-50 day trip for $4,500/day and then for another 15 day trip at $8,000/day and then for a 55-135 day period at $10,000/d
Slide 6: Newbuilding Program Developments
Newbuilding Program Developments ➢ 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 our claim on the
Slide 7: 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 Alexandros P Ultramax 63,500 - 2017 Eirini P Panamax 76,466 - 2004 Tasos Panama
Slide 8: Euromar Joint Venture
Euromar Joint Venture Euroseas is a partner owning 14.3% of Euromar and owns all of the preferred units of the venture Size Year Name Type DWT TEU Built AKINADA BRIDGE Post Panamax 71,366 5,600 2001 CAP EGMONT Intermediate 41,850 3,091 2007 ALANCA SAN MARTIN Intermediate 37,180 2,785 2007 EM ASTORIA
Slide 9: Market Overview
Market Overview
Slide 10: Market Highlights
Market Highlights Bulkers: ➢ The BDI was at 961 points on Dec-23 and averaged 945 points during Q1 2017 after peaking at 1338 points on Mar-29 and ending up at 1297 points on Mar-31. Currently it stands at 1,005 points (May-10) ➢ Daily Cape spot rates averaged $11,838/day in Q1, Panamax spot rates a
Slide 11: Market Highlights
Market Highlights Containerships: ➢ Time charter rates in Q1 have more than doubled for traditional Panamax and post-Panamax vessels moving from $4,000 to above $10,000. Smaller size vessels have also seen rises of about 50% for the 2,500-3,000 teu with smaller increase recorded for the smaller vess
Slide 12: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook m160 dw t For delivery in 17/18/19+ (as of Mar-17): m dwt 400 7% of the fleet is Cape 54/52/19 380 over 20 yrs old 140 Panamax 93/37/8 360 340 H/S/Umax 188/43/15 320 38% 120 Handies 158/54/24 300 36% 280 260 10
Slide 13: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook m TEU m TEU For delivery in 17/18/19 (as of Mar-17) 7.2 33% 2.2 6.8 32% 7500+ 85/79/16 6.4 2.0 3-7,499 24/12/2 6.0 100-2,299 109/67/14 5.6 1.8 8.5% 5.2 1.6 4.8 1.67 8.3% 5.7% 4.4 20% 1.4 4.0 Overage
Slide 14: World Economic Growth
World Economic Growth ➢ Overall slightly more positive outlook than in previous quarter. ➢ Positives: ➢ Positive outlook for the world’s large economies, U.S., China, Japan, Europe all face positive prospects for the first time since the financial crisis ➢ Emerging market growth is led by India ➢ St
Slide 15: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2012 2013 2014 2015 2016 2017 2018 2019 USA 2.8(1.8) 1.9 (1.2) 2.4 (2.8) 2.6(3.6) 1.6(2.6) 2.3(2.3) 2.5(2.5) 2.1(1.9) Eurozone -0.7 (-0.5) .-0.5 (-0.4) 0.9 (1.0) 2.0(1.2) 1.7(1.7) 1.7(1.6) 1.6(1.6) 1.6(1.6) Japan 1.4(1.7) 1.5 (2.0) -0.1 (1.7
Slide 16: Outlook Summary – Bulkers
Outlook Summary – Bulkers Bulker trends ➢ After one of the worst years in drybulk shipping, market fundamentals for 2017 seemed improved taking advantage of recent high scrapping and better than expected demand especially for Iron Ore and Coal ➢ Thus, we expect 2017 to be better than 2016. For 2018,
Slide 17: Outlook Summary – Containerships
Outlook Summary – Containerships Containership trends ➢ We expect demand growth in 2017 to be better than 2016. YTD data suggest even more promising growth than initially estimated ➢ The rapid absorption of the idle fleet –should it continue – will result in higher charter rates as well for vessels
Slide 18: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 19: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 39% in 2017 (includes ships on index charters) 2016 2017 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EIRINI P 103% of BPI4TC 104% of BPI4TC 104% of BPI4TC MONICA P $4,500 $2,875
Slide 20: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage: Abt 72% in 2017 (based on max duration) 2016 2017 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EVRIDIKI G $13,500 $11,000 $11,000 AGGELIKI P # $7,000 $6,000 JOANNA $7,250
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 6,000 $ / day ➢ For 2017Q1, operational fleet utilization 98.3% and 5,000 commer
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 Max Price, 2000-2016 80,000 Containership 1700 teu Avg Panamax Rate 70 70,000 Average Price, 2000-2016 Avg 1700teu 60 Min Price, 2000-2016 60,000 50 Current Pri
Slide 23: Financial Overview
Financial Overview
Slide 24: Financial Highlights: 1st Quarter 2016 and 2017
Financial Highlights: 1st Quarter 2016 and 2017 First Quarter (in million USD except per share change amounts) 2016Q1 2017Q1 % Net Revenues $6.5 $8.3 26.6% Net Loss ($2.8) ($2.2) Preferred Dividends ($0.4) ($0.4) Net Loss available to Common Shareholders ($3.3) ($2.6) Depreciation $2.1 $2.1 Interest
Slide 25: Fleet Data: 1st Quarter 2016 and 2017
Fleet Data:1st Quarter 2016 and 2017 Fleet Statistics First Quarter 2016 2017 (unaudited) (unaudited) Number of vessels 11.54 13.38 Utilization Rate (%) Overall(1 ) 93.7% 90.8% Commercial(1 ) 93.7% 92.5% Operational(1 ) 100.0% 98.3% Averages in usd/day/vessel Time Charter Equivalent (TCE)(2 ) $ 6,56
Slide 26: Vessel Debt Repayment Profile
Vessel Debt Repayment Profile Debt Repayment Schedule Cash Flow Breakeven $20 $17.0m » Cash Flow Breakeven - budget $15 estimate for next 12 months: $8.1m $/vessel/day million $10 OPEX $ 5,000 $8.8m G&A $ 700 Interest $ 700 $5 $1.1m Drydock $ 500 Loan Rpmt(*) $ 1,200 TOTAL $ 8,100 $0 2017 2018 2019
Slide 27: Cash Flow & NAV Sensitivity to Market Changes
Cash Flow & NAV Sensitivity to Market Changes ➢ Euroseas is positioned to take advantage of any market recovery ➢ About 50% of its total available days for the remaining of 2017 and about 8% of the total available days in 2018 are contracted with fixed charter rates leaving significant capacity (day
Slide 28: 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