Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q4 2023 Earnings Presentation
21 slides from Euroseas's earnings presentation, Feb 21, 2024
Slide 1: Earnings Presentation Quarter Ended December 31, 2023
Earnings Presentation Quarter Ended December 31, 2023 February 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: 2023 Fourth Quarter Financial Highlights
2023 Fourth Quarter Financial Highlights Financial Results in million USD except per share figures Q4 2023 Net Revenues 49.1 Net Income 24.7 3.56/ share(2) Adj. Net Income(1) 25.0 3.61/ share(2) (1) Adj. EBITDA 32.4 1) See press release of Feb 21, 2024 for reconciliation of Adj. Net Income and Adjus
Slide 4: Recent S&P, Chartering & Operational Highlights
Recent S&P, Chartering & Operational Highlights ➢ Newbuilding • M/V Tender Soul was delivered on February 6, 2024. Following her delivery, she commenced an eight-to-ten month charter with Maersk @ $17,000/day. ➢ Chartering • MV Aegean Express: Fixed for min 10days- max 15days @ $7,000/day, then exte
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 20 vessels with an average age of 16.1(1) years and a carrying capacity of 61.7k TEU 13x Feeder 7x Intermediate Avg. Age: 15.44 years(1) Avg. Age: 16.7years(1) Carrying Capacity: 29.8k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Bu
Slide 6: Vessels Under Construction
Vessels Under Construction Six vessels with capacity of 13,800 teu to be delivered during 2024 3x Feeders 3x Feeders Carrying Capacity: 2,800 teu each Carrying Capacity: 1,800 teu each Size To be Name Type DWT TEU Delivered Vessels under construction Leonidas Z (H4237) Feeder 37,237 2,800 Q2 2024 Mo
Slide 7: Vessel Employment
Vessel Employment Chartering strategy very important in maximizing revenues over the market cycle 2023 2024 2025 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec INDEX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 8: Market Overview
Market Overview 8
Slide 9: Last 10 year 6-12m TC rate ($/day)
$/ day $/ day 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0 20,000 40,000 60,000 80,000 100,000 120,000 0 Jan-2014 Jan-2014 Jul-2014 Jul-2014 Jan-2015 Jan-2015 Jul-2015 Jul-2015 Jan-2016 Jan-2016 Jul-2016 Jul-2016 Jan-2017 Jan-2017 1,700 TEU grd 6-12 Month 3,500 TEU gls 6-12 Month Jul-2017 Jul-
Slide 10: Containership Market Highlights – Q4 2023
Containership Market Highlights – Q4 2023 ➢ In 2023Q4, one-year time charter rates experienced declines across all segments, but the trend has reversed since December and charter rates increased approximately 35% to date. • Average rates ($/day) during 2023Q4 were down by 21% compared to 2023Q3 as s
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 2024p 2025p USA 2.6 1.5 2. 2.9 2.3 -3.5 5.9 1.9 2.5(2.1) 2.1(1.5) 1.7(1.8) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.3 3.4 0.5(0.7) 0.9(1.2) 1.7(1.8) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 2.2 1.0 1.9(2.0) 0.
Slide 12: Age Profile and Orderbook
Age Profile and Orderbook Age Profile Containership Orderbook 22% 24% 23% 21% 10% For delivery in 24/25/26+ 7.0 (as of Feb-24) 4.0 0.2 8000+: 121/ 119/ 127 11.4% 6.0 3.5 3-7,999: 112/ 39/ 20 1.9 0.1 3.16 2.1 100-2,999: 188/ 64 / 24 5.0 3.0 6.1% 1.7 3.5 2.5 6.3% 4.0 8.1% mTEU mTEU 0.7 1.96 2.02 2.0 5
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 23% 12% 12% 29% 24% 1.3 0.45 0.40 1.1 0.63 ~8.0% 0.35 0.51 0.9 0.51 0.30 ~6.3% 0.25 mTEU 0.7 mTEU 0.20 0.5 0.19 0.54 0.28 0.44 0.15 ~1.9% 0.3 0.58 0.10 0.33 ~0.7% 0.26 0.05 0.1 0.24 0.25 0.04 0.04 0.08 0.00 0-4 5-9 10
Slide 14: Outlook Summary
Outlook Summary ➢ Container shipping is under pressure from large amounts of new capacity coming into the fleet especially within 2024. • However, in the last few weeks mainly due to the events in the Red Sea, Panama Canal & the introduction of EU ETS, shipping freight rates have doubled and charter
Slide 15: Market Evolution
Market Evolution Cont 2,500 TEU One-Year Time Charter Rate Cont 2,500 TEU – NB & 10 Year Old Price 90,000 60 80,000 50 70,000 60,000 40 50,000 $/ day mm USD 30 40,000 As of Feb 16, 2024, 1YR TC rate 30,000 for 2,500 TEU vessel stands at 20 $15,500/day 20,000 10 10,000 0 0 Jan-2013 Jan-2014 Jan-2015
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: Fourth Quarter and FY of 2022 and 2023
Financial Highlights: Fourth Quarter and FY of 2022 and 2023 Fourth Quarter Change Twelve Months Change (in million USD except per share amounts) 2022 2023 % 2022 2023 % Net Revenues 42.89 49.06 14.4% 182.69 189.36 3.6% Net Income 20.34 24.72 21.6% 106.24 114.55 7.8% Earnings per share, diluted 2.86
Slide 18: Fleet Data for Fourth Quarter and FY of 2022 and 2023
Fleet Data for Fourth Quarter and FY of 2022 and 2023 Fourth Quarter Twelve Months (in million USD except per share amounts) 2022 2023 2022 2023 Number of vessels 18.0 19.0 17.1 18.3 Utililization Rate(1) Operational 95.1% 99.9% 98.4% 99.1% Commercial 100.0% 100.0% 99.9% 99.6% Overall 95.1% 99.9% 98
Slide 19: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile of Existing Debt 70.00 Cost of funding: 60.00 Outstanding bank debt of $131.0 with average margin $9.3m (2 vessels) 50.00 $2.0m (2 vessels) of about 2.31%; assuming 3M SOFR(1) of 5.31%, our cost $1.8m (1 vessel) $7.0m (1 vessel) of senior debt is 7.62% 4
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (12/31/23) Notes Assets ➢ Cash & Other assets: $71.7m 400 ➢ Advances for NB vessels: $85.4m Cash & Other Assets ➢ Vessels book value: $267.6m 350 ➢ Total assets (at book value): $424.7m Advances for Liabilities 300 NB vessels Shareholders' ➢ Bank &
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,