Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q3 2020 Earnings Presentation
20 slides from Euroseas's earnings presentation, Nov 20, 2020
Slide 1: Earnings Presentation Quarter Ended September 30, 2020
Earnings Presentation Quarter Ended September 30, 2020 November 20, 2020 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: 2020 Third Quarter Financial Highlights
2020 Third Quarter Financial Highlights in million USD except per share figures Q3 2020 Net Revenues 12.3 Net Income 0.2 Preferred Dividends (0.2) Net Income Attributable to Common 0.03 0.01 / share(2) Shareholders Adjusted Net Loss Attributable to Common (1.5) (0.26) / share(2) Shareholders(1) Adj.
Slide 4: Recent Chartering, Operational & S&P Developments
Recent Chartering, Operational & S&P Developments Chartering: • M/V EM Hydra: Fixed for 3-7 months at $7,200 per day • M/V Synergy Oakland: 8-12 months option declared starting 22-Oct at Contex -10%. Current rate about $15,400/day • M/V Evridiki G: Fixed for a 40/70 day trip at $8,250 per day No
Slide 5: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 14 vessels with an average age of 15.5(1) years and a carrying capacity of 42.3k TEU 9x Feeder 5x Intermediate Avg. Age: 17.5 years(1) Avg. Age: 13.2 years(1) Carrying Capacity: 19.7k TEU Carrying Capacity: 22.6k TEU Size Year Name Type DWT TEU Bui
Slide 6: Vessel Employment
Vessel Employment Coverage (as of Oct 30, 2020): About 93% for the remaining 2020 & 40% for 2021 (based on max(1) durations) 2020 2021 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 EM SPETSES $7,000 $7,000 $8,100 EM ASTORIA
Slide 7: Fleet Management & Operational Performance
Fleet Management & Operational Performance ESEA Highlights Daily costs per vessel(1) $/day 9,000 8,000 Operational fleet utilization rate in excess of 98.8% over last 5 years 7,000 • Outstanding safety and environmental record 6,000 • For 2020Q3, operational fleet utilization 99.9% and commercial
Slide 8: Market Overview
Market Overview 8
Slide 9: Last 10 year 6-12m TC rate
10,000 15,000 20,000 25,000 12,000 16,000 0 0 5,000 4,000 8,000 Jan-2010 Jan-2010 Jul-2010 Jul-2010 Jan-2011 Jan-2011 Jul-2011 Jul-2011 Jan-2012 Jan-2012 Jul-2012 Jul-2012 Jan-2013 Jan-2013 3,500 TEU gls $7,821 1,700 TEU grd Jul-2013 $9,582 Jul-2013 Jan-2014 Jan-2014 Source: Clarksons Jul-2014 Jul-2
Slide 10: Containership Market Highlights – Q3 2020
Containership Market Highlights – Q3 2020 Time charter rates in Q3 for feeder and intermediate size vessels ranging from 1,000-5,600 teu drew a positive picture and in October & November 2020 they increased significantly more exceeding historical median levels by a good margin • The 1,700 teu gear
Slide 11: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth COVID-19 Pandemic has dramatically and negatively changed the economic & world trade environment for 2020 Real GDP (% p.a. - IMF) 2015 2016 2017 2018 2019 2020e 2021e 2022e USA 2.6 1.5 2.3 2.9 2.3 -4.3(8.0) 3.1(4.5) 2.9 Eurozone 2.0 1.8 2.4 1.8 1.2 -8.3(-10.2) 5.2(
Slide 12: Age Profile and Orderbook
Age Profile and Orderbook Age Profile Containership Orderbook mTEU 1.8 For delivery in 20/21/22+ 8.0 (as of Jul-20) 24% 29% 29% 12% 6% 3.6% 5.6% 4.0% 4.5(*) 1.6 8000+: 30 / 56/ 21 7.0 0.1 3-7,999 4 / 7 / 0 0.9 1.4 6.0 100-2,999: 108 / 87 / 12 2.3 1.2 5.0 4.2%(*) 2.4 1.0 4.0 4.2 0.9 0.8 3.0 1.2 1.9%(
Slide 13: Outlook Summary
Outlook Summary The unknown duration of the pandemic and its financial consequences continue to render any type of modeling very difficult Recently revised projections by analysts estimate that the 2020 container front-haul demand will end up at around 0%, a dramatic improvement of previous fore
Slide 14: Market Snapshot
Market Snapshot Cont 2,500 TEU One-Year Time Charter Rate Cont 2,500 TEU – 10 Year Old Historical Price Range(1) $/day $m 45,000 20.0 $18.0 (Nov -2011 to Jan-2012) 40,000 35,000 15.0 30,000 Since the financial crisis of 2008 rates 25,000 stayed rather depressed within the $5,500/day to $14,900/day r
Slide 15: Financial Overview
Financial Overview 15
Slide 16: Financial Highlights: Third Quarter and Nine Months 2019/20
Financial Highlights: Third Quarter and Nine Months 2019/20 Third Quarter Change Nine Months Change (in million USD except per share amounts) 2019 2020 % 2019 2020 % Net Revenues 10.3 12.3 19.4% 26.7 41.3 54.5% Net (Loss) / Income (0.2) 0.2 (0.9) 3.5 Preferred & Preferred Deemed Dividends (0.2) (0.2
Slide 17: Fleet Data: Third Quarter and Nine Months 2019 and 2020
Fleet Data: Third Quarter and Nine Months 2019 and 2020 Third Quarter Nine Months (in million USD except per share amounts) 2019 2020 2019 2020 Number of vessels 13.5 16.5 11.8 18.2 Utililization Rate (1) Operational 99.9% 99.9% 100.0% 98.5% Commercial 100.0% 97.9% 98.8% 97.2% Overall 99.9% 97.8% 98
Slide 18: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile $m $7.1m (2 vessels) 40.00 $7.1m (3 vessels) $12.15m (4 $18.9m (4 vessels) 35.00 vessels) $3.75m (1 vessel) Cost of funding: 30.00 As of September 30, 2020, Euroseas has outstanding 25.00 $1.9m (1 vessel) bank debt of $75.5m with average margin of about
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (2020Q3) Notes 120.0 Assets Cash and Cash & Other assets: $10.0m Other Assets Net Book 100.0 Vessels book value: $103.1m Value Total assets (at book value): $113.1m Other Liabilities Liabilities Bank & other debt: $75.5m 80.0 Pref. Equity
Slide 20: 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, I