Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Q2 2022 Earnings Presentation
22 slides from Euroseas's earnings presentation, Aug 11, 2022
Slide 1: Earnings Presentation Quarter Ended June 30, 2022
Earnings Presentation Quarter Ended June 30, 2022 August 11, 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 Second Quarter Financial Highlights
2022 Second Quarter Financial Highlights Financial Results in million USD except per share figures Q2 2022 Net Revenues 48.5 Net Income 30.7 (2) Net Income / (Loss) Attributable to Common Shareholders 30.7 4.24/ share Adj. Net Income / (Loss) (2) (1) 29.6 4.08 / share Attributable to Common Sharehol
Slide 4: Recent S&P, Chartering & Operational Highlights
Recent S&P, Chartering & Operational Highlights ➢ S&P: • Took delivery of M/V Emmanuel P and M/V Rena P on May 24th and June 27th, both 4,250 TEU vessels built in 2005 and 2007, respectively ➢ Chartering • No new charters this quarter; all vessels are fixed through the fourth quarter of 2022. • M/V
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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 # AK
Slide 8: Market Overview
Market Overview 8
Slide 9: Containership time charter rates
Last 10 year 6-12m TC rate ($/day) 1,700 TEU grd 2,500 TEU grd 70,000 Aug 5th 2022 80,000 Aug 5th 2022 $51,000/day $72,500/day 60,000 70,000 60,000 50,000 50,000 40,000 40,000 30,000 30,000 $15,290 20,000 20,000 $12,744 10,000 10,000 $8,950 $7,700 0 0 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul
Slide 10: Containership Market Highlights – Q2 2022
Containership Market Highlights – Q2 2022 ➢ Time charter rates across all segments declined slightly over the past 3 months but are still higher than at the start of 2022 and more than four times higher than at the end of 2020 and still well above the historical median of the last 12 years. ➢ Averag
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 2.3(3.7) 1.0(2.3) Eurozone 2.0 1.8 2.4 1.8 1.2 -6.6 5.4 2.6(2.8) 1.2(2.3) Japan 0.5 1.0 1.8 1.0 0.7 -4.8 1.7 1.7(2.4) 1.7(2.3) China 6.9 6.7 6.8 6.6 6.1 2.3 8.1 3
Slide 12: Age Profile and Orderbook, Total Fleet
Age Profile and Orderbook, Total Fleet Age Profile Containership Orderbook 21% 26% 27% 17% 9% For delivery in 22/23/24 9.5% 9.7% (as of Jul-22) 8.0 2.8 8000+: 29/ 102 / 130 7.0 3-7,999: 8 / 78 / 124 2.33 0.1 2.3 100-2,999: 92/ 173 /93 2.09 6.0 1.3 3.1 1.8 5.0 4.5% 3.8% mTEU mTEU 2.0 0.1 4.5% 4.0 1.3
Slide 13: Fleet Age Profile and Orderbook, 1000-3000 TEU
Fleet Age Profile and Orderbook, 1000-3000 TEU Age Profile Containership Orderbook 21% 11% 23% 23% 22% 0.4 7.8% 1.0 0.9 0.3 6.3% 0.8 0.3 0.234 0.7 0.4 0.208 0.6 0.4 4.0% 0.6 0.4 0.2 4.5% mTEU mTEU 0.5 0.2 0.4 0.2 0.3 0.1 0.083 0.5 0.2 0.4 0.5 0.3 0.1 0.1 0.3 0.0 0.0 0-4 5-9 10-14 15-19 20+ 2018 2019
Slide 14: Outlook Summary
Outlook Summary ➢ Container shipping markets remain in spectacular territory although slightly correcting. Charter rates have dropped by about 10%-20% from recent record highs. Freight rates have fallen circa 20%-30% below historical highs ➢ Pressure on container trade has increased as macroeconomic
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 NB Price, 2600-2,900teu As of Aug 5, 2022, 1YR TC rate for 2,500 TEU vessel stands at 50 10-yr old Secondhand $72,500/day Price, 2500teu 70,000 60,000 40 50,000 mm USD
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Financial Highlights: Second Quarter and First half 2021 and 2022
Financial Highlights: Second Quarter and First half 2021 and 2022 Second Quarter Change Six Months Change (in million USD except per share amounts) 2021 2022 % 2021 2022 % Net Revenues 18.29 48.48 165.1% 32.60 93.85 187.9% Net (Loss) / Income 7.95 30.75 11.74 60.69 Preferred & Preferred Deemed Divid
Slide 18: Fleet Data for the Second Quarter and First half 2021 and 2022
Fleet Data for the Second Quarter and First half 2021 and 2022 Second Quarter Six Months (in million USD except per share amounts) 2021 2022 2021 2022 Number of vessels 14.0 16.5 14.0 16.2 Utililization Rate(1) Operational 99.9% 99.7% 98.3% 99.6% Commercial 100.0% 100.0% 100.0% 99.8% Overall 99.9% 9
Slide 19: 2022 EBITDA Calculator
2022 EBITDA Calculator This slide provides a calculation tool for our shareholders and investors to assess the earnings potential in 2022 onwards, based on our existing coverage as well as the potential incremental contribution from our open days EBITDA Calculator: 2022 - 2024 2022H1 actual 2022 Q3-
Slide 20: 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: 60.00 Outstanding bank debt of $105.2m with average margin of about 3.0%; assuming LIBOR of 2.8%, our cost of 50.00 $1.9m (1 vessel) senior debt is 5.8% and includin
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Euroseas Capital Structure (6/30/22) Notes Assets ➢ Cash & Other assets: $17.1m ➢ Advances for NB vessels: $37.8m ➢ Vessels book value: $233.6m ➢ Total assets (at book value): $288.5m Liabilities ➢ Bank & other debt: $105.2m, i.e.~36.5% of total book value of assets ➢ FV of
Slide 22: 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,