Euroseas strengthens fleet in recovering dry bulk market

2Q17 highlights:

• Total net revenues of US$10.0 million. Net loss of US$1.0 million; net loss attributable to common shareholders (after a US$0.4 million of dividend on Series B Preferred Shares) of US$1.5 million or US$0.13 loss per share basic and diluted. Adjusted net loss attributable to common shareholders1 remained unchanged, compared to net loss attributable to common shareholders, at US$0.13 per share.
 
• Adjusted EBITDA1 was US$2.0 million.
• An average of 13.1 vessels were owned and operated during the second quarter of 2017 earning an average time charter equivalent rate of US$8191 per day.
• The Company declared its fourteenth dividend of US$0.4 million on its Series B Preferred Shares; the dividend was paid in-kind by issuing additional Series B Preferred Shares.

1H17 highlights:

• Total net revenues of US$18.3 million. Net loss of US$3.2 million; net loss attributable to common shareholders (after a US$0.9 million of dividend on Series B Preferred Shares) of US$4.1 million or US$0.37 loss per share basic and diluted. Adjusted net loss per share attributable to common shareholders1 for the period was US$0.42.
 
• Adjusted EBITDA1 was US$2.2 million.
• An average of 13.3 vessels were owned and operated during the first half of 2017 earning an average time charter equivalent rate of US$7654 per day.

Aristides Pittas, Chairman and CEO of Euroseas commented:

"During the second quarter of 2017, both the drybulk and containership markets continued their recovery. Although charter rates peaked in early May and have softened since, they remain at levels noticeably higher than their respective periods of last year. Expectations for continued economic growth across many developed and developing countries and low levels of orderbook for both sectors support our guarded optimism that charter rates will further improve in the latter part of the year and in 2018. Thus, we consider the current charter rate levels appropriate for short and selected medium term charters, a strategy that affords us the flexibility to take advantage of any improvement in charter rates.

"At the same time, we are trying to exploit any opportunities to acquire new vessels in accretive transactions like our recent acquisition of M/V EM Astoria. We continue to believe that a company like Euroseas with access to the public markets and a cost-effective operating structure provides an ideal consolidation platform for drybulk and containership vessels and we are exploring such opportunities."

Tasos Aslidis, Chief Financial Officer of Euroseas commented:

"The results of the second quarter of 2017 reflect the improving levels of the containership and drybulk markets compared to the same period of 2016.

"Adjusted EBITDA during the second quarter of 2017 was US$2.0 million versus US$(0.9) million in the second quarter of last year. During the second quarter of 2017, we repaid US$1.5 million of debt earlier than scheduled and as a result one of our vessels, M/V Joanna, is unencumbered. As of June 30, 2017, our outstanding debt (excluding the unamortised loan fees) was US$62.9 million versus restricted and unrestricted cash of US$13.7 million. As of the same date, our scheduled debt repayments over the next 12 months amounted to about US$11.4 million (excluding the unamortised loan fees).

"Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, averaged US$5984 per vessel per day during the second quarter of 2017 as compared to US$6065 per vessel per day for the same quarter of last year, and US$5835 per vessel per day for the first half of 2017 as compared to US$6097 per vessel per day for the same period of 2016, reflecting a 1.3% and 4.3% decline, respectively. As always, we want to emphasise that cost control remains a key component of our strategy."

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/10082017/euroseas-strengthens-fleet-in-recovering-dry-bulk-market/