Euroseas posts strong profit; focus on newbuilding deliveries


Euroseas announced its results for the three-month period ended March 31, 2023 and declared a common stock dividend.

First Quarter 2023 Financial Highlights:

  • Total net revenues of $41.9 million.
  • Net income of $28.8 million or $4.11 and $4.10 earnings per share basic and diluted, respectively.
  • Adjusted net income1 for the period was $21.7 million or $3.10 and $3.09 per share basic and diluted, respectively.
  • Adjusted EBITDA1 was $26.0 million.
  • An average of 17.1 vessels were owned and operated during the first quarter of 2023 earning an average time charter equivalent rate of $29,231 per day. Refer to a subsequent section of the Press Release for the definition and method of calculation of time charter equivalent rate.
  • Declared a quarterly dividend of $0.50 per share for the first quarter of 2023 payable on or about June 16, 2023 to shareholders of record on June 9, 2023, as part of the Company’s common stock dividend plan.
  • As of May 16, 2023 we had repurchased 348,419 of our common stock in the open market for a total of about $7.0 million, since the initiation of our share repurchase plan of up to $20 million announced in May 2022.
  • As previously announced, on April 6, 2023, the Company took delivery of its first newbuilding M/V “Gregos”, an eco 2,800 teu feeder containership from Hyundai Mipo Dockyard Co. in South Korea. The vessel is EEDI Phase 3 compliant and equipped with a Tier III engine and other sustainability linked features including installation of AMP (alternative maritime power). The acquisition was financed with a combination of own funds and a sustainability-linked loan provided by Eurobank S.A. Following its delivery, M/V “Gregos” commenced a thirty-six to forty month charter with Asyad Lines.


1 Adjusted EBITDA, Adjusted net income and Adjusted earnings per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for Euroseas financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Aristides Pittas, Chairman and CEO of Euroseas commented:

“During the first quarter and through mid-May of 2023, containership charter rates staged a comeback of 15-20% compared to the low levels reached, for most segments, during February of 2023. During the same period, we were able to re-charter two of our vessels whose contracts expired for two and three-year long charters at rates higher than originally anticipated reflecting the resilience of the market and the apparent belief of charterers that feeder vessels will be in short supply. This is likely a reflection of the fact that, while the overall orderbook of the fleet looms at around 30%, the orderbook for vessels with capacity less than 6000 teu, i.e. the segment we mainly operate, is around 11%; the latter fact coupled with the larger percentage of vessels older than 20 years suggest that the fleet could even decline in that segment. Of course, as we mentioned on several occasions previously, the larger vessels establish the overall trends in the market but, nevertheless, the better supply dynamics for the feeder and intermediate size vessels should provide a certain degree of comfort for owners like Euroseas.

“The larger comfort for Euroseas, though, lies with our charter coverage which runs well into 2025 and amounts to about $400 million of contracted revenues. In terms of coverage, our fleet is contracted in excess of 90% for the remaining of 2023 and in excess of 65% for 2024. Our contracted revenues alone over 2023 and 2024 are expected to generate earnings in excess of $20 per share which will be further increased by the revenues from our yet unchartered days.

“We remain focused on efficiently operating our fleet, reducing our carbon footprint, and taking delivery of our remaining eight newbuilding vessels while at the same time looking and evaluating investment opportunities with minimal residual value risk that are accretive to our earnings. In parallel, we continue rewarding our shareholders by declaring a $0.50 a share quarterly dividend and executing on our share repurchase program which we believe represents one of the best investment opportunities as our shares trade at less than half of their intrinsic value.”

Tasos Aslidis, Chief Financial Officer of Euroseas commented: “In a market environment where charter rates have significantly slid compared to last year, our net revenues decreased only slightly to $41.9 million in the first quarter of 2023 compared to $45.4 million during the same period of last year. This was due to the fact that most of our vessels are employed in time charter contracts booked before the decline of the market rates started. During the first quarter of 2023, we operated 17.1 vessels versus 16.0 vessels during the same period of last year.

“On a per-vessel-per-day basis, our vessels earned a 14.0% lower average time charter equivalent rates in the first quarter of 2023 as compared to the same period of 2022. Again, on a per-vessel-per-day basis, the sum of vessel operating expenses, management fees and general and administrative expenses increased by 10.2% during the first quarter of 2023 as compared to the same period in 2022 which was attributable to the higher prices for all the categories of vessel supplies paid for our vessels compared to the same period of 2022. We believe that we continue to maintain one of the lowest operating cost structures amongst the public shipping companies which is one of our competitive advantages.

“Adjusted EBITDA during the first quarter of 2023 was $26.0 million compared to $31.1 million achieved for the first quarter of 2022.

“Finally, as of March 31, 2023, our outstanding debt (excluding the unamortized loan fees) is about $121.0 million versus restricted and unrestricted cash of about $33.9 million.”


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