- Euroseas Ltd. has announced impressive financial performance for both the second quarter and first half of 2024.
- The company experienced significant growth in revenue and profit, driven by increased vessel operations and higher charter rates.
Euroseas, a leading container carrier, has announced impressive financial results for the second quarter and first half of 2024. The company’s strong performance was driven by increased vessel operations and higher charter rates.
Strong Q2 Performance
Euroseas announced robust financial results for the second quarter of 2024. The company reported strong revenue and profit growth, driven by increased vessel operations and higher charter rates. They have announced a net income of $40.7 million, earnings per share of $5.89, and adjusted EBITDA of $42.3 million. The company declared a quarterly dividend of $0.60 per share and continued its share repurchase program. Furthermore, Euroseas took delivery of a new eco-friendly containership, the M/V Pepi Star, and expanded its fleet.
H1 2024 Performance
In the first half of 2024, the company achieved total net revenues of $105.4 million and net income of $60.8 million. Earnings per share reached $8.77. Adjusted EBITDA for the period totalled $66.9 million. The company operated an average of 20.43 vessels, generating an average time charter equal to the rate of $29,836 per day.
CEO and CFO on the Performance
Euroseas CEO Aristides Pittas expressed satisfaction with the company’s strong Q2 2024 results, particularly pointing out the increased vessel operations and improved charter rates. He attributed the positive performance to favourable market conditions but cautioned about potential challenges due to a significant order book and the possibility of trade route shifts.
“We, thus, focus on appropriately managing the cash flow our charter contracts generate. We continue returning funds to our shareholders via our dividend program offering an annual yield of about 6.5% at current share price levels and a share repurchase program as our stock trades below our net asset value. Furthermore, we are diligently looking for and evaluating accretive investment opportunities.”
CFO Tasos Aslidis highlighted the company’s cost-efficiency improvements, driven by the integration of new vessels into the fleet. He also emphasized the company’s strong financial position with a healthy cash balance and manageable debt levels.
Euroseas Delivers Strong Q2 Performance
Euroseas reported robust financial results for the second quarter of 2024, driven by increased vessel operations and higher charter rates. The company generated total net revenues of $58.7 million, representing a 23.1% increase compared to the same period in 2023. Net income for the quarter reached $40.7 million, translating to earnings per share of $5.89.
- Revenue growth: Driven by increased vessel operations and higher charter rates.
- Profitability: Strong net income and earnings per share.
- Financial health: Adjusted EBITDA of $42.3 million, indicating solid financial performance.
- Fleet expansion: Delivery of a new eco-friendly containership, M/V Pepi Star.
- Sshareholder returns: Quarterly dividend of $0.60 per share and continued share repurchase program.
Euroseas Delivers Solid H1 2024 Performance
Euroseas Ltd. reported strong financial results for the first half of 2024, building on the momentum from a successful Q2. The company generated total net revenues of $105.4 million, a 17.6% increase compared to the same period in 2023. Net income for the period reached $60.8 million, reflecting a year-over-year increase.
- Revenue growth: Driven by increased vessel operations and higher charter rates.
- Profitability: Solid net income and earnings per share.
- Operational efficiency: Improved vessel operating expenses due to the integration of newbuilds.
Euroseas Fleet Profile
Euroseas Ltd. operates a fleet of 23 container carriers with a total capacity of 67,073 TEU. Additionally, the company has two newbuild feeder containerships scheduled for delivery in Q1 2025.
Fleet Breakdown:
- Intermediate: 7 vessels
- Feeder: 16 vessels
The company primarily employs its vessels on time charters, with varying contract durations and rates. The fleet consists of a mix of older and newer vessels, with the latter generally commanding higher charter rates.
Newbuilding Program
Euroseas has an active new building program with two feeder containerships scheduled for delivery in Q1 2025. These vessels are expected to further enhance the company’s fleet profile and operational efficiency.
Euroseas Fleet Utilization and Performance
Euroseas Ltd. demonstrated strong fleet utilization and operational efficiency during the first and second quarters of 2024. Key metrics include:
- Increased fleet size: The company expanded its fleet, with an average of 21.26 vessels in operation during Q2 2024 compared to 17.95 in Q2 2023.
- High fleet utilization: The company achieved near-perfect fleet utilization rates, with both commercial and operational utilization exceeding 99% in both Q1 and Q2 2024.
- Improved vessel performance: The average time charter equivalent rate increased to $31,639 per day in Q2 2024 from $30,151 per day in Q2 2023, reflecting improved vessel earnings.
- Cost efficiency: Vessel operating expenses and general administrative expenses decreased on a per vessel per day basis, contributing to overall profitability.
These metrics highlight Euroseas’ effective fleet management and its ability to optimize vessel operations for maximum returns.
Euroseas Reconciles Net Income to Adjusted Net Income
Euroseas has provided a reconciliation of its net income to adjusted net income for the second quarter and first half of 2024.
Prime adjustments:
- Unrealized loss/gain on derivatives: Excluded to focus on core operating performance.
- Amortization of below-market time charters acquired: Excluded to improve comparability between periods.
- Gain on sale of vessel: Excluded to reflect ongoing operations.
- Vessel depreciation on below-market time charters: Excluded to enhance comparability.
Adjusted net income is presented to provide investors with a more comprehensive view of the company’s operating performance, excluding certain non-cash and non-recurring items. However, it should not be considered a substitute for GAAP net income.
By excluding these items, Euroseas aims to provide a clearer picture of its underlying business performance and facilitate comparison between periods.
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Source: Euroseas
