Euroseas reports Q2 adjusted EPS $4.92, consensus $2.82

Reports Q2 revenue $58.7M, consensus $48.44M. Aristides Pittas, Chairman and CEO of Euroseas commented: “We are very pleased to report our results for the second quarter of 2024 which are the best we recorded in recent years. Also, we are pleased to have welcomed through the second quarter and in early July 2024, four more of our nine vessel newbuilding program with the remaining two vessels scheduled to be delivered to us in January 2025. The second quarter was a good quarter for the containership markets, with charter rates continuing their increase and on average (more than doubling) over their levels at the end of 2023, a trend clearly evident in the charter rates and contract periods we secured for our own vessels. In July 2024, we saw market charter rates pausing their increase consolidating their levels, partly due to summer seasonality and partly to the evolving geopolitical scene. In the containership supply front, the challenges the market may face looking forward remain as there is a significant orderbook still to be delivered, at about 22% of the fleet down from a peak of about 30%, and, in addition, fleet capacity could be released if trade routes return to their end-2023 pattern, i.e. before Houthi attacks on Suez Canal crossing shipping forced liner companies to re-route their ships around Africa. To absorb such additional supply, the industry depends on demand for containerized trade continuing and, even, increasing and that, in turn, requires global economic growth and trades staying healthy. The anticipated interest rate cuts in the remaining of 2024 by central banks should contribute to the latter and it is a factor to watch for shipping demand prospects in the medium term as are government protectionist measures that may reduce trade. In any event, we believe that with charter coverage of about 75% over the next twelve months, we are sufficiently insulated from market developments. We hope that we will also be able to re-charter the few vessels opening up this year at levels around the current ones further strengthening our forward cover. 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.”