Euroseas Ltd. (NASDAQ:ESEA)
Recovering Drybulk and containership markets led to increased revenues and better than expected first quarter results for Euroseas Ltd. (NASDAQ:ESEA). Strengthening world economic growth has already reinvigorated hope that the sector’s recovery is back on track which should lead to further improvement going forward.
Chief Executive officer, Aristides Pittas remains confident that their fleet should be able to take full advantage of the sector’s rebound going forward.
“In addition to the improving market prospects, our strengthened balance sheet, as a result of raising funds via both private placements and our at-the-market offering, has given us the confidence to continue the construction of our second Kamsarmax vessel due to be delivered by June 2018 as we announced last month,” said Mr. Pittas.
Euroseas Ltd. (NASDAQ:ESEA) has also reaffirmed its commitment to looking for new opportunities with the potential of bolstering the current fleet. Last year, the company acquired a new vessel and is now planning to explore similar opportunities with a view to generating more shareholder value.
Euroseas Ltd. (NASDAQ:ESEA) revenue in the quarter totaled $8.3 million representing a 26.6% increase from $6.5 million reported in Q1 OF 2016. Operating expenses were up by $0.5 million as compared to last year, due to an increase in vessels under operation.
Net loss attributed to shareholders shrunk to $2.6 million compared to a net loss of $3.3 million as of the same period last year. On average the company operated 13.38 vessels in the quarter with a time charter equivalent rate of $7,313 a day compared to 11.54 vessels for the same period last year.
During the quarter the dry-bulk carrier signed an addendum with Jiangsu Yangzijiang for the construction of a new vessel as part of a 2014 contract. The new agreement consequently reduced construction costs by 10% to $22.5 million. The vessel under development is has a fuel efficient design that will have a carrying capacity of 82,000dwt, It is slated for delivery in 2018.
Separately, Mr. George Skarvelis has parted ways with the company for personal reasons having been a director since 2005.
Euroseas Ltd. (NASDAQ:ESEA) was down by 9.59% in Friday trading session ending the week at lows of $1.14 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.