Containership and Drybulk Markets Depressed

During the first half and during the month of July of 2014, the drybulk market weakened significantly against expectations widely held in the industry while the containership market remained static at low levels, Aristides Pittas, Chairman and CEO of Euroseas, shipowner and
operator said, commenting first half results. “Despite these developments, we continue to believe that both markets will show a gradual improvement over the rest of 2014 and during 2015. Our fleet continues to have a high exposure to the spot market and our chartering strategy remains to pursue short term charters of 3-12 months when possible.

We are thus well positioned to take advantage of an improving market,” Pittas added. Euroseas rerecorded a net loss of $7.2 million in the first half of 2014, its total net revenues reaching $19.1 million. Adjusted net loss per share available to common shareholders1 for the period was $0.15. An average of 14.2 vessels were owned and operated during the first half of 2014 earning an average time charter equivalent rate of $7,585 per day. Tasos Aslidis, Chief Financial Officer of Euroseas said: “The results of the second quarter of 2014 reflect the depressed level of the containership and drybulk markets compared to the same quarter of 2013, despite the better commercial utilization rate of the vessels. “On the financing front, we were able to secure financing for our recent acquisition of M/V Eirini P as well as refinance the balloon payment of loan of M/V Eleni P. As of June 30, 2014, our outstanding debt was $59.4 million versus restricted and unrestricted cash of about $46.4 million. As of the same date, our scheduled debt repayments over the next 12 months amounted to about $14.6 million, inclusive of about $4.9 million of balloon repayments which may be refinanced. All our debt covenants are satisfied,” he added.