Euroseas reports Q4 and FY 2023 results
Euroseas Ltd., a container carrier vessel owner and operator, announced its financial results for the fourth quarter of 2023 and the full year ended December 31, 2023.
In Q4 2023, the company reported total net revenues of $49.1 million, with net income amounting to $24.7 million, according to the company's release. An average of 19 vessels were operated during the quarter, earning an average time charter equivalent rate of $29,266 per day. Euroseas also declared a quarterly dividend increase of 20% to $0.60 per share for Q4 2023, with the dividend payable on or about March 15, 2024. Additionally, the company repurchased 400,705 common stock shares, representing 5.5% of outstanding shares.
For the full year 2023, Euroseas achieved total net revenues of $189.4 million, with net income reaching $114.5 million. Adjusted EBITDA was $123.6 million for the year. An average of 18.25 vessels were operated throughout 2023, earning an average time charter equivalent rate of $29,714 per day. Recent developments include the delivery of the M/V Tender Soul, an eco-friendly vessel with sustainable features.
In the fourth quarter of 2023, as total net revenues surged by 14% compared to the same period in 2022. The increase was attributed to the higher average number of vessels owned and operated during the quarter, with an average of 19 vessels in operation. Net revenues for Q4 2023 reached $49.1 million, up from $42.9 million in Q4 2022. Additionally, total daily vessel operating expenses, including various fees but excluding drydocking costs, were slightly lower in Q4 2023 than the previous year. Adjusted EBITDA for the quarter stood at $32.4 million, a significant rise from $22.9 million in Q4 2022. Euroseas reported positive retained earnings of about $8.5 million at the end of 2023, showcasing a shift from accumulated deficit despite paying substantial dividends in 2022 and 2023. Furthermore, the company's outstanding bank debt as of December 31, 2023, was $131.0 million, with restricted and unrestricted cash totaling approximately $64.3 million. Euroseas remains well-positioned for 2024 with a contracted revenue backlog exceeding $350 million and a substantial liquidity buffer of almost $60 million. The company's Board has decided to boost the quarterly dividend by 20% to $0.60 per share.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. The company has a fleet of 20 vessels, including 13 feeder containerships and 7 Intermediate containerships. Euroseas 20 containerships have a cargo capacity of 61,661 teu. After the delivery of six feeder containership newbuildings in 2024, Euroseas’ fleet will consist of 26 vessels with a total carrying capacity of 75,461 TEU.
