Euroseas Q1 2025: Discrepancies in Off-Hire Days, Charter Rates, and Operating Expenses Unveiled

Financial Performance and Growth:
- Euroseas reported total net revenues of $56.3 million and a net income of $36.9 million, or $5.29 per diluted share, for Q1 2025.
- This represents a 20.6% increase in total net revenues compared to Q1 2024. Adjusted EBITDA for the period was $37.1 million.
- The growth was driven by strong container shipping market conditions and long-term employment contracts.

Spinoff and Fleet Strategy:
- Euroseas successfully completed the spinoff of Euroholdings, which owns older vessels, and distributed Euroholdings shares to Euroseas shareholders.
- The company's focus remains on its younger, more efficient fleet, with a strategic emphasis on new builds and fleet renewal.
- The spinoff allows Euroholdings to operate independently, enabling Euroseas to focus on its core growth strategy.

Market Trends and Charter Rates:
- Time charter rates for 2,500 TEU containerships reached $35,000 per day, more than three times the historical average.
- This trend is supported by limited vessel availability and sustained demand across all size segments.
- The strong market conditions are expected to continue due to geopolitical risks and rerouting, despite potential downward pressure from rerouting through the Suez Canal.

Debt Management and Capital Allocation:
- Euroseas maintained a total funding bank debt of $244 million, with a blended cost of debt effectively down to 6.3%.
- The company has paid off a significant portion of its debt through cash flow from operations and expectations for future repayments are outlined.
- A disciplined capital allocation strategy includes ongoing share repurchase programs and strategic dividend distributions.