Monday, March 03, 2025
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. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fourth quarter results. Euroseas reported fourth quarter 2024 adjusted EBITDA and earnings per share (EPS) of $32.8 million and $3.33, respectively, compared to our estimates of $34.7 million and $3.66. While revenues were generally in line with our estimates, operating expenses were higher than expected. Drydocking expenses were ~$1.7 million above our estimates, while general and administrative expenses were ~$600 thousand above our estimates due to higher share-based compensation.
2025 outlook. Container ship charter rates remained stable in the fourth quarter, with feeder and intermediate segments showing modest gains in early 2025. While ongoing disruptions in the Red Sea continue to support rates, the potential reopening of the Suez Canal could have a negative impact. The global containership orderbook remains high, and vessels have started to come to market. While a large orderbook poses risks, the feeder and intermediate sectors where Euroseas operates face limited new supply and aging fleets.
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