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Euroseas (ESEA) – ESEA reported impressive 2022-1Q results reflecting an expanded fleet and higher shipping rates.

Transportation
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Wednesday, May 25, 2022

Euroseas (ESEA)
ESEA reported impressive 2022-1Q results reflecting an expanded fleet and higher shipping rates.

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.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2022-1Q results were impressive. ESEA reported Net Revenues of $45.5m (up 217%) versus our $40.5 million estimate. TCE rates were $33,986 versus $12,218 and our estimate of $30,114. While revenues more than doubled, operating costs rose a modest 5.3% versus last year. Operating income rose 515%, adjusted EBITDA rose 455%, adjusted net income rose 793%; all ahead of our expectations.

The company is growing and locking in charter rates. ESEA recently signed newbuild agreements on three ships, agreed to acquire two container vessels, and exercised options for two more constructions. In addition, it has extended a charter and locked in charter rates for two upcoming deliveries, all at favorable rates. The impact of these actions will be to significantly increase and modernize the company’s fleet size, provide attractive returns on the investment, and lock in strong earnings and cash flow for the immediate future. …

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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