Bruce Barnard, Special Correspondent | Aug 09, 2012 11:53AM EDT
Greek container ship and bulk carrier owner Euroseas fell $1.4 million into the red in the second quarter as charter rates for the type of small box vessels it owns were stuck at lows last seen in the 2010 bear market.
The NASDAQ-listed company, which broke even in the second quarter of 2011, saw revenue sink 17.9 percent to $12.9 million in the three months to June 30 from $15.6 million a year ago.
Athens-based Euroseas, which owns nine container ships, one multipurpose vessel and five bulk carriers, booked adjusted earnings before interest, tax, depreciation and amortization of $3.4 million, compared with $5 million in the year-earlier period.
“During the first half of 2012, the container ship market remained depressed for the size of vessels we operate and stayed very close to the very low levels seen in the beginning of 2010,” Euroseas CEO Aristides Pittas said.
Euroseas’ container ships range in capacity from 1,169 20-foot-equivalent units to 2,556 TEUs, for a total of 16,805 TEUs.
“On the dry bulk side, although the market is also depressed, our fleet of five vessels is fully chartered at above-market rates on average throughout 2012 and well into 2013, positively contributing to our earnings,” Pittas said.
Pittas said he expects “very attractive” investment opportunities in both the container ship and dry bulk sectors over the next 12 months.
A $15 million share offering boosted Euroseas’ cash holding to more than $48 million as of June 30.
Contact Bruce Barnard at brucebarnard47@hotmail.com.