Euroseas sank into the red in the third quarter but the Greek container ship and bulk carrier owner said the market downturn provides opportunities to boost its fleet with attractively priced vessels.
The Nasdaq-listed company, which owns nine box ships, six bulkers and one general cargo vessel, booked a net loss of $800,000 for the three months through the end of September compared with a year-earlier profit of $600,000 on net charter revenue, down 17.5 percent at $13.4 million.
Adjusted earnings before interest, tax, depreciation and amortization slumped 39.9 percent to $4 million.
“During the third quarter...the container ship market continued being depressed with no boost in charter rates during the usual holiday-targeted seasonal uptick during September and October,” said CEO Aristides Pittas. Dry bulk rates also continued their downward slide during the quarter.
“While most of our container ships are chartered at the presently low market levels, our dry bulk vessels benefit from previously entered charter contracts with higher rates well into 2013,” he said.
The difficult operating environment also presents opportunities to invest in vessels at very attractive valuations.
“We believe that our strong balance sheet and low leverage will allow us not only to manage the challenging year ahead but be in a position to capitalize on investment opportunities as they appear to renew and expand our fleet,” Pittas said.
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