Euroseas Swings to Loss as Revenue Drops

Euroseas Swings to Loss as Revenue Drops

Shipowner Euroseas Ltd. reported a net loss of $132 million for 2012, compared with a profit of $1.1 million in 2011, as revenue dropped nearly $10 million to $54.9 million.

The company, which has nine container ships in its fleet in addition to other vessels, said its 2012 time-charter equivalent daily rate was $10,155 per day, down from $11,525 the year before.

Euroseas’ management noted that rates remained at low levels through the first few months of 2013, and that ovecapacity could lead to reduced charter hire rates and lower profitability, requiring the company to raise additional capital to comply with existing debt covenants, as the market supply of both dry bulk and container ships has been increasing.

In March 2013, Euroseas announced the successful placement of three vessels on time-charters for periods ranging from six months to a year.