Euroseas Triples Its Full Year Loss

Athens-based shipping firm Euroseas has seen its net loss for the year ended December 31, 2016 widen to USD 45.9 million, compared to a net loss of USD 15.6 million reported a year earlier.

This loss includes a USD 1.7 million of dividend on Series B Preferred Shares, a USD 5.9 million loss on write-down of M/V Eleni which was held for sale, USD 7.1 million loss on termination of Ultramax newbuilding contracts and on expected termination of Kamsarmax newbuilding contract and a USD 18.7 million impairment loss in the company’s Euromar investments.

Euroseas’ net revenues for the period stood at USD 28.4 million, down from USD 37.6 million reported in 2015, while its operating loss reached USD 21.6 million, compared to USD 11.4 million seen in the previous year.

For the fourth quarter of the year, the company’s net loss attributable to common shareholders was at USD 18.1 million, compared to a net loss of USD 4.3 million reported in the same quarter in 2015, while net revenues for the three-month periods decreased to USD 7.3 million from USD 8.8 million.

“During the last quarter of 2016 and the month of January of 2017, we were able to transform the company by resolving its liquidity needs through a combination of equity raisings, debt rescheduling and new financings,” Aristides Pittas, Chairman and CEO of Euroseas, said.

Pittas said that, looking forward, the company expects to see a gradual improvement in the drybulk market if China’s commodity appetite continues as supply pressures are expected to subside in the second half of 2017. The company also said that it is “hopeful” to see an improvement in the containership rates on the back of supply correction through increased scrapping and more slippage in new deliveries.

“We now have the financial capacity to pursue selected acquisitions and take advantage of opportunities to invest while the prices of vessels are still relatively low. And we hope we will be able to continue acting as a platform to consolidate other ownership interests using our stock to pay for acquisitions such as the recent acquisition of M/V RT Dagr,” Pittas added.