Euroseas Ltd. (ESEA), a prominent container shipping operator, delivered significant earnings growth in the second quarter of 2024.
The company reported a 23.1% year-over-year revenue increase to $58.7 million, driven by higher charter rates and fleet expansion.
Net income surged to $40.7 million, with earnings per share at $5.89 basic and $5.84 diluted, marking a strong quarter for the Greece-based shipping company.
Fleet Expansion and Sustainable Operations Boost Efficiency
Euroseas operated an average of 21.26 vessels in Q2 2024, up from 17.95 in Q2 2023, with an average time charter rate of $31,639 per day.
This fleet growth strengthens the company’s market position in container shipping. Adding to its fleet, Euroseas welcomed the M/V “Pepi Star” in July 2024, a 1,800 TEU feeder vessel equipped with Tier III engines and alternative maritime power (AMP).
This eco-friendly addition aligns with Euroseas’ focus on sustainability and cost efficiency.
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Quarterly Dividend Demonstrates Shareholder Value Focus
Euroseas declared a Q2 2024 dividend of $0.60 per share, payable September 17 to shareholders on record as of September 9. This dividend underscores Euroseas’ commitment to delivering consistent returns to shareholders, in line with its capital return strategy.
The company reported improved cost efficiencies, cutting daily vessel operating expenses to $6,612 per vessel from $7,114 in Q2 2023.
Adjusted EBITDA rose to $42.3 million, a nearly 40% year-over-year increase, highlighting effective cost management and fleet modernization benefits.
Additionally, Euroseas has optimized its fleet with long-term charters and implemented a share repurchase program to enhance shareholder value.
As of August 6, 2024, Euroseas repurchased 400,705 shares for $8.2 million, showing confidence in its growth strategy.
Positioned for Long-Term Success in Container Shipping
Chairman and CEO Aristides Pittas expressed confidence in Euroseas’ stability and future growth.
With 75% of its fleet on charter contracts for the next 12 months, Euroseas is positioned to navigate market volatility. This stability allows Euroseas to capture long-term growth opportunities in the global container shipping sector.
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