Drybulk and container carrier company Euroseas has posted a net loss of 44.2 mill. $ for the full year of 2016. Dry bulk supply pressures are expected to subside in the second half of 2017 if China’s commodity appetite continues.
Total net revenues for the year amounted to 28.4 m[ds_preview]ill. $. Net loss attributable to common shareholders was 45.9 mill. $. This loss includes, among other items, a 1.7 mill. $ of dividend on Series B Preferred Shares, a $5.9 million loss on write-down of vessel »Eleni« which was held for sale, 7.1 mill. $ loss on termination of Ultramax newbuilding contracts and on expected termination of a Kamsarmax newbuilding contract and a 18.7 mill. $ impairment loss in Euromar investments. Adjusted EBITDA1 was -1.1 mill. $.
Aristides Pittas, Chairman and CEO of Euroseas, commented: »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 (through our at-the-market equity program, the contribution of a vessel that was scrapped and a private placement of our common stock), debt rescheduling and new financings. In addition, we added a further drybulk newbuilding to our fleet and replaced certain older vessels with slightly younger ones. We believe all of these steps help position Euroseas to benefit from a potential market recovery. Our fleet now includes two drybulk newbuilding vessels; at the same time, we have no remaining capital commitments since we can opt out of our Kamsarmax newbuilding contract by end of March 2017. We also face a low loan repayment burden in 2017.«
Tasos Aslidis, Chief Financial Officer of Euroseas, commented: »The operating results of the fourth quarter of 2016 reflect the continuing low level of charter rates in the containership market and the modestly improved (especially during November 2016) drybulk market during the quarter. On average during the fourth quarter of 2016, our vessels earned 0.7% per day per vessel less than in the fourth quarter of 2015.«
For the fourth quarter of 2016, the Company reported total net revenues of 7.3 mill. $ representing a 17.0 % decrease over total net revenues of 8.8 mill. $ during the fourth quarter of 2015. The Company reported a net loss for the period of 17.6 mill. $ and a net loss attributable to common shareholders of 18.1 mill. $, as compared to a net loss of 3.9 mill. $ and net loss attributable to common shareholders of $4.4 million for the fourth quarter of 2015. On average, 12.1 vessels were owned and operated during the fourth quarter of 2016 earning an average time charter equivalent rate of $7,666 per day compared to 13.97 vessels in the same period of 2015 earning an average time charter equivalent rate of $7,717 per day.
