Hours shipping company Euroseas Ltd. (ESEA.US) announced its second quarter 2019 results, showing that total net income was US$8.1 million, a year-on-year decrease of 17.1%; net loss attributable to shareholders was US$1.73 million or a diluted loss of US$0.14, while net profit attributable to shareholders was US$2.19 million or a diluted benefit of US$0.16, and the company's profit fell 178% year-on-year.
financial report shows that the decline in total net income is due to the decrease in average ship count and the decrease in average lease term.
In the second quarter of 2019, the ship passed the intermediate inspection in the water, and the cost of dry dock reached US$200,000. The depreciation fee was $800,000, compared with $840,000 in the same period in 2018.
The ship operating expenses in the second quarter of 2019 were $5 million, mainly due to the decrease in the average number of operating ships.
Other general and administrative expenses for the second quarter of 2019 were $660,000, slightly higher than the $630,000 in the second quarter of 2018.
On average, 11.00 ships owned and operated in the second quarter of 2019 were 11.00 ships with an average daily rent of $8,307, while 11.95 ships for the same period of 2018 were 10,028.
In addition, the company announced its second cash dividend of its Series B preferred stock to at $480,000. The company continues to redeem its issued Series B preferred shares approximately $11.7 million (approximately 59.4%) while reducing its dividend yield by 4% to cover the $8 million preferred shares that have not been issued as of January 2021.
Euroseas also announced that it completed the acquisition of , the four branch container ships owned by the Pittas family affiliates, controlled by the company's CEO and paid for the price of $15 million in cash payments and approximately 22.5 million common shares issued.
Euroseas Chief Financial Officer Tasos Aslidis said: “As of June 30, 2019, our outstanding debt (excluding unamorized loan expenses) was $40.2 million, while restricted and unrestricted cash was $4 million. As of the same date, our estimated debt repayment for the next 12 months was approximately $5.1 million (excluding unamorized loan expenses).
He also stated, “Total daily operating expenses of the ship, including administrative expenses, general and administrative expenses.” , but excluding dry dock fees, during the second quarter of 2019, the average was $6,423 per ship per day, compared with $6,278 per ship per day in the same period last year, with a 2.3% increase in fees year-on-year. As always, we want to emphasize that cost control remains a key component of our strategy. We abide by all loan agreements. "
As of 16:43 EST, Euroseas rose more than 15% after the market to $0.63.
