Euroseas Ltd. (NASDAQ: ESEA) reported Q3 EPS of ($0.10), $0.16 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $8.35 million versus the consensus estimate of $12.49 million.

Aristides Pittas, Chairman and CEO of Euroseas commented: “The feeder containership markets have softened since July with rates declining gradually and with chartering activity levels dropping notably, especially, for larger vessels. As a result of this slowdown, our largest containership, M/V Akinada Bridge, also experienced some idle time during the quarter. Despite the slowdown, which we expect to continue through the upcoming holiday period, near and medium term market prospects appear positive assuming that trade tensions do not escalate further. With orderbook-to-fleet ratio still at historically low levels and the implementation of emissions and water ballast treatment regulations looming, we expect that supply pressures over the next couple of years will be minimal; thus, trade growth will shape demand for ships and market rate levels. Within this framework, we have tried to position Euroseas – the only publicly listed company focused on the feeder sector – to be ready to take advantage of any investment opportunities either in the form of single vessel acquisitions, or, by exploiting our public platform to consolidate other fleets and taking advantage of our efficient operating cost structure.”

Tasos Aslidis, Chief Financial Officer of Euroseas commented: “The results of the third quarter of 2018 reflect the state of the containership market and the fact that one of our vessels was undergoing repairs while another one was partly idle. Our vessels earned during the quarter rates that on average were approximately 22% higher than the daily rates earned during the same period of 2017 and did we not have the vessel under repair and idle time mentioned above we would likely have turned a positive result for the period.

“Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, remained at the same levels for the third quarter as compared to the same period of last year and increased by about 5.1% for the nine month period ended September 30, 2018 over the same period of 2017. Adjusted EBITDA during the third quarter of 2018 was $0.6 million versus $0.5 million in the third quarter of last year, and it reached $3.1 million versus $0.4 million for the respective nine-month periods of 2018 and 2017.

“As of September 30, 2018, our outstanding debt (excluding the unamortized loan fees) was $31.8 million versus restricted and unrestricted cash of $4.6 million. As of the same date, our scheduled debt repayments over the next 12 months amounted to about $4.3 million (excluding the unamortized loan fees).”

For earnings history and earnings-related data on Euroseas Ltd. (ESEA) click here.