Euroseas Ltd. (NASDAQ: ESEA) reported Q4 EPS of ($0.07), $0.13 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $8.02 million versus the consensus estimate of $12.49 million.

“The containership market is still facing modest supply growth due to an orderbook-to-fleet ratio at historically low levels and additional vessel down-time required for installing required equipment for implementation of emissions and water ballast treatment regulations. Thus, any solution of the trade wars issues between the US and primarily China may lead to a recovery of the containerized trade and translate to higher rates for our vessels increasing our profitability. Euroseas’ strategy remains focused on exploiting its position as the only publicly-listed feeder company either growing organically or pursuing accretive growth opportunities via mergers or combinations with privately owned vessels or fleets.”

Tasos Aslidis, Chief Financial Officer of Euroseas commented: “The operating results of the fourth quarter of 2018 reflect the downward sliding level of charter rates in the containership markets. On average, however, during the fourth quarter of 2018, our vessels earned approximately 6.5% higher time charter equivalent rates compared to the fourth quarter of 2017.”

“Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, were about the same during the fourth quarter of 2018 compared to the same quarter of last year, while for the full year 2018 they increased by approximately 4.6%. Adjusted EBITDA during the fourth quarter of 2018 was $1.2 million versus $1.5 million in the fourth quarter of last year, and it reached $4.3 million versus $1.9 million for the respective twelve-month periods of 2018 and 2017.”

“As of December 31, 2018, our outstanding debt (excluding the unamortized loan fees) and a profit participation liability on one of our vessels (representing the estimated amount related to the lender’s entitlement to participate in the appreciation of the fair value of one of our vessels) were $37.5 million and $1.1 million, respectively, versus restricted and unrestricted cash net of funds due to related companies of approximately $10.5 million. The profit participation liability is shown without taking into account the aggregate operating results of the vessel which will be included in the final calculation.”

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