Nasdaq-listed Euroseas has turned around losses in 2020 after rechartering part of its containership fleet at significantly higher rates.
The Athens-based boxship owner reported net profits of $4m last year, compared with a loss of $1.67m in 2019.
Net revenue jumped 33% to $53.3m for the year, up from $40m in 2019.
Chief executive Aristides Pittas said the company's fleet benefited from the market increase in the fourth quarter.
He said that four of Euroseas' vessels renewed charters at rates more than double their previous levels.
That helped the company log a profit of $583,000 in the final quarter of 2020, compared with a loss of $765,000 in the same period of the previous year.
Further renewals pending
Euroseas owns and operates 14 boxships, mostly feeders but including some traditional panamax vessels.
Several of the ships have charters expiring in the next six months, when the company is looking to lock in higher charter rates for longer periods.
“We remain very optimistic for the medium-term prospects of the market,” Pittas said.
He added that the relatively low orderbook, the expected rebound of the containerised trade, the easing of the Covid-19 pandemic, and new regulatory and environmental requirements are likely to keep the container market strong.
“If as result of the above trends, the charter rates remain near their current levels for the next four-to-five months, we should be able to renew the charters of almost all our vessels at similarly higher rates than they currently earn further contributing to our profitability,” he said.
Increased interest
Pittas noted that there was increasing interest in the container sector from both public and private capital markets.
He said the company would continue to pursue opportunities such as mergers or combining with privately-owned vessels or fleets.
Vessels in the Euroseas fleet benefited from 15.5% higher time-charter rates in the fourth quarter of 2020.
The fleet earned an average charter rate of $10,497 per day in the quarter, compared to $9,086 per day in the previous year.
Charters were renewed at significantly improved rates for the 4,253-teu Synergy Antwerp (built 2008), 2,778-teu EM Astoria (built 2004), 2,556-teu Evridiki G (built 2001) and 1,439-teu Aegean Express (built 1997).
