Euroseas looking to grow its fleet
Greece-based shipping company Euroseas Ltd. (Nasdaq: ESEA), which on Tuesday reported strong growth in first-quarter earnings, expects to continue to grow its fleet, executives said on a conference call this morning.
“We are looking at growing the company,” CEO Aristides Pittas said on the call. “Our vessel purchase program continues to be active.”
Euroseas, which runs a fleet of dry bulk and container ships, is focusing its vessel acquisition efforts on middle-aged, multipurpose ships, Pittas said. The company has $10 million to $12 million available for acquisitions this year, he said. The company, incorporated in the Marshall Islands in 2005, currently operates four dry bulk carriers, six container ships and one multipurpose vessel.
On Tuesday after the close of trading, Euroseas reported revenues of $13.5 million for the first quarter ended March 31, up from $9.3 million in the same period of 2006. The company announced a $9.5 million profit, or $0.58 a share, almost three times the $3.4 million profit, or $0.28 per share, a year earlier.
Shares in the company are trading near the 52-week high of $12.37. In midday trading, Euroseas shares were up $1.42 at $12.22.
The Pittas family, which has a controlling interest in Euroseas and has been in the shipping business for over 136 years, has “no thought” of selling stock in the company, Pittas said.
“We will continue growing the company for the benefit of all our shareholders,” Pittas said.
Also on the call, Pittas said:
• 45% of the company’s debt will be paid in 2007 and 2008
• The higher Euro to American dollar exchange rate is raising expenses
• He “does not expect surprises” in the container sector this year
