Euroseas (NasdaqCM:ESEA) Q3 2025 Earnings Call November 18, 2025 10:00 AM ET Company ParticipantsAristides Pittas - Chairman and CEOTasios Aslidis - CFOConference Call ParticipantsPoe Fratt - Managing Director and Senior Transportation AnalystClement Mullins - AnalystNone - AnalystTate Sullivan - Managing Director and Senior Research AnalystOperatorThank you for standing by, ladies and gentlemen, and welcome to Euroseas Conference Call on the third quarter 2025 financial results. We have with us today Mr. A ...

地缘端：加沙停火第一阶段协议正式生效满一个月。以色列政府和哈马斯不断指责对方违反停火协议，协议执行 波折频现，协议的脆弱性愈发凸显。人们担忧持久和平并未真的来临。中国国际问题研究院助理研究员李子昕表 示，虽然说第一阶段停火成功实现了全部仍然活着的以色列在押人员返回，以及大部分离世在押人员遗体的归还， 以色列也释放了一定数量的巴勒斯坦的在押人员，但目前第二阶段停火协议仍然是"遥遥无期"。双方在关键的问 题上几乎没有共识和妥协的余地，如果不能够顺利推进，后续停火被迫终止，恐怕也是在所难免。 动态供给：11月份剩余4周周均运力24.65万TEU，WEEK46/47/48/49周运力分别为15.11/29.65/26.89/26.94万TEU。 12月份月度周均运力33.88万TEU，WEEK50/51/52/53周运力分别为30.74/35.03/32.66/37.1万TEU。11月份共计10个 空班和1个TBN（其中MSC/PA联盟4个空班，双子星联盟1个空班，OA联盟5个空班，OA联盟的1个TBN后续预计 均转为空班）。12月份共计3个TBN。 12月合约:距离交割较远，12月合约交易更多关注节奏问题，预期和现 ...

1. Report Industry Investment Rating - No information provided on the industry investment rating. 2. Core View of the Report - The upward momentum of freight rates in the second half of November is insufficient, and the EC futures market declined on November 6. Spot freight rates show that the long - term cargo of shipping companies has improved, but the upward momentum in the second half of November has weakened. The demand from November to December is expected to gradually improve, but attention should be paid to the impact of possible tariff adjustments on the shipping rhythm. In terms of supply, the weekly average capacity from Shanghai to the 5 Nordic ports is increasing. Short - term attention should be paid to the shipping companies' cargo - collecting performance and the impact of the adjusted last trading day on the EC2602 contract valuation [7][8]. 3. Summary by Related Catalogs 3.1 Container Shipping - Container Shipping Index (European Line) 3.1.1 Futures Market - The closing prices of EC2512, EC2602, EC2604, EC2606, EC2608, and EC2610 contracts decreased, with declines of - 5.03%, - 3.09%, - 1.80%, - 0.83%, - 0.88%, and - 0.25% respectively. The trading volume of most contracts decreased, except for EC2608 and EC2610 which increased by 44.58% and 116.94% respectively. The positions of most contracts decreased, except for EC2602 which increased by 1.22% and EC2610 which increased by 12.23% [6]. - The spreads between different contracts also changed. For example, the spread of EC12 - EC02 decreased by 46.8, and the spread of EC12 - EC04 decreased by 76.2 [6]. 3.1.2 Container Freight Rates - SCFIS European Line index was 1208.71 points, with a week - on - week decrease of - 7.92% and a year - on - year decrease of - 46.48%. SCFIS US West Line index was 1267.15 points, with a week - on - week increase of 14.43% and a year - on - year decrease of - 54.40%. The SCFI comprehensive index was 1550.70 points, with a week - on - week increase of 10.49% and a year - on - year decrease of - 29.04% [6]. 3.1.3 Fuel Costs - The price of WTI crude oil near - month contract was $59.48 per barrel, with a current ratio decrease of - 1.13% and a year - on - year decrease of - 16.69%. The price of Brent crude oil near - month contract was $63.28 per barrel, with a current ratio decrease of - 1.03% and a year - on - year decrease of - 15.4% [6]. 3.2 Market Analysis and Strategy Recommendation 3.2.1 Market Analysis - MSK's WK47 weekly quote of $2250 was lower than market expectations, and the upward momentum of freight rates in the second half of November was insufficient, leading to a decline in the EC futures market. The spot price of SCFIS European Line decreased by 7.9%, slightly exceeding market expectations, mainly due to the change in the settlement index rhythm caused by the rolling and delay of some ships in the second half of October. Maersk expects the interference in the Red Sea area to last for a whole year and is cautious about the fourth - quarter development due to a large number of new ships entering the market. The Ministry of Commerce announced the adjustment of relevant restrictions on the US from November 10, and attention should be paid to the impact on shipping volume and rhythm [7]. 3.2.2 Strategy Recommendation - Unilateral trading: It is expected that the shipping companies' upward momentum in the second half of November will weaken, and the futures market has already factored in peak - season expectations. It is expected to fluctuate in the short term, and it is recommended to wait and see. - Arbitrage: Wait and see [9][10]. 3.3 Industry News - Maersk has selected New Times Shipbuilding to build 8 + 4 18000TEU dual - fuel LNG - powered container ships, with new ships expected to be delivered from 2028 to 2029. The total cost of all 12 ships will reach $2.316 billion if the optional orders are confirmed [10]. - The EU - China Chamber of Commerce expressed deep concern about the EU's investigation into the so - called subsidy issue of Chinese enterprises, emphasizing that the EU's "Foreign Subsidies Regulation" should not be used as a unilateral tool for protectionism [10].

Core Insights - Maersk's Q3 2025 earnings exceeded expectations, prompting an upward revision of its full-year profit forecast and global container market growth predictions [1][2] Financial Performance - Q3 2025 revenue was $14.206 billion, a decrease of 9.9% from $15.762 billion in the same period last year [1][2] - Underlying profit for Q3 2025 was $939 million, down 69.7% from $3.097 billion year-over-year [1][2] - Earnings per share were $69, lower than $193 in the previous year but above analysts' expectations of $62 [1] Profit Forecast and Market Growth - The company raised its full-year underlying EBITDA forecast to between $9 billion and $9.5 billion, up from a previous estimate of $8 billion to $9.5 billion [2] - The global container market is now expected to grow approximately 4%, an increase from the prior forecast of 2% to 4% [2] Market Dynamics - Exports from Far East Asia, particularly China, continue to drive robust cargo volume growth [3] - Despite a contraction in cargo volume to North America, especially from China to the U.S., consumer demand has shown surprising resilience [3][4] - Maersk's ability to adjust its profit expectations reflects its strength amid mixed performance from industry peers [3] Operational Resilience - The company has demonstrated considerable resilience to macroeconomic shocks, adapting to complex supply chain needs despite adverse tariff measures [4] - Ongoing disruptions in Red Sea shipping are expected to persist throughout the year, alleviating some global overcapacity issues and boosting freight rates earlier this year [4]

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The EC futures market maintains a volatile trend. Spot freight rates are expected to gradually rise from November to December, and shipping companies are likely to continue to announce price increases. The market should focus on the implementation of these price increases. In terms of fundamentals, the shipping volume from November to December is expected to gradually improve, and attention should be paid to the impact of possible tariff improvements on the shipping rhythm. The shipping capacity from October to November remains relatively stable, with a slight increase in the average weekly shipping capacity in December. There are expectations of a reduction in port fees, and the progress of the cease - fire agreement in the Middle East is tortuous and has recently escalated. The China - US economic and trade consultations have basically reached a consensus, and attention should be paid to the impact of tariff relaxation on future shipping volume and rhythm [5][6]. 3. Summary by Related Catalogs 3.1 Futures Market - **Futures Contract Performance**: On October 30, 2025, the closing prices of EC2512, EC2602, EC2604, EC2606, EC2608, and EC2610 decreased, with declines of - 1.45%, - 1.43%, - 1.55%, - 1.38%, - 2.22%, and - 0.63% respectively. The trading volumes of these contracts all decreased, with decreases of - 49.05%, - 47.43%, - 35.57%, - 38.06%, - 10.53%, and - 21.46% respectively. The positions of some contracts increased, while others decreased [4]. - **Monthly Spread Structure**: The spreads between different contracts showed various changes. For example, the spread of EC12 - EC02 decreased by 4.2, and the spread of EC02 - EC08 increased by 10.8 [4]. 3.2 Container Freight Rates - **Weekly Container Freight Rates**: The SCFIS European line index was 1312.71 points, with a week - on - week increase of 15.11% and a year - on - year decrease of 40.54%. The SCFIS US West line index was 1107.32 points, with a week - on - week increase of 28.24% and a year - on - year decrease of 60.70%. Different routes of the SCFI index also showed different trends in price changes [4]. 3.3 Fuel Costs - The price of WTI crude oil near - month was $60.00 per barrel, with a week - on - week increase of 0.35% and a year - on - year decrease of 12.56%. The price of Brent crude oil near - month was $64.3 per barrel, with a week - on - week increase of 0.69% and a year - on - year decrease of 11.5% [4]. 3.4 Market Analysis and Strategy Recommendations - **Market Analysis**: The China - US economic and trade consultations in Kuala Lumpur have basically reached a consensus. Some shipping companies have lowered their spot quotes, and the market is continuously gaming the subsequent freight rates. The EC futures market maintains a volatile trend. The spot freight rates of mainstream shipping companies have a large price difference, and the spot price center is expected to gradually rise. In terms of fundamentals, the demand from November to December is expected to improve, and the supply capacity in December will increase slightly. There are expectations of a reduction in port fees, and the Middle East geopolitical situation has escalated. Attention should be paid to the impact of tariff relaxation on future shipping volume and rhythm [5][6]. - **Trading Strategies**: For unilateral trading, it is recommended to maintain a volatile view and mainly wait and see in the short term. For arbitrage trading, it is recommended to wait and see [7]. 3.5 Industry News - Israel's military has started to re - implement the Gaza cease - fire agreement, while the Israeli Defense Forces will continue to take actions to eliminate any direct threats [8][9].

Financial Performance - In Q3 2025, the company achieved operating revenue of 1.581 billion yuan, a year-on-year increase of 19.23% [1] - The net profit attributable to shareholders was 155 million yuan, reflecting a year-on-year growth of 21.15% [1] - The net profit after deducting non-recurring gains and losses was also 155 million yuan, with a year-on-year increase of 21.03% [1] Strategic Development - The company has maintained steady growth in its container business, focusing on enhancing Southeast Asia shipping services [2] - Two new direct routes to Thailand and Vietnam have been launched, along with a new direct shipping line from Ningbo to Manila, improving regional shipping networks [2] - The company has expanded its domestic trade service efficiency and increased the number of shipping routes to over 40 [2] Green Initiatives - The company has integrated green and low-carbon principles into its fleet planning and operations, with 29 green energy-efficient vessels, accounting for 54.7% of its total fleet [3] - The "740 standard container pure electric ship" project has been recognized as a national demonstration project for green low-carbon technology [3] - The first pure electric container ship, the largest globally and the first in China, has successfully completed its hull construction and core power system installation [3] Market Position and Future Outlook - The international shipping market has experienced fluctuations due to multiple external factors, but the company has responded by strengthening its shipping core business and expanding its global route network [4] - The company has been recognized for its excellence in environmental, social, and governance (ESG) practices, being included in the "2025 Zhejiang Business ESG Classic 100" list [4] - The company aims to enhance its comprehensive competitiveness and strives to become a leading regional logistics service provider in Asia [4]

Core Viewpoint - SITC International reported a decline in revenue and freight rates in 3Q25, indicating a challenging market environment for container shipping [1][2]. Financial Performance - Revenue for SITC in 3Q25 was US$796 million, down 1.7% year-over-year (YoY) and 11.9% quarter-over-quarter (QoQ) [1]. - Container shipping volume increased by 8.9% YoY but decreased by 11.0% QoQ to 920,179 TEU [1]. - The average freight rate was US$712 per twenty-foot equivalent unit (TEU), reflecting a decrease of 12.0% YoY and 5.7% QoQ [1]. Market Trends - Freight rates softened during the low season in 3Q25, with Southeast Asian route rates declining sharply by 30.6% YoY and 11.7% QoQ, while Japanese route rates increased by 20.5% YoY but fell 2.3% QoQ [2]. - Supply tightness for small container ships in Asia is expected to persist, with an annual supply growth of only 1-2% over the next three years [2][3]. Capacity and Demand Dynamics - Increased feeder demand due to Red Sea diversions has contributed to supply tightness, with capacity for vessels under 3,000 TEU increasing by 8.5% from end-2023 to October 2025 [3]. - Charter rates for 1,700 TEU and 2,750 TEU vessels increased by 37.8% and 16.4% YoY, respectively, indicating tight capacity conditions [3]. Industry Shifts - The trend of industrial relocation may accelerate due to the latest US tariff policy, potentially boosting intra-Asia cargo volumes [4]. - China and ASEAN countries experienced YoY export and import growth of 9.6% from January to September 2025, driven by ongoing supply chain relocations [4]. Valuation - SITC maintains an OUTPERFORM rating with a target price of HK$36 per share, implying a 27.0% upside based on 10.0x 2025 estimated price-to-sales (P/S) [5].

Report Industry Investment Rating - Not provided Core Viewpoints - In early November, the planned capacity on European and American routes declined from a high level, while the capacity on the China - Southeast Asia route remained high. The volume of cargo - laden containers shipped from China to the US decreased again, the arrival volume at US ports continued to decline, and the throughput at domestic ports rebounded and remained higher than last year. In mid - October, the US booking volume rebounded [1][2]. Summaries by Related Catalogs High - Frequency Capacity Data - In the 45th week (November 2 - 9), the planned capacity on the US West route was 273,000 TEU, a significant decline of 30% year - on - year and 19% month - on - month; the capacity on the US East route was 164,000 TEU, a year - on - year decline of 9.5% and a month - on - month decline of 23.9%. The capacity on the China - Southeast Asia route was 583,000 TEU, with a year - on - year positive growth of 40.6% and a month - on - month decline of 8.5% [1]. - In the 45th week, the planned capacity on the China - Northern Europe route was 325,000 TEU, with a month - on - month decline of 5.6% and a year - on - year increase of 23.5%; the capacity on the Mediterranean route was 230,000 TEU, a year - on - year increase of 36.8% and a month - on - month decline of 14.8% [2]. Cargo - Laden Container Volume Data Sent to the US - As of October 27, the volume of cargo - laden containers shipped from China to the US was 342,000 TEU, a 6.5% decline from the previous week, and the number of ships was 43, also a 6.5% decline from the previous week. The volume of cargo - laden containers shipped from Vietnam to the US rebounded to 140,000 TEU, a 47.3% month - on - month increase [2]. US Port Arrival Volume Data - As of October 28, the weekly total arrival volume of imported goods at US ports was 465,000 TEU, a 15.7% month - on - month decline; the previous week's data was revised to 550,000 TEU, a 5.9% month - on - month increase. The arrival volume of imported containers from China was 160,000 TEU, and the previous week's data was revised to 202,000 TEU, with only a 0.5% month - on - month increase; the arrival volume of imported containers from Vietnam was 61,000 TEU, and the previous week's data was revised to 74,000 TEU, a 41.7% month - on - month increase [2]. Domestic Port Throughput Data - In the week of October 26, the container throughput at domestic ports decreased by 8.5% month - on - month, was basically flat year - on - year, and reached 5.903 million TEU [2]. Vizion Booking Data - From October 13 - 20, the total US booking volume was updated to 353,000 TEU, a 11.4% month - on - month increase and a 0.8% year - on - year increase; the booking volume from China was 141,000 TEU, a 27% month - on - month increase and a 0.1% year - on - year decrease [3]

Group 1: Investment Rating - No investment rating information is provided in the report. Group 2: Core Views - In early November, the planned capacity on European and American routes declined from a high level. The container volume of cargo - carrying containers sent from China to the US decreased again, while that from Vietnam rebounded. The arrival volume at US ports continued to decline, and the throughput at domestic ports rebounded and remained higher than the same period last year. There was a rebound in US bookings in mid - October [1][2][3]. Group 3: Summary by Content High - frequency Capacity - In the 45th week (November 2 - 9 planned capacity), the capacity on the US - West route was 273,000 TEU, a significant decline of 30% year - on - year and 19% week - on - week. The capacity on the US - East route was 164,000 TEU, down 9.5% year - on - year and 23.9% week - on - week. The capacity on the China - Southeast Asia route was at a high level, reaching 583,000 TEU, with a year - on - year positive growth of 40.6% and a week - on - week decline of 8.5% [1]. - In the 45th week, the planned capacity on the China - North Europe route increased both year - on - year and week - on - week, reaching 325,000 TEU, with a week - on - week decline of 5.6% and a year - on - year increase of 23.5%. The capacity on the Mediterranean route was 230,000 TEU, up 36.8% year - on - year and down 14.8% week - on - week [2]. Container Volume of Cargo - carrying Containers Sent to the US - As of October 27, the container volume of cargo - carrying containers sent from China to the US was 342,000 TEU, a 6.5% decline from the previous week, and the number of ships was 43, also a 6.5% decline from the previous week. The container volume of cargo - carrying containers sent from Vietnam to the US rebounded, reaching 140,000 TEU, a 47.3% increase from the previous week [2]. Arrival Volume at US Ports - As of October 28, the weekly total arrival volume of imported goods at US ports was 465,000 TEU, a 15.7% decline from the previous week. The arrival volume of imported goods from China was 160,000 TEU, with a slight increase of 0.5% from the previous week. The arrival volume of imported goods from Vietnam was 61,000 TEU, a 41.7% increase from the previous week [2]. Domestic Port Throughput - In the week of October 26, the container throughput at domestic ports decreased by 8.5% week - on - week, was basically flat year - on - year, and reached 5.903 million TEU [2]. Booking Data - From October 13 - 20, the total US bookings reached 353,000 TEU, a 11.4% increase from the previous week and a 0.8% increase year - on - year. Bookings from China were 141,000 TEU, a 27% increase from the previous week and a 0.1% decrease year - on - year [3].

1. Report Industry Investment Rating - No relevant information provided. 2. Core Viewpoints of the Report - The actual implementation prices in the first half of November are gradually being revised downward, and attention should be paid to whether there will be price increase notices for the second half of November next week [7]. - For the October contract, the valuation is becoming clearer, but there are significant differences in the market regarding the final delivery settlement price due to factors such as vessel delays, the intersection of low - and high - priced vessels, and price opacity [6]. - For the December contract, trading focuses on the rhythm. Shipowners will adjust supply to keep freight rates high for next year's long - term agreement negotiations. The trading rhythm will involve alternating between price increase expectations and actual implementation until delivery [7]. - The February 2026 contract may have significant expectation differences but is currently suppressed by the expectation of resumed voyages [8]. 3. Summary by Directory 3.1 Market Analysis - **Online Quotes**: Different shipping alliances and companies have different price quotes and price increase notices. For example, Gemini Cooperation's Maersk Shanghai - Rotterdam 45 - week quote is 1420/2370, and HPL has price increase notices for November [1]. - **Geopolitical Factor**: The US has agreed to postpone the opening of the Rafah Crossing until all Israeli detainees' remains are handed over. The crossing is an important channel for humanitarian aid to Gaza [2]. 3.2 Dynamic Supply - The average weekly container shipping capacity from China to European base ports in October is 32.41 million TEU, 29.39 million TEU in November, and 32.18 million TEU in December. There are 8 blank sailings and 3 TBNs in November and 5 TBNs in December [3]. 3.3 Counter - measures and Their Impact - China has taken counter - measures against the US USTR port surcharge, and the US will also impose port fees on Chinese - related vessels. However, the impact on the European route is relatively small as the number of US - flagged vessels is limited [4]. 3.4 Contract Analysis - **October Contract**: The delivery settlement price is the arithmetic average of SCFIS on October 13th, 20th, and 27th. The prices of some shipping alliances have been revised downward in the second half of October. There are large differences in the market regarding the final delivery settlement price [5][6]. - **December Contract**: It focuses on the trading rhythm. Shipowners will adjust supply to maintain high freight rates. The trading will alternate between price increase expectations and actual implementation [7]. - **February 2026 Contract**: It may have significant expectation differences but is currently suppressed by the expectation of resumed voyages. If the duration of price - holding contracts is extended and high prices are realized in January 2026, the February contract price may be higher than the December contract [8]. 3.5 Container Ship Delivery - 2025 is a major year for container ship deliveries. As of October 26, 2025, 215 container ships with a total capacity of 1.7618 million TEU have been delivered [9]. 3.6 Strategy - **Unilateral Strategy**: The December contract is expected to be strongly volatile. - **Arbitrage Strategy**: No arbitrage opportunities are currently available [10].