UPDATE 1-Euroseas Q1 earnings beat estimates

* Q1 adj shr $0.07 vs est $0.00

* Total net rev more than halves to $15.3 mln

* Warns of weakness going-forward

May 21 (Reuters) - Dry-bulk and containership owner Euroseas Ltd (ESEA.O) reported better-than-expected quarterly earnings as lower costs helped offset the more than 50 percent decline in revenue.

Net income for the first quarter was $3.9 million, or 13 cents a share, down from $13.6 million, or 45 cents a share, a year earlier.

Excluding items, the company's earnings for the quarter were $2.0 million, or 7 cents a share. Analysts, on average, had forecast breakeven earnings, before special items, according to Reuters Estimates.

Total net revenue more than halved to $15.3 million due to lesser demand for the company's ships, but beat analyst expectations of $14.0 million.

Total operating expenses fell 30 percent to $13.5 million.

The company also maintained its quarterly dividend of 10 cents a share.

However, the Greek company warned that it expects to face a volatile and generally depressed market environment over the next two years, despite the recent upturn in the dry bulk market.

Euroseas also said that its containerships are facing significant challenges in securing employment contracts after the expiration of their present charters.

Shares of the company closed down 5.95 percent at $5.69 Thursday on the Nasdaq. They were up 4.7 percent at $5.96 in trading after the bell. (Reporting by Hezron Selvi in Bangalore; Editing by Aradhana Aravindan)