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Euroseas Ltd. Announces Time Charter Contract for its Fuel Efficient 1,800 teu Feeder Containership Newbuilding, M/V Stephania K

Globe Newswire 10-Jun-2024 9:01 AM

ATHENS, Greece, June 10, 2024 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ:ESEA, the "Company" or "Euroseas"))), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today it has entered into a time charter contract for M/V Stephania K, a newbuilding fuel efficient 1,800 teu feeder containership currently under construction, for a minimum period of 23 to a maximum period of 25 months at the option of the charterer, at a gross daily rate of $22,000. The new charter will commence upon delivery of the vessel from the shipyard expected to take place on June 28, 2024. The acquisition was financed with a combination of own funds and a US$22.5 million loan provided by the National Bank of Fujairah.

Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to announce that we have chartered our upcoming newbuilding vessel, the sixth in a series of nine and second of our three 1,800 teu units, with one of the largest liner companies, at a profitable rate level of $22,000/day for a period of two years. This charter represents a significant improvement compared to recent fixtures, both in terms of rate and duration, as evidenced by our own fixture for its sister vessel, M/V Monica, at $16,000 for 12 months only a month ago. The present charter is expected to contribute about $11.0 million of EBITDA for the minimum contracted period; it increases our remaining 2024 charter coverage to 90%."

Fleet Profile:
The Euroseas Ltd. fleet profile after the charter of M/V Stephania K is as follows:

Name TypeDwtTEUYear BuiltEmploymentTCE Rate ($/day)
Container Carriers      
TC until Dec-24$42,200
TC until Aug-25$15,000
SYNERGY BUSAN(*)Intermediate50,7264,2532009TC until Aug-24$25,000
SYNERGY ANTWERP(*)Intermediate50,7264,2532008TC until Mar-25$26,500(**)
SYNERGY OAKLAND(*)Intermediate50,7874,2532009TC until May-26$42,000
SYNERGY KEELUNG(*)Intermediate50,9694,2532009TC until Apr-25$23,000
EMMANUEL P(*)Intermediate50,7964,2502005TC until Apr-25$21,000
RENA P(*)Intermediate50,7964,2502007TC until Apr-25$21,000
EM KEA(*)Feeder42,1653,1002007TC until May-26$19,000
GREGOS(*)Feeder37,2372,8002023TC until Apr-26$48,000
TERATAKI(*)Feeder37,2372,8002023TC until Jul-26$48,000
TENDER SOUL(*)Feeder37,2372,8002024TC until Oct-24$17,000
LEONIDAS Z (*)Feeder37,2372,8002024TC until Mar-26$20,000
EM ASTORIA (+)(****)Feeder35,6002,7882004TC until May/Jun-24$20,000
EVRIDIKI G(*)Feeder34,6772,5562001TC until Feb-25$40,000
EM CORFU(*)Feeder34,6542,5562001TC until Feb-25$40,000
DIAMANTIS P(*)Feeder30,3602,0081998TC until Oct-24$27,000
MONICAFeeder22,2621,8002024TC until May-25$16,000
EM SPETSES(*)Feeder23,2241,7402007TC until Jul-24$29,500
JONATHAN P(*)Feeder23,3571,7402006TC until Sep-24$26,662(***)
TC until May-24$15,000
Then until Mar-25$13,000
JOANNA(*)Feeder22,3011,7321999TC until Aug-24$13,500
AEGEAN EXPRESS(*)Feeder18,5811,4391997TC until Oct-24$8,000
Total Container Carriers on the Water22837,24866,261   
Vessels under constructionTypeDwtTEUTo be deliveredEmploymentTCE Rate ($/day)
STEPHANIA K(*)(**)Feeder22,2621,800Q2 2024TC until May-26$22,000
PEPI STARFeeder22,2621,800Q3 2024  
DEAR PANELFeeder37,2372,800Q4 2024  
SYMEON PFeeder37,2372,800Q4 2024  
Total under construction4118,9989,200   

(*)TC denotes time charter. All dates listed are the earliest redelivery dates under each time charter unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).
(**)Rate is gross of commissions of 2.5% (commissions are, typically, 5-6.25%)
(***)Rate is net of commissions (commissions are, typically, 5-6.25%)
(****)We have agreed to sell the vessel to a third party. The vessel will be delivered to its buyers by June 30, 2024.

About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 150 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. 

Euroseas operates in the container shipping market. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements. 

The Company has a fleet of 22 vessels, including 15 Feeder containerships and 7 Intermediate containerships with a cargo capacity of 66,261 teu. After the delivery of its four remaining feeder containership newbuildings in 2024, Euroseas' fleet will consist of 26 vessels with a total carrying capacity of 75,461 teu.

Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. 

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Company ContactInvestor Relations / Financial Media
Tasos Aslidis
Chief Financial Officer
Euroseas Ltd.
11 Canterbury Lane,
Watchung, NJ 07069
Tel. (908) 301-9091
Nicolas Bornozis
Markella Kara
Capital Link, Inc.
230 Park Avenue, Suite 1540
New York, NY 10169
Tel. (212) 661-7566
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