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Euroseas Ltd. Announces 3-year Charter Contracts for Three Eco 2,800 teu Feeder Containership Newbuildings, M/V Tender Soul, M/V Dear Panel and M/V Symeon P
Globe Newswire 21-Oct-2024 4:05 PM
ATHENS, Greece, Oct. 21, 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 new time charter contracts for three fuel efficient 2,800 teu feeder containerships. All three charters are for a minimum period of 34 months and a maximum period of 36 months at the option of the charter at a gross rate of $32,000 per day.
Specifically:
M/V Tender Soul, which was delivered earlier this year, will commence its charter after the completion of her present charter in early December 2024.
M/V Dear Panel and M/V Symeon P, which are currently under construction, and represent the last two of the Company's nine-vessel newbuilding program, will commence their charters upon delivery from the shipyard, expected in the first week of January 2025.
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are very pleased to announce new time charter contracts for three of our modern 2,800 teu vessels – M/V Tender Soul and the last two upcoming newbuildings, MV/ Dear Panel and M/V Symeon P – with a top-tier charterer for 34-36 months at a very profitable rate of $32,000/day/vessel. This en-bloc deal underscores the charterers' sustained interest and need to invest in high-spec, eco-friendly vessels. The 3-year duration also emphasizes their long-term view in the resilience of the market, especially, the feeder containership segment, and the fact that such eco-friendly vessels will be particularly important going forward as they navigate increasingly stringent environmental regulations. These charters are expected to contribute about $79 million of EBITDA for the minimum contracted period and increase our 2025 charter coverage to about 63%, and our charter coverage for 2026 to about 31%."
Fleet Profile: The Euroseas Ltd. fleet profile after the charter of M/V Tender Soul, M/V Dear Panel, and M/V Symeon P is as follows:
Name
Type
Dwt
TEU
Year Built
Employment
TCE Rate ($/day)
Container Carriers
MARCOS V(*)
Intermediate
72,968
6,350
2005
TC until Dec-24 TC until Aug-25
$42,200 $15,000
SYNERGY BUSAN(+)(*)
Intermediate
50,726
4,253
2009
TC until Dec-24 then until Dec-27
$25,000 $35,500(***)
SYNERGY ANTWERP(*)
Intermediate
50,726
4,253
2008
TC until Mar-25
$26,500(**)
SYNERGY OAKLAND(*)
Intermediate
50,787
4,253
2009
TC until May-26
$42,000
SYNERGY KEELUNG(*)
Intermediate
50,969
4,253
2009
TC until Apr-25
$23,000
EMMANUEL P(*)
Intermediate
50,796
4,250
2005
TC until Apr-25
$21,000
RENA P(*)
Intermediate
50,796
4,250
2007
TC until Apr-25
$21,000
EM KEA(*)
Feeder
42,165
3,100
2007
TC until May-26
$19,000
GREGOS(*)
Feeder
37,237
2,800
2023
TC until Apr-26
$48,000
TERATAKI(*)
Feeder
37,237
2,800
2023
TC until Jul-26
$48,000
TENDER SOUL(+)(*)
Feeder
37,237
2,800
2024
TC until Dec-24 then until Oct-27
$17,000 $32,000(**)
LEONIDAS Z (*)
Feeder
37,237
2,800
2024
TC until Mar-26
$20,000
EVRIDIKI G(*)
Feeder
34,677
2,556
2001
TC until Feb-25
$40,000
EM CORFU(*)
Feeder
34,654
2,556
2001
TC until Feb-25
$40,000
DIAMANTIS P(+)
Feeder
30,360
2,008
1998
TC until Dec-24
$27,000
MONICA(*)
Feeder
22,262
1,800
2024
TC until May-25
$16,000
STEPHANIA K(*)
Feeder
22,262
1,800
2024
TC until May-26
$22,000(**)
PEPI STAR(*)
Feeder
22,262
1,800
2024
TC until Jun-26
$24,250(**)
EM SPETSES(*)
Feeder
23,224
1,740
2007
TC until Apr-26
$18,100
JONATHAN P(*)
Feeder
23,357
1,740
2006
TC until Oct-24 then until Sep-25
$27,000(***) $20,000
EM HYDRA(*)
Feeder
23,351
1,740
2005
TC until Feb-25
$13,000
JOANNA(*)
Feeder
22,301
1,732
1999
In drydock then from Oct-24 to Aug-26
$16,500(****)
AEGEAN EXPRESS(+)
Feeder
18,581
1,439
1997
TC until Dec-24
$8,000
Total Container Carriers on the Water
23
846,172
67,073
Vessels under construction
Type
Dwt
TEU
To be delivered
Employment
TCE Rate ($/day)
DEAR PANEL
Feeder
37,237
2,800
Jan-2025
TC until Nov-27
$32,000(**)
SYMEON P
Feeder
37,237
2,800
Jan-2025
TC until Nov-27
$32,000(**)
Total under construction
2
74,474
5,600
Notes:
(*)
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 gross of commissions of 1.25% (commissions are, typically, 5-6.25%).
(****)
Rate is $19,000 for the first 17 months, $9,500 for the next six months and $16,500 for redelivery range.
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 23 vessels, including 16 Feeder containerships and 7 Intermediate containerships with a cargo capacity of 67,073 teu. After the delivery of its two remaining feeder containership newbuildings in 2025, Euroseas' fleet will consist of 25 vessels with a total carrying capacity of 72,673 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.
