Euroseas Ltd. Announces Time Charter Contract for its Fuel-Efficient 2,800 teu Feeder Containership, M/V Tender Soul, to be delivered in February 2024
January 12, 2024 at 02:36 am IST
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ATHENS, Greece, Jan. 11, 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 TENDER SOUL, a newbuilding fuel-efficient 2,800 teu feeder containership currently under construction, for a minimum period of eight to a maximum period of ten months at the option of the charterer, at a gross daily rate of $17,000. The new charter will commence within February 2024, upon delivery of the vessel from the shipyard.
Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce that we have chartered our upcoming newbuilding vessel, the third in a series of nine, with one of the largest liner companies, at a profitable rate level in a period when new vessel deliveries are at a historical high and, as a result, containership rates are under pressure. This charter is expected to contribute about $2.4 million of EBITDA for the minimum contracted period; it boosts our 2024 charter coverage to about 70%.
“We continue working in chartering out the remaining of our newbuildings and completing their debt financing arrangements. Our strong cash position and contracted cash flow provide us with comfort and flexibility in not only funding the equity portion of our newbuilding program but also continuing to return funds to our shareholders via dividends and share buybacks.”
Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:
Name
Type
Dwt
TEU
Year Built
Employment(*)
TCE Rate ($/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 Aug-24
$25,000
SYNERGY ANTWERP
Intermediate
50,726
4,253
2008
TC until Feb-24
$18,250
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
EM ASTORIA (+)
Feeder
35,600
2,788
2004
TC until Feb-24 then until Feb-25
$50,000 $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 Oct-24
$27,000
EM SPETSES(*)
Feeder
23,224
1,740
2007
TC until Jul-24
$29,500
JONATHAN P(*)
Feeder
23,357
1,740
2006
TC until Sep-24
$26,662(**)
EM HYDRA(*)
Feeder
23,351
1,740
2005
TC until May-24
$15,000
JOANNA(*)
Feeder
22,301
1,732
1999
TC until May-24
$10,250
AEGEAN EXPRESS(*)
Feeder
18,581
1,439
1997
TC until Jan-24
$7,000
Total Container Carriers on the Water
19
740,512
58,861
Vessels under construction
Type
Dwt
TEU
To be delivered
Employment
TCE Rate ($/day)
TENDER SOUL (H4236)
Feeder
37,237
2,800
Feb- 2024
TC until Oct-24
$17,000
LEONIDAS Z (H4237)
Feeder
37,237
2,800
Q2 2024
MONICA (H4248)
Feeder
22,262
1,800
Q2 2024
STEPHANIA K (H4249)
Feeder
22,262
1,800
Q2 2024
PEPI STAR (H4250)
Feeder
22,262
1,800
Q2 2024
DEAR PANEL (H4251)
Feeder
37,237
2,800
Q4 2024
SYMEON P (H4252)
Feeder
37,237
2,800
Q4 2024
Total under construction
7
215,734
16,600
Notes: (*) TC denotes time charter. Charter duration indicates the earliest redelivery date; all dates listed are the earliest redelivery dates under each TC 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 net of commissions (which are typically 5-6.25%).
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 140 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 19 vessels, including 12 Feeder containerships and 7 Intermediate containerships. Euroseas 19 containerships have a cargo capacity of 58,861 teu. After the delivery of seven 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.
Euroseas Ltd. is engaged in the shipping business. The Company is an owner and operator of drybulk and container carrier vessels and is a provider of seaborne transportation for drybulk and containerized cargoes. Eurobulk Ltd. manages the Company's operations. The Company also owns and operates dry bulk carriers that transport major bulks, such as iron ore, coal and grains, and minor bulks, such as bauxite, phosphate and fertilizers. The Company has a fleet of 12 vessels, including Kamsarmax drybulk carrier, Panamax drybulk carriers and Handymax drybulk carrier, Intermediate containerships, Handysize containerships, and Feeder containerships. The Companyâs five drybulk carriers have a total cargo capacity of 351,272 deadweight tons (dwt), and its seven containerships have a cargo capacity of 11,828 twenty-foot equivalent units (teu).