Euroseas Ltd. Signs Contract for the Construction of Two Additional Fuel Efficient 2,800 teu Feeder Containerships Increasing its Newbuilding Program to Nine Vessels

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Jun 05, 2022

ATHENS, Greece, May 16, 2022 (GLOBE NEWSWIRE) -- Euroseas Ltd. (ESEA, Financial), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today that it has exercised its option to proceed with the construction of two additional eco design fuel efficient containerships. The vessels will have a carrying capacity of about 2,800 teu each and will be built at Hyundai Mipo Dockyard Co. in South Korea. The two newbuildings are scheduled to be delivered during the fourth quarter of 2024. The total consideration for these two newbuilding contracts is approximately $86 million and will be financed with a combination of debt and equity. The vessels are sisterships of four other vessels ordered by Euroseas Ltd. in June 2021 and January 2022; Euroseas Ltd. has also ordered, and previously announced, three 1,800 teu vessels at the same shipyard.

The Company also announced that it intends to upgrade the engines of all of its six 2,800 teu vessels ordered to Tier III type (from Tier II) and have the ships be LNG-ready where possible for a total incremental cost for all vessels of about $11 million. Tier III type engine achieve lower NOx emissions. The three 1,800 teu vessels were ordered with Tier III type engines and are LNG-ready.

Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to announce the ordering of two additional modern eco-design 2,800 teu vessels in one of the top quality shipbuilders in the world. The current contracts along with the orders we placed previously bring our newbuilding program to nine vessels and solidify our presence in the large feeder containership sector. It further highlights our commitment for an environmentally friendly fleet. With our earnings visibility well into 2025, we believe that investing in modern new vessels makes good use of the cash flow that our existing vessels generate and positions Euroseas to benefit from upcoming market developments, especially, as related to new environmental regulations for the benefit of our shareholders.‚ÄĚ

Fleet Profile:
After the acquisition of M/V ‚ÄúSeaspan Melbourne‚ÄĚ and M/V ‚ÄúSeaspan Manila‚ÄĚ, the Euroseas Ltd. fleet and employment profile will be as follows:

Name TypeDwtTEUYear BuiltEmployment (*)

TCE Rate

Container Carriers
MARCOS VIntermediate72,9686,3502005TC until Dec-24

plus 12 months option
option $15,000
AKINADA BRIDGE(+)Intermediate71,3665,6102001TC until Nov-22 $20,000
SYNERGY BUSAN(*)Intermediate50,7264,2532009TC until Aug-24 $25,000
SYNERGY ANTWERP(+)Intermediate50,7264,2532008TC until Dec-23 $18,000
SYNERGY OAKLAND(*)Intermediate50,7874,2532009TC until May-26 $42,000
SYNERGY KEELUNG(+)Intermediate50,9694,2532009TC until Jun-22

then until Feb-23
Intermediate50,7964,2502005TC until Mar-25 $19,000
Intermediate50,7964,2502007TC until April-24

Then until Feb 25
$20,250 then
CONTEX(**) with
$13,000 floor and
$21,000 ceiling
EM KEA(*)Feeder42,1653,1002007TC until May-23 $22,000
EM ASTORIA(*)Feeder35,6002,7882004TC until Feb-23

then until Feb-24

then until Feb-25


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
EM SPETSES(*)Feeder23,2241,7402007TC until Aug-24 $29,500
JONATHAN P (*)Feeder23,3571,7402006TC until Sep-24$26,662(***)
EM HYDRA(*)Feeder23,3511,7402005TC until April-23 $20,000
JOANNA(+)Feeder22,3011,7321999TC until Jan-23 $16,800
AEGEAN EXPRESS(*)Feeder18,5811,4391997TC until Apr-25 $41,000
Total Container Carriers18 737,40458,871

Vessels under constructionTypeDwtTEUTo be delivered
H4201Feeder37,2372,800Q1 2023
H4202Feeder37,2372,800Q2 2023
H4236Feeder37,2372,800Q4 2023
H4237Feeder37,2372,800Q1 2024
H4248Feeder22,2621,800Q1 2024
H4249Feeder22,2621,800Q2 2024
H4250Feeder22,2621,800Q2 2024
H# (to be assigned))Feeder37,2372,800Q4 2024
H# (to be assigned))Feeder37,2372,800Q4 2024
Total under construction9290,20822,200

(*)/(+) TC denotes time charter. Charter duration indicates the earliest redelivery date unless the contract rate is lower than the current market rate in which cases the latest redelivery date is shown and marked by (+).
(**) CONTEX stands for the Container Ship Time Charter Assessment Index.
(***) Rate is net of commissions (commissions 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.

After the delivery of its recent acquisition of 2 Intermediate containerships, the Company will have a fleet of 18 vessels comprising of 10 Feeder and 8 Intermediate containerships. Euroseas 18 containerships have a cargo capacity of 58,871 teu. On a fully-delivered basis, the Company’s fleet will increase to 27 containerships with a cargo capacity of about 81,071 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
E-mail: [email protected]
Nicolas Bornozis
Markella Kara
Capital Link, Inc.
230 Park Avenue, Suite 1540
New York, NY 10169
Tel. (212) 661-7566
E-mail: [email protected]