Euroseas Ltd. Announces Forward Charters For Two Fuel Efficient 2,800 teu Feeder Containerships currently under construction that will be delivered to the company in March and June 2023 respectively

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Jun 17, 2022

ATHENS, Greece, May 18, 2022 (GLOBE NEWSWIRE) -- Euroseas Ltd. ( ESEA, the “Company” or “Euroseas”), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today a new charter for two newbuilding fuel efficient 2,800 teu feeder containerships currently under construction. Specifically:

  • M/V GREGOS (H4201), a modern eco-design 2,800 teu scheduled to be delivered at the end of the first quarter of 2023, entered into a time charter contract for a period of between a minimum of thirty-six and a maximum of forty months at the option of the charterer, at a gross daily rate of $48,000. The new charter will commence in March 2023, once delivered.
  • M/V TERATAKI (H4202), a modern eco-design 2,800 teu scheduled to be delivered at the end of the second quarter of 2023, entered into a time charter contract for a period of between a minimum of thirty-six and a maximum of forty months at the option of the charterer, at a gross daily rate of $48,000. The new charter will commence in June 2023, once delivered.

Aristides Pittas, Chairman and CEO of Euroseas commented:
"We are very pleased to announce three-year charters for the first two of our fuel efficient 2,800 teu feeder containerships under construction, M/V GREGOS and M/V TERATAKI, at a gross daily rate of $48,000 each. The new charters will commence upon delivery of the vessels in March 2023 and June 2023, respectively. Over the period of the charters, the two vessels are expected to contribute in excess of $85m of EBITDA fully repaying our cost to build them in just about 3 years. After these charters, our charter coverage for 2023 increases to about 76% and for 2024 to almost 55%.”

Fleet Profile:

After the new charter arrangements of M/V “TERATAKI” and M/V “GREGOS”, the Euroseas Ltd. fleet and employment profile will be as follows:

Name TypeDwtTEUYear BuiltEmployment(*)TCE Rate ($/day)
Container Carriers
MARCOS VIntermediate72,9686,3502005TC until Dec-24$42,200
plus 12 months optionoption $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$11,750
then until Feb-23$14,500
EMMANUEL P (ex-SEASPAN MELBOURNE) (*)Intermediate50,7964,2502005TC until Mar-25$19,000
RENA P (ex-SEASPAN MANILA)(*)Intermediate50,7964,2502007TC until April-24$20,250 then
Then until Feb 25CONTEX(**) 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$65,000
then until Feb-24$50,000
then until Feb-25$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
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 Carriers18737,40458,871

Vessels under constructionTypeDwtTEUTo be deliveredEmployment(*)TCE Rate ($/day)
GREGOS (*)Feeder37,2372,800Q1 2023TC until Mar-26$48,000
TERATAKI (*)Feeder37,2372,800Q2 2023TC until June-26$48,000
TENDER SOULFeeder37,2372,800Q4 2023
LEONIDAS ZFeeder37,2372,800Q1 2024
MONICAFeeder22,2621,800Q1 2024
STEPHANIA KFeeder22,2621,800Q2 2024
PEPI STARFeeder22,2621,800Q2 2024
DEAR PANELFeeder37,2372,800Q4 2024
SYMEON PFeeder37,2372,800Q4 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 recently acquired 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 of its vessels under construction, 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]