Euroseas Ltd. Announces Charter for its Intermediate-size Container Vessel, M/V Akinada Bridge
September 30 2019 - 9:00AM
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 its
container vessel, M/V “Akinada Bridge”, with capacity of about
5,600 teu and built in 2001, has entered into a charter contract of
minimum duration of ten months and maximum duration of thirteen
months at a daily rate of $16,500. The charter will commence upon
completion of the vessel’s special survey and drydocking and the
installation of a water ballast treatment (“WBT”) plant at a total
cost of about $2.5 million. The Company expects to fully recover
the above-mentioned cost over the duration of the charter and will
finance it via a loan from an entity affiliated with the Company’s
CEO. The loan ranks below the other indebtedness of the Company, is
convertible to equity under certain conditions at the option of the
Company or the lender, and will be repaid within a year after the
completion of the drydocking. The terms of the loan have been
approved by an independent committee of the Board of Directors of
the Company.
Aristides Pittas, Chairman and CEO of
Euroseas commented: “The strength of the intermediate size
containership market has provided us with an opportunity to charter
our only non-feeder vessel at rates that justified the investment
required to complete the fourth special survey of the vessel and
installation of a BWT plant. After the completion of the announced
charter, we expect to have the vessel available for employment
until its fifth special survey due date, i.e. for four additional
years, with minimal incremental investment required beyond its
operating cost.
“We are cautiously optimistic about the
prospects of the containership market across all segments as fleet
growth over the next couple of years is expected to be low by
recent trends. Thus, we believe that Akinada Bridge will be a
significant contributor to our cash flow after the completion of
the charter. Its contribution will complement the contributions of
our 14-vessel strong feeder fleet, a segment on which we are
focusing our growth strategy by leveraging our position as the only
public platform of smaller containerships to consolidate other
vessels or fleets.”
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 15 vessels, including
14 Feeder containerships and 1 Intermediate Container carrier.
Euroseas 15 containerships have a cargo capacity of 34,071teu.
Forward Looking StatementThis 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.
Visit our website www.euroseas.gr
Company
Contact |
Investor Relations /
Financial Media |
Tasos AslidisChief Financial
OfficerEuroseas Ltd.11 Canterbury Lane,Watchung, NJ 07069Tel. (908)
301-9091E-mail: aha@euroseas.gr |
Nicolas BornozisPresidentCapital
Link, Inc.230 Park Avenue, Suite 1536New York, NY 10169Tel. (212)
661-7566E-mail: nbornozis@capitallink.com |
Euroseas (NASDAQ:ESEA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Euroseas (NASDAQ:ESEA)
Historical Stock Chart
From Apr 2023 to Apr 2024