EuroDry Ltd. Announces Agreement to Acquire M/V Santa Cruz, a 2005-built Panamax Bulker
April 19 2022 - 4:05PM
EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner
and operator of drybulk vessels and provider of seaborne
transportation for drybulk cargoes, announced today that it has
agreed to acquire M/V Santa Cruz, a 76,440 dwt drybulk vessel built
in 2005, for $15.75 million. The vessel was controlled by an
un-affiliated third party and has been managed by Eurobulk Ltd.,
also the manager of the majority of the Company’s vessels. The
vessel is expected to be delivered to the Company around the end of
April 2022. The Company will also assume the existing charter of
the vessel at $14,800 per day until July 2022. The acquisition will
be financed with own funds.
Aristides Pittas, Chairman and CEO of
EuroDry commented: “We are pleased to
announce the acquisition of M/V Santa Cruz, a Panamax, drybulk
carrier built in 2005. This acquisition further expands our fleet
at a time when the market fundamentals are quite supportive within
the context of geopolitical uncertainties. Demand is expected to
remain strong, supported by the huge demand for energy and
infrastructure projects that have been announced by various
governments while fleet growth is expected to be limited as
evidenced by the historically low levels of the orderbook. At
current market rates, we expect that M/V Santa Cruz will make a
significant contribution to our net income and EBITDA. The
accumulation of funds that our fleet generates provides us with
significant fleet expansion capabilities and other shareholder
reward options and we will continue pursuing those most appropriate
for the benefit of our shareholders at any given point.”
Fleet Profile:
After the delivery of the M/V Santa Cruz, the EuroDry Ltd. fleet
profile will be as follows:
Name |
Type |
Dwt |
Year Built |
Employment(*) |
TCE Rate ($/day) |
Dry Bulk Vessels |
|
|
|
|
|
EKATERINI |
Kamsarmax |
82,000 |
2018 |
TC until May-22 |
Hire 106% of the Average Baltic Kamsarmax P5TC (***) index |
ALEXANDROS P. |
Ultramax |
63,500 |
2017 |
TC until May-22 |
$26,250 |
XENIA* |
Kamsarmax |
82,000 |
2016 |
TC until Aug-22 |
Hire 105% of theAverage Baltic Kamsarmax P5TC(***) index |
GOOD HEART* |
Ultramax |
62,996 |
2014 |
TC until Oct-22 |
$25,000 |
MOLYVOS LUCK |
Supramax |
57,924 |
2014 |
TC until May-22TC until Apr-23 |
$13,250$25,750 |
SANTA CRUZ |
Panamax |
76,440 |
2005 |
TC until Jul-22 |
$14,800 |
BLESSED LUCK |
Panamax |
76,704 |
2004 |
TC until Jul-22 |
$19,500 |
EIRINI P.* |
Panamax |
76,466 |
2004 |
TC until May-22 |
Hire 99%of AverageBPI (**) 4TC |
STARLIGHT* |
Panamax |
75,845 |
2004 |
TC until Oct-22 |
Hire 98.5%of AverageBPI (**) 4TC |
TASOS |
Panamax |
75,100 |
2000 |
TC until Apr-22 |
$18,750 |
PANTELIS |
Panamax |
74,020 |
2000 |
TC until Jul-22 |
$20,500 |
Total Dry Bulk Vessels |
11 |
802,995 |
|
|
|
Note: |
|
(*) |
Represents the earliest redelivery date |
(**) |
BPI stands for the Baltic
Panamax Index; the average BPI 4TC is an index based on four-time
charter routes. |
(***) |
The average Baltic Kamsarmax
P5TC Index is an index based on five Panamax time charter
routes. |
|
|
About EuroDry Ltd.EuroDry Ltd. was formed on
January 8, 2018 under the laws of the Republic of the Marshall
Islands to consolidate the drybulk fleet of Euroseas Ltd. into a
separate listed public company. EuroDry was spun-off from Euroseas
Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under
the ticker EDRY.
EuroDry operates in the dry cargo, drybulk
shipping market. EuroDry's operations are managed by Eurobulk Ltd.,
an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship
management company and Eurobulk (Far East) Ltd. Inc., which are
responsible for the day-to-day commercial and technical management
and operations of the vessels. EuroDry employs its vessels on spot
and period charters and under pool agreements.After the delivery of
M/V Santa Cruz, the Company will have a fleet of 11 vessels,
including 6 Panamax drybulk carriers, 1 Supramax drybulk carier, 2
Ultramax drybulk carrier and 2 Kamsarmax drybulk carriers.
EuroDry’s 11 drybulk carriers have a total cargo capacity of
802,995 dwt.
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 dry bulk vessels, 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.eurodry.gr
Company Contact |
Investor Relations / Financial Media |
Tasos AslidisChief Financial
OfficerEuroDry Ltd.11 Canterbury Lane,Watchung, NJ07069Tel. (908)
301-9091E-mail: aha@eurodry.gr |
Nicolas BornozisPresidentCapital
Link, Inc.230 Park Avenue, Suite 1536New York, NY10169Tel. (212)
661-7566E-mail: nbornozis@capitallink.com |
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