Euroseas Ltd. Announces Agreement to Acquire two 4,250 teu Container Vessels, built in 2005 and 2007
May 03 2022 - 8:00AM
Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner
and operator of container vessels and provider of seaborne
transportation for containerized cargoes, announced today that it
has agreed to acquire M/V Seaspan Manila and M/V Seaspan Melbourne
both intermediate size container vessels with capacity of 4,250 teu
each built in 2007 and 2005, respectively. The vessels are being
acquired for a combined price of $37 million. The Company will also
assume the existing charter arrangements of the vessels. Both
acquisitions will be initially financed with the Company’s own
funds. Specifically:
- M/V Seaspan Manila is expected to
be delivered to the Company within July 2022 and has a charter
contract until February 2025 at a rate which is $20,250 per day
until April 2024 and, subsequently, based on the CONTEX index with
a floor of $13,000 per day and a ceiling of $21,000 per day until
the end of the charter period.
- M/V Seaspan Melbourne is expected
to be delivered to the Company within June 2022 and has a charter
contract until March 2025 at a rate of $19,000 per day.
Aristides Pittas, Chairman and CEO of
Euroseas commented:“We are pleased to announce the
acquisition of M/V Seaspan Manila and M/V Seaspan Melbourne, two
intermediate containerships built in 2007 and 2005, respectively,
along with their existing approximately two years and three
quarters long charters. These charters are expected to contribute
in excess of about $20 million of EBITDA, bringing the cost basis
of the vessels to scrap price levels by the end of the charters
while providing a significant contribution to our profitability.
Furthermore, depending on the market after the end of the charters
in early 2025, we may enjoy significant additional upside if the
containership markets are even just at historically average levels.
As we have stated in the past, our fleet growth strategy is focused
on acquisitions with such a low risk profile alongside our
newbuilding program.
“After the delivery of the above vessels, we
will have a fleet of eighteen containerships on the water and a
newbuilding program of seven feeder containerships which are
expected to be completed between the first quarter of 2023 and the
second quarter of 2024, expanding our footprint in the sector and
solidifying our position as the main US publicly listed company
focusing on feeder and intermediate container vessels.”
Fleet Profile:
After the acquisition of M/V “Seaspan Melbourne” and M/V
“Seaspan Manila”, the Euroseas Ltd. fleet and employment profile
will be as follows:
Name |
Type |
Dwt |
TEU |
Year Built |
Employment(*) |
TCE Rate($/day) |
Container Carriers |
|
|
|
|
|
|
MARCOS V |
Intermediate |
72,968 |
6,350 |
2005 |
TC until Dec-24plus 12 months option |
$42,200 option $15,000 |
AKINADA BRIDGE(*) |
Intermediate |
71,366 |
5,610 |
2001 |
TC until Oct-22 |
$20,000 |
SYNERGY BUSAN(*) |
Intermediate |
50,726 |
4,253 |
2009 |
TC until Aug-24 |
$25,000 |
SYNERGY ANTWERP(+) |
Intermediate |
50,726 |
4,253 |
2008 |
TC until Dec-23 |
$18,000 |
SYNERGY OAKLAND(*) |
Intermediate |
50,787 |
4,253 |
2009 |
TC until May-22then until May-26 |
$180,000$42,000 |
SYNERGY KEELUNG(+) |
Intermediate |
50,969 |
4,253 |
2009 |
TC until Jun-22then until Feb-23 |
$11,750 $14,500 |
SEASPAN MELBOURNE(*) |
Intermediate |
50,796 |
4,250 |
2005 |
TC until Mar-25 |
$19,000 |
SEASPAN MANILA(*) |
Intermediate |
50,796 |
4,250 |
2007 |
TC until April-24Then until Feb 25 |
$20,250CONTEX(**) basiswith $13,000 floorand $21,000ceiling |
EM KEA(*) |
Feeder |
42,165 |
3,100 |
2007 |
TC until May-23 |
$22,000 |
EM ASTORIA(*) |
Feeder |
35,600 |
2,788 |
2004 |
TC until Feb-23then until Feb-24then until Feb-25 |
$65,000 $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 Aug-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 April-23 |
$20,000 |
JOANNA(*) |
Feeder |
22,301 |
1,732 |
1999 |
TC until Oct-22 |
$16,800 |
AEGEAN EXPRESS(*) |
Feeder |
18,581 |
1,439 |
1997 |
TC until Apr-25 |
$41,000 |
Total Container Carriers |
18 |
737,404 |
58,871 |
|
|
|
Vessels under construction |
Type |
Dwt |
TEU |
To be delivered |
H4201 |
Feeder |
37,237 |
2,800 |
Q1 2023 |
H4202 |
Feeder |
37,237 |
2,800 |
Q2 2023 |
H4236 |
Feeder |
37,237 |
2,800 |
Q4 2023 |
H4237 |
Feeder |
37,237 |
2,800 |
Q1 2024 |
H4248 |
Feeder |
22,262 |
1,800 |
Q2 2024 |
H4249 |
Feeder |
22,262 |
1,800 |
Q2 2024 |
H4250 |
Feeder |
22,262 |
1,800 |
Q2 2024 |
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 (+).
(**) CONTEX stands for the Container Ship Time
Charter Assessment Index. (***) 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 18 vessels, including
10 Feeder and 8 Intermediate containerships with a cargo capacity
of 58,871 teu. After the delivery of seven feeder containership
newbuildings in 2023 and the first half of 2024, Euroseas’ fleet
will consist of 25 vessels with a total carrying capacity of 75,471
teu.
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 BornozisMarkella
KaraCapital Link, Inc.230 Park Avenue, Suite 1540New York, NY
10169Tel. (212) 661-7566E-mail: euroseas@capitallink.com |
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