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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