Euroseas Ltd. Signs Contract for the Construction of Two Additional Fuel Efficient 2,800 teu Feeder Containerships Increasing its Newbuilding Program to Nine Vessels
May 16 2022 - 4:05PM
Euroseas Ltd. (NASDAQ:ESEA), an owner and operator of container
vessels and provider of seaborne transportation for containerized
cargoes, announced today that it has exercised its option to
proceed with the construction of two additional eco design fuel
efficient containerships. The vessels will have a carrying capacity
of about 2,800 teu each and will be built at Hyundai Mipo Dockyard
Co. in South Korea. The two newbuildings are scheduled to be
delivered during the fourth quarter of 2024. The total
consideration for these two newbuilding contracts is approximately
$86 million and will be financed with a combination of debt and
equity. The vessels are sisterships of four other vessels ordered
by Euroseas Ltd. in June 2021 and January 2022; Euroseas Ltd. has
also ordered, and previously announced, three 1,800 teu vessels at
the same shipyard.
The Company also announced that it intends to
upgrade the engines of all of its six 2,800 teu vessels ordered to
Tier III type (from Tier II) and have the ships be LNG-ready where
possible for a total incremental cost for all vessels of about $11
million. Tier III type engine achieve lower NOx emissions. The
three 1,800 teu vessels were ordered with Tier III type engines and
are LNG-ready.
Aristides Pittas, Chairman and CEO of
Euroseas commented: "We are pleased to announce the
ordering of two additional modern eco-design 2,800 teu vessels in
one of the top quality shipbuilders in the world. The current
contracts along with the orders we placed previously bring our
newbuilding program to nine vessels and solidify our presence in
the large feeder containership sector. It further highlights our
commitment for an environmentally friendly fleet. With our earnings
visibility well into 2025, we believe that investing in modern new
vessels makes good use of the cash flow that our existing vessels
generate and positions Euroseas to benefit from upcoming market
developments, especially, as related to new environmental
regulations for the benefit of our shareholders.”
Fleet Profile: After the
acquisition of M/V “Seaspan Melbourne” and M/V “Seaspan Manila”,
the Euroseas Ltd. fleet and employment profile will be as
follows:
Name |
Type |
Dwt |
TEU |
Year Built |
Employment (*) |
TCE Rate ($/day) |
Container Carriers |
|
|
|
|
|
|
MARCOS V |
Intermediate |
72,968 |
6,350 |
2005 |
TC until Dec-24plus 12 months option |
$42,200option $15,000 |
AKINADA BRIDGE(+) |
Intermediate |
71,366 |
5,610 |
2001 |
TC until Nov-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-26 |
$42,000 |
SYNERGY KEELUNG(+) |
Intermediate |
50,969 |
4,253 |
2009 |
TC until Jun-22then until Feb-23 |
$11,750 $14,500 |
EMMANUEL P (ex-SEASPAN MELBOURNE) (*) |
Intermediate |
50,796 |
4,250 |
2005 |
TC until Mar-25 |
$19,000 |
RENA P (ex-SEASPAN MANILA)(*) |
Intermediate |
50,796 |
4,250 |
2007 |
TC until April-24Then until Feb 25 |
$20,250 thenCONTEX(**) with$13,000 floor and $21,000 ceiling |
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 Jan-23 |
$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 |
Q1 2024 |
H4249 |
Feeder |
22,262 |
1,800 |
Q2 2024 |
H4250 |
Feeder |
22,262 |
1,800 |
Q2 2024 |
H# (to be assigned)) |
Feeder |
37,237 |
2,800 |
Q4 2024 |
H# (to be assigned)) |
Feeder |
37,237 |
2,800 |
Q4 2024 |
Total under construction |
9 |
290,208 |
22,200 |
|
Notes:
(*)/(+) 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 recent acquisition of
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, the Company’s fleet will increase to 27
containerships with a cargo capacity of about 81,071 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 the Company’s 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 Kara
Capital Link, Inc.230 Park Avenue, Suite 1540New York, NY 10169Tel.
(212) 661-7566E-mail: euroseas@capitallink.com |
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