Euroseas Ltd. Announces new charters for its two 4,250 teu containerships, 2007-built Rena P and 2005-built Emmanuel P at $21,000 per vessel per day following a mutually agreed termination of the existing charters
July 25 2023 - 9:20AM
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 a mutual
agreement to terminate the current charters for its container
vessels M/V Rena P and M/V Emmanuel P, while concurrently fixing
the vessels on new charters for $21,000 per vessel per day.
Specifically:
-
The Company agreed to terminate the current charter of M/V Rena P,
a 4,250 TEU vessel built in 2007; which was originally expiring in
February 2025 earning a rate of $20,250/day until April 2024 and,
subsequently, a rate based on the CONTEX index with a floor of
$13,000 and a ceiling of $21,000 per day. Contemporaneously with
the termination, the Company has entered into a time charter
contract for a minimum period of twenty to a maximum period of
twenty-four months at the option of the charterer, at a gross daily
rate of $21,000. The new charter will commence in August 2023,
following the termination of its current charter.
-
Similarly, the Company agreed to terminate the current charter of
M/V Emmanuel P, a 4,250 TEU vessel built in 2005, which was
originally expiring in March 2025 at a rate of $19,000/day.
Contemporaneously with the termination, the Company has entered
into a new time charter contract for a minimum period of twenty to
a maximum period of twenty-four months at the option of the
charterer, at a gross daily rate of $21,000. The new charter will
commence in August 2023, following the termination of its current
charter.
Aristides Pittas, Chairman and CEO of
Euroseas commented: “We are pleased to announce we have
reached a mutual agreement with our existing charterer to terminate
the charters of our two intermediate containerships built in 2007
and 2005 respectively, while having successfully replaced these
charters at $21,000 per day, following the agreed termination of
their current charters in August 2023. These charters are expected
to contribute between $2-4 million in extra revenues for the same
period.
By maintaining a very healthy employment
coverage of about 95% for the remainder of 2023 and approximately
66% for 2024 at very high levels, we can safely continue paying our
quarterly dividend, continue implementing our buyback program and
still have significant funds to invest in other opportunities that
will arise.”
Fleet Profile:
After the new charter arrangements of M/V EM Hydra and M/V EM
Kea, the Euroseas Ltd. fleet and employment profile will be as
follows:
Name |
Type |
Dwt |
TEU |
Year Built |
Employment(*) |
TCE Rate ($/day) |
|
|
Container Carriers |
|
|
|
|
|
|
|
MARCOS V |
Intermediate |
72,968 |
6,350 |
2005 |
TC until Dec-24 |
$42,200 |
|
plus 12 months option |
option $15,000 |
|
SYNERGY KEELUNG(*) |
Intermediate |
50,969 |
4,253 |
2009 |
TC
until Apr-25 |
$23,000 |
|
SYNERGY OAKLAND(*) |
Intermediate |
50,787 |
4,253 |
2009 |
TC until May-26 |
$42,000 |
|
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 |
|
RENA P (*) |
Intermediate |
50,796 |
4,250 |
2007 |
TC until Aug-23 |
$20,250 |
|
TC until April-25 |
$21,000 |
|
EMMANUEL P (*) |
Intermediate |
50,796 |
4,250 |
2005 |
TC until Aug-23TC until April-25 |
$19,000 $21,000 |
|
EM KEA(*) |
Feeder |
42,165 |
3,100 |
2007 |
TC until May-26 |
$19,000 |
|
GREGOS (*) |
Feeder |
37,237 |
2,800 |
2023 |
TC until Apr-26 |
$48,000 |
|
TERATAKI (*) |
Feeder |
37,237 |
2,800 |
2023 |
TC until Jul-26 |
$48,000 |
|
EM ASTORIA(*) |
Feeder |
35,600 |
2,788 |
2004 |
TC until Feb-24then until Feb-25 |
$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-24 |
$15,000 |
|
JOANNA(*) |
Feeder |
22,301 |
1,732 |
1999 |
TC until May-23TC until Jan-2024 |
$14,500$13,900 |
|
AEGEAN EXPRESS(*) |
Feeder |
18,581 |
1,439 |
1997 |
TC until Aug-23 |
$13,000 |
|
Total Container Carriers |
19 |
740,512 |
58,861 |
|
|
|
|
Vessels under construction |
Type |
Dwt |
TEU |
To be delivered |
Employment(*) |
TCE Rate ($/day) |
|
TENDER SOUL |
Feeder |
37,237 |
2,800 |
Q1 2024 |
|
|
|
LEONIDAS Z |
Feeder |
37,237 |
2,800 |
Q1 2024 |
|
|
|
MONICA |
Feeder |
22,262 |
1,800 |
Q1 2024 |
|
|
|
STEPHANIA K |
Feeder |
22,262 |
1,800 |
Q2 2024 |
|
|
|
PEPI STAR |
Feeder |
22,262 |
1,800 |
Q2 2024 |
|
|
|
DEAR PANEL |
Feeder |
37,237 |
2,800 |
Q4 2024 |
|
|
|
SYMEON P |
Feeder |
37,237 |
2,800 |
Q4 2024 |
|
|
|
Total under construction |
7 |
215,734 |
16,600 |
|
|
|
|
Notes: |
|
|
(*) |
TC denotes time charter. All dates listed are the earliest
redelivery dates under each time charter 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 (+). |
|
|
(**) |
The CONTEX (Container Ship Time Charter Assessment Index) has been
published by the Hamburg and Bremen Shipbrokers' Association (VHBS)
since October 2007. The CONTEX is a company-independent index of
time charter rates for container ships. It is based on assessments
of the current day charter rates of six selected container ship
types, which are representative of their size categories: Type
1,100 TEU and Type 1,700 TEU with a charter period of one year, and
the Types 2,500, 2,700, 3,500 and 4,250 TEU all with a charter
period of two years. |
|
|
(***) |
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 150 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 19 vessels, including
12 Feeder and 7 Intermediate containerships. Euroseas 19
containerships have a cargo capacity of 58,861 teu. The Company
also has 7 Feeder containerships under construction with deliveries
scheduled in 2024. On a fully-delivered basis of its vessels under
construction, the Company’s fleet will increase to 26
containerships with a cargo capacity of about 75,461 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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