Euroseas Ltd. Announces New Charter For Its 2,788 teu, 2004-built vessel, M/V “EM Astoria”
January 18 2022 - 9:00AM
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 a new
charter of its container vessel M/V “EM Astoria”.
Specifically:
-
M/V “EM Astoria”, a 2,788 TEU vessel built in 2004, entered into a
new time charter contract for a period of between a minimum of
thirty-six and a maximum of thirty-eight months at the option of
the charterer, at a daily rate of $65,000 for the first twelve
months, followed by a daily rate of $50,000 for the subsequent
twelve months and followed by a daily rate of $20,000 for the
remaining twelve to fourteen month period of the charter resulting
in an average daily rate of about $45,000 for the duration of the
charter. The new charter will commence in February 2022 after the
completion of the present charter of the vessel.
Aristides Pittas, Chairman and CEO of
Euroseas commented: “Following the recent announcement of
three-year-long charters for three of our vessels, we are very
pleased to announce a three-year charter for another vessel in our
fleet, this time for M/V “EM Astoria”. The rate of this new charter
is on average about 2.5 times higher than the present charter rate
of the vessel while the charter payments are heavily front-loaded.
The new charter secures us with a minimum of $47m of contracted
revenues and is expected to make a total EBITDA contribution in
excess of $36m over the three years of the contract; more than $19m
of the EBITDA contribution is expected during the first twelve
months. This charter also increases our charter coverage to about
92% for 2022, more than 60% for 2023 and about 45% for 2024.
“Continuing healthy containership markets and
our high contract coverage are to generate significant cash flow
for us over the next two to three years. We plan to use of this
cash flow for selective investments to grow and modernize the
Company or reward shareholders either through dividends or share
buybacks as our Board of Directors should determine.”Fleet
Profile:
After the new charter arrangements of M/V “EM Astoria”, the
Euroseas Ltd. fleet and employment profile will be as follows:
Name |
Type |
Dwt |
TEU |
YearBuilt |
Employment(*) |
TCE Rate ($/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 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 Sep-23 |
$18,000 |
SYNERGY OAKLAND(*) |
Intermediate |
50,787 |
4,253 |
2009 |
TC until Jan-21 then until Mar-22then until Mar-26 |
$202,000$130,000$42,000 |
SYNERGY KEELUNG (+) |
Intermediate |
50,969 |
4,253 |
2009 |
TC until Jun-22 plus 8-12 months option |
$11,750; option $14,500 |
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-22TC until Feb-23then until Feb-24then until
Feb-25 |
$18,650 $65,000$50,000$20,000 |
EM CORFU(+) |
Feeder |
34,654 |
2,556 |
2001 |
TC until Nov-21 then repositioning trip to drydockTC until
Feb-25 |
$10,200$5,125 for up to 37 days ($35,000 if more than 37
days)$40,000 |
EVRIDIKI G (+) |
Feeder |
34,677 |
2,556 |
2001 |
TC until Jan-22TC until Feb-25 |
$15,500$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 |
23,351 |
1,740 |
2006 |
TC until Sep-24 |
$26,662(**) |
EM HYDRA(*) |
Feeder |
23,351 |
1,740 |
2005 |
TC until Apr-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 Mar-22 |
$11,500 |
Total Container Carriers |
16 |
635,806 |
50,371 |
|
|
|
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 |
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 (+). (**)
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 currently has a fleet of 16 vessels
comprising of 10 Feeder and 6 Intermediate containerships. Euroseas
16 containerships have a cargo capacity of 50,371 teu. Furthermore,
after the delivery of two feeder containership newbuildings in the
first half of 2023, Euroseas’ fleet will consist of 18 vessels with
a total carrying capacity of 55,971 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 BornozisPresidentCapital
Link, Inc.230 Park Avenue, Suite 1536New York, NY 10169Tel. (212)
661-7566E-mail: euroseas@capitallink.com |
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