Euroseas (ESEA) Announces Forward Charters For Two Fuel Efficient 2,800 teu Feeder Containerships currently under construction

May 18, 2022 9:03 AM EDT

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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 for two newbuilding fuel efficient 2,800 teu feeder containerships currently under construction. Specifically:

  • M/V GREGOS (H4201), a modern eco-design 2,800 teu scheduled to be delivered at the end of the first quarter of 2023, entered into a time charter contract for a period of between a minimum of thirty-six and a maximum of forty months at the option of the charterer, at a gross daily rate of $48,000. The new charter will commence in March 2023, once delivered.
  • M/V TERATAKI (H4202), a modern eco-design 2,800 teu scheduled to be delivered at the end of the second quarter of 2023, entered into a time charter contract for a period of between a minimum of thirty-six and a maximum of forty months at the option of the charterer, at a gross daily rate of $48,000. The new charter will commence in June 2023, once delivered.

Aristides Pittas, Chairman and CEO of Euroseas commented:"We are very pleased to announce three-year charters for the first two of our fuel efficient 2,800 teu feeder containerships under construction, M/V GREGOS and M/V TERATAKI, at a gross daily rate of $48,000 each. The new charters will commence upon delivery of the vessels in March 2023 and June 2023, respectively. Over the period of the charters, the two vessels are expected to contribute in excess of $85m of EBITDA fully repaying our cost to build them in just about 3 years. After these charters, our charter coverage for 2023 increases to about 76% and for 2024 to almost 55%.”

Fleet Profile:

After the new charter arrangements of M/V “TERATAKI” and M/V “GREGOS”, the Euroseas Ltd. fleet and employment profile will be as follows:

Name TypeDwtTEUYear BuiltEmployment(*)TCE Rate ($/day)
Container Carriers
MARCOS VIntermediate72,9686,3502005TC until Dec-24$42,200
plus 12 months optionoption $15,000
AKINADA BRIDGE(+)Intermediate71,3665,6102001TC until Nov-22$20,000
SYNERGY BUSAN(*)Intermediate50,7264,2532009TC until Aug-24$25,000
SYNERGY ANTWERP(+)Intermediate50,7264,2532008TC until Dec-23$18,000
SYNERGY OAKLAND(*)Intermediate50,7874,2532009TC until May-26$42,000
SYNERGY KEELUNG(+)Intermediate50,9694,2532009TC until Jun-22$11,750
then until Feb-23$14,500
EMMANUEL P (ex-SEASPAN MELBOURNE) (*)Intermediate50,7964,2502005TC until Mar-25$19,000
RENA P (ex-SEASPAN MANILA)(*)Intermediate50,7964,2502007TC until April-24$20,250 then
Then until Feb 25CONTEX(**) with $13,000 floor and $21,000 ceiling
EM KEA(*)Feeder42,1653,1002007TC until May-23$22,000
EM ASTORIA(*)Feeder35,6002,7882004TC until Feb-23$65,000
then until Feb-24$50,000
then until Feb-25$20,000
EVRIDIKI G(*)Feeder34,6772,5562001TC until Feb-25$40,000
EM CORFU(*)Feeder34,6542,5562001TC until Feb-25$40,000
DIAMANTIS P(*)Feeder30,3602,0081998TC until Oct-24$27,000
EM SPETSES(*)Feeder23,2241,7402007TC until Aug-24$29,500
JONATHAN P (*)Feeder23,3571,7402006TC until Sep-24$26,662(***)
EM HYDRA(*)Feeder23,3511,7402005TC until April-23$20,000
JOANNA(+)Feeder22,3011,7321999TC until Jan-23$16,800
AEGEAN EXPRESS(*)Feeder18,5811,4391997TC until Apr-25$41,000
Total Container Carriers18737,40458,871

Vessels under constructionTypeDwtTEUTo be deliveredEmployment(*)TCE Rate ($/day)
GREGOS (*)Feeder37,2372,800Q1 2023TC until Mar-26$48,000
TERATAKI (*)Feeder37,2372,800Q2 2023TC until June-26$48,000
TENDER SOULFeeder37,2372,800Q4 2023
LEONIDAS ZFeeder37,2372,800Q1 2024
MONICAFeeder22,2621,800Q1 2024
STEPHANIA KFeeder22,2621,800Q2 2024
PEPI STARFeeder22,2621,800Q2 2024
DEAR PANELFeeder37,2372,800Q4 2024
SYMEON PFeeder37,2372,800Q4 2024
Total under construction9290,20822,200

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%)



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