EuroDry Ltd. Signs Contract for the Construction of Two Modern 63,500 DWT Ultramax Bulk Carriers
EuroDry (NASDAQ: EDRY) has signed a contract with Nantong Xiangyu Shipbuilding for two 63,500 DWT ultramax bulk carriers worth approximately $71.8 million. The eco-friendly vessels, built to EEDI phase 3 design standard, are scheduled for delivery in Q2 and Q3 2027. The acquisition will be financed through debt and equity, expanding EuroDry's Supra/Ultramax segment to eight vessels. The company currently operates a fleet of 13 dry bulk vessels, with these two newbuildings adding to their construction portfolio.
EuroDry (NASDAQ: EDRY) ha firmato un contratto con la Nantong Xiangyu Shipbuilding per due navi bulk carrier ultramax da 63.500 DWT del valore di circa 71,8 milioni di dollari. Le navi eco-compatibili, costruite secondo gli standard di design EEDI fase 3, sono previste per la consegna nel secondo e terzo trimestre del 2027. L'acquisizione sarà finanziata attraverso debito ed equity, espandendo il segmento Supra/Ultramax di EuroDry a otto unità. Attualmente, l'azienda opera una flotta di 13 navi a secco, e queste due nuove costruzioni andranno ad aggiungersi al loro portfolio di costruzioni.
EuroDry (NASDAQ: EDRY) ha firmado un contrato con Nantong Xiangyu Shipbuilding para dos buques graneleros ultramax de 63,500 DWT valorados en aproximadamente 71.8 millones de dólares. Las embarcaciones, respetuosas con el medio ambiente y construidas según el estándar de diseño EEDI fase 3, están programadas para su entrega en el segundo y tercer trimestre de 2027. La adquisición se financiará a través de deuda y capital, ampliando el segmento Supra/Ultramax de EuroDry a ocho buques. La empresa actualmente opera una flota de 13 buques de carga seca, y estas dos nuevas construcciones se sumarán a su cartera de construcción.
EuroDry (NASDAQ: EDRY)는 Nantong Xiangyu Shipbuilding과 두 척의 63,500 DWT 울트라맥스 벌크선을 약 7180만 달러에 계약했습니다. 환경 친화적인 이 선박들은 EEDI 3단계 설계 기준에 따라 건조되며, 2027년 2분기와 3분기에 인도될 예정입니다. 이 인수는 채무와 자본을 통해 자금을 조달하며, EuroDry의 Supra/Ultramax 부문을 8척으로 확장할 것입니다. 현재 회사는 13척의 벌크 선대를 운영하고 있으며, 이 두 척의 신조가 그들의 건조 포트폴리오에 추가될 것입니다.
EuroDry (NASDAQ: EDRY) a signé un contrat avec Nantong Xiangyu Shipbuilding pour deux transporteurs de vrac ultramax de 63 500 DWT d'une valeur d'environ 71,8 millions de dollars. Ces navires écologiques, construits selon la norme de conception EEDI phase 3, sont programmés pour une livraison au 2ème et au 3ème trimestre de 2027. L'acquisition sera financée par le biais de dettes et de capitaux propres, élargissant le segment Supra/Ultramax d'EuroDry à huit navires. La société exploite actuellement une flotte de 13 navires de vrac sec, et ces deux nouvelles constructions viendront s'ajouter à leur portefeuille de construction.
EuroDry (NASDAQ: EDRY) hat einen Vertrag mit Nantong Xiangyu Shipbuilding über zwei 63.500 DWT Ultramax-Bulkcarrier im Wert von etwa 71,8 Millionen US-Dollar unterzeichnet. Die umweltfreundlichen Schiffe, die gemäß dem EEDI-Phase-3-Designstandard gebaut wurden, sind für die Lieferung im 2. und 3. Quartal 2027 geplant. Die Akquisition wird durch Schulden und Eigenkapital finanziert und erweitert EuroDrys Supra/Ultramax-Segment auf acht Schiffe. Das Unternehmen betreibt derzeit eine Flotte von 13 Trockenschüttgutschiffen, wobei diese beiden Neubauten zu ihrem Bauportfolio hinzugefügt werden.
- Strategic fleet expansion with two modern eco-friendly vessels
- Strengthens Supra/Ultramax segment from 6 to 8 vessels
- New vessels comply with advanced EEDI phase 3 environmental standards
- Significant capital expenditure of $71.8 million required
- Potential shareholder dilution due to equity financing component
- Long delivery timeline (2027) delays revenue generation from investment
Insights
The
- The cost per vessel at
$35.9 million aligns with current market prices for similar eco-design ultramaxes - The debt-equity financing structure will impact the company's balance sheet, though specific terms aren't disclosed
- The strategic timing targets delivery during 2027, potentially capitalizing on an anticipated market upturn
- The expansion strengthens EuroDry's position in the profitable Supra/Ultramax segment, increasing their fleet count to 8 vessels in this category
The order for two geared ultramax vessels demonstrates strong strategic positioning in the dry bulk market. Critical advantages:
- The 63,500 DWT size offers optimal versatility for various cargo types and port access
- Geared configuration provides operational flexibility for ports lacking infrastructure
- EEDI Phase 3 compliance ensures future-proof operations amid tightening environmental regulations
- The timing allows EuroDry to secure favorable newbuild slots while avoiding immediate oversupply concerns
This fleet modernization enhances operational efficiency and positions EuroDry competitively in the evolving maritime landscape.
ATHENS, Greece, Nov. 21, 2024 (GLOBE NEWSWIRE) -- EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today that it has signed a contract with Nantong Xiangyu Shipbuilding for the construction of two 63,500 DWT ultramax bulk carriers. Both vessels are geared, eco, and are built to EEDI phase 3 design standard. The two newbuildings are scheduled to be delivered during the second and third quarters of 2027. The total consideration for the two newbuilding contracts is approximately
Aristides Pittas, Chairman and CEO of EuroDry commented: “We are pleased to announce the ordering of two geared 63,500 DWT ultramax vessels. The addition of two modern Ultramax vessels in our fleet will solidify our presence in the Supra/Ultramax segment by increasing our fleet in this segment to eight vessels all with eco type engines and environmentally friendly footprint. These contracts reflect our Company’s commitment to growing and modernizing our fleet and also highlight our focus on generating returns to our shareholders through timely and accretive investments.”
Fleet Profile:
The EuroDry Ltd. fleet profile is as follows:
| Name | Type | Dwt | Year Built | Employment(*) | TCE Rate ($/day) |
| Dry Bulk Vessels | |||||
| EKATERINI | Kamsarmax | 82,000 | 2018 | TC until Mar-25 | Hire |
| XENIA | Kamsarmax | 82,000 | 2016 | TC until Apr-25 | Hire |
| ALEXANDROS P. | Ultramax | 63,500 | 2017 | TC until Dec-24 | |
| CHRISTOS K*** | Ultramax | 63,197 | 2015 | TC until Dec-24 | |
| YANNIS PITTAS | Ultramax | 63,177 | 2014 | TC until Dec-24 | |
| MARIA*** | Ultramax | 63,153 | 2015 | TC until Dec-24 | |
| GOOD HEART | Ultramax | 62,996 | 2014 | TC until Jan-25 | |
| MOLYVOS LUCK | Supramax | 57,924 | 2014 | TC until Dec-24 | |
| EIRINI P | Panamax | 76,466 | 2004 | TC until Dec-24 | |
| SANTA CRUZ | Panamax | 76,440 | 2005 | TC until Nov-24 | |
| STARLIGHT | Panamax | 75,845 | 2004 | TC until Dec-24 | |
| TASOS | Panamax | 75,100 | 2000 | TC until Dec-24 | |
| BLESSED LUCK | Panamax | 76,704 | 2004 | TC until Nov-24 | |
| Total Dry Bulk Vessels | 13 | 918,502 |
| Vessels under construction | Type | Dwt | To be delivered |
| SBC XY164 | Ultramax | 63,500 | Q2 2027 |
| SBC XY166 | Ultramax | 63,500 | Q3 2027 |
| Total under construction | 2 | 127,000 |
| Note: | |
| (*) | Represents the earliest redelivery date |
| (**) | The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes. |
| (***) | Vessel is |
About EuroDry Ltd.
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY.
EuroDry operates in the dry cargo, drybulk shipping market. EuroDry's operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.
The Company has a fleet of 13 vessels, including 2 Kamsarmax drybulk, 5 Panamax drybulk carriers, 5 Ultramax drybulk carriers, and 1 Supramax drybulk carrier. EuroDry’s 13 drybulk carriers have a total cargo capacity of 918,502 dwt. On a fully delivered basis, the Company’s fleet will increase to 15 drybulk ships with a cargo capacity of about 1,045,502 dwt.
Forward Looking Statement
This 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 dry bulk vessels, 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.eurodry.gr
| Company Contact | Investor Relations / Financial Media |
| Tasos Aslidis Chief Financial Officer EuroDry Ltd. 11 Canterbury Lane, Watchung, NJ07069 Tel. (908) 301-9091 E-mail: aha@eurodry.gr | Nicolas Bornozis Markella Kara Capital Link, Inc. 230 Park Avenue, Suite 1540 New York, NY10169 Tel. (212) 661-7566 E-mail: eurodry@capitallink.com |
FAQ
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