Euroseas Ltd. Announces 18-month Charter Contract for its Feeder Containership, EM Spetses
Euroseas (NASDAQ: ESEA) has secured an 18-month charter contract for its 1,740 TEU feeder containership, EM Spetses. The charter will commence in early August 2024 at a gross daily rate of $18,100. This new contract is expected to contribute approximately $5.5 million in EBITDA for the minimum contracted period.
The company's CEO, Aristides Pittas, noted that this fixture demonstrates the firmness of the market, with strong underlying demand fundamentals. The new charter increases Euroseas' 2024 charter coverage to 94% and 2025 charter coverage to about 44%. Euroseas currently operates a fleet of 23 container vessels with a total capacity of 67,073 TEU, which will increase to 25 vessels and 72,673 TEU after the delivery of two newbuildings in 2024.
Euroseas (NASDAQ: ESEA) ha ottenuto un contratto di noleggio di 18 mesi per il suo feeder container da 1.740 TEU, EM Spetses. Il noleggio inizierà all'inizio di agosto 2024 a una tariffa giornaliera lorda di $18.100. Questo nuovo contratto si prevede contribuirà con circa $5,5 milioni in EBITDA per il periodo minimo contrattuale.
Il CEO dell'azienda, Aristides Pittas, ha osservato che questo accordo dimostra la solidità del mercato, con forti fondamentali di domanda sottostanti. Il nuovo contratto aumenta la copertura dei contratti di noleggio per Euroseas nel 2024 al 94% e la copertura dei contratti di noleggio per il 2025 a circa il 44%. Euroseas attualmente gestisce una flotta di 23 navi container con una capacità totale di 67.073 TEU, che aumenterà a 25 navi e 72.673 TEU dopo la consegna di due nuove costruzioni nel 2024.
Euroseas (NASDAQ: ESEA) ha asegurado un contrato de arrendamiento de 18 meses para su buque portacontenedores de alimentación de 1.740 TEU, EM Spetses. El arrendamiento comenzará a principios de agosto de 2024 a una tarifa diaria bruta de $18,100. Se espera que este nuevo contrato contribuya aproximadamente con $5.5 millones en EBITDA durante el período mínimo del contrato.
El CEO de la empresa, Aristides Pittas, señaló que este contrato demuestra la fortaleza del mercado, con fuertes fundamentos de demanda subyacentes. El nuevo contrato aumenta la cobertura de contratos de arrendamiento de Euroseas al 94% en 2024 y la cobertura de contratos de arrendamiento de 2025 a aproximadamente el 44%. Euroseas opera actualmente una flota de 23 buques portacontenedores con una capacidad total de 67,073 TEU, que aumentará a 25 buques y 72,673 TEU tras la entrega de dos nuevos buques en 2024.
Euroseas (NASDAQ: ESEA)는 1,740 TEU 규모의 피더 컨테이너선 EM Spetses에 대해 18개월 기간의 전세 계약을 체결했습니다. 계약은 2024년 8월 초에 시작되며, 일일 총액은 $18,100입니다. 이 새로운 계약은 최소 계약 기간 동안 약 $5.5 백만 EBITDA에 기여할 것으로 예상됩니다.
회사의 CEO인 Aristides Pittas는 이번 계약이 시장의 견고함을 보여주며, 강력한 수요 기본이 뒷받침되고 있음을 언급했습니다. 이번 전세 계약으로 Euroseas의 2024년 전세 계약 커버리지가 94%로 증가하고 2025년 전세 계약 커버리지는 약 44%에 이릅니다. Euroseas는 현재 23척의 컨테이너선으로 구성된 함대를 운영하고 있으며, 총 용량은 67,073 TEU입니다. 2024년 두 척의 신조선 인도 후에는 25척과 72,673 TEU로 증가할 예정입니다.
Euroseas (NASDAQ: ESEA) a sécurisé un contrat de charter de 18 mois pour son porte-conteneurs feeder de 1.740 TEU, EM Spetses. Le charter commencera début août 2024 à un tarif journalier brut de $18.100. Ce nouveau contrat devrait générer environ $5,5 millions d'EBITDA pour la période de contrat minimum.
Le PDG de l'entreprise, Aristides Pittas, a souligné que ce contrat démontre la solidité du marché, avec de solides fondamentaux de demande sous-jacents. Le nouveau charter augmente la couverture des contrats de charter d'Euroseas à 94% pour 2024 et la couverture des contrats de charter pour 2025 à environ 44%. Euroseas exploite actuellement une flotte de 23 navires porte-conteneurs avec une capacité totale de 67.073 TEU, qui augmentera à 25 navires et 72.673 TEU après la livraison de deux nouveaux bâtiments en 2024.
Euroseas (NASDAQ: ESEA) hat einen 18-monatigen Chartervertrag für sein 1.740 TEU Feeder-Containerschiff EM Spetses gesichert. Der Charter beginnt Anfang August 2024 zu einem Brutto-Tagesatz von $18.100. Es wird erwartet, dass dieser neue Vertrag etwa $5,5 Millionen EBITDA für den Mindestvertragszeitraum beitragen wird.
Der CEO des Unternehmens, Aristides Pittas, bemerkte, dass diese Vereinbarung die Stabilität des Marktes zeigt, mit starken grundlegenden Nachfragefaktoren. Der neue Charter erhöht die Charterabdeckung von Euroseas auf 94% für 2024 und auf etwa 44% für 2025. Euroseas betreibt derzeit eine Flotte von 23 Containerschiffen mit einer Gesamtkapazität von 67.073 TEU, die nach der Lieferung von zwei Neubauten im Jahr 2024 auf 25 Schiffe und 72.673 TEU ansteigen wird.
- Secured 18-month charter contract for EM Spetses at $18,100 per day
- Expected to contribute $5.5 million in EBITDA for the minimum contracted period
- Increased 2024 charter coverage to 94%
- Increased 2025 charter coverage to 44%
- Fleet expansion with two newbuildings to be delivered in 2024
- None.
Insights
The announcement of a new 18-month charter contract for Euroseas Ltd.'s feeder containership, EM Spetses, at a gross daily rate of $18,100, is a significant development for the company. Charter contracts directly impact the company's revenue and profitability. This particular contract is expected to bring in around $5.5 million of EBITDA over the minimum contracted period, which is a substantial contribution. Additionally, the timing of the charter, commencing right after the current one ends, ensures no downtime for the vessel, maintaining steady cash flow. This move helps to secure Euroseas' future earnings, providing predictable revenue streams in an industry known for its volatility. It's also worth noting that the new contract rate of $18,100/day is quite competitive, reflecting strong market demand. Investors should view this as a positive indicator of the company's strategic positioning and market fundamentals.
From a market perspective, this charter contract underscores Euroseas Ltd.'s ability to secure profitable contracts even during seasonal slowdowns. The mention of this fixture being 'a testament to the firmness of the market' suggests that there is strong demand for container shipping. The charter increases Euroseas' 2024 charter coverage to 94% and 2025 coverage to 44%, which is significant for long-term planning and operational stability. This level of coverage is above typical industry norms, where many shipping companies struggle with securing long-term charters. For investors, this translates to reduced revenue volatility and potentially higher stock stability. Moreover, long-term charters at competitive rates can provide a hedge against market fluctuations, offering a degree of safety.
While not directly technological, the efficient management and operation of a diversified fleet like Euroseas' does involve substantial technical know-how. The seamless transition from one charter to another demonstrates strong logistical and operational capabilities. Euroseas Ltd.'s fleet profile, which includes both intermediate and feeder containerships, allows for flexibility and optimization of routes and cargo loads. The fact that the EM Spetses is a feeder containership, designed to serve smaller ports and hubs that larger ships cannot access, highlights the strategic importance of fleet diversification to meet various demand needs. This diversified approach can help Euroseas navigate market shifts more adeptly than less flexible competitors, potentially leading to better long-term performance for investors.
ATHENS, Greece, July 23, 2024 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today a new time charter contract for its 1,740 feeder containership, EM Spetses, for a minimum period of 18 to a maximum period of 20 months at the option of the charterer, at a gross daily rate of
Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce that we have chartered our EM Spetses for 18 months with a top-class charterer, at a profitable rate of
Fleet Profile:
The Euroseas Ltd. fleet profile is 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 | ||
| TC until Aug-25 | |||||||
| SYNERGY BUSAN(+) | Intermediate | 50,726 | 4,253 | 2009 | TC until Dec-24 | ||
| SYNERGY ANTWERP(*) | Intermediate | 50,726 | 4,253 | 2008 | TC until Mar-25 | ||
| SYNERGY OAKLAND(*) | Intermediate | 50,787 | 4,253 | 2009 | TC until May-26 | ||
| SYNERGY KEELUNG(*) | Intermediate | 50,969 | 4,253 | 2009 | TC until Apr-25 | ||
| EMMANUEL P(*) | Intermediate | 50,796 | 4,250 | 2005 | TC until Apr-25 | ||
| RENA P(*) | Intermediate | 50,796 | 4,250 | 2007 | TC until Apr-25 | ||
| EM KEA(*) | Feeder | 42,165 | 3,100 | 2007 | TC until May-26 | ||
| GREGOS(*) | Feeder | 37,237 | 2,800 | 2023 | TC until Apr-26 | ||
| TERATAKI(*) | Feeder | 37,237 | 2,800 | 2023 | TC until Jul-26 | ||
| TENDER SOUL(+) | Feeder | 37,237 | 2,800 | 2024 | TC until Dec-24 | ||
| LEONIDAS Z (*) | Feeder | 37,237 | 2,800 | 2024 | TC until Mar-26 | ||
| PEPI STAR(*)(**) | Feeder | 22,262 | 1,800 | 2024 | TC until Jun-26 | ||
| EVRIDIKI G(*) | Feeder | 34,677 | 2,556 | 2001 | TC until Feb-25 | ||
| EM CORFU(*) | Feeder | 34,654 | 2,556 | 2001 | TC until Feb-25 | ||
| DIAMANTIS P(*) | Feeder | 30,360 | 2,008 | 1998 | TC until Oct-24 | ||
| MONICA(*) | Feeder | 22,262 | 1,800 | 2024 | TC until May-25 | ||
| STEPHANIA K(*)(**) | Feeder | 22,262 | 1,800 | 2024 | TC until May-26 | ||
| EM SPETSES(*) | Feeder | 23,224 | 1,740 | 2007 | TC until Aug-24 Then until Apr-26 | ||
| JONATHAN P(*) | Feeder | 23,357 | 1,740 | 2006 | TC until Sep-24 | ||
| EM HYDRA(*)(**) | Feeder | 23,351 | 1,740 | 2005 | TC until Feb-25 | | |
| JOANNA(+)(*) | Feeder | 22,301 | 1,732 | 1999 | TC until Aug-24 Then from Oct-24 to Aug-26 | ||
| AEGEAN EXPRESS(+) | Feeder | 18,581 | 1,439 | 1997 | TC until Dec-24 | ||
| Total Container Carriers on the Water | 23 | 846,172 | 67,073 | ||||
| Vessels under construction | Type | Dwt | TEU | To be delivered | Employment | TCE Rate ($/day) | |
| DEAR PANEL | Feeder | 37,237 | 2,800 | Q4 2024 | |||
| SYMEON P | Feeder | 37,237 | 2,800 | Q4 2024 | |||
| Total under construction | 2 | 74,474 | 5,600 | ||||
| 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 (+). |
| (**) | Rate is gross of commissions of |
| (***) | Rate is net of commissions (commissions are, typically, 5 |
| (****) | Rate is |
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 23 vessels, including 16 Feeder containerships and 7 Intermediate containerships with a cargo capacity of 67,073 teu. After the delivery of its two remaining feeder containership newbuildings in 2024, Euroseas’ fleet will consist of 25 vessels with a total carrying capacity of 72,673 teu.
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 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 Aslidis Chief Financial Officer Euroseas Ltd. 11 Canterbury Lane, Watchung, NJ 07069 Tel. (908) 301-9091 E-mail: aha@euroseas.gr | Nicolas Bornozis Markella Kara Capital Link, Inc. 230 Park Avenue, Suite 1540 New York, NY 10169 Tel. (212) 661-7566 E-mail: euroseas@capitallink.com |
FAQ
What is the new charter rate for Euroseas 's EM Spetses containership?
How much EBITDA is the new EM Spetses charter expected to contribute to Euroseas ?
What is Euroseas 's charter coverage for 2024 and 2025 after the new contract?
How many vessels will Euroseas operate after the delivery of its newbuildings in 2024?
