Euroseas Ltd. Announces 3-year Charter Contracts for Three Eco 2,800 teu Feeder Containership Newbuildings, M/V Tender Soul, M/V Dear Panel and M/V Symeon P

Rhea-AI Summary

Euroseas (NASDAQ: ESEA) has announced new 3-year charter contracts for three of its eco-friendly 2,800 teu feeder containerships. The charters, set at a gross rate of $32,000 per day, cover:

1. M/V Tender Soul: Starting early December 2024
2. M/V Dear Panel: Upon delivery in early January 2025
3. M/V Symeon P: Upon delivery in early January 2025

These contracts are expected to contribute about $79 million of EBITDA for the minimum contracted period. The deal increases Euroseas' 2025 charter coverage to 63% and 2026 coverage to 31%. CEO Aristides Pittas highlighted the charterers' interest in eco-friendly vessels and their long-term view on market resilience, particularly in the feeder containership segment.

Positive

• Secured 3-year charter contracts for three eco-friendly 2,800 teu feeder containerships at $32,000 per day
• Expected to contribute $79 million of EBITDA for the minimum contracted period
• Increased charter coverage to 63% for 2025 and 31% for 2026
• Demonstrates sustained charterer interest in eco-friendly vessels
• Reflects long-term market resilience in the feeder containership segment

Negative

• None.

Insights

Financial Analyst

The announcement of three new 3-year charter contracts for Euroseas 's eco-friendly 2,800 TEU feeder containerships is significantly positive for the company's financial outlook. These contracts are expected to generate approximately $79 million in EBITDA over the minimum contracted period, providing substantial revenue visibility and stability.

The $32,000 per day rate for each vessel is notably profitable, especially considering the current market conditions. This deal increases Euroseas' charter coverage to 63% for 2025 and 31% for 2026, reducing earnings volatility and enhancing predictability for investors.

The long-term nature of these contracts (34-36 months) suggests strong market confidence in the feeder containership segment. Moreover, the focus on eco-friendly vessels aligns with increasing environmental regulations, potentially positioning Euroseas favorably in the evolving shipping landscape.

For investors, this news indicates improved financial stability, strong demand for Euroseas' modern fleet and potential for sustained profitability in the medium term. The company's strategy of securing long-term charters at attractive rates appears to be paying off, potentially leading to enhanced shareholder value.

Shipping Industry Expert

The securing of these charter contracts by Euroseas reflects several important industry trends:

• Growing importance of eco-friendly vessels in light of stricter environmental regulations
• Continued strong demand in the feeder containership segment
• Charterers' willingness to commit to longer-term contracts, indicating confidence in market stability

The choice of 2,800 TEU vessels is strategic, as this size is versatile for regional trade and feeder services. The $32,000 daily rate is competitive and suggests that charterers are prioritizing efficiency and environmental compliance over purely cost considerations.

Euroseas' fleet modernization strategy, evident in their newbuilding program, positions them well in a market increasingly focused on fuel efficiency and emissions reduction. This could provide a competitive edge as older, less efficient vessels face potential restrictions or higher operating costs due to environmental regulations.

For the broader shipping industry, this deal signals sustained demand for container shipping capacity and a potential shift towards longer-term chartering strategies to secure modern, compliant tonnage.

ATHENS, Greece, Oct. 21, 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 new time charter contracts for three fuel efficient 2,800 teu feeder containerships. All three charters are for a minimum period of 34 months and a maximum period of 36 months at the option of the charter at a gross rate of $32,000 per day.

Specifically:

• M/V Tender Soul, which was delivered earlier this year, will commence its charter after the completion of her present charter in early December 2024.

• M/V Dear Panel and M/V Symeon P, which are currently under construction, and represent the last two of the Company’s nine-vessel newbuilding program, will commence their charters upon delivery from the shipyard, expected in the first week of January 2025.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are very pleased to announce new time charter contracts for three of our modern 2,800 teu vessels – M/V Tender Soul and the last two upcoming newbuildings, MV/ Dear Panel and M/V Symeon P – with a top-tier charterer for 34-36 months at a very profitable rate of $32,000/day/vessel. This en-bloc deal underscores the charterers’ sustained interest and need to invest in high-spec, eco-friendly vessels. The 3-year duration also emphasizes their long-term view in the resilience of the market, especially, the feeder containership segment, and the fact that such eco-friendly vessels will be particularly important going forward as they navigate increasingly stringent environmental regulations. These charters are expected to contribute about $79 million of EBITDA for the minimum contracted period and increase our 2025 charter coverage to about 63%, and our charter coverage for 2026 to about 31%.”

Fleet Profile:
The Euroseas Ltd. fleet profile after the charter of M/V Tender Soul, M/V Dear Panel, and M/V Symeon P 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	$42,200 $15,000
SYNERGY BUSAN(+)(*)	Intermediate	50,726	4,253	2009	TC until Dec-24 then until Dec-27	$25,000 $35,500(***)
SYNERGY ANTWERP(*)	Intermediate	50,726	4,253	2008	TC until Mar-25	$26,500(**)
SYNERGY OAKLAND(*)	Intermediate	50,787	4,253	2009	TC until May-26	$42,000
SYNERGY KEELUNG(*)	Intermediate	50,969	4,253	2009	TC until Apr-25	$23,000
EMMANUEL P(*)	Intermediate	50,796	4,250	2005	TC until Apr-25	$21,000
RENA P(*)	Intermediate	50,796	4,250	2007	TC until Apr-25	$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
TENDER SOUL(+)(*)	Feeder	37,237	2,800	2024	TC until Dec-24 then until Oct-27	$17,000 $32,000(**)
LEONIDAS Z (*)	Feeder	37,237	2,800	2024	TC until Mar-26	$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 Dec-24	$27,000
MONICA(*)	Feeder	22,262	1,800	2024	TC until May-25	$16,000
STEPHANIA K(*)	Feeder	22,262	1,800	2024	TC until May-26	$22,000(**)
PEPI STAR(*)	Feeder	22,262	1,800	2024	TC until Jun-26	$24,250(**)
EM SPETSES(*)	Feeder	23,224	1,740	2007	TC until Apr-26	$18,100
JONATHAN P(*)	Feeder	23,357	1,740	2006	TC until Oct-24 then until Sep-25	$27,000(***) $20,000
EM HYDRA(*)	Feeder	23,351	1,740	2005	TC until Feb-25	$13,000
JOANNA(*)	Feeder	22,301	1,732	1999	In drydock then from Oct-24 to Aug-26	$16,500(****)
AEGEAN EXPRESS(+)	Feeder	18,581	1,439	1997	TC until Dec-24	$8,000
Total Container Carriers on the Water	23	846,172	67,073
Vessels under construction	Type	Dwt	TEU	To be delivered	Employment	TCE Rate ($/day)
DEAR PANEL	Feeder	37,237	2,800	Jan-2025	TC until Nov-27	$32,000(**)
SYMEON P	Feeder	37,237	2,800	Jan-2025	TC until Nov-27	$32,000(**)
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 2.5% (commissions are, typically, 5-6.25%).
(***)	Rate is gross of commissions of 1.25% (commissions are, typically, 5-6.25%).
(****)	Rate is $19,000 for the first 17 months, $9,500 for the next six months and $16,500 for redelivery range.

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 2025, 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 daily rate for Euroseas 's (ESEA) new charter contracts?

Euroseas (ESEA) secured new charter contracts at a gross rate of $32,000 per day for three of its eco-friendly 2,800 teu feeder containerships.

How long are the new charter contracts for Euroseas 's (ESEA) vessels?

The new charter contracts for Euroseas 's (ESEA) vessels are for a minimum period of 34 months and a maximum period of 36 months at the charterer's option.

Which Euroseas (ESEA) vessels are included in the new charter contracts?

The new charter contracts include M/V Tender Soul, M/V Dear Panel, and M/V Symeon P, all 2,800 teu feeder containerships owned by Euroseas (ESEA).

What is the expected EBITDA contribution from these new charters for Euroseas (ESEA)?

Euroseas (ESEA) expects these new charters to contribute about $79 million of EBITDA for the minimum contracted period.

How do these new charters affect Euroseas 's (ESEA) charter coverage for 2025 and 2026?

The new charters increase Euroseas 's (ESEA) charter coverage to about 63% for 2025 and about 31% for 2026.