Euroseas Ltd. Announces a $23,000 per day Two-Year Charter for its 4,253 teu, 2009-built Vessel, M/V “Synergy Keelung”

Rhea-AI Summary

Euroseas Ltd. (ESEA) announced a new charter for its container vessel, the M/V Synergy Keelung, which was built in 2009. The vessel will operate under a time charter for 24 to 26 months, starting in April 2023, at a gross daily rate of $23,000, generating approximately $10 million in EBITDA over the contract's duration. Chairman and CEO Aristides Pittas highlighted the charter's favorable terms as indicative of a strengthening containership market. This development enhances Euroseas' fleet profile, demonstrating resilience amidst recent market adjustments.

Positive

• New charter for M/V Synergy Keelung at $23,000 per day.
• Projected EBITDA of $10 million from the new charter over two years.
• Charter duration of 24 to 26 months showcases vessel employment stability.

Negative

• None.

ATHENS, Greece, April 05, 2023 (GLOBE NEWSWIRE) -- 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 “Synergy Keelung”.

Specifically:

• M/V “Synergy Keelung”, a 4,253 TEU vessel built in 2009, entered into a new time charter contract for a period of between a minimum of twenty-four and a maximum of twenty-six months at the option of the charterer, at a gross daily rate of $23,000. The new charter will commence in April 2023 immediately following the completion of its current charter.
  

Aristides Pittas, Chairman and CEO of Euroseas commented:
“We are pleased to announce the new charter of our vessel M/V Synergy Keelung with a first-class charterer. We believe that both the rate and, especially, the duration of the charter are indicative of the resilience of the containership market which has firmed up after the adjustment that took place over the last six months. M/V Synergy Keelung’s charter will generate about $10m of EBITDA over the next two years providing a higher contribution to our earnings per share than previously expected.”

Fleet Profile:

After the new charter arrangements of M/V “Synergy Keelung”, the Euroseas Ltd. fleet and employment profile will be 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	$42,200
					plus 12 months option	option $15,000
SYNERGY BUSAN(*)	Intermediate	50,726	4,253	2009	TC until Aug-24	$25,000
SYNERGY ANTWERP(+)	Intermediate	50,726	4,253	2008	TC until Dec-23	$18,000
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-23 TC until Apr-25	$14,500 $23,000
EMMANUEL P (ex-SEASPAN MELBOURNE) (*)	Intermediate	50,796	4,250	2005	TC until Mar-25	$19,000
RENA P (ex-SEASPAN MANILA)(*)	Intermediate	50,796	4,250	2007	TC until April-24	$20,250 then
					Then until Feb 25	CONTEX(**) with $13,000 floor and $21,000 ceiling
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-24	$50,000
					then until Feb-25	$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 Oct-24	$27,000
EM SPETSES(*)	Feeder	23,224	1,740	2007	TC until Aug-24	$29,500
JONATHAN P (*)	Feeder	23,357	1,740	2006	TC until Sep-24	$26,662(***)
EM HYDRA(*)	Feeder	23,351	1,740	2005	TC until April-23	$20,000
JOANNA(*)	Feeder	22,301	1,732	1999	TC until May-23	$14,500
AEGEAN EXPRESS(*)	Feeder	18,581	1,439	1997	TC until Aug-23	$13,000
Total Container Carriers	17	666,038	53,261

Vessels under construction	Type	Dwt	TEU	To be delivered	Employment(*)	TCE Rate ($/day)
GREGOS (*)	Feeder	37,237	2,800	Apr-2023	TC until Apr-26	$48,000
TERATAKI (*)	Feeder	37,237	2,800	Jun-2023	TC until June-26	$48,000
TENDER SOUL	Feeder	37,237	2,800	Q4 2023
LEONIDAS Z	Feeder	37,237	2,800	Q1 2024
MONICA	Feeder	22,262	1,800	Q1 2024
STEPHANIA K	Feeder	22,262	1,800	Q2 2024
PEPI STAR	Feeder	22,262	1,800	Q2 2024
DEAR PANEL	Feeder	37,237	2,800	Q4 2024
SYMEON P	Feeder	37,237	2,800	Q4 2024
Total under construction	9	290,208	22,200

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 (+).

(**) The CONTEX (Container Ship Time Charter Assessment Index) has been published by the Hamburg and Bremen Shipbrokers' Association (VHBS) since October 2007. The CONTEX is a company-independent index of time charter rates for container ships. It is based on assessments of the current day charter rates of six selected container ship types, which are representative of their size categories: Type 1,100 TEU and Type 1,700 TEU with a charter period of one year, and the Types 2,500, 2,700, 3,500 and 4,250 TEU all with a charter period of two years.

(***) Rate is net of commissions (commissions 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 has a fleet of 17 vessels, including 10 Feeder and 7 Intermediate containerships. Euroseas 17 containerships have a cargo capacity of 53,261 teu. On a fully-delivered basis of its vessels under construction, the Company’s fleet will increase to 26 containerships with a cargo capacity of about 75,461 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 significance of Euroseas Ltd.'s new charter for the M/V Synergy Keelung?

The new charter indicates strong demand in the containership market and is expected to contribute approximately $10 million to Euroseas' EBITDA over the contract duration.

When does the new charter for the M/V Synergy Keelung begin?

The new charter will commence in April 2023, immediately following the completion of its current charter.

What is the daily rate Euroseas Ltd. secured for the M/V Synergy Keelung?

Euroseas Ltd. secured a gross daily rate of $23,000 for the M/V Synergy Keelung.

How long is the charter contract for the M/V Synergy Keelung?

The charter contract for the M/V Synergy Keelung is for a period of 24 to 26 months.