Euroseas Ltd. Announces a Minimum Two-Month $200,000 per day Charter Contract for M/V Synergy Oakland, a 4,250 teu Container Vessel, built in 2009

Rhea-AI Summary

Euroseas Ltd. (NASDAQ: ESEA) has announced a new time charter for its vessel M/V Synergy Oakland, effective October 2021. The charter is for 60 to 85 days at a daily rate of either $202,000 or $195,000, depending on delivery location. This new contract guarantees approximately $12 million in revenue for two months, potentially rising to $17 million if extended. CEO Aristides Pittas highlighted this as the highest charter rate achieved in the company’s fleet and noted the potential for further market opportunities with five vessels available in the next six months.

Positive

• New time charter contract for M/V Synergy Oakland at a daily rate of $202,000 or $195,000, ensuring substantial revenue.
• Contracts expected to generate $12 million to $17 million over the charter duration.
• Highest time charter rate achieved in the fleet, indicating strong market positioning.

Negative

• None.

ATHENS, Greece, Sept. 08, 2021 (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 container vessel M/V Synergy Oakland. Specifically, M/V Synergy Oakland, a 4,250 TEU vessel built in 2009, entered into a new time charter contract for a period between a minimum of sixty (60) days and a maximum of eighty five (85) days at the option of the charterer, at a gross daily rate of $202,000 or $195,000 depending on where the vessel will be delivered to the charterer. The new rate will commence in the second half of October 2021 when the vessel is redelivered from its current charter.

Aristides Pittas, Chairman and CEO of Euroseas commented:
“We are pleased to announce the new charter for M/V Synergy Oakland for about two to three months at a daily rate of about $200,000 per day. This is the highest time charter rate ever achieved by any vessel in our fleet and one of the highest rates ever achieved in our industry. This new charter secures a minimum of $12m of contracted revenue over two months and, possibly, up to $17m if the maximum period of the charter is chosen by the charterer. At the same time, Euroseas is well positioned to take advantage of a further rising market with five ships, including M/V Synergy Oakland after the expiration of its new charter, opening in the next six months.”

Fleet Profile:

After the delivery of M/V Piraeus Trader to its fleet, the Euroseas Ltd. fleet profile will be as follows:

Name	Type		Dwt	TEU	Year Built	Employment(*)	TCE Rate ($/day)
Container Carriers
AKINADA BRIDGE(*)	Intermediate		71,366	5,610	2001	TC until Oct-21 TC until Oct-22	$17,250 $20,000
SYNERGY BUSAN(*)	Intermediate		50,726	4,253	2009	TC until Aug-21 TC until Aug-24	$12,000 $25,000
SYNERGY ANTWERP(*)	Intermediate		50,726	4,253	2008	TC until Sep-23	$18,000
SYNERGY OAKLAND(+)(*)	Intermediate		50,787	4,253	2009	TC until Oct-21 TC until Dec-21	$64,660 $195,000 or $202,00
SYNERGY KEELUNG(+)	Intermediate		50,969	4,253	2009	TC until Jun-22 plus 8-12 months option	$11,750 option $14,500
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-22	$18,650
EVRIDIKI G(+)	Feeder		34,677	2,556	2001	TC until Jan-22	$15,500
EM CORFU(+)	Feeder		34,654	2,556	2001	TC until Nov-21	$10,200
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 (ex-PIRAEUS TRADER)(*)	Feeder		23,357	1,740	2006	TC until Oct-24	$26,662(**)
EM HYDRA(*)	Feeder		23,351	1,740	2005	TC until Apr-23	$20,000
JOANNA(*)	Feeder		22,301	1,732	1999	TC until Oct-22	$16,800
AEGEAN EXPRESS(*)	Feeder		18,581	1,439	1997	TC until Mar-22	$11,500
Total Container Carriers on the Water	15		562,844	44,021
Vessels under construction		Type	Dwt	TEU	To be delivered
H4201		Feeder	37,237	2,800	Q1 2023
H4202		Feeder	37,237	2,800	Q2 2023

Note:  
(*)  TC denotes time charter. Charter duration indicates the earliest redelivery date; All dates listed are the earliest redelivery dates under each TC 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 net of commissions (which are typically 5-6.25%). The vessel is expected to be delivered to the Company in October 2021.

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. 

After the delivery of M/V Jonathan P, the Company will have a fleet of 15 vessels comprising of 10 Feeder and 5 Intermediate containerships. Euroseas 15 containerships have a cargo capacity of 44,021 teu. Furthermore, after the delivery of two feeder containership newbuildings in the first half of 2023, Euroseas fleet will consist of 17 vessels with a total carrying capacity of 49,621 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 President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com

 

FAQ

What is the new time charter contract for Euroseas Ltd.'s M/V Synergy Oakland?

Euroseas Ltd. has secured a time charter contract for M/V Synergy Oakland for 60 to 85 days at a daily rate of $202,000 or $195,000.

When will the new charter for the M/V Synergy Oakland start?

The new charter for the M/V Synergy Oakland will commence in the second half of October 2021.

What revenue is expected from the new charter contract for M/V Synergy Oakland?

The new charter contract is expected to generate between $12 million and $17 million in revenue.

What is the significance of the charter rate for Euroseas Ltd.?

The charter rate for M/V Synergy Oakland is the highest ever achieved by Euroseas and reflects strong market conditions.

How many vessels does Euroseas Ltd. have in its fleet?

After the upcoming delivery of M/V Jonathan P, Euroseas will have a fleet of 15 vessels.