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Euroseas Ltd. Announces Charter Contract Extensions for its Two 2,500 teu Feeder Containerships, EM Corfu and Evridiki G

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Euroseas (NASDAQ: ESEA) has secured new time charter contract extensions for two of its 2,556 teu feeder containerships. EM Corfu has been chartered for 18-20 months at $28,000 per day, while Evridiki G has been fixed for 14-16 months at $29,500 per day. Both charters will begin around February 2025. The contracts are expected to contribute approximately $20 million in EBITDA and increase the company's charter coverage to over 70% for 2025 and about 35% for 2026.

Euroseas (NASDAQ: ESEA) ha ottenuto nuove estensioni di contratti di noleggio a lungo termine per due dei suoi container feeder da 2.556 teu. EM Corfu è stato noleggiato per 18-20 mesi a $28.000 al giorno, mentre Evridiki G è stato fissato per 14-16 mesi a $29.500 al giorno. Entrambi i noleggi inizieranno intorno a febbraio 2025. Si prevede che i contratti contribuiranno con circa $20 milioni in EBITDA e aumenteranno la copertura dei contratti della società a oltre il 70% per il 2025 e circa il 35% per il 2026.

Euroseas (NASDAQ: ESEA) ha asegurado nuevas extensiones de contratos de fletamento para dos de sus buques portacontenedores feeder de 2.556 teu. EM Corfu ha sido fletado por 18-20 meses a $28,000 por día, mientras que Evridiki G ha sido fijado por 14-16 meses a $29,500 por día. Ambos fletamentos comenzarán alrededor de febrero de 2025. Se espera que los contratos contribuyan aproximadamente con $20 millones en EBITDA y aumenten la cobertura de contratos de la compañía a más del 70% para 2025 y alrededor del 35% para 2026.

유로시스 (NASDAQ: ESEA)는 2,556 teu의 피더 컨테이너선 두 척에 대한 새로운 장기 용선 계약 연장을 확보했습니다. EM Corfu는 하루 $28,000로 18-20개월 동안 용선되었고, Evridiki G는 하루 $29,500로 14-16개월 동안 고정되었습니다. 두 용선 계약 모두 2025년 2월경 시작될 예정입니다. 이러한 계약은 약 $20 백만의 EBITDA에 기여하고, 회사의 용선 비율을 2025년에는 70% 이상, 2026년에는 약 35%로 증가시킬 것으로 예상됩니다.

Euroseas (NASDAQ: ESEA) a obtenu de nouvelles extensions de contrats de time charter pour deux de ses porte-conteneurs feeder de 2.556 teu. EM Corfu a été affrété pour 18-20 mois à 28 000 $ par jour, tandis que Evridiki G a été fixé pour 14-16 mois à 29 500 $ par jour. Les deux affrètements commenceront vers février 2025. Les contrats devraient contribuer environ 20 millions de dollars en EBITDA et augmenter la couverture des contrats de l'entreprise à plus de 70 % pour 2025 et environ 35 % pour 2026.

Euroseas (NASDAQ: ESEA) hat neue Verlängerungen von Zeitcharterverträgen für zwei seiner 2.556 teu Feeder-Containerschiffe gesichert. EM Corfu wurde für 18-20 Monate zu $28.000 pro Tag gechartert, während Evridiki G für 14-16 Monate zu $29.500 pro Tag festgelegt wurde. Beide Charters sollen um Februar 2025 beginnen. Es wird erwartet, dass die Verträge etwa $20 Millionen EBITDA beitragen und die Charterabdeckung des Unternehmens auf über 70 % für 2025 und etwa 35 % für 2026 erhöhen.

Positive
  • New charter contracts secured at profitable rates ($28,000-$29,500/day)
  • Expected $20 million EBITDA contribution from the two vessels
  • Increased charter coverage to >70% for 2025 and 35% for 2026
Negative
  • Rates for new contracts are lower than current charters ($40,000/day)

Insights

This charter extension announcement reveals significant positive momentum in the feeder container vessel market. The secured rates of $28,000 and $29,500 per day for aging vessels (both built in 2001) demonstrate robust demand for feeder vessels. The combined $20 million EBITDA contribution over the minimum contract period significantly strengthens Euroseas' financial position.

The extension timing aligns strategically with the vessels' fifth special survey, providing flexibility for asset management decisions. The increased charter coverage of 70% for 2025 and 35% for 2026 offers enhanced earnings visibility and reduced market exposure risk. These rates, while lower than current charters at $40,000/day, remain highly profitable and reflect a stabilizing market with sustained demand for feeder vessels.

ATHENS, Greece, Nov. 11, 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 its 2001-built 2,556 teu feeder containerships, EM Corfu and Evridiki G, in direct continuation of their existing charters.

Specifically:

  • EM Corfu has been fixed for a minimum period of 18 months and a maximum period of 20 months at the option of the charterer at a gross daily rate of $28,000 per day.
  • Evridiki G has been fixed for a minimum period of 14 months and a maximum period of 16 months at the option of the charterer at a gross daily rate of $29,500 per day.

Both vessels will commence their new charters upon the completion of their current ones, expected around mid-February 2025 for EM Corfu and early February 2025 for Evridiki G.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce that our vessels, EM Corfu and Evridiki G, have extended their charter contracts with a top-class charterer for 18-20 months and 14-16 months respectively, at highly profitable rates of $28,000/day/vessel and $29,500/day/vessel, respectively. The rates of these fixtures indicate the continuing need that liner companies have to secure feeder vessels which are likely to be in short supply given the segment’s orderbook and age profile. The specific charters extend to the time of the fifth special survey of the vessels on their 25th birthday, at which time we will assess their economic prospects in connection to the cost of completing their fifth special survey and drydock. Over the minimum contract period, the two vessels will contribute about $20 million of EBITDA and increase our 2025 charter coverage to over 70% and our charter coverage for 2026 to about 35%.”

Fleet Profile:

The Euroseas Ltd. fleet profile after the charter of M/V Evridiki G and M/V EM Corfu is as follows:

Name TypeDwtTEUYear BuiltEmploymentTCE Rate ($/day)
Container Carriers      
MARCOS V(*)
Intermediate
72,968
6,350
2005
TC until Dec-24$42,200
TC until Aug-25$15,000
SYNERGY BUSAN(+)(*)Intermediate50,7264,2532009TC until Dec-24
then until Dec-27
$25,000
$35,500(***)
SYNERGY ANTWERP(+)Intermediate50,7264,2532008TC until Jun-25$26,500(**)
SYNERGY OAKLAND(*)Intermediate50,7874,2532009TC until May-26$42,000
SYNERGY KEELUNG(+)Intermediate50,9694,2532009TC until Jun-25$23,000
EMMANUEL P(+)Intermediate50,7964,2502005TC until Aug-25$21,000
RENA P(+)Intermediate50,7964,2502007TC until Aug-25$21,000
EM KEA(*)Feeder42,1653,1002007TC until May-26$19,000
GREGOS(*)Feeder37,2372,8002023TC until Apr-26$48,000
TERATAKI(*)Feeder37,2372,8002023TC until Jul-26$48,000
TENDER SOUL(+)(*)Feeder37,2372,8002024TC until Dec-24
then until Oct-27
$17,000
$32,000(**)
LEONIDAS Z (*)Feeder37,2372,8002024TC until Mar-26$20,000
EVRIDIKI G(*)Feeder34,6772,5562001TC until Feb-25
Then until April-26
$40,000
$29,500
EM CORFU(*)Feeder34,6542,5562001TC until Feb-25
Then until Aug-26
$40,000
$28,000
DIAMANTIS P(+)Feeder30,3602,0081998TC until Dec-24$27,000
MONICA(+)Feeder22,2621,8002024TC until May-25$16,000
STEPHANIA K(*)Feeder22,2621,8002024TC until May-26$22,000(**)
PEPI STAR(*)Feeder22,2621,8002024TC until Jun-26$24,250(**)
EM SPETSES(*)Feeder23,2241,7402007TC until Apr-26$18,100
JONATHAN P(*)Feeder23,3571,7402006TC until Sep-25$27,000(***)
$20,000
EM HYDRA(+)
Feeder
23,351
1,740
2005
  
TC until May-25$13,000
JOANNA(*)Feeder22,3011,7321999TC until Aug-26$16,500(****)
AEGEAN EXPRESS(+)Feeder18,5811,4391997TC until Dec-24$8,000
Total Container Carriers on the Water23846,17267,073   
       
Vessels under constructionTypeDwtTEUTo be deliveredEmploymentTCE Rate ($/day)
DEAR PANELFeeder37,2372,800Jan-2025TC until Nov-27$32,000(**)
SYMEON PFeeder37,2372,800Jan-2025TC until Nov-27$32,000(**)
Total under construction274,4745,600   
       

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 ContactInvestor 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 are the new charter rates for EM Corfu and Evridiki G (ESEA)?

EM Corfu's new rate is $28,000 per day for 18-20 months, while Evridiki G's new rate is $29,500 per day for 14-16 months.

When do the new charter contracts for ESEA's vessels begin?

The new charters will begin around February 2025, with EM Corfu starting mid-February and Evridiki G starting early February 2025.

How much EBITDA will ESEA generate from these new charter contracts?

The two vessels are expected to contribute approximately $20 million in EBITDA over the minimum contract period.

Euroseas Ltd.(Marshall Islands)

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