Euroseas Ltd. Announces Delivery of M/V Gregos, an Eco 2,800 teu Feeder Containership Newbuilding, and Commencement of the Vessel’s Charter

Rhea-AI Summary

Euroseas Ltd. (NASDAQ:ESEA) announced the delivery of M/V Gregos, a new 2,800 TEU feeder containership, on April 6, 2023. Built by Hyundai Mipo Dockyard, the vessel complies with EEDI Phase 3 and features a Tier III engine with sustainability-linked enhancements, including AMP. The financing for the vessel was secured through a combination of internal funds and a sustainability-linked loan from Eurobank S.A. M/V Gregos has commenced a charter with Asyad Lines, expected to generate over $42 million in EBITDA, translating to approximately $6 per share. This delivery marks the first of nine vessels in the company's newbuilding program, which aims to grow Euroseas' environmentally friendly fleet, enhancing efficiency by over 40% compared to older models.

Positive

• Delivery of M/V Gregos expected to generate over $42 million in EBITDA (~$6 per share).
• First vessel from the nine-vessel newbuilding program to strengthen Euroseas' fleet.
• Vessel equipped with sustainability features, enhancing operational efficiency by over 40%.

Negative

• None.

ATHENS, Greece, April 10, 2023 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ:ESEA), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today that on April 6, 2023, it has taken delivery of its M/V Gregos, an eco 2,800 teu feeder containership newbuilding from Hyundai Mipo Dockyard Co. in South Korea. The vessel is EEDI Phase 3 compliant and equipped with a Tier III engine and other sustainability linked features including installation of AMP (alternative maritime power). The acquisition was financed with a combination of own funds and a sustainability-linked loan provided by Eurobank S.A. Following its delivery, M/V Gregos commenced a thirty-six to forty month charter with Asyad Lines.

Aristides Pittas, Chairman and CEO of Euroseas commented: "We are very pleased to have taken delivery of M/V Gregos, the first vessel from our nine-vessel newbuilding program which includes five additional 2,800 teu and three 1,800 teu units all modern fuel efficient, eco-design vessels with Tier III engines. M/V Gregos has already started a charter that is expected to contribute in excess of $42 million of EBITDA (or, about $6 of EBITDA per share) to the company over its duration.

“Following the containership market’s rebound during 2021 and 2022, our overall strategy has been to grow the company in a manner that creates value for our shareholders and adheres to our ESG commitment of having a more environmentally friendly fleet. In that respect, it is noteworthy that M/V Gregos and the rest of our newbuildings are 40%+ more efficient than the previous generation of similar size non-eco ships. We look forward to the delivery of the remaining of our newbuildings and continue to monitor the markets to identify accretive opportunities for our shareholders.”

Fleet Profile:

After the delivery of M/V Gregos, 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 KEELUNG(*)	Intermediate	50,969	4,253	2009	TC until Apr-23	$14,500
					TC until Apr-25	$23,000
SYNERGY OAKLAND(*)	Intermediate	50,787	4,253	2009	TC until May-26	$42,000
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
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
EMMANUEL P (ex-SEASPAN MELBOURNE) (*)	Intermediate	50,796	4,250	2005	TC until Mar-25	$19,000
EM KEA(*)	Feeder	42,165	3,100	2007	TC until May-23	$22,000
GREGOS (*)	Feeder	37,237	2,800	2023	TC until Apr-26	$48,000
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	18	703,275	56,061

Vessels under construction	Type	Dwt	TEU	To be delivered	Employment(*)	TCE Rate ($/day)
TERATAKI (*)	Feeder	37,237	2,800	Jun-23	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	8	252,971	19,400

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 18 vessels, including 11 Feeder and 7 Intermediate containerships. Euroseas 18 containerships have a cargo capacity of 56,061 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' M/V Gregos delivery on April 6, 2023?

The delivery of M/V Gregos marks a strategic expansion for Euroseas, contributing over $42 million in EBITDA to the company.

How does M/V Gregos enhance Euroseas' fleet efficiency?

M/V Gregos and future vessels are designed to be over 40% more efficient than older non-eco models.

What financing arrangement did Euroseas use for M/V Gregos?

The acquisition was financed through a mix of internal funds and a sustainability-linked loan from Eurobank S.A.

What is the expected duration of M/V Gregos' charter with Asyad Lines?

The vessel will be chartered for 36 to 40 months.

What is Euroseas' stock symbol?

Euroseas trades on NASDAQ under the ticker symbol ESEA.