Euroseas Ltd. Announces Time Charter for its Older Containership, M/V Aegean Express, and Spin-off of its Older Three Vessels into a Separate Company
Euroseas (NASDAQ: ESEA) has announced two significant developments: First, the extension of a charter for its vessel M/V Aegean Express for 10-12 months at $16,700 per day. Second, the company plans to spin-off its three oldest vessels (M/V Aegean Express, M/V Diamantis P, and M/V Joanna) into a new company called Euroholdings , which has applied for NASDAQ listing.
The spin-off vessels represent approximately 5% of Euroseas' NAV. Euroholdings will operate with an unlevered fleet, with two of the three vessels under time charter employment. The new company will be managed by Eurobulk Meanwhile, Euroseas will continue its fleet modernization strategy, having ordered 11 newbuilding vessels, with seven already delivered in 2023-2024, two scheduled for early January 2025, and two more in 2027.
Euroseas (NASDAQ: ESEA) ha annunciato due sviluppi significativi: innanzitutto, l'estensione di un contratto di noleggio per la sua nave M/V Aegean Express per 10-12 mesi a $16.700 al giorno. In secondo luogo, l'azienda prevede di scorporare le sue tre navi più vecchie (M/V Aegean Express, M/V Diamantis P e M/V Joanna) in una nuova società chiamata Euroholdings, che ha richiesto la quotazione al NASDAQ.
Le navi scorporate rappresentano circa il 5% del NAV di Euroseas. Euroholdings opererà con una flotta non indebitata, con due delle tre navi sotto contratto di noleggio a lungo termine. La nuova società sarà gestita da Eurobulk. Nel frattempo, Euroseas continuerà la sua strategia di modernizzazione della flotta, avendo ordinato 11 navi di nuova costruzione, di cui sette già consegnate nel 2023-2024, due previste per inizio gennaio 2025 e due ulteriori nel 2027.
Euroseas (NASDAQ: ESEA) ha anunciado dos desarrollos significativos: primero, la extensión de un contrato de alquiler para su barco M/V Aegean Express por 10-12 meses a $16,700 por día. En segundo lugar, la compañía planea escindir sus tres barcos más antiguos (M/V Aegean Express, M/V Diamantis P y M/V Joanna) en una nueva empresa llamada Euroholdings, que ha solicitado su cotización en NASDAQ.
Los barcos escindidos representan aproximadamente el 5% del NAV de Euroseas. Euroholdings operará con una flota sin apalancamiento, con dos de los tres barcos bajo contrato de alquiler a largo plazo. La nueva empresa será gestionada por Eurobulk. Mientras tanto, Euroseas continuará su estrategia de modernización de flota, habiendo ordenado 11 nuevos barcos, con siete ya entregados en 2023-2024, dos programados para principios de enero de 2025 y dos más en 2027.
Euroseas (NASDAQ: ESEA)는 두 가지 중요한 발전을 발표했습니다. 첫째, M/V Aegean Express의 시간 계약을 10-12개월 동안 하루에 $16,700로 연장하였습니다. 둘째, 이 회사는 세 척의 가장 오래된 선박 (M/V Aegean Express, M/V Diamantis P, M/V Joanna)을 Euroholdings라는 새 회사로 분리할 계획이며, 이 회사는 NASDAQ 상장을 신청하였습니다.
분리된 선박들은 Euroseas의 NAV의 약 5%를 차지합니다. Euroholdings는 레버리지 없는 함대를 운영하며, 세 척 중 두 척이 시간 계약 고용하에 있습니다. 새로운 회사는 Eurobulk가 관리합니다. 한편, Euroseas는 2023-2024년 동안 이미 7척이 인도된 11척의 신조 선박 발주를 통해 함대 현대화 전략을 지속할 것입니다. 두 척은 2025년 1월 초에 예정되어 있고, 두 척은 2027년에 더 추가될 예정입니다.
Euroseas (NASDAQ: ESEA) a annoncé deux développements majeurs : tout d'abord, la prolongation d'un contrat de location pour son navire M/V Aegean Express pendant 10 à 12 mois au tarif de 16 700 $ par jour. Ensuite, la société prévoit de scinder ses trois navires les plus anciens (M/V Aegean Express, M/V Diamantis P et M/V Joanna) en une nouvelle entreprise appelée Euroholdings, qui a demandé à être cotée sur le NASDAQ.
Les navires scindés représentent environ 5% de la NAV d'Euroseas. Euroholdings fonctionnera avec une flotte non endettée, dont deux des trois navires seront sous contrat de location à long terme. La nouvelle entreprise sera gérée par Eurobulk. Pendant ce temps, Euroseas continuera sa stratégie de modernisation de flotte, ayant commandé 11 nouveaux navires, dont sept déjà livrés en 2023-2024, deux prévus pour début janvier 2025 et deux autres en 2027.
Euroseas (NASDAQ: ESEA) hat zwei wichtige Entwicklungen bekannt gegeben: Erstens wurde der Chartervertrag für sein Schiff M/V Aegean Express um 10-12 Monate zu einem Preis von 16.700 $ pro Tag verlängert. Zweitens plant das Unternehmen, seine drei ältesten Schiffe (M/V Aegean Express, M/V Diamantis P und M/V Joanna) in ein neues Unternehmen namens Euroholdings auszugliedern, das eine NASDAQ-Notierung beantragt hat.
Die ausgegliederten Schiffe machen etwa 5% des NAV von Euroseas aus. Euroholdings wird mit einer nicht verschuldeten Flotte operieren, wobei zwei der drei Schiffe unter Zeitcharter-Beschäftigung stehen. Das neue Unternehmen wird von Eurobulk geleitet. In der Zwischenzeit wird Euroseas seine Modernisierungsstrategie für die Flotte fortsetzen und hat 11 neue Schiffe bestellt, von denen sieben bereits 2023-2024 geliefert wurden, zwei für Anfang Januar 2025 und zwei weitere für 2027 geplant sind.
- Extended charter agreement for M/V Aegean Express at $16,700 per day
- Seven newbuilding vessels already delivered in 2023-2024, with four more scheduled
- Strong capital structure with high quarterly dividend distributions
- Spin-off vessels are currently unlevered, reducing financial risk
- Two of three spin-off vessels have secured time charter employment
- Spin-off will reduce company's fleet size and total carrying capacity
- Loss of revenue streams from three vessels post-spin-off
Insights
ATHENS, Greece, Jan. 03, 2025 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ: ESEA) (“Euroseas” or the “Company”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, made today the following announcements:
Time Charter for its Older Containership, M/V Aegean Express
Euroseas announced today a new charter for its older and smaller feeder containership, M/V Aegean Express. Specifically, the charter of M/V Aegean Express has been extended in direct continuation of its existing charter for a minimum period of ten months and a maximum period of twelve months at a rate of
Spin-off of its Older Three Vessels into a Separate Company
The Company also announced its intent to spin-off the Company’s older three vessels, M/V Aegean Express, M/V Diamantis P and M/V Joanna, into a separate company, Euroholdings Ltd. (“Euroholdings”), which has applied for listing on the NASDAQ Capital Market.
The Company will contribute the three vessels to Euroholdings in exchange for
Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the extension of the charter of Aegean Express and our plan to spin-off our three elder vessels in a separate company, Euroholdings Ltd., which has applied for listing on NASDAQ. The spin-off of our three older vessels into a separate entity and the distribution of all shares to our common shareholders, the only shareholder class in our capital structure, enables us to maximize the value of the older vessels in our fleet and shareholder returns by creating a new platform to capture new opportunities following a different strategy from Euroseas.
Euroholdings shares represent only about
We firmly believe that under the right circumstances, there is considerable value in the current environment in continuing to trade older well-maintained vessels, rather than selling them, as these can ultimately generate higher returns. The increased market and operational risks associated with older vessels are mitigated by the fact that the three first Euroholdings vessels are currently unlevered, two of the three are under time charter employment providing medium term visibility of earnings and all vessels will continue to be managed by our affiliate, Eurobulk Ltd., which has a proven track record of handling older vessels.
Given the company’s fleet profile and capital structure, shorter remaining economic life and higher intended dividend distribution policy, we believe that Euroholdings shares should trade at better valuation levels and smaller or no discount to NAV compared to its sector peers. We anticipate that both Euroseas and Euroholdings will be valued better separately as they offer more and different options to investors. Furthermore, Euroholdings with its clean balance sheet and relatively liquid platform can be used as a consolidating vehicle in the shipping sector, especially for vintage vessels, creating additional value to shareholders over the longer term.
We plan to discuss the spin-off in more detail and the opportunities it may generate in a separate conference call on January 7, 2025, at 9:00 a.m. EST.”
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 877 405 1226 (US Toll-Free Dial In) or +1 201 689 7823 (US and Standard International Dial In). Please quote “Euroseas” to the operator and/or conference ID 13750842. Click here for additional participant International Toll- Free access numbers.
Alternatively, participants can register for the call using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.
Audio Webcast‐ Slides Presentation:
There will be a live and then archived webcast of the conference call and accompanying slides, available on the Company’s website. To listen to the archived audio file, visit our website http://www.euroseas.gr and click on Company Presentations under our Investor Relations page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
The slide presentation for the Euroholdings spin-off will also be available in PDF format minutes prior to the conference call and webcast, accessible on the company's website (www.euroseas.gr) on the webcast page. Participants to the webcast can download the PDF presentation.
Fleet Profile:
After the spin-off, the Euroholdings Ltd. fleet profile is as follows:
| Name | Type | Dwt | TEU | Year Built | Employment (*) | TCE Rate ($/day) |
| Container Carriers | ||||||
| DIAMANTIS P | Feeder | 30,360 | 2,008 | 1998 | undergoing minor repairs | - |
| JOANNA(*) | Feeder | 22,301 | 1,732 | 1999 | TC until Mar-26, then until Sep-26, then until Nov-26 | |
| AEGEAN EXPRESS(*) | Feeder | 18,581 | 1,439 | 1997 | TC until Nov-25 | |
| Total Container Carriers on the Water | 3 | 71,242 | 5,179 |
Notes: (*) 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; period to Nov-2026 is at the option of the charterer.
After the spin-off of Euroholdings Ltd., the Euroseas Ltd. fleet profile is as follows:
| Name | Type | Dwt | TEU | Year Built | Employment (*) | TCE Rate ($/day) |
| Container Carriers | ||||||
| MARCOS V(*) | Intermediate | 72,968 | 6,350 | 2005 | TC until Aug-25 | |
| SYNERGY BUSAN(*) | Intermediate | 50,726 | 4,253 | 2009 | TC until Dec-27 | |
| SYNERGY ANTWERP(*) | Intermediate | 50,726 | 4,253 | 2008 | TC until Mar-25 | |
| SYNERGY OAKLAND(*) | Intermediate | 50,787 | 4,253 | 2009 | TC until May-26 | |
| SYNERGY KEELUNG(*) | Intermediate | 50,969 | 4,253 | 2009 | TC until Apr-25 | |
| EMMANUEL P(*) | Intermediate | 50,796 | 4,250 | 2005 | TC until Apr-25 | |
| RENA P(*) | Intermediate | 50,796 | 4,250 | 2007 | TC until Apr-25 | |
| EM KEA(*) | Feeder | 42,165 | 3,100 | 2007 | TC until May-26 | |
| GREGOS(*) | Feeder | 37,237 | 2,800 | 2023 | TC until Apr-26 | |
| TERATAKI(*) | Feeder | 37,237 | 2,800 | 2023 | TC until Jul-26 | |
| TENDER SOUL(*) | Feeder | 37,237 | 2,800 | 2024 | TC until Oct-27 | |
| LEONIDAS Z(*) | Feeder | 37,237 | 2,800 | 2024 | TC until Mar-26 | |
| EVRIDIKI G(*) | Feeder | 34,677 | 2,556 | 2001 | TC until Feb-25 then until Apr-26 | |
| EM CORFU(*) | Feeder | 34,654 | 2,556 | 2001 | TC until Feb-25 then until Aug-26 | |
| STEPHANIA K(*) | Feeder | 22,262 | 1,800 | 2024 | TC until May-26 | |
| EM SPETSES(*) | Feeder | 23,224 | 1,740 | 2007 | TC until Feb-26 | |
| JONATHAN P(*) | Feeder | 23,357 | 1,740 | 2006 | TC until Sep-25 | |
| EM HYDRA(*) | Feeder | 23,351 | 1,740 | 2005 | TC until Mar-25 | |
| MONICA(*) | Feeder | 22,262 | 1,800 | 2024 | TC-until May-25 | |
| PEPI STAR(*) | Feeder | 22,262 | 1,800 | 2024 | TC until Jun-26 | |
| Total Container Carriers on the Water | 20 | 774,930 | 61,894 |
| Vessels under construction | Type | Dwt | TEU | To be delivered | Employment | TCE Rate ($/day) |
| DEAR PANEL (H4251) | Feeder | 37,237 | 2,800 | Q1 2025 | TC until Nov-27 | |
| SYMEON P (H4252) | Feeder | 37,237 | 2,800 | Q1 2025 | TC until Nov-27 | |
| ELENA (H1711) | Intermediate | 55,200 | 4,300 | Q4 2027 | ||
| NIKITAS G (H1712) | Intermediate | 55,200 | 4,300 | Q4 2027 | ||
| Total under construction | 4 | 184,874 | 14,200 |
Notes:
(*) 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
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 23 vessels, including 16 Feeder containerships and 7 Intermediate containerships. Euroseas 23 containerships have a cargo capacity of 67,073 teu. After the delivery of two feeder and the two intermediate containership newbuildings in 2025 and 2027, respectively, Euroseas’ fleet will consist of 27 vessels with a total carrying capacity of 86,873 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 Tasos Aslidis Chief Financial Officer Euroseas Ltd. 11 Canterbury Lane, Watchung, NJ 07069 Tel. (908) 301-9091 E-mail: aha@euroseas.gr | Investor Relations / Financial Media 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 new charter rate for ESEA's M/V Aegean Express vessel?
How many vessels will be included in ESEA's Euroholdings spin-off?
What percentage of ESEA's NAV does the Euroholdings spin-off represent?
How many newbuilding vessels does ESEA have scheduled for delivery in 2025-2027?
What will be ESEA's total fleet capacity after all newbuilding deliveries?
