Euroseas Ltd. Announces 3-year Charter Contracts for its Intermediate Containerships, M/V Synergy Antwerp and M/V Synergy Keelung

Rhea-AI Summary

Euroseas (NASDAQ: ESEA) has secured new 3-year time charter contracts for two of its 4,253 teu intermediate containerships. The vessels, M/V Synergy Antwerp and M/V Synergy Keelung, will be chartered at a gross daily rate of $35,500 for 36-39 months, starting in May and June 2025 respectively.

The contracts are expected to generate approximately $57 million in EBITDA over the minimum contracted period, increasing Euroseas' 2025 charter coverage to 82% and 2026 coverage to 45%. Additionally, the company has agreed to share costs with the charterer to retrofit M/V Synergy Keelung with energy saving devices (ESDs).

The company highlights strong demand for feeder and intermediate size vessels, noting charterers' willingness to secure tonnage in advance due to orderbook and aging fleet concerns.

Positive

• New charter contracts secure $57 million in EBITDA over minimum period
• Strong daily rate of $35,500 for both vessels
• Increased charter coverage: 82% for 2025 and 45% for 2026
• Cost-sharing agreement for vessel energy efficiency upgrades

Negative

• None.

Insights

Maritime Industry Financial Analyst

The newly announced charter contracts for Euroseas' intermediate containerships represent a strategic win in the current market environment. The secured rate of $35,500 per day demonstrates remarkable stability in charter rates, particularly noteworthy given market uncertainties surrounding the Red Sea crisis and potential vessel rerouting through the Suez Canal.

The financial impact is substantial, with the contracts expected to generate $57 million in EBITDA over the minimum period. This significantly strengthens Euroseas' forward revenue visibility, with charter coverage reaching 82% for 2025 and 45% for 2026. This high coverage ratio provides exceptional earnings predictability and reduces exposure to potential market volatility.

The agreement to share costs for retrofitting M/V Synergy Keelung with energy-saving devices (ESDs) is particularly strategic. While requiring initial capital investment, these upgrades typically result in:

• Fuel consumption reduction of 5-10%
• Enhanced vessel marketability to environmentally conscious charterers
• Improved compliance with upcoming environmental regulations
• Potential for premium charter rates due to better efficiency

The strong demand for feeder and intermediate vessels is underpinned by structural market factors, including a orderbook and an aging global fleet. With over 20% of the global fleet in this segment being older than 20 years, Euroseas is well-positioned to benefit from this supply constraint, potentially leading to sustained strong charter rates in the medium term.

ATHENS, Greece, Feb. 03, 2025 (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 two of its 4,253 teu intermediate containerships, M/V Synergy Antwerp and M/V Synergy Keelung. Both charters are for a minimum period of 36 months and a maximum period of 39 months, at the option of the charterer, at a gross daily rate of $35,500.

Specifically:

• M/V Synergy Antwerp will commence its charter after the completion of her present charter, expected sometime in May 2025.
• M/V Synergy Keelung will commence its charter after the completion of her present charter, expected in June 2025.
  

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are very pleased to announce new time charter contracts for two of our 4,253 teu vessels – M/V Synergy Antwerp and M/V Synergy Keelung – with a top-tier charterer for 36-39 months at a very profitable rate of $35,500/day/vessel.

“These charters continue to demonstrate the strong demand for feeder and intermediate size vessels by liner companies despite the possibility of potential rerouting of vessels back through the Suez Canal later in the year. We believe that charterers are willing to secure tonnage well in advance at very firm periods and rates, driven by the tight supply of feeder and intermediate containership vessels. This is largely due to their very limited orderbook and the fact that a large percentage of their fleet is older than 20 years. These specific contracts are expected to contribute approximately $57 million in EBITDA over the minimum contracted period, increasing our 2025 charter coverage to about 82%, and our charter coverage for 2026 to about 45%.

“Furthermore, given the notable performance improvements of retrofitted sister vessels in our fleet, the growing demand for more fuel-efficient, high-spec vessels, as well as the mutual benefits of such upgrades, we have also agreed with the charterer to retrofit the M/V Synergy Keelung with energy saving devices (ESDs) sharing the costs of the upgrade.”

Fleet Profile:

After the charter of M/V Synergy Antwerp and M/V Synergy Keelung, and after the previously announced spin-off of three of the Company’s subsidiaries into a separate company, Euroholdings Ltd., which has applied for listing on the NASDAQ exchange, 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	$15,000
SYNERGY BUSAN(*)	Intermediate	50,726	4,253	2009	TC until Dec-27	$35,500
SYNERGY ANTWERP(+)(*)	Intermediate	50,726	4,253	2008	TC until May-25 then until May-28	$26,500 $35,500
SYNERGY OAKLAND(*)	Intermediate	50,787	4,253	2009	TC until May-26	$42,000
SYNERGY KEELUNG(+)(*)	Intermediate	50,969	4,253	2009	TC until Jun-25 then until Jun-28	$23,000 $35,500
EMMANUEL P(*)	Intermediate	50,796	4,250	2005	TC until Apr-25	$21,000
RENA P(*)	Intermediate	50,796	4,250	2007	TC until Apr-25	$21,000
EM KEA(*)	Feeder	42,165	3,100	2007	TC until May-26	$19,000
GREGOS(*)	Feeder	37,237	2,800	2023	TC until Apr-26	$48,000
TERATAKI(*)	Feeder	37,237	2,800	2023	TC until Jul-26	$48,000
TENDER SOUL(*)	Feeder	37,237	2,800	2024	TC until Oct-27	$32,000
LEONIDAS Z(*)	Feeder	37,237	2,800	2024	TC until Mar-26	$20,000
DEAR PANEL	Feeder	37,237	2,800	2025	TC until Nov-27	$32,000
SYMEON P	Feeder	37,237	2,800	2025	TC until Nov-27	$32,000
EVRIDIKI G(*)	Feeder	34,677	2,556	2001	TC until Feb-25 then until Apr-26	$40,000 $29,500
EM CORFU(*)	Feeder	34,654	2,556	2001	TC until Feb-25 then until Aug-26	$40,000 $28,000
STEPHANIA K(*)	Feeder	22,262	1,800	2024	TC until May-26	$22,000
MONICA(*)	Feeder	22,262	1,800	2024	TC-until May-25	$16,000
PEPI STAR(*)	Feeder	22,262	1,800	2024	TC until Jun-26	$24,250
EM SPETSES(*)	Feeder	23,224	1,740	2007	TC until Feb-26	$18,100
JONATHAN P(*)	Feeder	23,357	1,740	2006	TC until Sep-25	$20,000
EM HYDRA(*)	Feeder	23,351	1,740	2005	TC until Mar-25	$13,000
Total Container Carriers on the Water	22	849,404	67,494

Vessels under construction	Type	Dwt	TEU	To be delivered	Employment	TCE Rate ($/day)
ELENA (H1711)	Intermediate	55,200	4,300	Q4 2027
NIKITAS G (H1712)	Intermediate	55,200	4,300	Q4 2027
Total under construction	2	110,400	8,600

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 5-6.25%)

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. 

Following the completion of the spin-off of three of the Company’s subsidiaries into Euroholdings Ltd., Euroseas will have a fleet of 22 vessels, including 15 Feeder containerships and 7 Intermediate containerships. Euroseas 22 containerships will have a cargo capacity of 67,494 teu. After the delivery of the two intermediate containership newbuildings in 2027, Euroseas’ fleet will consist of 24 vessels with a total carrying capacity of 76,094 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 daily rate for ESEA's new charter contracts for Synergy Antwerp and Synergy Keelung?

Both vessels are chartered at a gross daily rate of $35,500 for 36-39 months.

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

The contracts are expected to generate approximately $57 million in EBITDA over the minimum contracted period.

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

M/V Synergy Antwerp will start in May 2025, and M/V Synergy Keelung will begin in June 2025.

What is ESEA's charter coverage percentage for 2025 and 2026 after these contracts?

The new contracts increase charter coverage to about 82% for 2025 and about 45% for 2026.

What energy efficiency improvements are planned for ESEA's Synergy Keelung?

ESEA has agreed to retrofit M/V Synergy Keelung with energy saving devices (ESDs), sharing the costs with the charterer.