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Euroseas Ltd. Announces A Time Charter Contract for its Feeder Containership, M/V EM Hydra, and An Agreement To Sell its 2004-built 2,788 teu Feeder Containership, EM Astoria

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Euroseas announced a time charter contract for its feeder containership, M/V EM Hydra, and an agreement to sell its 2004-built 2,788 teu feeder containership, EM Astoria. The charter contract is for a minimum of ten to a maximum of twelve months at a gross daily rate of $13,000. The sale of EM Astoria is for approximately $10 million, with delivery to the new owners expected by June 2024.
Euroseas ha annunciato un contratto di noleggio a tempo per la sua nave portacontainer feeder, M/V EM Hydra, e un accordo per la vendita della sua nave portacontainer feeder costruita nel 2004 da 2.788 teu, EM Astoria. Il contratto di noleggio è per un minimo di dieci mesi fino a un massimo di dodici mesi ad una tariffa giornaliera lorda di 13.000 dollari. La vendita di EM Astoria è di circa 10 milioni di dollari, con consegna ai nuovi proprietari prevista entro giugno 2024.
Euroseas anunció un contrato de fletamento a tiempo para su barco portacontenedores feeder, M/V EM Hydra, y un acuerdo para vender su portacontenedores feeder construido en 2004 de 2.788 teu, EM Astoria. El contrato de fletamento es por un mínimo de diez y un máximo de doce meses a una tarifa bruta diaria de 13.000 dólares. La venta de EM Astoria es por aproximadamente 10 millones de dólares, con la entrega a los nuevos propietarios prevista para junio de 2024.
Euroseas는 자사의 피더 컨테이너선 M/V EM Hydra에 대한 정기 용선 계약과 2004년 건조된 2,788 teu급 피더 컨테이너선 EM Astoria의 매각에 관한 계약을 발표했습니다. 용선 계약은 최소 10개월에서 최대 12개월까지의 기간으로, 일일 총 임대료는 13,000달러입니다. EM Astoria의 매각 가격은 약 1,000만 달러이며, 새로운 소유주에게 2024년 6월까지 인도될 예정입니다.
Euroseas a annoncé un contrat d'affrètement à temps pour son navire porte-conteneurs feeder M/V EM Hydra, ainsi qu'un accord pour vendre son porte-conteneurs feeder construit en 2004 de 2.788 EVP, EM Astoria. Le contrat d'affrètement est pour une durée minimum de dix mois à un maximum de douze mois à un taux journalier brut de 13.000 dollars. La vente de l'EM Astoria est d'environ 10 millions de dollars, avec une livraison aux nouveaux propriétaires prévue pour juin 2024.
Euroseas gab einen Zeit-Chartervertrag für sein Feeder-Containerschiff M/V EM Hydra und eine Vereinbarung zum Verkauf seines im Jahr 2004 gebauten 2.788 TEU Feeder-Containerschiffs EM Astoria bekannt. Der Chartervertrag hat eine Laufzeit von mindestens zehn bis maximal zwölf Monaten zu einem Bruttotagespreis von 13.000 Dollar. Der Verkauf von EM Astoria erfolgt für etwa 10 Millionen Dollar, mit einer Übergabe an die neuen Eigentümer, die bis Juni 2024 erwartet wird.
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The extension of M/V EM Hydra's charter at a rate of $13,000 per day directly following the current contract ensures continuity in revenue generation. Given the vessel's capacity of 1,740 teu, the daily rate aligns with current market standards for feeder container ships, which typically service regional ports. This contract not only maintains Euroseas Ltd.'s operational cash flow but also reflects a stable demand for their vessels in the container shipping sector.

The sale of M/V EM Astoria for approximately $10 million represents a strategic divestment of an older asset, likely to be less efficient than newer vessels. This move could indicate the company's intent to streamline operations and focus on a fleet that delivers higher efficiency and potentially lower operating costs. Considering the age of the ship, built in 2004, the price appears to be in tune with the current second-hand market for feeder vessels.

For an investor, these decisions might suggest a focus on maintaining a competitive edge in operational effectiveness and cost control, possibly enhancing shareholder value. The time charter extension secures short-term revenue, while the vessel sale can potentially free up capital for reinvestment in newer assets or debt reduction.

Feeder containerships like M/V EM Hydra play a important role in the global shipping network by connecting smaller ports to major container hubs. The fixed income from a time charter provides stability against market volatility, which is particularly valuable in an industry that can be affected by fluctuating freight rates and economic downturns. Euroseas Ltd.'s ability to secure a profitable rate reflects a well-maintained vessel and a strong customer relationship.

The sale of the older feeder vessel M/V EM Astoria is in line with the industry trend of optimizing fleets for environmental performance and fuel efficiency. New regulations and the shift towards sustainability in shipping might be driving Euroseas to invest in more modern vessels that meet stricter emissions standards. The net proceeds from the sale offer an opportunity for fleet renewal, which could make the company more competitive in the long-term.

From an operational standpoint, the new owners of the sold vessel will likely incur higher costs for maintenance and compliance with environmental regulations, which can affect the overall profitability of their investment.

ATHENS, Greece, April 18, 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 a time charter contract for its 1,740 teu feeder containership, M/V EM Hydra, for a minimum period of ten to a maximum period of twelve months at the option of the charterer, at a gross daily rate of $13,000 in direct continuation of its existing charter.

The Company also announced that it has signed a memorandum of agreement to sell M/V EM Astoria, a 2,788 teu feeder containership vessel, built in 2004, for approximately $10 million. The vessel is expected to be delivered to its new owners, an unaffiliated third party, by the end of June 2024.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce that M/V EM Hydra extended its charter in direct continuation of its present charter contract for 10-12 months at a profitable rate of $13,000/day in line with the market. It is expected to contribute about $1.5 million of EBITDA over the minimum contracted period increasing our 2024 charter coverage to almost 85%.

“We are also pleased to announce our agreement to sell our M/V EM Astoria, after reaching a mutual agreement with the charterers to terminate its charter about eight months early. This sale capitalizes on the current relatively stronger vessel values and saves the Company the cost of the upcoming special survey of the vessel. We expect to book a gain on sale of more than $5.5 million or about $0.80/share.”

Fleet Profile:

The Euroseas Ltd. fleet profile 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 Aug-24$25,000
SYNERGY ANTWERP(*)Intermediate50,7264,2532008TC until Mar-25$26,500(**)
SYNERGY OAKLAND(*)Intermediate50,7874,2532009TC until May-26$42,000
SYNERGY KEELUNG(*)Intermediate50,9694,2532009TC until Apr-25$23,000
EMMANUEL P(*)Intermediate50,7964,2502005TC until Apr-25$21,000
RENA P(*)Intermediate50,7964,2502007TC until Apr-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 Oct-24$17,000
EM ASTORIA (+)(****)Feeder35,6002,7882004TC until May/Jun-24$20,000
EVRIDIKI G(*)Feeder34,6772,5562001TC until Feb-25$40,000
EM CORFU(*)Feeder34,6542,5562001TC until Feb-25$40,000
DIAMANTIS P(*)Feeder30,3602,0081998TC until Oct-24$27,000
EM SPETSES(*)Feeder23,2241,7402007TC until Jul-24$29,500
JONATHAN P(*)Feeder23,3571,7402006TC until Sep-24$26,662(***)
EM HYDRA(*)Feeder23,3511,7402005TC until May-24
Then until Mar-25
$15,000
$13,000
JOANNA(*)Feeder22,3011,7321999TC until May-24$10,250
AEGEAN EXPRESS(*)Feeder18,5811,4391997TC until Oct-24$8,000
Total Container Carriers on the Water20777,74961,661   
       
Vessels under constructionTypeDwtTEUTo be deliveredEmploymentTCE Rate ($/day)
LEONIDAS Z (H4237)Feeder37,2372,800Apr/May 2024TC until Mar/Apr 2026$20,000
MONICA (H4248)Feeder22,2621,800Q2 2024  
STEPHANIA K (H4249)Feeder22,2621,800Q2 2024  
PEPI STAR (H4250)Feeder22,2621,800Q3 2024  
DEAR PANEL (H4251)Feeder37,2372,800Q4 2024  
SYMEON P (H4252)Feeder37,2372,800Q4 2024  
Total under construction6178,49713,800   


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 net of commissions (commissions are, typically, 5-6.25%)
(****)Vessel will be delivered to its buyers by June 30, 2024

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 20 vessels, including 13 Feeder containerships and 7 Intermediate containerships. Euroseas 20 containerships have a cargo capacity of 61,661 teu. After the delivery of six feeder containership newbuildings in 2024, Euroseas’ fleet will consist of 26 vessels with a total carrying capacity of 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 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 vessels did Euroseas announce contracts for in the press release?

Euroseas announced a time charter contract for M/V EM Hydra and an agreement to sell M/V EM Astoria.

What is the gross daily rate for the time charter contract of M/V EM Hydra?

The gross daily rate for the time charter contract of M/V EM Hydra is $13,000.

When is the expected delivery of M/V EM Astoria to its new owners?

The expected delivery of M/V EM Astoria to its new owners is by the end of June 2024.

Who is the Chairman and CEO of Euroseas ?

Aristides Pittas is the Chairman and CEO of Euroseas

Euroseas Ltd.

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About ESEA

stock-listed shipwning company trading on the nasdaq stock exchange under the symbol esea. the company presently owns 21 vessels directly or through joint ventures. the aim of the company is to provide first class shipping services while providing superior returns for its shareholders.