Euroseas Ltd. Announces Order for the Construction of Two Additional 4,300 TEU Containerships

Rhea-AI Summary

Euroseas Ltd. (NASDAQ: ESEA) has announced the signing of contracts to construct two new 4,300 TEU fuel-efficient container vessels at Jiangsu New Yangzi Shipbuilding in China. The vessels, scheduled for delivery in March and May 2028, will cost approximately $59.25 million each and will be financed through a combination of debt and equity.

These vessels are sisterships to two previously ordered vessels in October 2024. The company currently operates a fleet of 22 container carriers with a total capacity of 67,494 TEU, and with these new orders, will have 4 vessels under construction totaling 17,200 TEU. The strategic investment focuses on eco intermediate-sized containerships, targeting a segment with a low orderbook and aging fleet.

Positive

• Investment in fuel-efficient vessels demonstrates commitment to fleet modernization
• Strategic focus on intermediate-sized segment with low orderbook and aging fleet
• Strong existing charter arrangements secure revenue for coming years
• Fleet expansion with 4 new vessels under construction shows growth trajectory

Negative

• Significant capital expenditure of $118.5 million for the two vessels
• Long delivery timeline extending to 2028 exposes to market risks
• Additional debt financing required which may impact balance sheet

Insights

Maritime Investment Analyst

Euroseas' $118.5M investment in two eco-friendly containerships strengthens its fleet modernization strategy in an undersupplied vessel segment.

Euroseas' order for two additional 4,300 TEU containerships represents a $118.5 million strategic investment that significantly enhances the company's future competitive positioning. This acquisition increases their newbuild pipeline to four identical vessels, creating operational efficiency advantages while addressing the critical intermediate-size containership segment characterized by an aging global fleet and limited orderbook.

The timing of this investment is particularly strategic. With deliveries scheduled for 2028, Euroseas is positioning itself for the next market cycle while their current fleet enjoys secured revenue through existing charter arrangements that extend through 2025-2028. This provides exceptional cash flow visibility in the medium term while preparing for long-term growth.

A detailed examination of Euroseas' fleet profile reveals a thoughtful diversification strategy across feeder and intermediate vessel classes. The company is systematically replacing older vessels (note the 2005-built MARCOS V is being sold) with modern, fuel-efficient newbuilds. The four identical 4,300 TEU vessels on order will feature significantly improved fuel efficiency compared to older vessels in this segment, providing both operational cost advantages and environmental compliance benefits as maritime emissions regulations tighten.

This investment aligns perfectly with industry fundamentals where the intermediate containership segment (4,000-5,000 TEU) faces structural undersupply due to years of underinvestment. These vessels serve vital regional trade routes that can't be efficiently serviced by either mega-vessels or smaller feeders, positioning Euroseas to potentially command premium charter rates when these vessels deliver.

ATHENS, Greece, Aug. 25, 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 that it has signed a contract for the construction of two additional modern fuel-efficient 4,300 teu container vessels to be built at Jiangsu New Yangzi Shipbuilding CO., in China. The vessels are scheduled to be delivered in March and May of 2028. The total consideration for each of these two newbuilding contracts is approximately $59.25 million and will be financed with a combination of debt and equity.

Aristides Pittas, Chairman and CEO of Euroseas, commented: “We are very pleased to announce the ordering of two additional 4,300 teu containership vessels, sisterships to the two we ordered in October of 2024. We are committed to growing and modernizing our fleet and believe that investing in eco intermediate-sized containerships, a segment with a low orderbook and an ageing existing fleet, represents a sound investment strategy. This ensures that we are well-positioned to capitalize on future market opportunities and continue creating long-term value for our shareholders beyond the next few years, which are already secured through our current charter arrangements.”

Fleet Profile:
The Euroseas Ltd. fleet profile is currently as follows:

Name	Type	Dwt	TEU	Year Built	Employment (*)	TCE Rate ($/day)
Container Carriers
MARCOS V(+)(***)	Intermediate	72,968	6,350	2005	TC until Oct-25	$15,000
SYNERGY BUSAN(*)	Intermediate	50,727	4,253	2009	TC until Dec-27	$35,500
SYNERGY ANTWERP(*)	Intermediate	50,727	4,253	2008	TC until May-28	$35,500
SYNERGY OAKLAND(*)	Intermediate	50,788	4,253	2009	TC until May-26	$42,000
SYNERGY KEELUNG(*)	Intermediate	50,697	4,253	2009	TC until Jun-28	$35,500
EMMANUEL P(*)	Intermediate	50,796	4,250	2005	In Drydock, passing her special survey then TC until Sep-28	$38,000
RENA P(*)	Intermediate	50,765	4,250	2007	TC until Aug-28	$35,500
EM KEA(*)	Feeder	42,165	3,100	2007	TC until May-26	$19,000
GREGOS(*)	Feeder	38,733	2,800	2023	TC until Apr-26	$48,000
TERATAKI(*)	Feeder	38,733	2,800	2023	TC until Jul-26	$48,000
TENDER SOUL(*)	Feeder	38,733	2,800	2024	TC until Oct-27	$32,000
LEONIDAS Z(*)	Feeder	38,733	2,800	2024	TC until Mar-26	$20,000
DEAR PANEL	Feeder	38,733	2,800	2025	TC until Nov-27	$32,000
SYMEON P	Feeder	38,733	2,800	2025	TC until Nov-27	$32,000
EVRIDIKI G(*)	Feeder	34,654	2,556	2001	TC until Apr-26	$29,500
EM CORFU(*)	Feeder	34,649	2,556	2001	TC until Aug-26	$28,000
STEPHANIA K(*)	Feeder	22,563	1,800	2024	TC until May-26	$22,000
MONICA(*)	Feeder	22,563	1,800	2024	TC until May-27	$23,500
PEPI STAR(*)	Feeder	22,563	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	23,732	1,740	2006	TC until Nov-25	$20,000
EM HYDRA(*)	Feeder	23,351	1,740	2005	TC until May-27	$19,000
Total Container Carriers on the Water	22	859,330	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
YZJ2024-1768	Intermediate	55,200	4,300	Q1 2028
YZJ2024-1769	Intermediate	55,200	4,300	Q2 2028
Total under construction	4	220,800	17,200

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 5-6.25%)
(***) The vessel is sold and is expected to be delivered to its new owners in the fourth quarter of 2025

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 22 vessels, including 15 Feeder containerships and 7 Intermediate containerships with a cargo capacity of 67,494 teu. After the sale of M/V Marcos V and the delivery of the four intermediate containership newbuildings in 2027 and 2028, Euroseas’ fleet will consist of 25 vessels with a total carrying capacity of 78,344 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 cost of Euroseas (NASDAQ:ESEA) new vessel orders in 2025?

Each vessel costs approximately $59.25 million, totaling $118.5 million for both vessels. The construction will be financed through a combination of debt and equity.

When will Euroseas (NASDAQ:ESEA) receive delivery of its new containerships?

The two new 4,300 TEU vessels are scheduled for delivery in March and May of 2028.

How many container vessels does Euroseas (NASDAQ:ESEA) currently operate?

Euroseas currently operates 22 container carriers with a total capacity of 67,494 TEU, and has 4 vessels under construction totaling 17,200 TEU.

What is the strategic rationale behind Euroseas (NASDAQ:ESEA) new vessel orders?

The company is targeting the intermediate-sized containership segment due to its low orderbook and aging existing fleet, while investing in eco-friendly vessels to modernize their fleet and create long-term shareholder value.

How will Euroseas (NASDAQ:ESEA) finance the new vessel construction?

The vessel construction will be financed through a combination of debt and equity, though specific proportions were not disclosed.