Euroseas Ltd. Announces a Two-to-Three Month $130,000 per day Charter for its M/V “Synergy Oakland” Followed by a Minimum Four-Year Charter at $42,000 per day

Monday, 29. November 2021 15:05

ATHENS, Greece, Nov. 29, 2021 (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 two new consecutive time charter contracts for its container vessel M/V “Synergy Oakland”, a 4,253 TEU vessel built in 2009.

Specifically:

  1. a new time charter contract for a period of between two and three months at a daily rate of $130,000, commencing between January 5th and January 25th when the vessel will be redelivered from its current charterer; and,
  2. immediately following the completion of the above charter, a new time charter contract for a period of a minimum of forty-eight and a maximum of fifty-one months at the option of the charterer at a daily rate of $42,000, commencing the latest by April 15th when the vessel will be redelivered from its previous charterer.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are very pleased to announce very profitable new charters for one of our vessels, our M/V “Synergy Oakland”, that capture both the exceptional strength of the current short-term market over the next two to three months and also provide secured employment for a minimum of an additional four years. As a result of these charters, M/V “Synergy Oakland” is expected to make an EBITDA contribution of about $11.5 million during the first quarter of 2022 and about $12 million per year during each of the next four years, totaling about $57 million of EBITDA contribution, or about $7.80 per share, over the duration of its new charters.

“Both the rates and the duration of the above charters are indicative of the strength and recovery of the market from a slight correction we had experienced over the past month. We expect to be able to continue benefitting from the present market as there are another four of our vessels in our fleet which open for re-chartering within the next four months and another two vessels later within 2022. If the present market levels continue, renewals of expiring charters should result in significant further increases in our profitability and employment coverage for the following years, providing a solid liquidity foundation for further growth of our company and rewards to our shareholders as our Board or Directors sees fit.”

Fleet Profile:

After the new charters of M/V “Synergy Oakland”, the Euroseas Ltd. fleet and employment profile will be as follows:

Name TypeDwtTEUYear
Built
Employment(*)TCE Rate
($/day)
Container Carriers      
LEO PARAMOUNT (to be renamed MARCOS V)Intermediate72,9686,3502005TC until Dec-24
plus 12 months option
$42,200
option $15,000
AKINADA BRIDGE(*)Intermediate71,3665,6102001TC until Oct-22$20,000
SYNERGY BUSAN(*)Intermediate50,7264,2532009TC until Aug-24$25,000
SYNERGY ANTWERP(*)Intermediate50,7264,2532008TC until Sep-23$18,000
SYNERGY OAKLAND(*)Intermediate50,7874,2532009TC until Jan-21
then until Mar-22
then until Mar-26
$202,000
$130,000
$42,000
SYNERGY KEELUNG (+)Intermediate50,9694,2532009TC until Jun-22
plus 8-12 months
option
$11,750;
option $14,500
EM KEA (*)Feeder42,1653,1002007TC until May-23$22,000
EM ASTORIA (+)Feeder35,6002,7882004TC until Feb-22$18,650
EM CORFU(+)Feeder34,6542,5562001TC until Nov-21
then repositioning
trip to drydock
$10,200
$5,125 for up to 37
days ($35,000 if
more than 37
days)
EVRIDIKI G (+)Feeder34,6772,5562001TC until Jan-22$15,500
DIAMANTIS P. (*)Feeder30,3602,0081998TC until Oct-24$27,000
EM SPETSES(*)

Feeder
23,2241,7402007TC until Aug-24$29,500
JONATHAN P(*)Feeder23,3511,7402006TC until Sep-24$26,662(**)
EM HYDRA(*)Feeder23,3511,7402005TC until Apr-23$20,000
JOANNA(*)Feeder22,3011,7321999TC until Oct-22$16,800
AEGEAN  EXPRESS(*)Feeder18,5811,4391997TC until Mar-22$11,500
Total Container Carriers16635,80650,371   


Vessels under constructionTypeDwtTEUTo be delivered
H4201Feeder37,2372,800Q1 2023
H4202Feeder37,2372,800Q2 2023

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. 

After the delivery of M/V Leo Paramount, the Company will have a fleet of 16 vessels comprising of 10 Feeder and 6 Intermediate containerships. Euroseas 16 containerships have a cargo capacity of 50,371 teu. Furthermore, after the delivery of two feeder containership newbuildings in the first half of 2023, Euroseas’ fleet will consist of 18 vessels with a total carrying capacity of 55,971 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 AslidisNicolas Bornozis
Chief Financial OfficerPresident
Euroseas Ltd.Capital Link, Inc.
11 Canterbury Lane,230 Park Avenue, Suite 1536
Watchung, NJ 07069New York, NY 10169
Tel. (908) 301-9091Tel. (212) 661-7566
E-mail: aha@euroseas.grE-mail: nbornozis@capitallink.com

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