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Euroseas Ltd. Announces Time Charter Contract for its third Fuel Efficient 1,800 teu Feeder Containership Newbuilding, M/V Pepi Star
ESEAEuroseas(ESEA) Newsfilter·2024-06-18 20:05

Core Viewpoint - Euroseas Ltd. has entered into a time charter contract for the M/V Pepi Star, a newbuilding fuel-efficient 1,800 teu feeder containership, at a gross daily rate of 24,250foraminimumof23months,indicatingastrengtheningchartermarket[1][7].CompanyOverview−EuroseasLtd.operatesinthecontainershippingmarketandismanagedbyEurobulkLtd.,whichhandlesthecommercialandtechnicalmanagementofthevessels[3].−ThecompanywasformedonMay5,2005,underthelawsoftheRepublicoftheMarshallIslandsandtradesonNASDAQunderthetickerESEA[10].FleetProfile−AfterthedeliveryoftheM/VPepiStar,Euroseaswillhaveafleetof22vessels,including15feedercontainershipsand7intermediatecontainerships,withatotalcargocapacityof66,261teu[11].−Thefleetwillexpandto26vesselswithatotalcarryingcapacityof75,461teuafterthedeliveryoffourremainingfeedercontainershipnewbuildingsin2024[11].FinancialImpact−ThenewcharterfortheM/VPepiStarisexpectedtocontributeapproximately24,250 for a minimum of 23 months, indicating a strengthening charter market [1][7]. Company Overview - Euroseas Ltd. operates in the container shipping market and is managed by Eurobulk Ltd., which handles the commercial and technical management of the vessels [3]. - The company was formed on May 5, 2005, under the laws of the Republic of the Marshall Islands and trades on NASDAQ under the ticker ESEA [10]. Fleet Profile - After the delivery of the M/V Pepi Star, Euroseas will have a fleet of 22 vessels, including 15 feeder containerships and 7 intermediate containerships, with a total cargo capacity of 66,261 teu [11]. - The fleet will expand to 26 vessels with a total carrying capacity of 75,461 teu after the delivery of four remaining feeder containership newbuildings in 2024 [11]. Financial Impact - The new charter for the M/V Pepi Star is expected to contribute approximately 12.3 million of EBITDA for the minimum contracted period, increasing the company's remaining 2024 charter coverage to 91% [7]. - The charter rate of 24,250representsa1024,250 represents a 10% increase compared to the rate for its sister vessel, M/V Stephania K, which was fixed at 22,000 just a week prior [7]. Market Context - The charter market for containerships has shown continuous strengthening over the last few months, as evidenced by the increasing rates for new charters [7].