ESEA - Euroseas Ltd. Announces Two-Year Time Charter Contract for its Feeder Containership M/V Joanna and Other Operational Developments | Benzinga
ATHENS, Greece, July 08, 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 new time charter contract for its feeder containership, M/V Joanna, built in 1999 with capacity of 1732 teu, for a minimum period of 23 to a maximum period of 25 months at the option of the charterer, at an average gross daily rate of $16,500. The charter for M/V Joanna will commence after the completion of her scheduled drydock, expected around end of October 2024.
The Company also announced that on June 24, 2024, it took delivery of M/V Stephania K, its second fuel efficient 1,800 teu feeder containership newbuilding, from Hyundai Mipo Dockyard in South Korea. The vessel is equipped with a Tier III engine and other sustainability-linked features including installation of AMP (alternative maritime power). Following its delivery, M/V Stephania K commenced a 23 to 25 months charter at a rate of $22,000/day.
In addition, the Company announced that its M/V EM Astoria, a 2,788 teu feeder containership vessel built in 2004, was successfully delivered to its new owners on June 26, 2024. As previously announced, the vessel was sold for approximately $10 million, resulting in a gain on sale of more than $5.5 million or about $0.80/share and having contributed to the Company total earnings of about $42.8 million since its acquisition in 2017.
Finally, the Company announced today the release of its 2023 Environmental, Social and Governance Report (the "ESG Report"), which provides an overview of the Company's priorities, goals, and practices related to ESG and outlines the Company's ESG progress by reporting on a wide range of sustainability-linked Key Performance Indicators. The Euroseas ESG 2023 report is available on the Company's website (http://www.euroseas.gr/company/sustainability.html).
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are very pleased to have secured a two-year charter for our 25-year-old M/V Joanna with a top-tier liner company, at a profitable average rate of $16,500/day. The current strength of the market has allowed us to prolong the vessel's life by taking the vessel through its fifth special survey, resulting in higher overall earnings for our shareholders over the duration of the new charter. The term and rate of the said charter are indicative of the current strength of the market. This charter is expected to contribute about 6.4 million of EBITDA for the minimum contracted period and increase our remaining 2024 charter coverage to 92%. It also increases our charter coverage for 2025 to about 40%."
"We are also pleased to welcome M/V Stephania K in our fleet. The vessel is the sixth in a series of nine and the second of our three 1,800 teu units, all modern fuel-efficient eco-design vessels with Tier III engines. The vessel's current charter is expected to contribute about $11 million of EBITDA for the minimum contracted period."
"Finally, I am very pleased to announce the publication of our ESG report for 2023. The report details our ESG strategy, commitments, and progress to date. We remain committed to advancing sustainability in the maritime sector, to continue following responsible business practices, and to contribute to a more sustainable and resilient future for all."
Fleet Profile:
The Euroseas Ltd. fleet profile following the delivery of Stephania K is as follows:
| Name |
| Type |
| Dwt |
| TEU |
| Year Built |
| Employment |
| TCE Rate ($/day) |
| Container Carriers |
| MARCOS V(*) |
| Intermediate |
| 72,968 |
| 6,350 |
| 2005 |
| TC until Dec-24 TC until Aug-25 |
| $42,200 $15,000 |
| SYNERGY BUSAN(+) |
| Intermediate |
| 50,726 |
| 4,253 |
| 2009 |
| TC until Dec-24 |
| $25,000 |
| SYNERGY ANTWERP(*) |
| Intermediate |
| 50,726 |
| 4,253 |
| 2008 |
| TC until Mar-25 |
| $26,500(**) |
| SYNERGY OAKLAND(*) |
| Intermediate |
| 50,787 |
| 4,253 |
| 2009 |
| TC until May-26 |
| $42,000 |
| SYNERGY KEELUNG(*) |
| Intermediate |
| 50,969 |
| 4,253 |
| 2009 |
| TC until Apr-25 |
| $23,000 |
| EMMANUEL P(*) |
| Intermediate |