In another indication of the strength of the container shipping market, Athens-headquartered Euroseas Ltd. (NASDAQ: ESEA) today reported the extension of the charter of its M/V Evridiki G and a new time charter contract for its M/V EM Corfu. In both cases, the rates obtained were more than double the levels of the ships’ current employment.
- Evridiki G, a 2,556 TEU vessel built in 2001, entered into a new time charter contract for a period of between a minimum of 36 and a maximum of 38 months at the option of the charterer, at a daily rate of $40,000. The new rate will commence on February 1, 2022.
- EM Corfu, a 2,556 TEU vessel built in 2001, entered into a new time charter contract for a period of between a minimum of 36 and a maximum of 38 months at the option of the charterer, at a daily rate of $40,000. The new rate will commence upon completion of the vessel’s drydocking in mid-February 2022.
“We are very pleased to announce new charters for two of our vessels for periods of at least three years each at rates more than twice the levels of their existing employment,” said Euroseas chairman and CEO Aristides Pittas. “The new charters secure a minimum of $85 million of contracted revenues and are expected to make an annualized EBITDA contribution in excess of $22.3 million combined which is about $19 million (or, at least, seven times) higher than their joint contribution over the last twelve months of about $3 million. These new charters significantly improve both our profitability and cash flow visibility with our charter coverage for 2022 now exceeding 85% and for 2023 55%.”
“Undoubtedly, the containership markets continue to show their strength and momentum as indicated by the rate and the duration of the above charters,” continued Pittas. “We expect to be able to continue benefitting from the present strong market as there are another two of our vessels opening up for re-chartering within the next four months and, yet, another two vessels later in 2022.”
“Furthermore,” he added, “we started exploring chartering options for our two newbuildings which are expected to be delivered by the end of first and second quarters of 2023, respectively, as initially scheduled. 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.”