Athens-headquartered Euroseas Ltd. (NASDAQ:ESEA) has signed a contract with South Korean shipbuilder Hyundai Mipo Dockyard Co for the construction of two additional eco-design 2,800 TEU containerships. Set to be delivered during the fourth quarter of 2023 and first quarter of 2024, respectively, they are sisterships to a pair of vessels ordered by Euroseas last June 2021.
The price tag for this latest pair is approximately $85 million and will be financed with a combination of debt and equity. The vessels are sisterships of a pair of vessels ordered by Euroseas Ltd. in June 2021.
“We are pleased to announce the ordering of two additional modern eco-design 2,800 TEU vessels in one of the top-quality shipbuilders in the world,” said Euroseas chairman and CEO Aristides Pittas. “The current contracts, along with an order we placed back in June 2021 for a pair of similar vessels, will allow us to build a strong presence in the large feeder containership sector with a quartet of modern fuel-efficient vessels in our fleet. This order also highlights our aggressive plan to renew our fleet and expand our footprint in the sector while adhering to our commitment for environmentally sustainable operations. With our earnings visibility well into 2024, we believe that investing in new vessels of modern eco-design makes good use of the cash flow generated by our existing fleet. We remain very optimistic about the containership market over the next few years, and we believe that our newbuilding program will further bolster the prospects of our company for the benefit of our shareholders.”
Euroseas currently has a fleet of 10 feeder and six intermediate containerships with a total cargo capacity of 50,371 TEU.