Price cut prompts owner to take newbuild, not cancel it

MARCH 30, 2017 — Athens headquartered Euroseas Ltd. (NASDAQ: ESEA) has signed an addendum to its newbuilding contract with China’s Jiangsu Yangzijiang Shipbuilding Co. for Hull Number YZJ 1153, originally entered into in 2014, and will proceed with the construction of the vessel.

The addendum reduced the remaining payments for the vessel by more than 10% to $22.5 million.

The vessel, an eco-design fuel efficient Kamsarmax dry bulk carrier, will have a carrying capacity of 82,000 dwt, and will be delivered by the shipyard by June 2018. It is a sister ship to the M/V Xenia, delivered in 2016.

“The reduction in the contract price coupled with the recovery we see taking place in the dry bulk market has made this investment very attractive prompting us to forgo an option to terminate the contract but rather proceed with the building of the vessel,” said Aristides Pittas, Chairman and CEO of Euroseas.