Euroseas strikes $37 million agreement for two new vessels

©Vessel Finder

Euroseas Ltd. has announced it has agreed to acquire two intermediate sized container vessels for a combined price of $37 million.

Under the agreement, the company takes ownership of M/V Seaspan Manila and M/V Seaspan Melbourne, both ships have a capacity of 4,250 TEU and were built in 2007 and 2005 respectively.

Both acquisitions will be initially financed by Euroseas’ own funds.

The Greek shipping firm will also assume the existing charter arrangements of the vessels.

  • The M/V Seaspan Manila is expected to be delivered by July 2022 and has a charter contract until February 2025.
  • The M/V Seaspan Melbourne is scheduled to be delivered by June 2022 and has a charter contract until March 2025.

“We are pleased to announce the acquisition of M/V Seaspan Manila and M/V Seaspan Melbourne, two intermediate containerships built in 2007 and 2005, respectively, along with their existing approximately two years and three quarters long charters,” said Aristides Pittas, Chairman and CEO of Euroseas.

“These charters are expected to contribute in excess of about $20 million of EBITDA, bringing the cost basis of the vessels to scrap price levels by the end of the charters while providing a significant contribution to our profitability.

“Furthermore, depending on the market after the end of the charters in early 2025, we may enjoy significant additional upside if the containership markets are even just at historically average levels. As we have stated in the past, our fleet growth strategy is focused on acquisitions with such a low risk profile alongside our newbuilding program.

“After the delivery of the above vessels, we will have a fleet of 18 containerships on the water and a newbuilding program of 7 feeder containerships which are expected to be completed between the first quarter of 2023 and the second quarter of 2024, expanding our footprint in the sector and solidifying our position as the main US publicly listed company focusing on feeder and intermediate container vessels.”

Euroseas also recently signed a contract for the construction of three 1,800 TEU eco-design fuel efficient containerships.

Announced in March this year, the total cost of the newbuilds amounted to $102 million.

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