Wednesday, September 25, 2024
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New time charter contract. Euroseas Ltd. executed a time charter contract for M/V Synergy Busan at a gross daily rate of $35,500 for a minimum period of 36 to a maximum period of 38 months at the option of the charterer. The M/V Synergy Busan is 4,250 TEU intermediate container ship. Recall that TEU is a unit of cargo capacity that is based on the volume of a twenty-foot-long intermodal container that can be transferred between different carriers. The new charter will commence in early December 2024 in continuation of its existing charter.
Favorable rate and improved charter coverage. The new time charter is a significant improvement over the previous contracted rate of $25,000 per day and is expected to contribute EBITDA of ~$29 million during the minimum contracted period. Recall that Euroseas installed energy saving devices on the M/V Synergy Busan during the ship’s drydock last year which likely factored into the higher charter rate. The new time charter improves Euroseas’ remaining 2024 and 2025 charter coverage to 95% and ~50%, respectively.
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