Tuesday, March 22, 2022
Euroseas (ESEA)
Adding Three New Build Feeders to Fleet Renewal Program
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.
Poe Fratt, Senior Research Analyst, Logistics, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Three new build Feeders added to fleet renewal program. Three Eco design 1,800 TEU Feeders will be built at Hyundai Mipo in South Korea for ~$102 million, or ~$34 million each, with deliveries are slated for 1H2024. The new build program expands to ~$264 million for seven Feeders. We view this move as another sign of confidence in the Feeder market outlook due to the below average order book compared to the order book for intermediate and larger containerships.
First four Feeder new builds on track and time charter interest developing. The first four Eco design 2,800 TEU Feeders ordered over the past three quarters are on track. Total estimated cost of first four Feeders is ~$161 million, with deliveries slated for 1Q2023/2Q2023/4Q2023/1Q2024. On the last earnings call, management indicated that there was budding interest in the first set of new builds …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
