Thursday, July 01, 2021
Euroseas Ltd. (ESEA)
Fleet Renewal Begins From Position of Strength
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, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fleet renewal starts with two new builds. Contracts signed for two Eco design fuel efficient 2,800 TEU containerships to be built at Hyundai Mipo Dockyard Co. in Korea at a total cost of approximately $76 million. We estimate that deposits should total about 20% in 2021 and a combo of debt and equity financing will be utilized to fund the new builds.
Marine Money Week container panel and high container charter rates bolsters outlook. ESEA CAO Symeon Pariaros participated on the Marine Money Week container panel last week entitled “The Containership Supply Squeeze” and confirmed that container vessel availability remains tight. Higher container rates are positive for upcoming charters, and the prospects remain strong for the upcoming renewals on …
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.
