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Euroseas Ltd. Expands Charter with $7.3M EBITDA Boost - Financial Report Insights

$ESEA
Form 6-K
Filed on: 2025-02-11
Source
Euroseas Ltd. Expands Charter with $7.3M EBITDA Boost - Financial Report Insights

Here are the key insights extracted from the provided financial report for Euroseas Ltd. (Form 6-K dated February 11, 2025):

  1. Company Overview:
  • Name: Euroseas Ltd.
  • Industry: Container shipping; operates container carrier vessels.
  • Ticker: ESEA (NASDAQ).
  1. Charter Contract Announcement:
  • Euroseas has announced a 2-year charter contract extension for its feeder containership M/V EM Hydra.
  • The total charter period is extended for 24 to 26 months starting from May 1, 2025.
  • The gross daily charter rate is set at $19,000.
  • This extension is expected to generate approximately $7.3 million in EBITDA over the minimum charter duration.
  1. Impact on Financials:
  • The charter extension will increase Euroseas' charter coverage to about 85% for 2025 and 50% for 2026.
  • The feeder containership market remains resilient, with limited vessel availability supporting strong rates.
  1. Fleet Profile:
  • Post spin-off of three subsidiaries into Euroholdings Ltd., Euroseas will maintain a fleet of 22 vessels comprising:
    • 15 Feeder containerships.
    • 7 Intermediate containerships.
  • Total carrying capacity of the fleet will be 67,494 TEU.
  • After the delivery of two new intermediate containerships in 2027, the fleet will grow to 24 vessels with a total capacity of 76,094 TEU.
  1. Forward-Looking Statements:
  • The report includes forward-looking statements regarding the company's growth strategy and potential vessel acquisitions, emphasizing inherent market risks and uncertainties.
  1. Management Commentary:
  • Chairman and CEO Aristides Pittas mentioned the strong charter market conditions and positive financial outlook associated with the new charter.
  1. Contact Information:
  • CFO: Tasos Aslidis
  • Email: aha@euroseas.gr
  • Address: 11 Canterbury Lane, Watchung, NJ 07069
  1. Legal Notice:
  • The report outlines that certain statements are forward-looking and subject to risks that could affect actual results.

This summary provides a concise view of Euroseas Ltd.'s recent charter contract extension, its fleet management strategy, and overall financial outlook as communicated in the SEC filing.