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Euroseas Ltd. Financial Report: Spin-off Plans & Fleet Modernization Insights

$ESEA
Form 6-K
Filed on: 2025-01-03
Source
Euroseas Ltd. Financial Report: Spin-off Plans & Fleet Modernization Insights

Key Information from Euroseas Ltd. Financial Report (Form 6-K)

Date of Filing: January 3, 2025 Company: Euroseas Ltd. Commission File Number: 001-33283 Location: 4 Messogiou & Evropis Street, 151 24 Maroussi, Greece Form Type: 6-K (Report of Foreign Private Issuer)

Major Announcements:

  1. Time Charter for M/V Aegean Express:
  • The charter for the older feeder containership, M/V Aegean Express, has been extended for a minimum of 10 months, with a maximum of 12 months.
  • Daily charter rate: $16,700.
  1. Spin-off of Older Vessels:
  • Euroseas intends to spin off three older vessels (M/V Aegean Express, M/V Diamantis P, and M/V Joanna) into a new entity named Euroholdings Ltd.
  • Euroholdings has applied for listing on the NASDAQ Capital Market.
  • Euroseas will exchange the three vessels for 100% of Euroholdings shares, which will be distributed to Euroseas shareholders.
  • The spin-off is aimed at maximizing shareholder value and creating a separate platform with a different strategy focused on older vessels.
  1. Management Commentary:
  • Aristides Pittas, Chairman and CEO, expressed optimism about the spin-off, indicating it would enable Euroseas to capture new opportunities while continuing to modernize its fleet.
  • The spin-off is not expected to materially affect Euroseas' overall strategy, as Euroholdings represents about 5% of Euroseas' NAV.
  1. Fleet Modernization:
  • Euroseas has ordered 11 newbuilding vessels, with deliveries scheduled between 2023 and 2027.
  • The company has focused on maintaining older vessels to generate higher returns, supported by their management's track record.
  1. Upcoming Conference Call:
  • A conference call is scheduled for January 7, 2025, at 9:00 a.m. EST to discuss the spin-off details.

Fleet Profile:

  • Current Fleet: 23 vessels (16 Feeder, 7 Intermediate) with a cargo capacity of 67,073 TEU.
  • Post Spin-off Fleet: Euroholdings Ltd. will manage the three vessels while Euroseas continues to operate its modern fleet.
  • Total Container Carriers on the Water: 20 vessels with a total cargo capacity of 774,930 DWT and 61,894 TEU.

Financial Highlights:

  • The report emphasizes Euroseas' strong capital structure and commitment to high dividend distributions based on charter cover.

Contact Information:

  • CFO: Tasos Aslidis
  • Email: aha@euroseas.gr
  • Address: 11 Canterbury Lane, Watchung, NJ 07069

Forward-Looking Statements:

  • The report contains statements regarding future vessel acquisitions and operational strategies, highlighting inherent risks and uncertainties in the shipping market.

This summary encapsulates the key points from Euroseas Ltd.'s financial report for January 2025, focusing on strategic decisions, operational details, and future plans.