Euroseas Ltd. Signs New Building Agreements for the Acquisition of Two Fuel
Efficient Kamsarmax Drybulk Carriers and Announces New
Acquisition for Its Joint Venture Euromar
ATHENS, GREECE -- (Marketwired) -- 04/02/14 -- Euroseas Ltd.
(NASDAQ: ESEA), an owner and operator of drybulk carriers and
container vessels and provider of seaborne transportation for dry
bulk and containerized cargoes, announced today that it has signed a
contract for the acquisition of two eco-design kamsarmax fuel
efficient drybulk carriers. The vessels will have a carrying capacity
of 82,000 dwt each and will be built at Jiangsu Yangzijiang
Shipbuilding Co. The two newbuildings are scheduled to be delivered
in the fourth quarter of 2015 and in the fourth quarter of 2016. The
total consideration for these two newbuilding contracts is a bit
below $60 million.
Furthermore, the Company announced that its joint venture, Euromar
LLC ("Euromar"), has purchased the M/V Akinada Bridge, a gearless
containership of 5,600 teu and 71,366mt dwt built in 2001 in South
Korea. The vessel comes with an above market time charter attached to
one of the biggest Japanese charterers and is expected to improve the
company's cash flow significantly for the next 2.5 years of its
Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are
pleased to announce the purchase of two more eco-design vessels. With
this order, we have increased our newbuilding orderbook to 4 vessels,
which brings our total fleet to 19 vessels and improves our fleet
profile significantly. We believe we are at the start of a strong
year for the drybulk market and are positioning Euroseas to take
advantage of an improving market.
"We are also very pleased to announce that our Joint venture has
concluded the purchase and has already taken delivery of M/V Akinada
Bridge. With containership prices close to their all time lows and
secured income for the vessel for the next 2.5 years this investment
has little if no downside and can prove very profitable in a
recovering market. Euromar is well capitalized and with its 11-vessel
strong fleet ready to take advantage of a recovery in the Container
market which is bound to occur sooner or later."
About Euroseas Ltd.
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 136 years. Euroseas
trades on the NASDAQ Global Select Market under the ticker ESEA since
January 31, 2007.
Euroseas operates in the dry cargo, drybulk and container shipping
markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO
9001:2008 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.
The Company has a fleet of 15 vessels, including 4 Panamax drybulk
carriers and 1 Handymax drybulk carrier, 3 Intermediate
containership, 5 Handysize containerships and 2 Feeder
containerships. Euroseas 5 drybulk carriers have a total cargo
capacity of 338,540 dwt, its 10 containerships have a cargo capacity
of 17,587 teu. Euroseas has also entered into agreements for the
construction of two 63,500 dwt Ultramax dry bulk vessels with
expected deliveries during the fourth quarter of 2015 and the first
quarter of 2016, respectively. Euroseas has also entered into
agreements for the construction of two 82,000 dwt Kamsarmax dry bulk
vessels with expected deliveries during the fourth quarter of 2015
and the fourth quarter of 2016, respectively.
Forward Looking Statement
This press release contains
forward-looking statements (as defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended) concerning future events and the
Company's growth strategy and measures to implement such strategy;
including our expected joint venture and vessel acquisitions and time
charters. Words such as "expects," "intends," "plans," "believes,"
"anticipates," "hopes," "estimates," and variations of such words and
similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been
correct. These statements involve known and unknown risks and are
based upon a number of assumptions and estimates that are inherently
subject to significant uncertainties and contingencies, many of which
are beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, changes in the demand for
drybulk vessels and containerships, competitive factors in the market
in which the Company operates; risks associated with operations
outside the United States; and other factors listed from time to time
in the Company's filings with the Securities and Exchange Commission.
The Company expressly disclaims any obligations or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's
expectations with respect thereto or any change in events, conditions
or circumstances on which any statement is based.
Visit our website www.euroseas.gr
Chief Financial Officer
11 Canterbury Lane
Watchung, NJ 07069
Tel. (908) 301-9091
Investor Relations / Financial Media
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
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