SOURCE: Euroseas

December 30, 2008 16:05 ET

Euroseas Ltd. Announces Agreement to Sell Panamax Drybulk Vessel and Renegotiation and Extension of Two Container Vessel Charters

MAROUSSI, ATHENS, GREECE--(Marketwire - December 30, 2008) - Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk carriers, container ship and multipurpose vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that it has signed a Memorandum of Agreement to sell M/V Ioanna P, a Panamax drybulk vessel of 64,873 dwt built in 1984 in Japan. The M/V Ioanna P was sold for approximately $3.85 million. The vessel will be delivered to her new owners within January 2009.

Furthermore the company has entered into an agreement to extend the charters of two of its containerships while adjusting their present charter rate. The charter of M/V OEL Transworld will be extended for an additional one year at Euroseas' option at a gross daily rate of $10,000 after the conclusion of the present charter while reducing her current charter from $18,500 to $12,000 starting on the 9th of November 2008. Additionally, the charter of M/V OEL Integrity will be extended for an additional six months at Euroseas' option at a gross daily rate of $7,000 while reducing her current charter from $16,500 to $11,000 starting on the 9th of November 2008.

Following the sale of the M/V Ioanna P, the previously acquired M/V Solar Europe and assuming Euroseas chooses to extend the above-mentioned charters, approximately 50% of Euroseas total fleet days of 2009 and approximately 27% in 2010 will be fixed under period charters, already concluded spot charters, FFA contracts, or, otherwise protected from market fluctuations.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "With the sale of M/V Ioanna P, one of our eldest units, we are continuing our fleet renewal and expansion program. We believe that the strength of our balance sheet will enable us to capitalize on opportunities to renew and grow our fleet in 2009. Our additional decision to renegotiate the two charters while securing optional extensions at our option trades off cash flow in early 2009 with additional flexibility and downside protection in the later part of 2009 and 2010 while maintaining any potential upside."

Fleet Profile:

Following the delivery around the end of January 2009 of the recently acquired M/V Solar Europe, the Euroseas Ltd. fleet profile will be as follows:

                                        Year                    TCERate
Name            Type       Dwt    TEU   Built   Employment      ($/day)
            ------------ ------- ------ ----- -------------  --------------
Dry Bulk Vessels
            ------------ ------- ------ ----- -------------  --------------
IRINI (*)        Panamax  69,734         1988 Baumarine Pool           Spot
            ------------ ------- ------ ----- -------------  --------------
ARISTIDES N.P.   Panamax  69,268         1993 TC 'til Jan-09        $52,000
            ------------ ------- ------ ----- -------------  --------------
SOLAR EUROPE
 (to be                                         Spot - from
  renamed)     Handysize  46,667         1998        Jan-09            Spot
            ------------ ------- ------ ----- -------------  --------------
NIKOLAOS P.    Handysize  34,750         1984          Spot            Spot
            ------------ ------- ------ ----- -------------  --------------
GREGOS         Handysize  38,691         1984          Spot            Spot
            ------------ ------- ------ ----- -------------  --------------
Total Dry
 Bulk Vessels          5 259,110
            ------------ ------- ------ ----- -------------  --------------

            ------------ ------- ------ ----- -------------  --------------
Multipurpose
 Dry Cargo Vessels
            ------------ ------- ------ ----- -------------  --------------
                                                               $ 9,500 'til
TASMAN TRADER          1  22,568    950  1990 TC 'til Mar-12        Dec-10,
                                                               $ 9,000 'til
                                                                    Mar-12
            ------------ ------- ------ ----- -------------  --------------
Container Carriers
            ------------ ------- ------ ----- -------------  --------------
                                                               $16,800 'til
                                                                    Aug 11
                                              TC 'til Aug-11   $18,735 'til
MAERSK                                        (3 annual             Aug 12
 NOUMEA     Intermediate  34,677  2,556  2001  options         $19,240 'til
                                               'til Aug-14)         Aug 13
                                                               $19,750 'til
                                                                    Aug 14
            ------------ ------- ------ ----- -------------  --------------
TIGER
 BRIDGE     Intermediate  31,627  2,228  1990 TC 'til Jul-09        $16,500
            ------------ ------- ------ ----- -------------  --------------
ARTEMIS     Intermediate  29,693  2,098  1987 TC 'til Dec-08        $19,000
            ------------ ------- ------ ----- -------------  --------------
DESPINA P     Handy size  33,667  1,932  1990 TC 'til Jan-09        $15,250
            ------------ ------- ------ ----- -------------  --------------
                                              TC 'til Apr-09        $11,000
OEL INTEGRITY                                    'til Oct-09        $ 7,000
(ex-          Handy size  33,667  1,932  1990      (owner's       (owner's
 JONATHAN P)                                        option)        option)
            ------------ ------- ------ ----- -------------  --------------
                                              TC 'til Oct-09        $12,000
OEL TRANSWORLD                                   'til Oct-10        $10,000
(ex-CLAN      Handy size  30,007  1,742  1992      (owner's       (owner's
 GLADIATOR)                                         option)        option)
            ------------ ------- ------ ----- -------------  --------------
YM XINGANG I  Handy size  23,596  1,599  1993 TC 'til Jul-09        $26,650
            ------------ ------- ------ ----- -------------  --------------
MANOLIS P     Handy size  20,346  1,452  1995 TC 'til Oct-09        $15,800
            ------------ ------- ------ ----- -------------  --------------
NINOS (ex-
YM QINGDAO I)     Feeder  18,253  1,169  1990 TC 'til Apr-10        $ 8,060
            ------------ ------- ------ ----- -------------  --------------

KUO HSIUNG        Feeder  18,154  1,169  1993 TC 'til Jan-09        $15,800
            ------------ ------- ------ ----- -------------  --------------
Total Container
 Carriers             10 273,687 17,877
            ------------ ------- ------ ----- -------------  --------------
Fleet Grand
 Total                16 555,365 18,827
            ------------ ------- ------ ----- -------------  --------------

(*) "IRINI" is employed in the Baumarine spot pool that is managed by
    Klaveness, a major global charterer in the dry bulk area.

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 Market under the ticker ESEA.

Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2000 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 16 vessels, including 3 Panamax drybulk carriers, 2 Handysize drybulk carriers, 3 Intermediate container ship, 5 Handysize container ships, 2 Feeder container ships and a multipurpose dry cargo vessel. Euroseas' 5 drybulk carriers have a total cargo capacity of 277,316 dwt, its 10 container ships have a cargo capacity of 17,787 teu and its 1 multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu.

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 expected vessel acquisitions and entering into further 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 dry bulk vessels, 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.

Contact Information

  • Contact:
    Visit our website www.euroseas.gr

    Company Contact
    Tasos Aslidis
    Chief Financial Officer
    Euroseas Ltd.
    11 Canterbury Lane,
    Watchung, NJ 07069
    Tel. (908) 301-9091
    E-mail: aha@euroseas.gr

    Investor Relations / Financial Media
    Nicolas Bornozis
    President
    Capital Link, Inc.
    230 Park Avenue, Suite 1536
    New York, NY 10169
    Tel. (212) 661-7566
    E-mail: nbornozis@capitallink.com