SOURCE: Euroseas

Euroseas

December 22, 2010 09:40 ET

Euroseas Ltd. Announces Time Charter Agreements for Its Panamax Bulk Carriers M/V Eleni P, M/V Irini and M/V Aristides N P

ATHENS, GREECE--(Marketwire - December 22, 2010) - 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 three subsidiaries of the Company have entered into time charter agreements for the following vessels :

M/V Eleni P, a 72,119 dwt, 1997 built Panamax bulk carrier, has been chartered for about two years period at a gross daily rate of $16,500. The charter will commence in March 2011 upon the completion of the necessary drydocking works following her release from the Somali Pirates. This employment is expected to generate approximately $12 million of gross revenues during the period of the charter.

M/V Irini, a 69,734 dwt, 1988 built Panamax bulk carrier, has been chartered for about two and a half years period at a gross daily rate of $14,000. The charter has already commenced since the 10th of December 2010. This employment is expected to generate approximately $12.7 million of gross revenues during the period of the charter.

Both the above charters have been concluded with highly reputable European Charterers.

Furthermore the company announced that M/V Aristides N P a 69,268 dwt, 1993 built Panamax bulk carrier, has been withdrawn from the service of her previous Charterers due to their performance which raised concerns for the ability of the Charterers to further fulfil their obligations. The company has taken all necessary legal actions in order to protect its interests and rights. M/V Aristides N P has been chartered for a short voyage at market rates.

Following the above mentioned charters, approximately 60% of Euroseas total fleet days for 2011 and approximately 16% in 2012 are secured under period charters or Forward Freight Agreements (FFAs)**. The respective coverage for the Drybulk vessels only is about 82% for 2011 and 44% for 2012.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are pleased to announce that we have secured time charter Agreements for our m/v Eleni P and m/v Irini in this challenging environment at levels which are accretive to our EBITDA. We believe that this fixture will provide us with substantial additional secured cash for the next two years, allowing us more flexibility in pursuing further growth opportunities. "

As of December 22, Euroseas Ltd. fleet profile is as follows:


                                           Year                   TCERate
Name           Type        Dwt      TEU    Built   Employment     ($/day)
           ------------- --------- ------ ------- -----------  ------------

Dry Bulk
 Vessels
           ------------- --------- ------ ------- -----------  ------------
                                                       TC til
PANTELIS         Panamax    74,020           2000      Feb-12  $     17,500
           ------------- --------- ------ ------- -----------  ------------
                                                      TC 'til
ELENI P          Panamax    72,119           1997      Jan-13  $     16,500
           ------------- --------- ------ ------- -----------  ------------
                                                      TC 'til
IRINI            Panamax    69,734           1988      Apr-13  $     14,000
           ------------- --------- ------ ------- -----------  ------------

ARISTIDES
 N.P.            Panamax    69,268           1993        Spot
           ------------- --------- ------ ------- -----------  ------------
                                                  Bulkhandling
MONICA P (*)    Handymax    46,667           1998        Pool
           ------------- --------- ------ ------- -----------  ------------
Total Dry
 Bulk
 Vessels               5   331,808
           ------------- --------- ------ ------- -----------  ------------
Multipurpose
 Dry Cargo
 Vessels
           ------------- --------- ------ ------- -----------  ------------
                                                               $ 9,500 'til
                                                                    Dec-10,
TASMAN                                                TC 'til  $ 9,000 'til
 TRADER                1    22,568    950    1990      Mar-12        Mar-12
           ------------- --------- ------ ------- -----------  ------------
Container
 Carriers
           ------------- --------- ------ ------- -----------  ------------
                                                                   $ 16,800
                                                                'til Aug-11
                                                               $18,735 'til
                                                     TC 'til         Aug-12
                                                     Aug-11    $19,240 'til
                                                   (3 annual         Aug-13
MAERSK                                              options    $19,750 'til
 NOUMEA     Intermediate    34,677  2,556    2001 'til Aug-14)       Aug-14
           ------------- --------- ------ ------- -----------  ------------
                                                      TC 'til
                                                       Mar-11
TIGER                                              Option til        $4,000
 BRIDGE     Intermediate    31,627  2,228    1990      Mar-12        $7,500
           ------------- --------- ------ ------- -----------  ------------
                                                      TC 'til
AGGELIKI P  Intermediate    30,360  2,008    1998      May-11  $      7,000
           ------------- --------- ------ ------- -----------  ------------
                                                           In
DESPINA P     Handy size    33,667  1,932    1990    Dry-dock
           ------------- --------- ------ ------- -----------  ------------
JONATHAN P
 (ex-OEL                                               TC til
 INTEGRITY)   Handy size    33,667  1,932    1990    April-11  $      9,000
           ------------- --------- ------ ------- -----------  ------------
CAPTAIN COSTAS                                        Monthly
 (ex-OEL                                           options TC
 TRANSWORLD)  Handy size    30,007  1,742    1992 'til Mar-11  $      4,250
           ------------- --------- ------ ------- -----------  ------------
YM Port
 Klang
 (ex-Mastro                                           TC 'til
 Nicos)       Handy size    23,596  1,599    1993      Nov-11  $      5,900
           ------------- --------- ------ ------- -----------  ------------
                                                      TC 'til
MANOLIS P     Handy size    20,346  1,452    1995      May-11  $      7,699
           ------------- --------- ------ ------- -----------  ------------
NINOS
 (ex-YM
 QINGDAO                                              TC 'til
 I)               Feeder    18,253  1,169    1990      Mar-11  $      6,800
           ------------- --------- ------ ------- -----------  ------------
KUO                                                 TC ' til
 HSIUNG           Feeder    18,154  1,169    1993     Jun-11   $      5,300
           ------------- --------- ------ ------- -----------  ------------
Total
 Container
 Carriers             10   274,354 17,787
           ------------- --------- ------ ------- -----------  ------------
Fleet
 Grand
 Total                16   628,730 18,737
           ------------- --------- ------ ------- -----------  ------------


TC denotes time charter. All dates listed are the earliest redelivery dates under each TC.

(*) "Monica P" is employed in the Bulkhandling spot pool that is managed by Klaveness, a major global charterer in the drybulk area.

(**) The company has concluded a Freight Forward Agreement(FFA) option contract on the panamax index for colander 2011 for a modern panamax. Such a contract serves as an approximate hedge to one of our panamax vessels for 2011 effectively locking in a rate between $16,500 and $23,500.

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 since January 31, 2007.

Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2000 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 4 Panamax drybulk carriers and 1 Handymax drybulk carrier, 3 Intermediate containership, 5 Handysize containerships, 2 Feeder containerships and a multipurpose dry cargo vessel. Euroseas' 5 drybulk carriers have a total cargo capacity of 331,808 dwt, its 10 containerships have a cargo capacity of 17,787 teu and its 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 and container ships, 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

Contact Information

  • 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