Euroseas Ltd. Announces Time Charter Contract For Its Fuel-Efficient 2,800 teu Feeder Containership, M/V Tender Soul, For A Period Of 8-10 Months At The Option Of The Charterer, At A Gross Daily Rate Of $17,000, To Be delivered In February 2024
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Euroseas Ltd. (NASDAQ:ESEA) has secured a time charter contract for its new fuel-efficient 2,800 teu feeder containership, M/V Tender Soul, for 8-10 months at $17,000 per day, starting February 2024. The charter is expected to contribute approximately $2.4 million of EBITDA for the minimum period and increases the company's 2024 charter coverage to about 70%. The company's CEO, Aristides Pittas, expressed satisfaction with the deal, especially given the current high rate of new vessel deliveries and pressure on containership rates. Euroseas is also focusing on chartering out remaining newbuildings and completing their debt financing, while maintaining a strong cash position to fund their newbuilding program and return funds to shareholders through dividends and buybacks.
January 11, 2024 | 9:10 pm
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POSITIVE IMPACT
Euroseas Ltd. has entered into a profitable time charter contract for its new vessel, M/V Tender Soul, which is expected to contribute $2.4 million of EBITDA and significantly increase the company's charter coverage for 2024.
The announcement of a new time charter contract at a profitable rate is positive news for Euroseas Ltd., as it ensures a steady revenue stream and improves the company's EBITDA. The deal also demonstrates the company's ability to secure contracts in a challenging market environment, which is likely to be viewed favorably by investors. The positive financial impact and increased charter coverage for 2024 suggest a potential short-term uplift in the stock price.
CONFIDENCE 90
IMPORTANCE 80
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