Euroseas Expands Fleet

Friday, October 05, 2007
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, signed a Memorandum of Agreement to purchase the M/V Trust Jakarta, a Panamax drybulk vessel of 64,873 dwt built in 1984 in Japan. The M/V Trust Jakarta was acquired for approximately $28.6 million and comes with a period charter attached until July 2008 at a rate of $35,500 per day. The vessel will be delivered to the Company between October 15 and November 15, 2007 at the sellers option and will be renamed M/V Ioanna P. Following the delivery of the M/V Ioanna P., and the previously acquired M/V Tiger Bridge, approximately 79% of Euroseas total fleet days in the fourth quarter of 2007 and approximately 45% in 2008 will be fixed under period charters, already concluded spot charters, or, otherwise protected from market fluctuations. Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to announce that we have agreed to acquire the M/V Ioanna P, our 15th vessel. This will be the seventh vessel to be purchased this year and the fourth since our follow-on equity offering in June 2007. We have essentially doubled our fleet in less than a year through accretive acquisitions. All of our investments have been carefully selected amongst a multitude of available projects within the dry shipping sector so as to achieve attractive returns for our shareholders. In that respect, the acquisition of M/V Ioanna P follows on the successful precedent of our previous drybulk acquisition of M/V Gregos in February 2007, also a 1984-built vessel, which has provided us with superior returns to-date. We expect that the acquisition of M/V Ioanna P will be accretive to our earnings and cash flow. Based on current charter rates, we expect to recoup this capital investment in less than three years, thus bearing minimal residual value risk as compared to investment in younger vessels. While we continue to focus on acquisitions of middle age tonnage on the containership front, we firmly believe that in the present high asset value drybulk market, well maintained vessels built in the mid-80s provide the best returns.
Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

ZIM Launches Monitoring and Tracking Service

ZIM integrated shipping services has announced the launching of a new monitoring, tracking and security services package, specifically designed for valuable and

China Exim Bank, SWS Sign $312m Financing Deal

Shanghai Waigaoqiao Shipbuilding  (SWS), a  yard owned by the industrial conglomerate China State Shipbuilding Corp (CSSC), has secured a US$312million loan from

Port of Indiana-Jeffersonville Sets Shipping Record

Grain, steel, salt help port exceed 2 million tons for first time in 29-year history   The Port of Indiana-Jeffersonville handled over 2.4 million tons of cargo in 2014,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1101 sec (9 req/sec)