The 2007-built 3,091-TEU EM Kea has been extended by the current charterer for a period of between 25 and 28 months at a daily rate of US$22,000. The new rate will commence on April 25, about two months earlier than the expiration of the present charter.
Meanwhile, the 2009-built 4,253-TEU Synergy Busan has entered into a new time charter contract for between 36 and 40 months at a daily rate of $25,000. The vessel is expected to commence the charter between June 9 and August 9.
'The new charters secure a minimum of $40 million of contracted revenues and make an annualised EBITDA contribution of $11.5 million which is about $9 million higher than, or 4.5 times, their present contribution of about $2.5 million, significantly improving our profitability and cash flow visibility,' said Euroseas chairman and CEO Aristides Pittas.
'Undoubtedly, the containership markets have had a remarkable run over the last six months with all factors in the marketplace suggesting continuing strength. After these two charters, seven of our 14 vessels would be earning higher rates reflective of the recent market recovery,' Mr Pittas said.
If the present market levels continue, renewals of the five remaining charters with legacy rates expiring in 2021 should result in significant further increase in our profitability. The cash flow generated would be available to further strengthen our balance sheet, be used for further investment or for reinstitution of dividends,' he said.