The Greek ship owner Euroseas will acquire the feeder Piraeus Trader for US$25.5 million and will enter it into a three-year time charter.
The 1,740TEU vessel, which was built in 2006, is expected to be delivered to Euroseas in October and then it will be renamed Jonathan P.
The vessel charter will offer the Greek shipping company US$26,700 per day net, while the vessel will be financed by own funds and a bank loan.
“This charter will contribute about US$22 million of Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) during the period of the contract, providing us with a significant return on our investment and reducing, by the end of the charter, the cost basis of the vessel below its current scrap value,” stated chairman and CEO of Euroseas, Aristides Pittas.
He also added that the EBITDA backlog of the currently contracted vessel capacity until the end of 2023 of about US$115 million represents approximately 50% of the total available days.
After the delivery of Piraeus Trader, Euroseas will have a fleet of 15 vessels comprising of 10 feeders and 5 intermediate container ships, having a total capacity of 44,021TEU.
Moreover, the company intends to be further expanded “in a risk measured and accretive manner further establishing Euroseas as the main US publicly listed company focusing on feeder and intermediate container vessels,” with two newbuild feeders in the first half of 2023.
Therefore, Euroseas will dispose of 17 vessels in its fleet with a total carrying capacity of 49,621TEU.
