The Greek container vessel owner Euroseas has agreed to acquire two 4,250 TEU boxships, Seaspan Manila and Seaspan Melbourne, built in 2007 and 2005, respectively, for a total price of US$37 million.
Euroseas said it will assume the existing charter arrangements of the vessels, while both acquisitions will be initially financed with the company’s own funds.
Seaspan Manila is expected to be delivered to Euroseas within July 2022 and has a charter contract until February 2025 at a rate which is US$20,250 per day until April 2024. Subsequently, based on the container ship time charter assessment (CONTEX) index, the rate will have a floor of $13,000 per day and a ceiling of $21,000 per day until the end of the charter period. Additionally, Seaspan Melbourne is expected to be delivered to the company within June 2022 and has a charter contract until March 2025 at a rate of US$19,000 per day.
These charters are expected to contribute in excess of about US$20 million of EBITDA, bringing the cost basis of the vessels to scrap price levels by the end of the charters while providing a contribution to Euroseas profitability, according to Aristides Pittas, chairman and CEO of the company, who said that “depending on the market after the end of the charters in early 2025, we may enjoy significant additional upside if the containership markets are even just at historically average levels.”
Pittas noted that Euroseas’s fleet growth strategy is focused on acquisitions with low-risk profiles alongside the company’s newbuilding program.
Once the delivery of the above vessels is completed, the Greek ship owner will have a fleet of 18 container vessels and seven additional feeder boxships on order.
