The Greek owner and operator of container vessels Euroseas has announced the extension of the charter of its container vessel Evridiki G, as well as a new time charter contract for EM Corfu.
Firstly, the 2,556-TEU Evridiki G, which was built in 2001, has entered into a new time charter contract for a period of between a minimum of 36 and a maximum of 38 months, at the option of the charterer, at a daily rate of US$40,000.
The new rate will commence on 1 February 2022, according to Euroseas.
In addition, EM Corfu, built in 2001 as well, and disposing of the same container handling capacity as Evridiki G, has also entered into a new time charter contract at a daily rate of US$40,000 for a period of between 36 and 38 months, at the option of the charterer.
The new rate is projected to commence in the middle of February 2022, upon completion of the feedermax vessel’s drydocking.
Aristides Pittas, chairman and CEO of Euroseas commented that the new charters secure a minimum of US$85 million of contracted revenues and that they are expected to make an annualised Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) contribution in excess of US$22.3 million combined.
This number is about US$19 million, or at least seven times higher than their joint contribution over the last twelve months of about US$3 million, according to Euroseas CEO.
“These new charters significantly improve both our profitability and cash flow visibility with our charter coverage for 2022 now exceeding 85% and for 2023 55%,” stated Pittas, how pointed out that the container ship markets continue to show their strength and momentum “as indicated by the rate and the duration of the above charters.”
Euroseas’ chairman also unveiled plans for re-chartering two vessels within the next four months and another two ships, later in 2022.
“Furthermore, we started exploring chartering options for our two new buildings which are expected to be delivered by the end of the first and second quarters of 2023, respectively, as initially scheduled,” continued Pittas.
