Euroseas, listed on NASDAQ, has signed a charter agreement worth $62,500 per day for its 25-year-old cargo ship named EM Corfu. This contract reflects strong demand in the small cargo ship market and allows Euroseas to capitalize on financial opportunities.
Charter Agreement Details
The EM Corfu, built in 2001 and with a capacity of 2,556 TEU, has been chartered for a minimum of 12 and a maximum of 14 months with an option to extend. This contract will commence in mid-December following a scheduled maintenance period. The new charter rate represents a significant increase from the previous rate of $28,000 per day and is expected to generate approximately $17.8 million in EBITDA for Euroseas during the minimum charter period.
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Sister Ship Sale
In addition to the charter agreement, Euroseas has also reached a sale agreement for its sister ship named Evridiki G to an unrelated third party for an approximate price of $26 million. This ship was also built in 2001 and is expected to be sold by the end of October after the expiration of the current charter. Euroseas anticipates recording approximately $22.5 million in accounting profit from this sale.
Both ships were previously chartered in November 2024 at rates of $28,000 and $29,500 per day, respectively. The new charter agreement is more than double the previous rate for the EM Corfu, and the sale of the sister ship allows Euroseas to achieve significant profits from the sale without incurring costly repairs.
Future of Euroseas
After the sale of Evridiki G, Euroseas will continue to operate 20 cargo ships with a total capacity of approximately 58,600 TEU. The company also has 12 additional ships under construction in China, with capacities ranging from 1,800 TEU to 4,484 TEU. Deliveries of these ships are scheduled between 2027 and 2029. Given the positive trend in the small cargo ship market, Euroseas appears to be moving towards further growth and development in the future.
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