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Euroseas Secures Daily $62,500 Charter for Container Ship and Sells Vessel for $26 Million

BullishMedium impact
ESEA$66.59 0.63%

Euroseas Ltd. (ESEA) announced two fleet updates: a new lucrative charter agreement and a vessel sale. The ocean shipping company secured a 12-to-14-month time charter for its 2,556 TEU feeder containership, M/V EM Corfu, at a gross rate of $62,500 per day. Simultaneously, Euroseas agreed to sell a sister ship, M/V Evridiki G, to an independent buyer for approximately $26 million.

The new charter rate for M/V EM Corfu is expected to produce roughly $17.8 million in EBITDA during its minimum 12-month period, lifting the firm's total charter coverage to 100% for 2026 and 91% for 2027. Meanwhile, the vessel sale is projected to yield an estimated gain of $22.5 million, representing about $3.19 per share. Shares of Euroseas Ltd. traded down 1.90% at $66.17 following the announcements.

Investors should monitor the delivery of M/V Evridiki G to its new owners at the end of October, as well as M/V EM Corfu starting its new charter in mid-December after scheduled dry-dock work. Further ahead, Euroseas is set to receive 12 newbuilding vessels between 2027 and 2029, which will expand its total fleet from 20 to 32 ships.

Key points

  • Euroseas signed a 12-to-14-month charter for M/V EM Corfu at $62,500 per day, expected to start in mid-December 2026 after dry-docking.
  • The agreement is anticipated to generate around $17.8 million in EBITDA over its minimum contracted period.
  • Euroseas agreed to sell sister vessel M/V Evridiki G for about $26 million, generating an expected gain on sale of $22.5 million, or $3.19 per share.
  • The deal increases Euroseas fleet charter coverage to about 100% for 2026, 91% for 2027, and 49% for 2028.

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Questions and answers

What is the new charter rate for Euroseas ship M/V EM Corfu?

Euroseas agreed to a daily gross charter rate of $62,500 for M/V EM Corfu for a minimum of 12 to a maximum of 14 months, expected to begin in mid-December 2026.

How much did Euroseas sell M/V Evridiki G for?

Euroseas agreed to sell M/V Evridiki G for approximately $26 million, which is expected to record a gain on sale of roughly $22.5 million, or $3.19 per share.

How does the new charter affect Euroseas fleet coverage?

The contract raises Euroseas fleet charter coverage to approximately 100% for 2026, 91% for 2027, and 49% for 2028.