Euroseas extends charter for M/V Rena P at $35,500 daily

Published 18/03/2025, 21:14
Euroseas extends charter for M/V Rena P at $35,500 daily

ATHENS - Euroseas Ltd. (NASDAQ:ESEA), a container carrier vessel operator, has announced the extension of its time charter contract for the M/V Rena P, a 4,250 teu intermediate containership. The new charter agreement with a top-tier charterer is set to commence on August 21, 2025, for a minimum of 35 months and a maximum of 37 months, at a gross daily rate of $35,500. The news comes as the newly spun-off EuroHoldings Ltd. (NASDAQ:EHLD) faces market challenges, with InvestingPro data showing the stock trading near its 52-week low amid high price volatility.

The extension follows the current charter and is expected to generate approximately $29.0 million in EBITDA over the minimum contracted period. This agreement increases Euroseas’ charter coverage for 2025 to about 88% and for 2026 to about 54%.

Concurrently, Euroseas has completed the spin-off of three subsidiaries containing two older vessels, M/V Aegean Express and M/V Joanna, as well as proceeds from the sale of M/V Diamantis P, into a newly formed independent company, EuroHoldings Ltd. (NASDAQ:EHLD), which began operating today.

Aristides Pittas, Chairman and CEO of Euroseas, commented on the developments, noting the resilience of the charter market amidst geopolitical uncertainties, limited vessel availability, and sustained demand. The new charter rate for M/V Rena P aligns with similar charters within the fleet from the previous year.

Following the spin-off, Euroseas’ fleet profile comprises 22 vessels, including 15 Feeder and 7 Intermediate containerships, with a total cargo capacity of 67,494 teu. With the scheduled delivery of two additional intermediate containerships in 2027, the fleet will expand to 24 vessels with a carrying capacity of 76,094 teu.

This news is based on a press release statement from Euroseas Ltd. and reflects the company’s current operations and forward-looking statements concerning its growth strategy and future vessel acquisitions. According to InvestingPro analysis, EHLD currently faces challenges with weak gross profit margins and poor free cash flow yield. Subscribers to InvestingPro can access 4 additional key insights about EHLD’s financial health and market position, along with detailed valuation metrics and peer comparisons.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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