Euroseas has entered into a time charter contract for its newbuilding vessel, the 82,000 dwt Ekaterini.
Under the agreement, secured through its subsidiary, the company’s 2018-built Kamsarmax bulk carrier has been chartered to a “highly reputable European charterer” for about two years at a gross daily rate of USD 13,000.
The charter will commence upon delivery of the vessel, scheduled to take place on May 7, and is expected to contribute some USD 9 million of net revenues to Euroseas during the contract period.
Additionally, the company has secured a bank loan of about USD 18.4 million to finance the acquisition of the vessel. Proceeds from the loan will enhance Euroseas’ liquidity by about USD 2.2 million after repayment of the last installment to the shipyard and all related expenses with the delivery of the vessel.
“We believe that this fixture will provide us with substantial additional secured cash flow for the next two years, allowing us more flexibility in pursuing further growth opportunities,” Aristides Pittas, Chairman and CEO of Euroseas, said.