Movers and SHAKERS
Euroseas agrees to buy two container vessels
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.Euroseas agreed to acquire two 4,250 teu container vessels for a combined price of $37 million. The acquisitions increase ESEA's fleet to 18 vessels with 54,621 teu with an additional 7 newbuildings and 16,600 teu to be delivered in 2023-24. The price per teu is in line with recent prices, which have skyrocketed in the last 18 months as shipping rates have risen.
Euroseas has locked in shipping sales contracts to assure the acquisitions are immediately accretive to EBITDA. The M/V Seaspan Manila ship has a contract through February 2025 at prices near $20,000 (with ceiling and floor pricing after April 2024). The M/V Seaspan Melbourne has a contract until March 2025 at $19,000/day. Combined, management believes the ships will add $20 million to EBITDA, or approximately $2.75 per share....
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.