Euroseas (ESEA) – Expanding New Build Program But Still Expect Dividend and/or Buy Backs

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Wednesday, February 02, 2022

Euroseas (ESEA)
Expanding New Build Program But Still Expect Dividend and/or Buy Backs

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Two new build feeders added to existing new build program. Two Eco design 2,800 TEU Feeders will be built at Hyundai Mipo in South Korea at an estimated cost of ~$85 million, or ~12% above the Feeders ordered in 2Q2021. Deliveries are slated for 4Q2023/1Q2024. The new build program expands to four Feeders, and we view this move as a sign of confidence in the Feeder market outlook in part due to an order book that is below the order book for intermediate and larger containerships.

    First two Feeder new builds on track and time charter interest developing.  The first two Eco design 2,800 TEU Feeders ordered in 2Q2021 are on track, with deliveries are slated for 1Q2023/2Q2023. Total estimated cost is ~$76 million. On the last call, management indicated that interest was picking up and time charters are likely to be in place prior to delivery …

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. 


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