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Euroseas Ltd. Announces Strategic Moves: Time Charter for M/V Aegean Express and Spin-Off of Older Vessels

Briggs McCriddle

In a bold step to enhance operational efficiency and align with market demands, Euroseas Ltd. (NASDAQ: ESEA), a prominent player in the container shipping industry, has announced two significant initiatives. The company has finalized a lucrative time charter agreement for its M/V Aegean Express, an older containership, and plans to spin off three additional vessels into a new standalone company.

The M/V Aegean Express, a 1997-built containership with a capacity of 1,439 TEUs, has been chartered for a term of 18 to 24 months. This agreement ensures a steady revenue stream for the company, with charter rates reflecting the current strength of the containership market.

This development underscores Euroseas’ commitment to leveraging market opportunities to maximize the utilization of its fleet while providing consistent value to shareholders.

In tandem with the charter deal, Euroseas has revealed its decision to spin off three of its older vessels—M/V Ekaterini, M/V Joanna, and M/V Kalina—into a new company. This strategic move will allow Euroseas to focus on its more modern and fuel-efficient vessels while providing the spun-off company with the flexibility to pursue its own operational objectives.

Aristides Pittas, Chairman and CEO of Euroseas Ltd., explained the rationale behind the decision: "This initiative is part of our ongoing efforts to optimize fleet performance and enhance shareholder value. By creating a separate entity, we can ensure both companies have the tools to succeed in their respective markets."

The spin-off and time charter announcement come at a time when the shipping industry is navigating post-pandemic recovery, heightened environmental regulations, and volatile market conditions. By retaining its newer vessels, Euroseas is positioning itself to meet emerging challenges head-on, particularly in areas such as sustainability and operational efficiency.

The spin-off is anticipated to conclude in the coming months, subject to regulatory and shareholder approvals. Shareholders of Euroseas will benefit by receiving shares in the newly formed entity, ensuring continuity of value.

Euroseas Ltd. is a leading owner and operator of container vessels, catering to global shipping needs. The company prides itself on operational excellence and its commitment to sustainable and efficient shipping solutions.

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