Euroseas Ltd signed a Memorandum of Agreement to sell M/V Ioanna P, a Panamax drybulk vessel of 64,873 dwt.
Euroseas Ltd., an owner and operator of drybulk carriers, container ship and multipurpose vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced yesterday that it has signed a Memorandum of Agreement to sell M/V Ioanna P, a Panamax drybulk vessel of 64,873 dwt built in 1984 in Japan. The M/V Ioanna P was sold for approximately $3.85 million. The vessel will be delivered to her new owners within January 2009. Furthermore the company has entered into an agreement to extend the charters of two of its containerships while adjusting their present charter rate. The charter of M/V OEL Transworld will be extended for an additional one year at Euroseas' option at a gross daily rate of $10,000 after the conclusion of the present charter while reducing her current charter from $18,500 to $12,000 starting on the 9th of November 2008. Additionally, the charter of M/V OEL Integrity will be extended for an additional six months at Euroseas' option at a gross daily rate of $7,000 while reducing her current charter from $16,500 to $11,000 starting on the 9th of November 2008.
Following the sale of the M/V Ioanna P, the previously acquired M/V Solar Europe and assuming Euroseas chooses to extend the above-mentioned charters, approximately 50% of Euroseas total fleet days of 2009 and approximately 27% in 2010 will be fixed under period charters, already concluded spot charters, FFA contracts, or, otherwise protected from market fluctuations.
Aristides Pittas, Chairman and CEO of Euroseas, commented: "With the sale of M/V Ioanna P, one of our eldest units, we are continuing our fleet renewal and expansion program. We believe that the strength of our balance sheet will enable us to capitalize on opportunities to renew and grow our fleet in 2009. Our additional decision to renegotiate the two charters while securing optional extensions at our option trades off cash flow in early 2009 with additional flexibility and downside protection in the later part of 2009 and 2010 while maintaining any potential upside."