Greek shipowner Euroseas eyes fresh round of newbuildings

“We are diligently looking for and evaluating accretive investment opportunities,” remarked chairman and chief executive of the US-listed shipping company, Mr Pittas, during the Q2 earnings announcement. Riviera understands Euroseas is focusing on expanding its fleet through newbuildings.

Shipbuilding sources indicate the Greek shipping company has signed a letter of intent with a Chinese shipyard for up to four 4,300-TEU container vessels. Some sources identify Yangzijiang Shipbuilding as the likely partner. Although the deal has not yet been finalised, negotiations are reportedly progressing well.

Euroseas made significant investments in newbuildings between 2021 and 2022, booking nine container vessels with capacities ranging from 1,800 to 2,800 TEU. According to the company’s website, most of these ships have already joined the fleet, with two more set for delivery in Q1 2025. The entire Euroseas fleet consists of 25 container vessels, with a combined capacity of 72,673 TEU.

Strong Q2 performance

Euroseas delivered its strongest quarterly results in recent years during Q2 2024. Net revenues surged to US$58.7M, a 23.1% increase from US$47.7M in the same period last year. Net income also saw substantial growth, rising to US$40.7M from US$28.9M in Q2 2023.

Mr Pittas revealed Euroseas’ charter coverage stands at approximately 75% for the next 12 months. He expressed confidence the company will be able to recharter the few vessels becoming available this year at similar levels, further bolstering forward earnings.

“The second quarter was strong for the container vessel markets, with charter rates continuing to rise and more than doubling on average from their levels at the end of 2023,” Mr Pittas noted in the report. He also highlighted these favorable market conditions were reflected in the charter rates and contract terms secured for Euroseas’ own vessels.

Newbuilding surge

The ongoing crisis in the Red Sea has significantly boosted the charter market environment, sparking a newbuilding rally reminiscent of the surge seen during the pandemic.

Greek shipowners have been particularly active in placing new orders over the past few months. Prominent players such as John Coustas-led Danaos Corp and Angeliki Frangou-backed Navios Maritime Partners have been among those securing newbuild contracts.

Liners are leading this new wave of orders, as they rush to secure early delivery slots in an increasingly tight shipyard market.