ESEA · Euroseas Ltd.

Euroseas Ltd. has secured a significant charter extension for its 2007-built feeder containership, EM Kea, locking in a lucrative rate that reflects the current strength in the containership charter market. The agreement, secured with a top-class charterer, extends the employment of the vessel for a minimum of three years at a gross rate of $30,000 per day. This rate represents a substantial improvement of nearly 60% compared to the vessel's previous employment terms, highlighting the company's ability to capitalize on favorable market conditions driven by a shortage of prompt tonnage and ongoing macroeconomic disruptions.

The financial impact of this fixture is material, with management projecting the generation of approximately $22.5 million in EBITDA over the minimum contracted period. This visibility is crucial for investor confidence, as it substantially boosts the company's revenue backlog. Consequently, Euroseas has revised its charter coverage upward, reporting coverage of approximately 91% for 2026, 76% for 2027, and 44% for 2028. These high coverage levels provide a stable earnings foundation amidst market volatility.

Operationally, the extension ensures seamless employment for the EM Kea, commencing immediately after its current charter ends in July 2026. This development aligns with Euroseas' broader strategy of securing long-term employment for its assets while expanding its fleet. The company currently operates 21 vessels with an additional six under construction, scheduled for delivery between 2027 and 2028, which will expand total capacity to 84,676 TEU. The disciplined growth strategy, combined with strong charter coverage, positions Euroseas to deliver consistent shareholder value.