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Euroseas: The ‘comeback’ of the containerships charter market

"One-year charters are up about 35% from lows recorded in December 2023," the shipping company's president and CEO said

The head of Euroseas, Aristides Pittas, spoke about the “unexpected comeback” of the containerships charter market, during the announcement of the financial results for 2023.

“One-year charters are up about 35% from lows recorded in December 2023,” the shipping company’s president and CEO said and added: “This recovery appears to be primarily the result of turmoil in the Red Sea, leading to longer voyages as ships avoid the region.”

“The extent to which these attacks continue will shape short-term fare developments. A number of our vessels have benefited from this improved charter environment and we expect the next four new vessels to be delivered within the next 4-5 months to benefit equally,” Pittas noted.

Higher economic figures

The long-term contracts secured by Euroseas during the market rally in previous years have led to strong results, while the proportion of the fleet with charters for 2024 and 2025 is significantly high.

The listed company’s revenue climbed to 189.35 million US dollars in 2023 from 182.7 million US dollars in 2022, while net profit rose to 114.54 million US dollars from 106.24 million US dollars a year earlier.

On a fourth-quarter basis, revenue in 2023 stood at 49 million US dollars, up from 42.88 million US dollars in 2022, and profitability reached 24.72 million US dollars, up from 20.33 million US dollars in 2022.

“We estimate that profitability is adequately protected in 2024 by the backlog of contracted revenue in excess of 350 million US dollars. We have also secured significant revenues for 2025 as well, having covered more than 25% of the available days at particularly profitable levels,” Pittas emphasized.

Euroseas’ board of directors increased the quarterly dividend by 20% to 0.60 dollars per share, payable on March 15, 2024.

The listed company’s fleet consists of 20 containerships, while it is awaiting the delivery of six more newly built vessels.