Euroseas has greenlighted an $86m deal to build two container ships at Hyundai Mipo Dockyard (HMD).
The New York-listed shipowner said it exercised options for a pair of 2,800-teu vessels, bringing its newbuilding programme to nine ships.
The duo, which the company described as “eco-design fuel-efficient” boxships, will be delivered during the fourth quarter of 2024.
“The current contracts along with the orders we placed previously bring our newbuilding programme to nine vessels and solidify our presence in the large feeder container ship sector. It further highlights our commitment for an environmentally friendly fleet,” said chief executive Aristides Pittas.
The Greek company said it will finance its latest two newbuildings with a combination of debt and equity.
Euroseas is paying $43m per vessel, only slightly more than it agreed to pay for two identical vessels booked four months ago. Four identical vessels were ordered in June 2021 and January this year.
As it announced that it had struck the options, Euroseas said it spent $11m to upgrade the environmental features of all six of the 2,800-teu newbuildings.
Instead of complying with the International Maritime Organization’s older Tier II standards for nitrogen oxide emissions, they will now comply with Tier III and will be LNG-ready.
Euroseas’ orderbook includes three 1,800-teu vessels.
All nine of its newbuildings are on order at South Korea’s HMD, which Pittas described as “one of the top quality shipbuilders in the world”.
“With our earnings visibility well into 2025, we believe that investing in modern new vessels makes good use of the cash flow that our existing vessels generate and positions Euroseas to benefit from upcoming market developments, especially, as related to new environmental regulations for the benefit of our shareholders,” he said.
The shipowner has also been grabbing tonnage in the secondhand market. On 3 May, TradeWinds reported that Euroseas bought the 4,250-teu Seaspan Melbourne (built 2005) and Seaspan Manila (built 2007) for $37m from Seaspan Corp, bringing its on-the-water fleet to 18 ships.