Euroseas has decided to go forward with the construction of a previously delayed kamsarmax, in the wake of an apparent recovery in the dry bulk market.
The Nasdaq-listed company will pay Jiangsu Yangzijiang Shipbuilding Co another $22.5m for the 82,000-dwt newbuilding, a reduction of more than 10%.
Euroseas will take delivery of the ship by June 2018. It initially placed the order for the vessel in 2014.
Aristides Pittas, chairman of Euroseas, said: “The reduction in the contract price coupled with the recovery we see taking place in the dry bulk market has made this investment very attractive prompting us to forgo an option to terminate the contract but rather proceed with the building of the vessel.”
This is the sole vessel in Euroseas’ orderbook and will be a sister ship to the 82,000-dwt Xenia (built 2016), built by the same yard.
Euroseas said the Xenia has operated “very efficiently and economically for more than a year”.
Pittas added: “We look forward to continuing the expansion and renewal of our fleet in both the dry bulk and containership sectors at a time when a strong recovery in rates and values has been observed in the dry bulk sector and we are starting to see signs of stabilization and recovery in the containership sector as well.”
Euroseas, which posted a $17.6m loss in the fourth quarter, has been active in the sale & purchase (S&P) market over the past months by tapping the secondhand market and scrapping older ships.
