ATHENS, Greece, April 19, 2022 (GLOBE NEWSWIRE) — EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), owner and operator of dry bulk vessels and provider of dry bulk cargo shipping, today announced that it has agreed to acquire the M/ V Santa Cruz, a 76,440 dwt bulk carrier built in 2005, for $15.75 million. The vessel was controlled by an unaffiliated third party and was managed by Eurobulk Ltd., which also manages the majority of the Company’s vessels. The vessel is expected to be delivered to the Company around the end of April 2022. The Company will also assume the existing charter of the vessel at $14,800 per day until July 2022. The acquisition will be equity financed.
Aristides Pittas, CEO of EuroDry commented:
“We are pleased to announce the acquisition of the M/V Santa Cruz, a Panamax dry bulk carrier built in 2005. This acquisition further expands our fleet at a time when market fundamentals are quite favorable in an environment of uncertainty. geopolitics. Demand is expected to remain strong, supported by huge demand from energy and infrastructure projects announced by various governments, while fleet growth is expected to be limited, as evidenced by historically low levels of order backlog. At current market rates, we expect M/V Santa Cruz to make a significant contribution to our net income and EBITDA. The fund accumulation that our fleet generates provides us with significant fleet expansion capabilities and other shareholder reward options and we will continue to seek those most appropriate for the benefit of our shareholders at all times. »
Following the delivery of the M/V Santa Cruz, EuroDry Ltd.’s fleet profile. will be the following:
|TCE rate ($/day)||Dry bulk carriers|
|EKATERINI||Kamsarmax||82,000||2018||TC until May 22
Hire 106% of
|(***) hint||ALEXANDROS P.||Ultramax||63,500||2017||TC until May 22|
|$26,250||XENIA*||Kamsarmax||82,000||2016||TC until August 22
Hire 105% of
|(***) hint||GOOD HEART*||Ultramax||62,996||2014||TC until October 22|
TC until May 22
|TC until April 23
|$25,750||SANTA CRUZ||panamax||76,440||2005||TC until July 22|
|$14,800||GOOD LUCK||panamax||76,704||2004||TC until July 22|
|$19,500||EIRINI P.*||panamax||76,466||2004||TC until May 22
|BPI (**) 4TC||STARS LIGHT*||panamax||75,845||2004||TC until October 22
|BPI (**) 4TC||TASO||panamax||75 100||2000||TC until April 22|
|$18,750||PANTELIS||panamax||74,020||2000||TC until July 22|
|Total dry bulk carriers||11||802 995|
|Represents the first delivery date|
|(**)||BPI stands for Baltic Panamax Index; the average BPI 4TC is an index based on four-stroke charter routes.|
|(***)||The Baltic Kamsarmax P5TC Average Index is an index based on five Panamax time charter routes.|
About EuroDry Ltd.
EuroDry Ltd. was established on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the dry bulk fleet of Euroseas Ltd. into a separate public listed company. EuroDry was separated from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the symbol EDRY.
EuroDry operates in the dry freight and dry bulk transport market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., who are responsible for the daily commercial and technical management and operations of the vessels. EuroDry employs its vessels on one-off and periodic charters and under pool agreements.
After the delivery of the M/V Santa Cruz, the Company will have a fleet of 11 vessels, including 6 Panamax bulk carriers, 1 Supramax bulk carrier, 2 Ultramax bulk carriers and 2 Kamsarmax bulk carriers. EuroDry’s 11 dry bulk carriers have a total cargo capacity of 802,995 dwt.
|This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding future events and the growth strategy of the Company and the measures to implement such strategy; including planned vessel acquisitions and the conclusion of other time charters. Words such as “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. These statements involve known and unknown risks and are based on a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in demand for dry bulk carriers, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances about which any statement is based.||Visit our website www.eurodry.gr|
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