Euroseas Spinning Off Its Drybulk Fleet
- Business & Finance
Euroseas, a Greece-based owner of containerships and bulk carriers, has spun off its drybulk fleet into a separate company.
The company said that it filed a registration statement on Form F-1 with the Securities and Exchange Commission to spin-off its drybulk fleet into a separate company, EuroDry Ltd., which has applied for listing on the NASDAQ Capital Market.
“We believe that separate drybulk and containership investment options will give our shareholders the flexibility to adjust their holdings, if they so wish, between the two sectors. We also anticipate that the creation of sector-focused companies will allow the capital markets to appreciate the value that our public platforms can create as consolidators in their respective fields,” Aristides Pittas, Chairman and CEO of Euroseas, said.
EuroDry Ltd. is a middle range drybulk owner with six vessels in its fleet, three of which are newbuildings, one Ultramax and two Kamsarmaxes, and three Panamaxes built post-2000.
Euroseas Ltd., the only feeder containership public company, has a fleet of eleven vessels now.
“We plan to take advantage of growth opportunities in each of the two sectors to increase the size of each respective company as we believe that they are both well positioned to do so both in terms of their capital structure and their contract mix,” Pittas said.
The company reported a net loss of USD 3.2 million in the first quarter of 2018, as compared to a net loss of USD 2.2 million for the first quarter of 2017.
Regarding developments post-March 31, Euroseas said that it took delivery of newbuilding M/V Ekaterini, a 82,000 dwt drybulk vessel, which entered into a two-year charter at a rate of USD 13,000 per day.
Euroseas also reported that its containership, M/V EM Astoria, suffered propeller damage and will require repairs that will prevent the vessel from trading.
“The company is making every possible effort for the vessel to resume trading in the shortest possible time,” Euroseas said.