- The Company will also assume the existing charter of the vessel at $13,250/day until April 2022.
- The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.
- EuroDry operates in the dry cargo, dry bulk shipping market.
EuroDry Ltd. (NASDAQ: EDRY), a dry bulk vessel owner and operator as well as a supplier of seaborne transportation for dry bulk cargoes, announced today that it has agreed to purchase M/V Molyvos Luck, a 57,924 dwt dry bulk vessel built in 2014, for $21.2 million as reported by GlobeNewswire.
The vessel was majority-owned by an unaffiliated third party and has been managed by Eurobulk Ltd., also the manager of the majority of the Company’s vessels. The vessel is expected to be delivered to the Company around the end of January 2022. The Company will also assume the existing charter of the vessel at $13,250/day until April 2022. The acquisition will be initially financed by the Company’s own funds; a bank loan will be arranged to partly finance the acquisition after the purchase is completed.
Announcement of acquisition
Aristides Pittas, Chairman and CEO of EuroDry commented:
“We are pleased to announce the acquisition of M/V Molyvos Luck, a Supramax, dry bulk carrier built-in 2014. This acquisition further expands our modern fleet cluster at a time when the market fundamentals are very supportive of a continuing strong market as there are signs that the pandemic may recede and fleet growth is expected to be limited as evidenced by the historically low levels of the order book. At current market rates, we expect that M/V Molyvos Luck will make a significant contribution to our net income and EBITDA. The accumulation of funds that our fleet generates provides us with several investments, expansion or other shareholder reward options and we will continue pursuing those most appropriate for the benefit of our shareholders at any given point.”
After the delivery of the M/V Molyvos Luck, the EuroDry Ltd. fleet profile will be as follows:
|(*)||Represents the earliest redelivery date|
|(**)||BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four-time charter routes.|
|(***)||The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.|
|(****)||The final rate depends on the actual duration due to the ballast bonus payment.|
About EuroDry Ltd.
EuroDry Ltd. was formed 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 listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY.
EuroDry operates in the dry cargo, dry bulk shipping 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., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.
After the delivery of M/V Molyvos Luck, the Company will have a fleet of 10 vessels, including 5 Panamax dry bulk carriers, 1 Supramax dry bulk carrier, 2 Ultramax dry bulk carrier and 2 Kamsarmax dry bulk carriers. EuroDry’s 9 dry bulk carriers have a total cargo capacity of 726,555 dwt.
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