Yesterday, the diversified Greek owner told investors it acquired a panamax that was built in2004 by a Japanese yard but did not provide any other details about thetransaction.
Less than24 hours later a leading sale-and-purchase broker identified the 76,500-dwtMillion Trader II (built 2004) asthe vessel in question.
The firmsays an affiliate of Euroseas paid $21.5m for the vessel, which isapproximately $1m higher than what the VesselsValue.com platform believes it tobe worth in today’s market.
The owner’s chief executive, AristidesPittas, said little about the transaction in a conference call with investorsFriday morning but did note that the price tag was slightly more than $20m.
According to Clarksons and other market sources the bulker, which was constructed by Tsuneishi Zosen, is controlled by Nisshin Shipping Co of Japan and will likely change hands within the next three months.
Campaign will continue
Pittas, who was quick to praise management’snew relationship with Tennenbaum Capital, pointed out that his company will continueto pursue fleet expansion in the months ahead.
He noted that Euroseas intends to focuson the acquisition of bulkers while containership purchases will likely be leftto Euromar, its joint venture with Eton Park and Rhone Capital.
Pittas said his company recently committedto ploughing another $5m into the partnership and indicated the alliance nowhas enough cash on hand to pounce on up to four more vessels.
Pittas issues lacklustre rate forecast
Going forward the executive said heexpects freight rates in the dry-bulk segment to improve in 2014 and 2015 butadmitted he doesn’t believe it will be a dramatic rebound.
“Weexpect demand prospects for containerships to also improve in 2014 and 2015,but demand is still shaky in view of the fragile economic environment,” Pittas continued.
“With nonew incremental deliveries expected for 2014 and 2015 we expect the supply/demandbalance slightly in favour of demand and the modest improvement of rates overthe next two years.”
In response to aquestion about chartering strategy Pittas said Euroseas will continue to focuson trading tonnage in the spot market but admitted it might book period deals ifrates “hit very high levels”, which he does not expect to see anytime soon.
“As longas we feel that we are on a rising market we will be doing short-term charters,”he said. “Of course if we reach at very high levels, then we mightconservatively book in some long periods but we're still far from that even inthe drybulk sector.”