Euroseas Ltd. (Athens, Greece), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that its Board of Directors has declared a dividend of $0.10 per common share for the first quarter of 2009. The dividend is payable on June 17, 2009 to all shareholders of record as of June 5, 2009.
Furthermore a subsidiary of the Company has entered into an approximately one-year time charter agreement for the M/V "Eleni P," a 72,119 dwt, 1997 built Panamax bulk carrier, at a gross daily rate of $15,350. The charter will commence upon completion of its present charter estimated to be completed before the end of this month.
Following this charter, approximately 68% of Euroseas total fleet days of the remaining 2009 and approximately 45% in 2010 are secured under period charters or Forward Freight Agreements (FFA's). Regarding FFA's, the Company has sold to-date FFA contracts on the panamax index totaling 645 days for 2009 with an average time charter equivalent rate of approximately $12,300 per day and 1055 days for 2010 with an average time charter equivalent rate of approximately $12,800 per day. The panamax index refers to a modern panamax dry bulk carrier. All FFA contracts that the Company sold are cleared.
Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are happy to announce our ability to continue to pay considerable dividends in this very challenging environment. This dividend represents a yield of approximately 7% keeping our company amongst the few dry shipping companies still able or willing to pay dividends. Our focus remains to continue growing our fleet and providing superior risk-adjusted returns to our shareholders.
"We are also very happy to announce that we have secured a one year time charter for our vessel Eleni P at levels which are accretive to our EBITDA. We believe that this fixture will provide us with substantial additional secured cash for the next twelve months."