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Euroseas, Ltd. Message Board

  • derek_ladique derek_ladique Oct 4, 2007 12:45 PM Flag

    Recent Pana purchase

    What's the feeling about this Panamax purchase? It's got a $35,500 charter for about 9 months when it's delivered. The only drawback I see is the age of the vessel. I was hoping we would be in the process of updating our fleet but this purchase equals the oldest vessel age of any we operate.

    How do others feel about this?

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    • It's fantastic. At $35,500/day it's making a profit of nearly $30,000/day (a little less due to depreciation), or nearly $11M per year. At a purchase price of $28.6M, it pays for itself in just over 2.5 years. Even better though, the dayrate should go up dramatically in July since panamax spot rates are about double what it's getting now, so it will probably have paid for itself in under 2 years.

      It will also still have substantial value even half a dozen years from now because with the current market, older ships are being kept in service due to the incredible demand.

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