• Follow Us On Our Preferred Social Media Platform:

Genco completes acquisition, takes delivery of 3 fuel efficient ships

13 Sep 2018

New York-listed dry bulker Genco Shipping & Trading will take delivery of three fuel efficient 2016-built ships: the Capesize vessels Genco Defender and Genco Liberty, and the Ultramax Genco Columbia.

These deliveries complete the two vessel acquisitions that Genco announced in the second and third quarters of 2018, the company said in a statement earlier this week.

The Genco Defender and the Genco Liberty are the two Capesize vessels that Genco agreed to acquire in July 2018, while the Genco Columbia is the last of four vessels that Genco agreed to acquire in June 2018.

To fund the purchases, Genco says it utilized cash on hand and drew down an additional $56.25 million under its new $108 million credit facility, utilizing its full availability.

Commenting on the purchase of the six vessels, Genco CEO John C. Wobensmith said: “The timely acquisition of these modern, high specification drybulk vessels, combined with our success selling older tonnage, has enhanced Genco’s position for capitalizing on strong demand for drybulk commodities and multi-decade low vessel supply growth rates.”

“The earnings environment for the Capesize and Ultramax sectors remains favorable, and we are pleased to have increased the size of our fleet and improved its overall age profile and earnings capacity during the seasonally stronger second half of the year,” he added.

The six vessels, where delivery is expected in the third quarter, are ideal for long haul trading patterns due to their fuel efficiency, the company.

As such, Genco says it plans to reposition the vessels from their delivery ports in the Far East to Atlantic positions to benefit from a potential freight rate increase in the fourth quarter of 2018. 

Genco also announced that it anticipates delivering the Genco Progress – a 1999-built Handysize vessel – to its buyers on or about September 12, and that it has entered into an agreement for the sale of the Genco Cavalier – a 2007-built, 53,617-dwt Supramax vessel – as part of its fleet renewal program.

The aggregate sale price for the Genco Cavalier is $10m, and it is expected to be delivered to its buyer during the fourth quarter of 2018. 

Genco’s completed vessel acquisitions, together with the recent or expected sale of four older vessels, is expected to reduce the average age of the company’s fleet by approximately one year to 9.3 years and increase overall carrying capacity to approximately 5,347,000 dwt.

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes.
Its fleet consists of 17 Capesize, five Panamax, six Ultramax, 21 Supramax, one Handymax and 15 Handysize vessels with an aggregate capacity of approximately 5,460,000 dwt.

Photo credit: Genco
Published: 13 September, 2018
 

Related News

Featured News

Our Industry Partners

  • argus

PR Newswire