Genco Shipping & Trading Limited Completes Acquisitions of High Specification, Fuel Efficient Capesize and Ultramax Vessels
September 11 2018 - 4:30PM
Genco Shipping & Trading Limited (NYSE: GNK) (“Genco” or the
“Company”) today announced that it has taken delivery of the Genco
Defender and the Genco Liberty, two 2016-built 180,000 dwt Capesize
vessels, as well as the Genco Columbia, a 2016-built 60,000 dwt
Ultramax vessel in September 2018. These deliveries complete the
two vessel acquisitions that Genco announced in the second and
third quarters of 2018.
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 purchase of these high
specification, fuel efficient vessels, Genco utilized cash on hand
and drew down an additional $56.25 million under its new $108
million credit facility, utilizing its full availability.
Genco also announced today that it anticipates
delivering the Genco Progress, a 1999-built Handysize vessel, to
its buyers on or about September 12, 2018 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 vessel is $10 million. The sale is
subject to customary conditions, and the vessel 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.
All six acquisition vessels delivered
to Genco in the third quarter are high specification, fuel
efficient vessels that are ideal for long haul trading patterns.
The Company therefore plans to strategically 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.
John C. Wobensmith, Chief Executive Officer,
commented, “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.”
About Genco Shipping & Trading
LimitedGenco Shipping & Trading Limited transports
iron ore, coal, grain, steel products and other drybulk cargoes
along worldwide shipping routes. As of September 11, 2018, Genco
Shipping & Trading Limited’s 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.
“Safe Harbor” Statement Under the
Private Securities Litigation Reform Act of 1995This press
release contains forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements use words such as
“anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,”
“plan,” “believe,” and other words and terms of similar meaning in
connection with a discussion of potential future events,
circumstances or future operating or financial performance. These
forward looking statements are based on management’s current
expectations and observations. Included among the factors
that, in our view, could cause actual results to differ materially
from the forward looking statements contained in this press release
are completion of documentation for vessel transactions and the
performance of the terms thereof by buyers of vessels and us, the
rates our vessels may be able to earn, and other factors listed
from time to time in our public filings with the Securities and
Exchange Commission including, without limitation, the Company’s
Annual Report on Form 10-K for the year ended December 31, 2017 and
its subsequent reports on Form 10-Q and Form 8-K. We do not
undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
CONTACT:Apostolos ZafoliasChief
Financial OfficerGenco Shipping & Trading Limited(646)
443-8550
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