Genco Shipping & Trading Limited Implements Comprehensive Fleet Plan Ahead of IMO 2020 Regulations
October 09 2018 - 6:50AM
Genco Shipping & Trading Limited (NYSE: GNK) (“Genco” or the
“Company”) today announced that it plans to install exhaust gas
cleaning systems (“scrubbers”) on its 17 Capesize vessels with
options for installation on an additional 15 minor bulk vessels.
The balance of the fleet is expected to consume compliant, low
sulphur fuel beginning in 2020, when new environmental regulations
come into effect capping sulphur emissions at 0.5%, down from 3.5%
currently. Genco will also continue to execute its previously
announced fleet renewal program aimed at selling older, less
fuel-efficient vessels and redeploying the capital towards high
specification, fuel-efficient vessels to further reduce emissions.
The Company anticipates scrubber installation to be completed in
2019, ahead of the January 1, 2020 deadline.
Genco estimates that the cost of each scrubber,
including installation, will be approximately $2 million. The
Company is currently in discussions with various lenders in regards
to scrubber financing. For further details of Genco’s plan
for compliance with IMO 2020, please see the presentation posted on
Genco’s website at www.gencoshipping.com under “Investor
Relations—Events and Presentations.”
John C. Wobensmith, Chief Executive Officer,
commented, “Following the recent addition of six modern, high
specification drybulk vessels to our fleet, and during a time when
we continue to execute our fleet renewal strategy, we are pleased
to announce Genco’s comprehensive plan for IMO 2020. Our portfolio
approach is aimed at improving our environmental footprint,
maximizing shareholder returns and reducing fuel costs in an
evolving marine fuel environment. Based on extensive evaluation and
analysis, we plan to fit our Capesize vessels with scrubbers given
their trading patterns and higher fuel consumption, which we expect
to result in a very attractive payback period. Options to install
scrubbers on 15 minor bulk vessels will also provide the Company
with the flexibility to react to market conditions as they
develop.”
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 October 9, 2018, Genco
Shipping & Trading Limited’s fleet consists of 17 Capesize,
five Panamax, six Ultramax, 21 Supramax, one Handymax and 14
Handysize vessels with an aggregate capacity of approximately
5,430,000 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 the terms of definitive documentation for the purchase and
installation of scrubbers and our ability to have scrubbers
installed within the price range and time frame anticipated, our
ability to obtain financing for scrubbers on acceptable terms, the
relative cost and availability of low sulphur and high sulphur
fuel, worldwide compliance with IMO 2020 regulations, our
dispositions of vessels, 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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