Genco Acquires Three Bulk Carriers

Dry bulk shipping company Genco Shipping & Trading Limited said it has taken delivery of three 2016-built bulk carriers and sold off older tonnage as part of its fleet renewal strategy.

The New York based company has taken delivery of two 180,000 dwt Capesize vessels as well a 60,000 dwt Ultramax vessel in September 2018. Genco agreed to acquire the two Capesize vessels, Genco Defender and Genco Liberty, in July 2018, while the Ultramax vessel, Genco Columbia, is the last of four vessels that Genco agreed to acquire in June 2018.

Genco said it funded the purchase of these vessels with 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 expects to deliver the 1999-built Handysize vessel, Genco Progress, to its buyers this week.

Additionally, the company has agreed to sell a 2007-built 53,617 dwt Supramax vessel for $10 million. The vessel, Genco Cavalier, is expected to be delivered to its buyer during the fourth quarter of 2018.

Genco’s CEO, John C. Wobensmith, 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 dry bulk 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.”

According to Genco, the recent vessel acquisitions and sales 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 has acquired six vessels in the third quarter, all of which are high specification, fuel efficient vessels suited for long haul trading patterns. The company 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.