Genco Buys Secondhand Ultramax Bulk Carrier

Dry bulk shipping company Genco Shipping & Trading Limited said on Wednesday it has reached a deal to acquire a 2016-built 64,000 dwt Ultramax bulk carrier constructed at Zhejiang Yangfan shipyard in China. The vessel, to be renamed Genco Enterprise, is expected to be delivered to Genco between May and July 2021.

The purchase marks the fourth Ultramax vessel that Genco has agreed to acquire since December 2020 amid surging rates in the dry bulk sector.

John C. Wobensmith, Genco CEO, said, “This latest Ultramax acquisition further grows our presence within the key Ultramax sector that we believe will seamlessly integrate with our strong in-house commercial operating platform. This represents an opportunistic purchase given the current freight rate environment together with our positive long-term outlook for the dry bulk market.”

Genco said it intends to fund the acquisition from cash on the balance sheet on a low leverage basis.

“Importantly, this acquisition aligns with our new corporate strategy which allows for further debt reduction while enabling growth in a parallel path,” Wobensmith said.

Earlier this week, New York-listed Genco announced a new plan to pay quarterly cash dividends to shareholders based on cash flows after debt service less a reserve for the growth of the company’s asset base, further debt reduction and general corporate purposes.