Having taken advantage of firm asset values to selectively dispose older vessels from its fleet, U.S.- headquartered drybulk shipowner Genco Shipping & Trading is ready to increase its earnings power with high-quality capesize vessels.
John Wobensmith, CEO of drybulk specialist Genco Shipping and Trading, revealed his intention to continue to advance the company’s growth strategy with the acquisition of modern, fuel-efficient capesize vessels.
The shipowner Genco is acquiring a 2016-built 180,000 dwt high-specification capesize vessel for a purchase price of $47.5m.
Genco expects to take delivery of the vessel, to be named the Genco Intrepid, within the next 30 days, and intends to fund the acquisition with cash on hand, and a drawdown from its revolving credit facility.
John C. Wobensmith, chief executive officer, said: “We are pleased to continue to advance our growth strategy with the acquisition of this modern, fuel-efficient Capesize vessel.
“The purchase is consistent with our stated objective of reinvesting proceeds from the sale of older, less fuel-efficient vessels into high-quality Capesize vessels to increase our earnings power and further modernize our fleet.
“Since implementing our value strategy in 2021, Genco has invested approximately $285 million in fleet expansion and modernization, including this latest acquisition.
“Moving ahead, we believe Genco’s significant financial strength, highlighted by $328 million of undrawn revolver capacity at the end of Q2, will enable us to continue to capitalize on growth opportunities.
“At the same time, we remain focused on delivering sizable dividends to shareholders, following our recent decision to enhance our dividend formula to increase the amount of cash available for distributions to shareholders.”
Genco’s fleet is expected to consist of 42 vessels, including 16 capesize, 15 ultramax and 11 supramax vessels with an aggregate capacity of approximately 4,446,000 dwt and an average age of 11.8 years, after agreed upon vessel sales and the delivery of the Genco Intrepid.
